Vol. 77 Thursday, No. 115 June 14, 2012

Pages 35617–35806

OFFICE OF THE FEDERAL REGISTER

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Contents Federal Register Vol. 77, No. 115

Thursday, June 14, 2012

Agriculture Department NOTICES See Rural Utilities Service Agency Information Collection Activities; Proposals, Submissions, and Approvals, 35660–35661 Army Department Agency Information Collection Activities; Proposals, See Engineers Corps Submissions, and Approvals: Federal Acquisition Regulation; Evaluation of Export Arts and Humanities, National Foundation Offers, 35661–35662 See National Foundation on the Arts and the Humanities Drug Enforcement Administration Bureau of Consumer Financial Protection NOTICES NOTICES Importers of Controlled Substances; Applications, 35718 Agency Information Collection Activities; Proposals, Submissions, and Approvals, 35658–35659 Education Department Request for Information Regarding Complaints from Private NOTICES Education Loan Borrowers, 35659–35660 Agency Information Collection Activities; Proposals, Submissions, and Approvals: Children and Families Administration Study of Strategies for Improving the Quality of Local NOTICES Grantee Program Evaluation, 35665–35666 Agency Information Collection Activities; Proposals, Applications for New Awards: Submissions, and Approvals: Teacher Incentive Fund, 35796–35806 Child Care Development Fund – Reporting Improper Meetings: Payments – Instructions for States, 35682 The Fund for the Improvement of Postsecondary Education National Board, 35666–35667 Coast Guard Teacher Incentive Fund Program: RULES Final Priorities, Requirements, Definitions, and Selection Safety Zones: Criteria, 35758–35794 Keweenaw Waterway, Hancock, MI, 35621–35623 Old Fashion 4th July Fireworks, Presque Isle Bay, Erie, Energy Department PA, 35619–35621 See Federal Energy Regulatory Commission NOTICES See Western Area Power Administration Agency Information Collection Activities; Proposals, Submissions, and Approvals, 35701–35704 Engineers Corps NOTICES Commerce Department Environmental Impact Statements; Availability, etc.: See National Oceanic and Atmospheric Administration Greenup Locks and Dam, General Reevaluation Report, Greenup County, KY, 35662–35663 Community Development Financial Institutions Fund Requests for Applications: NOTICES Stakeholder Representative Members of the Missouri Agency Information Collection Activities; Proposals, River Recovery Implementation Committee, 35663– Submissions, and Approvals, 35754 35664 Community Living Administration Environmental Protection Agency NOTICES PROPOSED RULES Agency Information Collection Activities; Proposals, Approval and Promulgation of Implementation Plans and Submissions, and Approvals: Designations of Areas for Air Quality Planning Evaluation of Aging and Disability Resource Center Purposes: Program, 35682–35683 Tennessee: Bristol; Determination of Attainment for the 2008 Lead Standards, 35652–35656 Consumer Product Safety Commission NOTICES NOTICES Public Water System Supervision Program: Meetings; Sunshine Act, 35660 Texas; Revision, 35676–35677 Regulation of Fuel and Fuel Additives: Copyright Office, Library of Congress Modification to Octamix Waiver, 35677–35679 PROPOSED RULES Verification of Statements of Account Submitted by Cable Export-Import Bank Operators and Satellite Carriers, 35643–35652 NOTICES Agency Information Collection Activities; Proposals, Defense Department Submissions, and Approvals, 35679–35680 See Engineers Corps RULES Federal Aviation Administration Federal Acquisition Regulations: RULES Justification and Approval of Sole Source 8a Contracts; Amendments of Class C Airspace: Correction, 35624 Colorado Springs, CO, 35617–35618

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Establishments of Area Navigation (RNAV) Routes: General Services Administration Southwestern United States, 35618–35619 RULES Federal Acquisition Regulations: Federal Communications Commission Justification and Approval of Sole Source 8a Contracts; RULES Correction, 35624 Connect America Fund; A National Broadband Plan for Our NOTICES Future: Agency Information Collection Activities; Proposals, Establishing Just and Reasonable Rates for Local Submissions, and Approvals: Exchange Carriers; High-Cost Universal Service Federal Acquisition Regulation; Evaluation of Export Support, 35623–35624 Offers, 35661–35662 Federal Election Commission NOTICES Health and Human Services Department Meetings; Sunshine Act, 35680 See Children and Families Administration See Community Living Administration Federal Energy Regulatory Commission See Food and Drug Administration NOTICES See Health Resources and Services Administration Agency Information Collection Activities; Proposals, See Indian Health Service Submissions, and Approvals, 35667–35668 NOTICES Initial Market-Based Rate Filings Including Requests for Interest Rate on Overdue Debts, 35681–35682 Blanket Section 204 Authorization: AltaGas Renewable Energy Colorado LLC, 35669–35670 Minco Wind III, LLC, 35670–35671 Health Resources and Services Administration RE McKenzie 1 LLC, 35670 NOTICES RE McKenzie 2 LLC, 35670 Requests for Nominations: RE McKenzie 3 LLC, 35668 Secretary’s Advisory Committee on Heritable Disorders in RE McKenzie 4 LLC, 35669 Newborns and Children, 35698–35699 RE McKenzie 5 LLC, 35671 RE McKenzie 6 LLC, 35669 Homeland Security Department Federal Maritime Commission See Coast Guard NOTICES See U.S. Immigration and Customs Enforcement Agreements Filed, 35680 NOTICES Agency Information Collection Activities; Proposals, Federal Railroad Administration Submissions, and Approvals: NOTICES Protected Critical Infrastructure Information Program Petitions for Waivers of Compliance, 35741–35742 Survey, 35700–35701 Federal Reserve System NOTICES Housing and Urban Development Department Change in Bank Control Notices; Acquisitions of Shares of NOTICES a Bank or Bank Holding Company, 35680–35681 Agency Information Collection Activities; Proposals, Formations of, Acquisitions by, and Mergers of Bank Submissions, and Approvals, 35705 Holding Companies, 35681 Agency Information Collection Activities; Proposals, Formations of, Acquisitions by, and Mergers of Savings and Submissions, and Approvals: Loan Holding Companies, 35681 Builders Certification of Plans, Specifications, and Site, 35708–35709 Food and Drug Administration FHA-Insured Mortgage Loan Servicing for Performing NOTICES Loans; MIP Processing, Escrow Administration, etc., Agency Information Collection Activities; Proposals, 35707–35708 Submissions, and Approvals: FHA-Insured Mortgage Loan Servicing Involving the Dietary Supplement Labeling Requirements and Claims and Conveyance Process, Property Inspection/ Recommendations, etc., 35687–35688 Preservation, 35710 Health Service Guideline on Infectious Disease Issues in Home Equity Conversion Mortgage Counseling Xenotransplantation, 35683–35687 Standardization and Roster, 35708 Draft and Revised Draft Guidances for Industry; Mark-to-Market Program; Requirements for Community- Availability: Based Non-Profit Organizations and Public Agencies, Describing Product-Specific Bioequivalence 35706–35707 Recommendations, 35688–35689 Multifamily Housing Procedures for Projects Affected by Guidance for Industry; Availability: Presidentially-Declared Disasters, 35711 Irritable Bowel Syndrome––Clinical Evaluation of Drugs Personal Financial and Credit Statement, 35709–35710 for Treatment; Availability; Correction, 35689 Supplement to Application for Federally Assisted Safety and Effectiveness Summaries for Premarket Approval Housing, 35705–35706 Applications; Availability: Strong Cities, Strong Communities National Resource Medical Devices, 35690–35691 Network Pilot Program, 35711–35718 Update to Electronic Common Technical Document Module 1, 35691 Withdrawal of Certain Unapproved Abbreviated New Drug Indian Health Service Applications, 35691–35698 See Indian Health Service

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NOTICES Securities and Exchange Commission Agency Information Collection Activities; Proposals, PROPOSED RULES Submissions, and Approvals Sequencing of Compliance Dates for Final Rules Applicable Addendum to Declaration for Federal Employment, Child to Security-Based Swaps, etc., 35625–35643 Care and Indian Child Care Worker Positions, 35699– NOTICES 35700 Self-Regulatory Organizations; Proposed Rule Changes: BATS Exchange, Inc., 35719–35723, 35735–35738 International Trade Commission Chicago Board Options Exchange, Inc., 35731–35732 NOTICES Chicago Mercantile Exchange, Inc., 35738–35739 Termination of Investigations: International Securities Exchange, LLC, 35723–35725, Certain Universal Serial Bus Portable Storage Devices 35727–35731 Including USB Flash Drives and Components NASDAQ OMX PHLX LLC, 35725–35727 Thereof, 35718 NASDAQ Stock Market LLC, 35732–35735 Justice Department Social Security Administration See Drug Enforcement Administration NOTICES Legal Services Corporation Agency Information Collection Activities; Proposals, NOTICES Submissions, and Approvals, 35739–35741 LSC Strategic Plan 2012–2016, 35718–35719 Surface Transportation Board Library of Congress NOTICES See Copyright Office, Library of Congress Abandonment Exemptions: Wisconsin Central Ltd., Manitowoc County, WI, 35751 Maritime Administration Acquisition of the Properties of Entertainment Tours, Inc. NOTICES by Academy Express, LLC, 35751–35752 Agency Information Collection Activities; Proposals, Senior Executive Service Performance Review Board, Submissions, and Approvals, 35742–35743 35752–35753 Requests for Administrative Waivers of the Coastwise Trade Laws: Transportation Department Vessel Oriental Mystique, 35744 See Federal Aviation Administration Vessel Reel Nauti, 35744–35745 See Federal Railroad Administration Vessel S/V Shenanigans, 35743 See Maritime Administration Vessel Second Chance, 35743–35744 See National Highway Traffic Safety Administration Vessel Smoke and Roses, 35745 See Surface Transportation Board National Aeronautics and Space Administration Treasury Department RULES See Community Development Financial Institutions Fund Federal Acquisition Regulations: NOTICES Justification and Approval of Sole Source 8a Contracts; Agency Information Collection Activities; Proposals, Correction, 35624 Submissions, and Approvals, 35753 NOTICES Agency Information Collection Activities; Proposals, U.S. Immigration and Customs Enforcement Submissions, and Approvals: NOTICES Federal Acquisition Regulation; Evaluation of Export Agency Information Collection Activities; Proposals, Offers, 35661–35662 Submissions, and Approvals, 35704 National Foundation on the Arts and the Humanities U.S.–China Economic and Security Review Commission NOTICES NOTICES Meetings: Public Hearings, 35754–35755 National Council on the Arts, 35719 Veterans Affairs Department National Highway Traffic Safety Administration NOTICES NOTICES Agency Information Collection Activities; Proposals, Highway Safety Programs: Submissions, and Approvals: Conforming Products List of Evidential Breath Alcohol Application for Burial Benefits, 35755 Measurement Devices, 35747–35751 Conforming Products List of Screening Devices to Western Area Power Administration Measure Alcohol in Bodily Fluids, 35745–35747 NOTICES Conformed Power Marketing Criteria or Regulations for the National Oceanic and Atmospheric Administration Boulder Canyon Project, 35671–35676 NOTICES Permits: Marine Mammals; File Nos. 16163, 16160, and 15569, Separate Parts In This Issue 35657–35658 Part II Rural Utilities Service Education Department, 35758–35794 NOTICES Agency Information Collection Activities; Proposals, Part III Submissions, and Approvals, 35657 Education Department, 35796–35806

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To subscribe to the Federal Register Table of Contents LISTSERV electronic mailing list, go to http:// Reader Aids listserv.access.gpo.gov and select Online mailing list Consult the Reader Aids section at the end of this page for archives, FEDREGTOC-L, Join or leave the list (or change phone numbers, online resources, finding aids, reminders, settings); then follow the instructions. and notice of recently enacted public laws.

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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.

14 CFR 71 (2 documents) ...... 35617, 35618 17 CFR Proposed Rules: 240...... 35625 33 CFR 165 (2 documents) ...... 35619, 35621 37 CFR Proposed Rules: 201...... 35643 40 CFR Proposed Rules: 52...... 35652 47 CFR 51...... 35623 54...... 35623 48 CFR 6...... 35624 15...... 35624 19...... 35624

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Rules and Regulations Federal Register Vol. 77, No. 115

Thursday, June 14, 2012

This section of the FEDERAL REGISTER As a result of that effort, it was economic impact on a substantial contains regulatory documents having general determined the COS ARP geographic number of small entities under the applicability and legal effect, most of which position information contained in the criteria of the Regulatory Flexibility Act. are keyed to and codified in the Code of Colorado Springs, CO, Class C legal The FAA’s authority to issue rules Federal Regulations, which is published under description was no longer accurate due 50 titles pursuant to 44 U.S.C. 1510. regarding aviation safety is found in to an airfield survey accomplished Title 49 of the United States Code. The Code of Federal Regulations is sold by previously and required updating. This Subtitle I, Section 106 describes the the Superintendent of Documents. Prices of amendment action ensures the COS authority of the FAA Administrator. new books are listed in the first FEDERAL ARP described in the Colorado Springs, Subtitle VII, Aviation Programs, REGISTER issue of each week. CO, Class C and Class E legal describes in more detail the scope of the descriptions match the FAA agency’s authority. aeronautical database information so the This rulemaking is promulgated DEPARTMENT OF TRANSPORTATION airspace areas will chart correctly with under the authority described in a shared boundary depicted. Federal Aviation Administration Subtitle VII, Part A, Subpart I, Section Accordingly, since this action merely 40103. Under that section, the FAA is reflects the geographic coordinates to be 14 CFR Part 71 charged with prescribing regulations to in concert with the FAA’s current assign the use of the airspace necessary [Docket No. FAA–2012–0564; Airspace aeronautical database, and does not to ensure the safety of aircraft and the Docket No. 12–AWA–4] change the dimensions or operating efficient use of airspace. This regulation requirements of that airspace, notice Amendment of Class C Airspace; is within the scope of that authority as and public procedures under 5 U.S.C. it amends Class C airspace at Colorado Colorado Springs, CO 553(b) are unnecessary. Springs, CO. AGENCY: Federal Aviation The Rule Environmental Review Administration (FAA), DOT. This action amends Title 14 Code of ACTION: Final rule. Federal Regulations (14 CFR) part 71 by The FAA has determined that this amending the Class C airspace area at action qualifies for categorical exclusion SUMMARY: This action modifies the under the National Environmental Colorado Springs, CO, Class C airspace Colorado Springs, CO. Specifically, the ARP for the City of Colorado Springs Policy Act in accordance with FAA area by amending the legal description Order 1050.1E, ‘‘Environmental to reflect the current airport reference Municipal Airport is changed to reflect ‘‘lat. 38°48′21″ N., long. 104°42′03″ W.’’ Impacts: Policies and Procedures,’’ point (ARP) information for the City of paragraph 311a. This airspace action is Colorado Springs Municipal Airport. This minor correction amends the ARP geographic position coordinates to not expected to cause any potentially The operating requirements remain the significant environmental impacts, and same. reflect the information currently contained in the FAA’s aeronautical no extraordinary circumstances exist DATES: Effective Date: 0901 UTC, database. that warrant preparation of an September 20, 2012. The Director of the Class C airspace areas are published environmental assessment. Federal Register approves this in paragraph 4000 of FAA Order List of Subjects in 14 CFR Part 71 incorporation by reference action under 7400.9V, dated August 9, 2011 and 1 CFR part 51, subject to the annual effective September 15, 2011, which is Airspace, Incorporation by reference, revision of FAA Order 7400.9 and incorporated by reference in 14 CFR Navigation (air). publication of conforming amendments. 71.1. The Class C airspace area Adoption of the Amendment FOR FURTHER INFORMATION CONTACT: amendment in this document will be Colby Abbott, Airspace, Regulations and published subsequently in the Order. In consideration of the foregoing, the ATC Procedures Group, Office of The FAA has determined that this Federal Aviation Administration Airspace Services, Federal Aviation regulation only involves an established amends 14 CFR part 71 as follows: Administration, 800 Independence body of technical regulations for which Avenue SW., Washington, DC 20591; frequent and routine amendments are PART 71—DESIGNATION OF CLASS A, telephone: (202) 267–8783. necessary to keep them operationally B, C, D, AND E AIRSPACE AREAS; AIR SUPPLEMENTARY INFORMATION: current. Therefore, this regulation: (1) Is TRAFFIC SERVICE ROUTES; AND not a ‘‘significant regulatory action’’ REPORTING POINTS History under Executive Order 12866; (2) is not Class C airspace areas are designed to a ‘‘significant rule’’ under Department of ■ 1. The authority citation for part 71 improve air safety by reducing the risk Transportation (DOT) Regulatory continues to read as follows: of midair collisions in high volume Policies and Procedures (44 FR 11034; Authority: 49 U.S.C. 106(g), 40103, 40113, airport terminal areas and to enhance February 26, 1979); and (3) does not 40120; E.O. 10854, 24 FR 9565, 3 CFR, 1959– the management of air traffic operations warrant preparation of a regulatory 1963 Comp., p.389. in that area. The FAA recently evaluation as the anticipated impact is § 71.1 [Amended] attempted to modify the Class E airspace so minimal. Since this is a routine at City of Colorado Springs Municipal matter that will only affect air traffic ■ 2. The incorporation by reference in Airport (COS), CO, to ensure procedures and air navigation, it is 14 CFR 71.1 of FAA Order 7400.9V, containment of new instrument certified that this rule, when Airspace Designations and Reporting procedures within controlled airspace. promulgated, will not have a significant Points, dated August 9, 2011 and

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effective September 15, 2011, is FOR FURTHER INFORMATION CONTACT: Paul number of small entities under the amended as follows: Gallant, Airspace, Regulations and ATC criteria of the Regulatory Flexibility Act. Paragraph 4000 Class C airspace. Procedures Group, Office of Airspace The FAA’s authority to issue rules Services, Federal Aviation regarding aviation safety is found in * * * * * Administration, 800 Independence Title 49 of the United States Code. ANM CO C Colorado Springs, CO Avenue SW., Washington, DC 20591; Subtitle I, Section 106 describes the City of Colorado Springs Municipal Airport telephone: (202) 267–8783. authority of the FAA Administrator. (Lat. 38°48′21″ N., long. 104°42′03″ W.) SUPPLEMENTARY INFORMATION: Subtitle VII, Aviation Programs, That airspace within a 5-mile radius of the describes in more detail the scope of the City of Colorado Springs Municipal Airport History agency’s authority. extending upward from the surface to and On April 23, 2012, the FAA published This rulemaking is promulgated including 10,200 feet MSL; and that airspace in the Federal Register a notice of under the authority described in extending upward from 8,500 feet MSL to proposed rulemaking (NPRM) to Subtitle VII, Part A, Subpart I, Section 10,200 feet MSL between the 5- and 10-mile establish two new RNAV routes in the 40103. Under that section, the FAA is radius beginning at a line drawn from the charged with prescribing regulations to 270° bearing from the airport at 5 miles direct southwestern United States (77 FR to the 333° bearing from the airport at 10 24157). assign the use of the airspace necessary miles clockwise to Colorado State Highway Interested parties were invited to to ensure the safety of aircraft and the 94, excluding that airspace east of Meridian participate in this rulemaking effort by efficient use of airspace. This regulation Road and north of Garret Road; and that submitting written comments on the is within the scope of that authority as airspace extending upward from 7,500 feet proposal. No comments objecting to the it establishes RNAV routes to enhance MSL to 10,200 feet MSL from Colorado State proposal were received. the safe and efficient flow of traffic in Highway 94 clockwise to a line drawn from the southwestern United States. the 188° bearing from the airport at 10 miles The Rule direct to the 197° bearing from the airport at Environmental Review 5 miles. The FAA is amending Title 14, Code of Federal Regulations (14 CFR) part 71 The FAA has determined that this * * * * * establishing two RNAV routes, action qualifies for categorical exclusion Issued in Washington, DC, on June 7, 2012. designated T–306 and T–310, in the under the National Environmental Ellen Crum, southwestern United States. T–306 Policy Act in accordance with FAA Acting Manager, Airspace, Regulations and extends between Los Angeles, CA, and Order 1050.1E, ‘‘Environmental ATC Procedures Group. El Paso, TX; and T–310 extends between Impacts: Policies and Procedures,’’ [FR Doc. 2012–14387 Filed 6–13–12; 8:45 am] Tucson, AZ, and Truth or paragraph 311a. This airspace action is BILLING CODE 4910–13–P Consequences, NM. The routes expand not expected to cause any potentially the availability of RNAV within the significant environmental impacts, and NAS and provides substitute route no extraordinary circumstances exist DEPARTMENT OF TRANSPORTATION segments for portions of VOR Federal that warrant preparation of an airways V–16 and V–202 that will be environmental assessment. Federal Aviation Administration affected by the scheduled List of Subjects in 14 CFR Part 71 decommissioning of the Cochise, NM, 14 CFR Part 71 VORTAC in the Fall of 2012. Airspace, Incorporation by reference, Navigation (air). [Docket No. FAA–2012–0286; Airspace Low altitude RNAV routes are Docket No. 11–AWP–22] published in paragraph 6011 of FAA Adoption of the Amendment Order 7400.9V dated August 9, 2011, RIN 2120–AA66 In consideration of the foregoing, the and effective September 15, 2011, which Federal Aviation Administration Establishment of Area Navigation is incorporated by reference in 14 CFR amends 14 CFR part 71 as follows: (RNAV) Routes; Southwestern United 71.1. The RNAV routes listed in this States document will be published PART 71—DESIGNATION OF CLASS A, subsequently in the Order. B, C, D, AND E AIRSPACE AREAS; AIR AGENCY: Federal Aviation The FAA has determined that this TRAFFIC SERVICE ROUTES; AND Administration (FAA), DOT. regulation only involves an established REPORTING POINTS ACTION: Final rule. body of technical regulations for which frequent and routine amendments are ■ 1. The authority citation for part 71 SUMMARY: This action establishes two necessary to keep them operationally continues to read as follows: new low-altitude RNAV routes, current. Therefore, this regulation: (1) Is Authority: 49 U.S.C. 106(g), 40103, 40113, designated T–306 and T–310, in the not a ‘‘significant regulatory action’’ 40120; E.O. 10854, 24 FR 9565, 3 CFR, 1959– southwestern United States. The new under Executive Order 12866; (2) is not 1963 Comp., p. 389. routes expand the availability of RNAV a ‘‘significant rule’’ under Department of within the National Airspace System Transportation (DOT) Regulatory § 71.1 [Amended] (NAS) and provide substitute route Policies and Procedures (44 FR 11034; ■ 2. The incorporation by reference in segments for portions of VOR Federal February 26, 1979); and (3) does not 14 CFR 71.1 of FAA Order 7400.9V, airways V–16 and V–202. warrant preparation of a regulatory Airspace Designations and Reporting DATES: Effective date 0901 UTC, July 26, evaluation as the anticipated impact is Points, dated August 9, 2011, and 2012. The Director of the Federal so minimal. Since this is a routine effective September 15, 2011, is Register approves this incorporation by matter that will only affect air traffic amended as follows: reference action under 1 CFR part 51, procedures and air navigation, it is subject to the annual revision of FAA certified that this rule, when Paragraph 6011 United States area Order 7400.9 and publication of promulgated, will not have a significant navigation routes. conforming amendments. economic impact on a substantial * * * * *

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T–306 Los Angeles, CA (LAX) to El Paso, TX (ELP) [New] Los Angeles, CA (LAX) VORTAC (Lat. 33°55′59″ N., long. 118°25′55″ W.) PRADO, CA INT (Lat. 33°55′23″ N., long. 117°47′02″ W.) Paradise, CA (PDZ) VORTAC (Lat. 33°55′06″ N., long. 117°31′48″ W.) SETER, CA INT (Lat. 33°54′04″ N., long. 117°06′33″ W.) BANDS, CA INT (Lat. 33°53′23″ N., long. 116°50′58″ W.) Palm Springs, CA (PSP) VORTAC (Lat. 33°52′12″ N., long. 116°25′47″ W.) Blythe, CA (BLH) VORTAC (Lat. 33°35′46″ N., long. 114°45′41″ W.) Buckeye, AZ (BXK) VORTAC (Lat. 33°27′12″ N., long. 112°49′29″ W.) PERKY, AZ INT (Lat. 33°26′45″ N., long. 112°28′23″ W.) Phoenix, AZ (PXR) VORTAC (Lat. 33°25′59″ N., long. 111°58′13″ W.) TOTEC, AZ INT (Lat. 32°49′36″ N., long. 111°38′32″ W.) Tucson, AZ (TUS) VORTAC (Lat. 32°05′43″ N., long. 110°54′53″ W.) NOCHI, AZ WP (Lat. 32°02′00″ N., long. 109°45′30″ W.) ANIMA, AZ INT (Lat. 31°54′58″ N., long. 108°30′51″ W.) DARCE, NM INT (Lat. 31°53′12″ N., long. 108°13′21″ W.) Columbus, NM (CUS) VOR/DME (Lat. 31°49′09″ N., long. 107°34′28″ W.) El Paso, TX (ELP) VORTAC (Lat. 31°48′57″ N., long. 106°16′55″ W.) T–310 Tucson, AZ (TUS) to Truth or Consequences, NM (TCS) [New] Tucson, AZ (TUS) VORTAC (Lat. 32°05′43″ N., long. 110°54′53″ W.) SULLI, AZ INT (Lat. 31°56′04″ N., long. 110°34′16″ W.) MESCA, AZ INT (Lat. 31°53′38″ N., long. 110°29′08″ W.) NOCHI, AZ WP (Lat. 31°59′58″ N., long. 108°30′51″ W.) San Simon, AZ (SSO) VORTAC (Lat. 32°16′09″ N., long. 109°15′47″ W.) Silver City, NM (SVC) VORTAC (Lat. 32°38′16″ N., long. 108°09′40″ W.) Truth or Consequences, NM VORTAC (Lat. 33°16′57″ N., long. 107°16′50″ W.) (TCS)

Issued in Washington, DC, on June 7, 2012. USCG–2012–0465 in the ‘‘Search’’ box, so would be impracticable. The final Colby Abbott, and then clicking ‘‘Search.’’ This details for this event were not known to Acting Manager, Airspace, Regulations and material is also available for inspection the Coast Guard until there was ATC Procedures Group. or copying at the Docket Management insufficient time remaining before the [FR Doc. 2012–14406 Filed 6–13–12; 8:45 am] Facility (M–30), U.S. Department of event to publish an NPRM. Thus, BILLING CODE 4910–13–P Transportation, West Building Ground delaying the effective date of this rule to Floor, Room W12–140, 1200 New Jersey wait for a comment period to run would Avenue SE., Washington, DC 20590, be impracticable because it would DEPARTMENT OF HOMELAND between 9 a.m. and 5 p.m., Monday inhibit the Coast Guard’s ability to SECURITY through Friday, except Federal holidays. protect spectators and vessels from the FOR FURTHER INFORMATION CONTACT: If hazards associated with a maritime Coast Guard you have questions on this temporary fireworks display, which are discussed rule, call or email LT Christopher further below. 33 CFR Part 165 Mercurio, Chief of Waterways Under 5 U.S.C. 553(d)(3), the Coast Guard finds that good cause exists for [Docket No. USCG–2012–0465] Management, U.S. Coast Guard Sector Buffalo; telephone 716–843–9343, email making this rule effective less than 30 days after publication in the Federal RIN 1625–AA00 [email protected]. If Register. For the same reasons you have questions on viewing or Safety Zone; Old Fashion 4th July discussed in the preceding paragraph, submitting material to the docket, call Fireworks, Presque Isle Bay, Erie, PA waiting for 30 day notice period run Renee V. Wright, Program Manager, would be impracticable. AGENCY: Coast Guard, DHS. Docket Operations, telephone 202–366– ACTION: Temporary final rule. 9826. Background and Purpose SUPPLEMENTARY INFORMATION: Between 9:45 p.m. and 10:15 p.m. on SUMMARY: The Coast Guard is July 4, 2012, a fireworks display will be establishing a temporary safety zone on Regulatory Information held on Presque Isle Bay near Erie, PA. Presque Isle Bay, Erie, PA. This safety The Coast Guard is issuing this The Captain of the Port Buffalo has zone is intended to restrict vessels from temporary final rule without prior determined that fireworks launched a portion of Presque Isle Bay during the notice and opportunity to comment proximate to a gathering of watercraft Old Fashion 4th July Fireworks display. pursuant to authority under section 4(a) pose a significant risk to public safety This temporary safety zone is necessary of the Administrative Procedure Act and property. Such hazards include to protect spectators and vessels from (APA) (5 U.S.C. 553(b)). This provision premature and accidental detonations, the hazards associated with a fireworks authorizes an agency to issue a rule dangerous projectiles, and falling or display. without prior notice and opportunity to burning debris. DATES: This rule will be effective comment when the agency for good between 9:15 p.m. until 10:45 p.m. on cause finds that those procedures are Discussion of Rule July 4, 2012. ‘‘impracticable, unnecessary, or contrary With the aforementioned hazards in ADDRESSES: Documents indicated in this to the public interest.’’ Under 5 U.S.C. mind, the Captain of the Port Buffalo preamble as being available in the 553(b)(B), the Coast Guard finds that has determined that this temporary docket, are part of docket USCG–2012– good cause exists for not publishing a safety zone is necessary to ensure the 0465 and are available online by going notice of proposed rulemaking (NPRM) safety of spectators and vessels during to http://www.regulations.gov, inserting with respect to this rule because doing the Old Fashion 4th July Fireworks.

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This zone will be effective and enforced The Coast Guard certifies under 5 Collection of Information from 9:15 p.m. until 10:45 p.m. on July U.S.C. 605(b) that this rule will not have This rule calls for no new collection 4, 2012. This zone will encompass all a significant economic impact on a of information under the Paperwork waters of Presque Isle Bay, Erie, PA substantial number of small entities. Reduction Act of 1995 (44 U.S.C. 3501– within an 840 foot radius of position ° ′ ″ ° ′ ″ This temporary final rule may affect 3520.). 42 08 12 N and 80 05 59 W (NAD 83). the following entities, some of which Entry into, transiting, or anchoring may be small entities: The owners or Federalism within the safety zone is prohibited unless authorized by the Captain of the operators of vessels intending to transit A rule has implications for federalism Port Buffalo or his designated on-scene or anchor in a portion of Presque Isle under Executive Order 13132, representative. The Captain of the Port Bay, Erie, PA between 9:15 p.m. to Federalism, if it has a substantial direct or his designated on-scene 10:45 p.m. on July 4, 2012. effect on State or local governments and representative may be contacted via This safety zone will not have a would either preempt State law or VHF Channel 16. significant economic impact on a impose a substantial direct cost of substantial number of small entities compliance on them. We have analyzed Regulatory Analyses because of the minimal amount of time this rule under that Order and have We developed this rule after in which the safety zone will be determined that it does not have considering numerous statutes and enforced. This safety zone will only be implications for federalism. executive orders related to rulemaking. enforced for 90 minutes in a low Unfunded Mandates Reform Act Below we summarize our analyses commercial vessel traffic area. Vessel The Unfunded Mandates Reform Act based on 14 of these statutes or traffic can pass safely around the zone. of 1995 (2 U.S.C. 1531–1538) requires executive orders. Before the effective period, maritime Federal agencies to assess the effects of advisories will be issued, which include Regulatory Planning and Review their discretionary regulatory actions. In a Broadcast Notice to Mariners. This rule is not a significant particular, the Act addresses actions regulatory action under section 3(f) of If you think that your business, that may result in the expenditure by a Executive Order 12866, Regulatory organization, or governmental State, local, or tribal government, in the Planning and Review, and does not jurisdiction qualifies as a small entity aggregate, or by the private sector of require an assessment of potential costs and that this rule would have a $100,000,000 (adjusted for inflation) or and benefits under section 6(a)(3) of that significant economic impact on it, more in any one year. Though this rule Order. The Office of Management and please submit a comment (see will not result in such an expenditure, Budget has not reviewed it under that ADDRESSES) explaining why you think it we do discuss the effects of this rule Order. It is not ‘‘significant’’ under the qualifies and how and to what degree elsewhere in this preamble. regulatory policies and procedures of this rule would economically affect it. Protest Activities the Department of Homeland Security Assistance for Small Entities (DHS). We conclude that this rule is not The Coast Guard respects the First a significant regulatory action because Under section 213(a) of the Small Amendment rights of protesters. we anticipate that it will have minimal Business Regulatory Enforcement Protesters are asked to contact the impact on the economy, will not Fairness Act of 1996 (Pub. L. 104–121), person listed in the FOR FURTHER interfere with other agencies, will not we offer to assist small entities in INFORMATION CONTACT section to adversely alter the budget of any grant understanding this rule so that they can coordinate protest activities so that your or loan recipients, and will not raise any better evaluate its effects on them and message can be received without novel legal or policy issues. The safety participate in the rulemaking process. jeopardizing the safety or security of zone created by this rule will be Small businesses may send comments people, places or vessels. relatively small and enforced for a on the actions of Federal employees Taking of Private Property relatively short time. Also, the safety who enforce, or otherwise determine zone is designed to minimize its impact compliance with, Federal regulations to This rule will not cause a taking of on navigable waters. Furthermore, the the Small Business and Agriculture private property or otherwise have safety zone has been designed to allow Regulatory Enforcement Ombudsman taking implications under Executive vessels to transit around it. Thus, and the Regional Small Business Order 12630, Governmental Actions and restrictions on vessel movement within Regulatory Fairness Boards. The Interference with Constitutionally that particular area are expected to be Ombudsman evaluates these actions Protected Property Rights. minimal. Under certain conditions, annually and rates each agency’s Civil Justice Reform moreover, vessels may still transit responsiveness. through the safety zone when permitted This rule meets applicable standards by the Captain of the Port. If the rule will affect your small in sections 3(a) and 3(b)(2) of Executive business, organization, or governmental Order 12988, Civil Justice Reform, to Small Entities jurisdiction and you have questions minimize litigation, eliminate Under the Regulatory Flexibility Act concerning its provisions or options for ambiguity, and reduce burden. (5 U.S.C. 601–612), we have considered compliance, please contact LT whether this rule will have a significant Christopher Mercurio, Chief of Protection of Children economic impact on a substantial Waterways Management, U.S. Coast We have analyzed this rule under number of small entities. The term Guard Sector Buffalo; telephone 716– Executive Order 13045, Protection of ‘‘small entities’’ comprises small 843–9343, email Children from Environmental Health businesses, not-for-profit organizations [email protected]. Risks and Safety Risks. This rule is not that are independently owned and The Coast Guard will not retaliate an economically significant rule and operated and are not dominant in their against small entities that question or will not create an environmental risk to fields, and governmental jurisdictions complain about this rule or any policy health or risk to safety that might with populations of less than 50,000. or action of the Coast Guard. disproportionately affect children.

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Indian Tribal Governments environment. This rule is categorically or his on-scene representative to obtain This rule does not have tribal excluded, under figure 2–1, paragraph permission to do so. The Captain of the implications under Executive Order (34) (g), of the Instruction because it Port Buffalo or his on-scene 13175, Consultation and Coordination involves the establishment of a safety representative may be contacted via with Indian Tribal Governments, zone. A final environmental analysis VHF Channel 16. Vessel operators given because it will not have a substantial checklist and a categorical exclusion permission to enter or operate in the direct effect on one or more Indian determination are available in the safety zone must comply with all tribes, on the relationship between the docket where indicated under directions given to them by the Captain Federal Government and Indian tribes, ADDRESSES. We seek any comments or of the Port Buffalo, or his on-scene or on the distribution of power and information that may lead to the representative. responsibilities between the Federal discovery of a significant environmental Dated: May 29, 2012. Government and Indian tribes. impact from this rule. S.M. Wischmann, Energy Effects List of Subjects in 33 CFR Part 165 Captain, U.S. Coast Guard, Captain of the Port Buffalo. We have analyzed this rule under Harbors, Marine safety, Navigation [FR Doc. 2012–14541 Filed 6–13–12; 8:45 am] Executive Order 13211, Actions (water), Reporting and recordkeeping Concerning Regulations That requirements, Security measures, BILLING CODE 9110–04–P Significantly Affect Energy Supply, Waterways. Distribution, or Use. We have For the reasons discussed in the DEPARTMENT OF HOMELAND determined that it is not a ‘‘significant preamble, the Coast Guard amends SECURITY energy action’’ under that order because 33 CFR part 165 as follows: it is not a ‘‘significant regulatory action’’ Coast Guard under Executive Order 12866 and is not PART 165—REGULATED NAVIGATION likely to have a significant adverse effect AREAS AND LIMITED ACCESS AREAS 33 CFR Part 165 on the supply, distribution, or use of ■ energy. The Administrator of the Office 1. The authority citation for part 165 [Docket Number USCG–2012–0469] continues to read as follows: of Information and Regulatory Affairs RIN 1625–AA00 has not designated it as a significant Authority: 33 U.S.C. 1231; 46 U.S.C. energy action. Therefore, it does not Chapters 701, 3306, 3703; 50 U.S.C. 191, 195; Safety Zone, Keweenaw Waterway, require a Statement of Energy Effects 33 CFR 1.05–1, 6.04–1, 6.04–6, and 160.5; Hancock, MI under Executive Order 13211. Pub. L. 107–295, 116 Stat. 2064; Department of Homeland Security Delegation No. 0170.1. AGENCY: Coast Guard, DHS. Technical Standards ■ 2. Add § 165.T09–0465 to read as ACTION: Temporary final rule. The National Technology Transfer follows: and Advancement Act (NTTAA) SUMMARY: The Coast Guard is (15 U.S.C. 272 note) directs agencies to § 165.T09–0465 Safety Zone; Old Fashion establishing a temporary safety zone use voluntary consensus standards in 4th July Fireworks, Presque Isle Bay, Erie, encompassing a portion of the their regulatory activities unless the PA. Keweenaw waterway on June 17, 2012. agency provides Congress, through the (a) Location. The safety zone will This safety zone is intended to help Office of Management and Budget, with encompass all waters of the Presque Isle protect triathlon participants, as well as an explanation of why using these Bay, Erie, PA within a 840 foot radius boaters and spectators of the event. ° ′ ″ ° ′ ″ standards would be inconsistent with of position 42 08 12 N and 80 05 59 W DATES: This rule will be effective from applicable law or otherwise impractical. (NAD 83). 10:00 a.m. to noon on June 17, 2012. Voluntary consensus standards are (b) Effective and Enforcement Period. ADDRESSES: This regulation is effective and will be Documents mentioned in technical standards (e.g., specifications this preamble are part of docket [USCG– of materials, performance, design, or enforced on July 4, 2012 from 9:15 p.m. 2012–0469]. To view documents operation; test methods; sampling until 10:45 p.m. mentioned in this preamble as being procedures; and related management (c) Regulations. available in the docket, go to http:// systems practices) that are developed or (1) In accordance with the general www.regulations.gov, type the docket adopted by voluntary consensus regulations in § 165.23 of this part, entry number in the ‘‘SEARCH’’ box and click standards bodies. into, transiting, or anchoring within this This rule does not use technical safety zone is prohibited unless ‘‘SEARCH.’’ Click on Open Docket standards. Therefore, we did not authorized by the Captain of the Port Folder on the line associated with this consider the use of voluntary consensus Buffalo or his designated on-scene rulemaking. You may also visit the standards. representative. Docket Management Facility in Room (2) This safety zone is closed to all W12–140 on the ground floor of the Environment vessel traffic, except as may be Department of Transportation West We have analyzed this rule under permitted by the Captain of the Port Building, 1200 New Jersey Avenue SE., Department of Homeland Security Buffalo or his designated on-scene Washington, DC 20590, between 9 a.m. Management Directive 023–01 and representative. and 5 p.m., Monday through Friday, Commandant Instruction M16475.lD, (3) The ‘‘on-scene representative’’ of except Federal holidays. which guide the Coast Guard in the Captain of the Port Buffalo is any FOR FURTHER INFORMATION CONTACT: If complying with the National Coast Guard commissioned, warrant or you have questions on this rule, call or Environmental Policy Act of 1969 petty officer who has been designated email Lieutenant Judson A. Coleman, (NEPA) (42 U.S.C. 4321–4370f), and by the Captain of the Port Buffalo to act Marine Safety Unit Duluth, U.S. Coast have concluded this action is one of a on his behalf. Guard; telephone (218) 720–5286 ext category of actions that do not (4) Vessel operators desiring to enter 111, email [email protected]. individually or cumulatively have a or operate within the safety zone shall If you have questions on viewing or significant effect on the human contact the Captain of the Port Buffalo submitting material to the docket, call

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Renee V. Wright, Program Manager, 47′07′49.8 N 88′37′1.12 W, running west channel 16. Before the activation of the Docket Operations, telephone (202) to 47′07′49.45 N 088′37′2.31 W, running zone, we would issue local Broadcast 366–9826. northwest to 47′07′59.19 N 88′37′20.23 Notice to Mariners. W, running northeast to 47′08′0.12 N SUPPLEMENTARY INFORMATION: 3. Assistance for Small Entities 88′37′18.07 W and finally running Table of Acronyms southeast to the original position. Under section 213(a) of the Small DHS Department of Homeland Security This safety zone is deemed necessary Business Regulatory Enforcement FR Federal Register in order to ensure the protection of Fairness Act of 1996 (Pub. L. 104–121), NPRM Notice of Proposed Rulemaking swimmers engaged in the Yooper Sprint we want to assist small entities in understanding this rule. If the rule A. Regulatory History and Information Triathlon, vessel operators transiting the area, and spectators of the event. This would affect your small business, The Coast Guard is issuing this safety zone will be in effect and organization, or governmental temporary final rule without prior enforced on June 17th, 2012 from jurisdiction and you have questions notice and opportunity to comment 10:00 a.m. to noon. concerning its provisions or options for pursuant to authority under section 4(a) compliance, please contact the person D. Regulatory Analyses of the Administrative Procedure Act listed in the FOR FURTHER INFORMATION (APA) (5 U.S.C. 553(b)). This provision We developed this rule after CONTACT section above. authorizes an agency to issue a rule considering numerous statutes and Small businesses may send comments without prior notice and opportunity to executive orders related to rulemaking. on the actions of Federal employees comment when the agency for good Below we summarize our analyses who enforce, or otherwise determine cause finds that those procedures are based on 14 of these statutes or compliance with, Federal regulations to ‘‘impracticable, unnecessary, or contrary executive orders. the Small Business and Agriculture to the public interest.’’ Under 5 U.S.C. 1. Regulatory Planning and Review Regulatory Enforcement Ombudsman 553(b)(B), the Coast Guard finds that and the Regional Small Business good cause exists for not publishing a This rule is not a significant Regulatory Fairness Boards. The notice of proposed rulemaking (NPRM) regulatory action under section 3(f) of Ombudsman evaluates these actions with respect to this rule because doing Executive Order 12866, Regulatory annually and rates each agency’s so would be impracticable. The final Planning and Review, as supplemented responsiveness to small business. If you details for this event were not known to by Executive Order 13563, Improving wish to comment on actions by the Coast Guard until there was Regulation and Regulatory Review, and employees of the Coast Guard, call insufficient time remaining before the does not require an assessment of 1–888–REG–FAIR (1–888–734–3247). event to publish an NPRM. Thus, potential costs and benefits under The Coast Guard will not retaliate delaying the effective date of this rule to section 6(a)(3) of Executive Order 12866 against small entities that question or wait for a comment period to run would or under section 1 of Executive Order complain about this rule or any policy be both impracticable and contrary to 13563. The Office of Management and or action of the Coast Guard. the public interest because it would Budget has not reviewed it under those inhibit the Coast Guard’s ability to Orders. This rule is believed to have 4. Collection of Information protect spectators, swimmers, and minimal impact on any economic This rule will not call for a new vessels from the hazards associated with interests due to it being in effect for only collection of information under the open water swim races, which are two hours and taking place outside the Paperwork Reduction Act of 1995 discussed further below. navigable channel. (44 U.S.C. 3501–3520). Under 5 U.S.C. 553(d)(3), the Coast 2. Impact on Small Entities Guard finds that good cause exists for 5. Federalism making this rule effective less than 30 The Regulatory Flexibility Act of 1980 A rule has implications for federalism days after publication in the Federal (RFA), 5 U.S.C. 601–612, as amended, under Executive Order 13132, Register. For the same reasons requires federal agencies to consider the Federalism, if it has a substantial direct discussed in the preceding paragraph, potential impact of regulations on small effect on the States, on the relationship waiting for 30-day notice period run entities during rulemaking. The Coast between the national government and would also be impracticable and Guard certifies under 5 U.S.C. 605(b) the States, or on the distribution of contrary to the public interest. that this rule will not have a significant power and responsibilities among the economic impact on a substantial various levels of government. We have B. Basis and Purpose number of small entities. analyzed this rule under that Order and On the morning of June 17, 2012, This rule will affect the following determined that this rule does not have participants in the Yooper Sprint entities, some of which might be small implications for federalism. triathlon will swim across portions of entities: The owners or operators of the Keweenaw waterway, making them vessels intending to transit or anchor in 6. Protest Activities vulnerable to vessel traffic. a portion of the Keweenaw Waterway The Coast Guard respects the First from 10:00 a.m. to noon on June 17, Amendment rights of protesters. C. Discussion of the Final Rule 2012. Protesters are asked to contact the In recognition of the risk to swimmers This safety zone will not have a person listed in the FOR FURTHER identified above, the Captain of the Port significant economic impact on a INFORMATION CONTACT section to Duluth has determined it necessary to substantial number of small entities for coordinate protest activities so that your create a temporary safety zone to the following reasons: This safety zone message can be received without prevent vessels from entering, would be activated, and thus subject to jeopardizing the safety or security of transiting, or anchoring in the vicinity enforcement, for only two hours early in people, places, or vessels. of the swimmers. The following area is the day. Traffic may be allowed to pass a temporary safety zone: All waters of through the zone with the permission of 7. Unfunded Mandates Reform Act the Keweenaw Waterway encompassed the Captain of the Port. The Captain of The Unfunded Mandates Reform Act by boundaries beginning at position the Port can be reached via VHF of 1995 (2 U.S.C. 1531–1538) requires

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Federal agencies to assess the effects of complying with the National (2) This safety zone is closed to all their discretionary regulatory actions. In Environmental Policy Act of 1969 vessel traffic, except as may be particular, the Act addresses actions (NEPA) (42 U.S.C. 4321–4370f), and permitted by the Captain of the Port, that may result in the expenditure by a have determined that this action is one Marine Safety Duluth or his designated State, local, or tribal government, in the of a category of actions that do not representative. aggregate, or by the private sector of individually or cumulatively have a (3) The on-scene representative of the $100,000,000 (adjusted for inflation) or significant effect on the human Captain of the Port is any Coast Guard more in any one year. Though this rule environment. This rule involves the commissioned, warrant or petty officer will not result in such an expenditure, establishment of a safety zone and, who has been designated by the Captain we do discuss the effects of this rule therefore it is categorically excluded of the Port to act on his behalf. The on- elsewhere in this preamble. from further review under paragraph scene representative will be aboard 34(g) of Figure 2–1 of the Commandant either a Coast Guard or Coast Guard 8. Taking of Private Property Instruction. An environmental analysis auxiliary vessel. The Captain of the Port This rule will not cause a taking of checklist supporting this determination representative may be contacted via private property or otherwise have and a Categorical Exclusion VHF channel 16. taking implications under Executive Determination are available in the (4) Vessel operators desiring to enter Order 12630, Governmental Actions and docket where indicated under or operate within the safety zone shall Interference with Constitutionally ADDRESSES. We seek any comments or contact the Captain of the Port, Duluth Protected Property Rights. information that may lead to the or his on-scene representative to request 9. Civil Justice Reform discovery of a significant environmental permission to do so. Vessel operators impact from this rule. must comply with all directions given to This rule meets applicable standards them by the Captain of the Port, Duluth List of Subjects in 33 CFR Part 165 in sections 3(a) and 3(b)(2) of Executive or his on-scene representative. Order 12988, Civil Justice Reform, to Harbors, Marine safety, Navigation minimize litigation, eliminate (water), Reporting and recordkeeping Dated: May 21, 2012. ambiguity, and reduce burden. requirements, Security measures, K.R. Bryan, Waterways. Commander, U.S. Coast Guard, Captain of 10. Protection of Children the Port, Marine Safety Unit Duluth. We have analyzed this rule under For the reasons discussed in the preamble, the Coast Guard amends [FR Doc. 2012–14543 Filed 6–13–12; 8:45 am] Executive Order 13045, Protection of BILLING CODE 9110–04–P Children from Environmental Health 33 CFR part 165 as follows: Risks and Safety Risks. This rule is not PART 165—REGULATED NAVIGATION an economically significant rule and AREAS AND LIMITED ACCESS AREAS FEDERAL COMMUNICATIONS does not create an environmental risk to COMMISSION health or risk to safety that may ■ 1. The authority citation for part 165 disproportionately affect children. continues to read as follows: 47 CFR Parts 51 and 54 11. Indian Tribal Governments Authority: 33 U.S.C. 1231; 46 U.S.C. [WC Docket Nos. 10–90, 07–135, 05–337, This rule does not have tribal Chapter 701, 3306, 3703; 50 U.S.C. 191, 195; 03–109; GN Docket No. 09–51; CC Docket 33 CFR 1.05–1, 6.04–1, 6.04–6 and 160.5; Nos. 01–92, 96–45; WT Docket No. 10–208; implications under Executive Order Pub. L. 107–295, 116 Stat. 2064; Department FCC 11–161] 13175, Consultation and Coordination of Homeland Security Delegation No. 0170.1. with Indian Tribal Governments, Connect America Fund; a National ■ because it does not have a substantial 2. Add § 165.T09–0469 to read as Broadband Plan for Our Future; direct effect on one or more Indian follows: Establishing Just and Reasonable tribes, on the relationship between the § 165.T09–0469 Safety Zone; Keweenaw Rates for Local Exchange Carriers; Federal Government and Indian tribes, waterway, Hancock, MI High-Cost Universal Service Support or on the distribution of power and (a) Location. The following area is a responsibilities between the Federal AGENCY: Federal Communications temporary safety zone: All waters of the Government and Indian tribes. Commission. Keweenaw Waterway encompassed by ACTION: Final rule; announcement of 12. Energy Effects boundaries beginning at position ′ ′ ′ ′ effective date. This action is not a ‘‘significant 47 07 49.8 N 88 37 1.12 W, running west to 47′07′49.45 N 088′37′2.31 W, running SUMMARY: In this document, the Federal energy action’’ under Executive Order ′ ′ ′ ′ 13211, Actions Concerning Regulations northwest to 47 07 59.19 N 88 37 20.23 Communications Commission That Significantly Affect Energy Supply, W, running northeast to 47’08’0.12 N (Commission) announces that the Office Distribution, or Use. 88’37’18.07 W and finally running of Management and Budget (OMB) has southeast to the original position. approved, for a period of 3 years, 13. Technical Standards (b) Effective and enforcement period. revisions to an information collection This rule does not use technical This rule will be in effect and enforced associated with the Commission’s standards. Therefore, we did not from 10:00 a.m. to 12:00 noon on June Connect America Fund, Report and consider the use of voluntary consensus 17, 2012. Order (Order). The Commission standards. (c) Regulations. submitted revisions to this information (1) In accordance with the general collection under control number 3060– 14. Environment regulations in § 165.23, entry into, 0400 to OMB for review and approval, We have analyzed this rule under transiting or anchoring within this as required by the Paperwork Reduction Department of Homeland Security safety zone is prohibited unless Act (PRA) of 1995 (44 U.S.C. 3501– Management Directive 023–01 and authorized by the Captain of the Port, 3520), 77 FR 20629, on April 5, 2012. Commandant Instruction M16475.lD, Marine Safety Unit Duluth, or his OMB approved the revisions on May 17, which guide the Coast Guard in designated representative. 2012.

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DATES: The rules amending 47 CFR Estimated Annual Burden: 8,554 and National Aeronautics and Space 51.907(b)(1), (c)(1), and (d) through (h); responses; .5 hours to 53 hours; 121,656 Administration (NASA). 51.909(b)(1), and (c) through (k); hours. ACTION: Final rule; correction. 51.911(b) and (c); 51.915(e)(5) and (f)(7); Obligation to Respond: Required to 51.917(e)(6) and (f)(3); and 54.304 obtain or retain benefits. Statutory published November 29, 2011 (76 FR authority for this information collection SUMMARY: DoD, GSA, and NASA are 73830) are effective June 14, 2012. is contained in 47 U.S.C. 201, 202, 203, issuing a correction to the summary statement of FAR Case 2009–038; FOR FURTHER INFORMATION CONTACT: and 251(b)(5) of the Communications Justification and Approval of Sole- Belinda Nixon, Wireline Competition Act of 1934, as amended. Needs and Uses: On November 18, Source 8(a) Contracts, which was Bureau, (202) 418–1520 or TTY: (202) published in the Federal Register at 418–0484. 2011, the Commission adopted the Order, FCC 11–161, published at 76 FR 77 FR 23369, April 18, 2012. SUPPLEMENTARY INFORMATION: This 73830, November 29, 2011, that requires DATES: Effective Date: June 14, 2012. document announces that, on May 17, or permits incumbent and competitive 2012, OMB approved, for a period of local exchange carriers, as part of FOR FURTHER INFORMATION CONTACT: 3 years, information collection transitioning regulation of interstate and Mr. Karlos Morgan, Procurement requirements contained in the intrastate switched access rates and Analyst, at 202–501–2364, for Commission’s Order, FCC 11–161, reciprocal compensation rates to bill- clarification of content. For information published at 76 FR 73830, November 29, and-keep under section 251(b)(5), to file pertaining to status or publication 2011. The OMB Control Number is tariffs with state commissions and the schedules, contact the Regulatory 3060–0400. The Commission publishes Commission. This transition affects Secretariat at 202–501–4755. Please cite this notice as an announcement of the different switched access rates at FAC 2005–58; FAR Case 2009–038; effective date of rules that required specified timeframes and establishes an Correction. OMB approval. To request materials in Access Recovery Charge by which accessible formats for people with carriers will be able to assess end users SUPPLEMENTARY INFORMATION: disabilities (Braille, large print, a monthly charge to recover some or all Background electronic files, audio format), send an of the revenues they are permitted to email to [email protected] or call the recover resulting from reductions in DoD, GSA, and NASA are issuing a Consumer and Governmental Affairs intercarrier compensation rates. The correction to the summary statement of Bureau at (202) 418–0530 (voice), (202) intrastate tariff filings may, depending FAR Case 2009–038; Justification and 418–0432 (TTY). on state requirements, require Approval of Sole-Source 8(a) Contracts, Synopsis supporting materials to be filed that may which was published in the Federal also largely be satisfied by submitting Register at 77 FR 23369, April 18, 2012. As required by the Paperwork the new information collection The correction removes language Reduction Act of 1995 (44 U.S.C. 3507), referenced above. indicating that the applicable section of the FCC is notifying the public that it the National Defense Authorization Act received OMB approval on May 17, Federal Communications Commission. for Fiscal Year 2010 being implemented 2012, for the information collection Marlene H. Dortch, by FAR Case 2009–038 requires the requirements contained in the Secretary. head of an agency to make public, prior Commission’s rules at §§ 51.907(b)(1), [FR Doc. 2012–14493 Filed 6–13–12; 8:45 am] to award, the justification and approval (c)(1), and (d) through (h); 51.909(b)(1), BILLING CODE 6712–01–P for an 8(a) sole-source contract and (c) through (k); 51.911(b) and (c); exceeding $20 million dollars. 51.915(e)(5) and (f)(7); 51.917(e)(6) and (f)(3); and 54.304. DEPARTMENT OF DEFENSE Correction Under 5 CFR part 1320, an agency may not conduct or sponsor a collection GENERAL SERVICES In rule FR Doc. 2012–9204 published of information unless it displays a ADMINISTRATION in the Federal Register at 77 FR 23369, current, valid OMB Control Number. April 18, 2012 make the following No person shall be subject to any NATIONAL AERONAUTICS AND correction: penalty for failing to comply with a SPACE ADMINISTRATION On page 23369, in the first column, in collection of information subject to the the SUMMARY remove the words ‘‘and Paperwork Reduction Act that does not 48 CFR Parts 6, 15, and 19 make public.’’ display a current, valid OMB Control [FAC 2005–58; FAR Case 2009–038; Authority: 40 U.S.C. 121(c); 10 U.S.C. Number. The OMB Control Number is Correction; Docket 2010–0095, Sequence 2] chapter 137; and 42 U.S.C. 2473(c). 3060–0400. The foregoing notice is required by RIN 9000–AL55 Dated: June 8, 2012. Laura Auletta, the Paperwork Reduction Act of 1995, Federal Acquisition Regulation; Public Law 104–13, October 1, 1995, Justification and Approval of Sole- Director, Office of Governmentwide Acquisition Policy, Office of Acquisition and 44 U.S.C. 3507. Source 8(a) Contracts: Correction The total annual reporting burdens Policy, Office of Governmentwide Policy. and costs for the respondents are as AGENCIES: Department of Defense (DoD), [FR Doc. 2012–14523 Filed 6–13–12; 8:45 am] follows: General Services Administration (GSA), BILLING CODE 6820–EP–P

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Proposed Rules Federal Register Vol. 77, No. 115

Thursday, June 14, 2012

This section of the FEDERAL REGISTER Electronic Comments Act (‘‘Dodd-Frank Act’’ or ‘‘Act’’) into contains notices to the public of the proposed • law.1 The Dodd-Frank Act was enacted, issuance of rules and regulations. The Use the Commission’s Internet comment form (http://www.sec.gov/ among other reasons, to promote the purpose of these notices is to give interested financial stability of the United States persons an opportunity to participate in the rules/policy.shtml); rule making prior to the adoption of the final • Send an email to rule- by improving accountability and 2 rules. [email protected]. Please include File transparency in the financial system. Number S7–05–12 on the subject line; Title VII of the Dodd-Frank Act (‘‘Title or VII’’) establishes a regulatory regime SECURITIES AND EXCHANGE • Use the Federal Rulemaking portal applicable to the over-the-counter COMMISSION (http://www.regulations.gov). Follow the (‘‘OTC’’) derivatives markets by instructions for submitting comments. providing the Securities and Exchange 17 CFR Part 240 Commission (‘‘Commission’’ or ‘‘we’’) Paper Comments [Release No. 34–67177; File No. S7–05–12] and the Commodity Futures Trading • Send paper comments in triplicate Commission (‘‘CFTC’’) with authority to Statement of General Policy on the to Elizabeth M. Murphy, Secretary, oversee these heretofore largely Sequencing of the Compliance Dates Securities and Exchange Commission, unregulated markets.3 Title VII provides for Final Rules Applicable to Security- 100 F Street NE., Washington, DC that the CFTC will regulate ‘‘swaps,’’ the Based Swaps Adopted Pursuant to the 20549–1090. Commission will regulate ‘‘security- Securities Exchange Act of 1934 and All submissions should refer to File No. based swaps,’’ and the CFTC and the the Dodd-Frank Wall Street Reform and S7–05–12. This file number should be Commission will jointly regulate Consumer Protection Act included on the subject line if email is ‘‘mixed swaps.’’ 4 used. To help us process and review AGENCY: Securities and Exchange Title VII amends the Securities Act of your comments more efficiently, please 5 Commission. 1933 (‘‘Securities Act’’) and the use only one method. We will post all ACTION: Notice of statement of general comments on the Commission’s Internet 1 policy with request for public comment. Dodd-Frank Wall Street Reform and Consumer Web site (http://www.sec.gov). Protection Act, Public Law 111–203, 124 Stat. 1376 (2010). SUMMARY: We are requesting public Comments also are available for Web 2 See, e.g., Public Law 111–203, Preamble. comment on a statement of general site viewing and printing at the Commission’s Public Reference Room, 3 Generally, Subtitle A of Title VII creates and policy (‘‘Statement’’) on the anticipated relates to the regulatory regime for swaps, while sequencing of the compliance dates of 100 F Street NE., Washington, DC Subtitle B of Title VII creates and relates to the final rules to be adopted by the 20549, on official business days regulatory regime for security-based swaps. Securities and Exchange Commission between the hours of 10:00 a.m. and 4 Section 712(d) of the Dodd-Frank Act provides that the Commission and the CFTC, in consultation pursuant to certain provisions of Title 3:00 p.m. All comments received will be posted without change; we do not edit with the Board of Governors of the Federal Reserve VII of the Dodd-Frank Wall Street System, shall further define the terms ‘‘swap,’’ Reform and Consumer Protection Act, personal identifying information from ‘‘security-based swap,’’ ‘‘swap dealer,’’ ‘‘security- and the Securities Exchange Act of submissions. You should submit only based swap dealer,’’ ‘‘major swap participant,’’ ‘‘major security-based swap participant,’’ ‘‘eligible 1934, as amended by those provisions information that you wish to make available publicly. contract participant,’’ and ‘‘security-based swap (‘‘Exchange Act’’). These provisions agreement.’’ These terms are defined in sections 721 establish a framework for the regulation FOR FURTHER INFORMATION CONTACT: Ann and 761 of the Dodd-Frank Act and the Commission of security-based swaps and security- Parker McKeehan, Special Counsel, and the CFTC have proposed to further define these Office of Derivatives Policy, Division of terms in joint rulemakings. See Further Definition based swap market participants under of ‘‘Swap Dealer,’’ ‘‘Security-Based Swap Dealer,’’ the Exchange Act. The Statement Trading and Markets, at (202) 551–5797, ‘‘Major Swap Participant,’’ ‘‘Major Security-Based presents a sequencing of the compliance Securities and Exchange Commission, Swap Participant’’ and ‘‘Eligible Contract dates for these final rules by grouping 100 F Street NE., Washington, DC Participant’’, Release No. 34–63452 (Dec. 7, 2010), 20549, or, with respect to the Securities 75 FR 80174 (Dec. 21, 2010) (‘‘Entity Definitions the rules into five categories and Proposing Release’’); and Further Definition of describes the interconnectedness of the Act of 1933, the Trust Indenture Act of ‘‘Swap,’’ ‘‘Security-Based Swap,’’ and ‘‘Security- compliance dates for these rules, both 1939, and Exchange Act section 12, Based Swap Agreement’’; Mixed Swaps; Security- within and among the five categories. Andrew Schoeffler, Special Counsel, Based Swap Agreement Recordkeeping, Release No. Office of Capital Markets Trends, 33–9204 (Apr. 29, 2011), 76 FR 29818 (May 23, The Statement also describes the timing 2011), corrected in Release No. 33–9204A (June 1, of the expiration of the relief previously Division of Corporation Finance, at 2011), 76 FR 32880 (June 7, 2011) (‘‘Product granted by the Commission that (202) 551–3860, Securities and Definitions Proposing Release’’). The rules further provided exemptions from certain Exchange Commission, 100 F Street NE., defining the terms ‘‘swap dealer,’’ ‘‘major swap Washington, DC 20549. participant,’’ ‘‘security-based swap dealer,’’ ‘‘major provisions of the Exchange Act, the security-based swap participant,’’ and ‘‘eligible Securities Act of 1933, and the Trust SUPPLEMENTARY INFORMATION: contract participant’’ were adopted by the Indenture Act of 1939. Commission on April 27, 2012 and published in the I. Background and Overview of Federal Register on May 23, 2012. See Further DATES: Comments regarding the Statement Definition of ‘‘Swap Dealer,’’ ‘‘Security-Based Swap Statement should be received on or Dealer,’’ ‘‘Major Swap Participant,’’ ‘‘Major before August 13, 2012. A. Background Security-Based Swap Participant’’ and ‘‘Eligible Contract Participant’’, Release No. 34–66868 (Apr. ADDRESSES: Comments may be On July 21, 2010, President Barack 27, 2012), 77 FR 30596 (May 23, 2012) (‘‘Entity submitted by any of the following Obama signed the Dodd-Frank Wall Definitions Adopting Release’’). methods: Street Reform and Consumer Protection 5 15 U.S.C. 77a et seq.

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Exchange Act 6 to substantially expand amends the Securities Act and the 5. Rules regarding the steps that a the regulation of the security-based Exchange Act to include ‘‘security-based party electing to use the end-user swap (‘‘SB swap’’) market by swaps’’ in the definition of ‘‘security’’ exception to the mandatory clearing establishing a new regulatory framework for the purposes of those statutes.14 As requirement must follow to notify the intended to make this market more a result, ‘‘security-based swaps’’ are Commission of how it generally meets transparent, efficient, fair, accessible, subject to the provisions of the its financial obligations associated with and competitive.7 The Title VII Securities Act and the Exchange Act non-cleared SB swap transactions when amendments to the Exchange Act and the rules thereunder applicable to it is using SB swaps to hedge or mitigate require, among other things, the ‘‘securities.’’ commercial risk; 20 following: (1) Registration and Since the Dodd-Frank Act was 6. Rules regarding the confirmation of comprehensive oversight of security- enacted, the Commission has adopted SB swap transactions that would govern based swap dealers (‘‘SBSDs’’) and joint rules with the CFTC further the way in which certain of these major security-based swap participants defining the terms ‘‘swap dealer,’’ transactions are acknowledged and (‘‘MSBSPs’’); 8 (2) reporting of SB swaps ‘‘security-based swap dealer,’’ ‘‘major verified by the parties who enter into to a registered security-based swap data swap participant,’’ ‘‘major security- them; 21 repository (‘‘SDR’’), or to the based swap participant,’’ and ‘‘eligible 7. Rules defining and regulating SB Commission (if the SB swap is contract participant’’ 15 and has SEFs, which would specify their uncleared and no SDR will accept the proposed rules in the following twelve registration requirements, establish the SB swap), and dissemination of SB areas required by Title VII: duties, and implement the core swap information to the public; 9 (3) 1. Rules prohibiting fraud and principles for SB SEFs specified in Title clearing of SB swaps at a registered manipulation in connection with SB VII; 22 clearing agency (or a clearing agency swaps; 16 8. Rules regarding certain standards that is exempt from registration) if the 2. Rules regarding trade reporting and that clearing agencies would be required Commission makes a determination that real-time public dissemination of trade to maintain with respect to, among other such SB swaps are required to be information for SB swaps that would lay things, their risk management and cleared, unless an exception from the out who must report SB swaps, what operations; 23 mandatory clearing requirement information must be reported, and 9. Joint rules with the CFTC further applies; 10 and (4) if an SB swap is where and when such information must defining the terms ‘‘swap,’’ ‘‘security- subject to the clearing requirement, be reported; 17 based swap,’’ and ‘‘security-based swap execution of the SB swap transaction on 3. Rules regarding the SDR agreement’’ and regarding the regulation an exchange, on a security-based swap registration process and the obligations of mixed swaps and SB swap agreement execution facility (‘‘SB SEF’’) registered of SDRs, including confidentiality and recordkeeping; 24 11 under the Exchange Act, or on an SB other requirements with which they 10. Rules regarding business conduct SEF that has been exempted from must comply; 18 that would establish certain minimum registration by the Commission under 4. Rules relating to mandatory standards of conduct for SBSDs and 12 the Exchange Act, unless no SB SEF clearing of SB swaps that would specify MSBSPs, including in connection with or exchange makes such SB swap the process for a registered clearing their dealings with ‘‘special entities,’’ 13 available for trading. Title VII also agency’s submission for review of SB which include municipalities, pension swaps that the clearing agency plans to plans, endowments and similar 6 25 15 U.S.C. 78a et seq. accept for clearing and rules to establish entities; 7 See generally Subtitle B of Title VII. a process for a registered clearing 11. Rules regarding the registration 8 See section 15F of the Exchange Act, 15 U.S.C. 26 agency to file advance notices with the process for SBSDs and MSBSPs; and 78o–10. 12. Rules intended to mitigate 9 See section 3(a)(75) of the Exchange Act, 15 Commission pursuant to Title VIII of the U.S.C. 78c(a)(75) (defining the term ‘‘security-based Dodd-Frank Act; 19 conflicts of interest at SB swap clearing swap data repository’’); section 13(m) of the agencies, SB SEFs, and exchanges that Exchange Act (regarding public availability of SB trade SB swaps.27 swap data); section 13(n) of the Exchange Act the Exchange Act, 15 U.S.C. 78c(77) (defining the (regarding requirements related to SDRs); and term ‘‘security-based swap execution facility’’). See 20 section 13A of the Exchange Act (regarding also Registration and Regulation of Security-Based See End-User Exception of Mandatory Clearing reporting and recordkeeping requirements for Swap Execution Facilities, Release No. 34–63825 of Security-Based Swaps, Release No. 34–63556 certain SB swaps). See also Security-Based Swap (Feb. 2, 2011), 76 FR 10948 (Feb. 28, 2011) (‘‘SB (Dec. 15, 2010), 75 FR 79992 (Dec. 21, 2010) (‘‘End- Data Repository Registration, Duties, and Core SEF Proposing Release’’). User Exception Proposing Release’’). Principles, Release No. 34–63347 (Nov. 19, 2010), 14 See sections 761(a)(2) and 768(a)(1) of the 21 See Trade Acknowledgment and Verification 75 FR 77306 (Dec. 10, 2010); corrected at 75 FR Dodd-Frank Act (amending sections 3(a)(10) of the on Security-Based Swap Transactions, Release No. 79320 (Dec. 20, 2010) and 76 FR 2287 (Jan. 13, Exchange Act, 15 U.S.C. 78c(a)(10), and 2(a)(1) of 34–63727 (Jan. 14, 2011), 76 FR 3859 (Jan. 21, 2011) 2011) (‘‘SDR Proposing Release’’); and Regulation the Securities Act, 15 U.S.C. 77b(a)(1), (‘‘Trade Documentation Proposing Release’’). SBSR—Reporting and Dissemination of Security- respectively). The Dodd-Frank Act also amended 22 See SB SEF Proposing Release. Based Swap Information, Release No. 34–63346 the Securities Act to provide that SB swaps could 23 See Clearing Agency Standards for Operation (Nov. 19, 2010), 75 FR 75208 (Dec. 2, 2010) not be used by an issuer, its affiliates, or and Governance, Release No. 34–64017 (Mar. 3, (‘‘Regulation SBSR Proposing Release’’). underwriters to circumvent the registration 2011), 76 FR 14472 (Mar. 16, 2011) (‘‘Clearing 10 See section 3C(a)(1) of the Exchange Act, 15 requirement of section 5 of the Securities Act with Agency Standards Proposing Release’’). U.S.C. 78c–3(a)(1). See also Process for Submissions respect to the issuer’s securities underlying the SB 24 See Product Definitions Proposing Release. for Review of Security-Based Swaps for Mandatory swap. See section 768(a) of the Dodd-Frank Act 25 See Business Conduct Standards for Security- Clearing and Notice Filing Requirements for (amending section 2(a)(3) of the Securities Act, 15 Based Swaps Dealer and Major Security-Based Clearing Agencies; Technical Amendments to Rule U.S.C. 77b(a)(3)). Swap Participants, Release No. 34–64766 (June 29, 19b–4 and Form 19b–4 Applicable to All Self- 15 See Entity Definitions Adopting Release. 2011), 76 FR 42396 (July 18, 2011) (‘‘Business Regulatory Organizations, Release No. 34–63557 16 See Prohibition Against Fraud, Manipulation, Conduct Standards Proposing Release’’). (Dec. 15, 2010), 75 FR 82490 (Dec. 30, 2010) and Deception in Connection with Security-Based 26 See Registration of Security-Based Swap (‘‘Clearing Procedures Proposing Release’’). Swaps, Release No. 34–63236 (Nov. 3, 2010), 75 FR Dealers and Major Security-Based Swap 11 15 U.S.C. 78c–4. 68560 (Nov. 8, 2010) (‘‘SB Swap Antifraud Participants, Release No. 34–65543 (Oct. 12, 2011), 12 Id. at 78c–4(e). Proposing Release’’). 76 FR 65784 (Oct. 24, 2011) (‘‘SB Swap Participant 13 See section 3C(g) of the Exchange Act, 15 17 See Regulation SBSR Proposing Release. Registration Proposing Release’’). U.S.C. 78c–3(g) and section 3C(h) of the Exchange 18 See SDR Proposing Release. 27 See Ownership Limitations and Governance Act, 15 U.S.C. 78c–3(h). See also section 3(a)(77) of 19 See Clearing Procedures Proposing Release. Requirements for Security-Based Swap Clearing

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In addition, the Commission intends The provisions of Title VII were expire upon the compliance dates of to propose rules establishing capital, generally effective on July 16, 2011 (360 certain of the rules required to be margin, and segregation requirements days after the enactment of the Dodd- promulgated pursuant to Title VII, applicable to SBSDs and MSBSPs Frank Act, the ‘‘Effective Date’’), unless including rules further defining the pursuant to Exchange Act sections a provision required a rulemaking, in terms ‘‘security-based swap’’ and 3E 28 and 15F(e) 29 and rules regarding which case such provision would go ‘‘eligible contract participant’’ 38 and the the reporting and recordkeeping into effect ‘‘not less than’’ 60 days after rules regarding the registration of SB requirements to which SBSDs and publication of the related final rules in SEFs.39 MSBSPs will be subject pursuant to the Federal Register or on July 16, 2011, Third, the Commission provided, 33 Exchange Act section 15F(f).30 The whichever is later. Because the until the compliance date for the final Commission also intends to address the Commission did not complete its rules to be adopted by the Commission international implications of Title VII in rulemaking prior to the Effective Date, further defining the terms ‘‘security- a single proposal that would present an we took a number of actions intended to based swap’’ and ‘‘eligible contract approach to the registration and clarify which U.S. securities laws would participant,’’ 40 interim exemptions from regulation of foreign entities engaged in apply to security-based swaps as of July all provisions of the Securities Act cross-border SB swap transactions, 16, 2011 and to provide exemptions (other than the section 17(a) antifraud among other areas.31 from certain provisions of the Securities provisions), the registration Moreover, while not mandated by Act, the Exchange Act, and the Trust requirements of the Exchange Act Title VII, the Commission has adopted Indenture Act. relating to classes of securities, and the First, the Commission provided exemptions under the Securities Act, indenture provisions of the Trust guidance as to which of the the Exchange Act, and the Trust Indenture Act for those SB swaps that requirements of the Exchange Act, as Indenture Act of 1939 (‘‘Trust Indenture would have been, prior to the Effective amended by Title VII, would apply to Act’’) for SB swaps issued by certain Date, within the definition of ‘‘security- SB swap transactions as of the Effective clearing agencies satisfying specified based swap agreement’’ under Securities Date and granted temporary relief to conditions to facilitate the intent of Title Act section 2A 41 and Exchange Act market participants from compliance VII with respect to the clearing of SB section 3A 42 and are entered into solely with certain of those requirements.34 As swaps.32 between eligible contract participants a result, SB swap market participants (as defined prior to the Effective Date).43 were not required to comply with Agencies, Security-Based Swap Execution Facilities, As a result, pursuant to the interim substantially all of Title VII’s and National Securities Exchanges with Respect to exemptions, the offer and sale of such requirements applicable to SB swaps Security-Based Swaps under Regulation MC, SB swaps between eligible contract Release No. 34–63107, (Oct. 14, 2010), 75 FR 65882 under the Exchange Act. The expiration participants may be made pursuant to (Oct. 26, 2010) (‘‘Proposed Regulation MC’’). dates of the temporary exemptions 28 exemptions under the Securities Act 15 U.S.C. 78c–5. granted pursuant to the Effective Date 29 Id. at 78o–10(e). without registration of the class under Order are triggered by the effective or 30 Id. at 78o–10(f). Exchange Act sections 12(a) and 12(g), compliance dates for certain final rules 31 The Commission also adopted an interim final and without qualification of an required to be adopted by the temporary rule that required counterparties to SB indenture under the Trust Indenture swaps entered into prior to the date of enactment 35 Commission pursuant to Title VII. 44 of the Dodd-Frank Act, the terms of which had not Second, the Commission approved an Act. expired as of that date, to report certain information order granting temporary relief and As previously announced, the relating to such SB swaps to a registered SDR, after such registered SDR is operational, or to the providing interpretive guidance to make Commission has been considering how Commission and to report information relating to it clear that a substantial number of the to implement the new requirements that such SB swaps to the Commission upon request. requirements of the Exchange Act will be applicable to SB swaps pursuant The Commission also issued an interpretive note to would not apply to SB swaps when the to the rules described above in a the rule requiring counterparties to retain information relating to the terms of such SB swaps. revised definition of ‘‘security’’ went practical and efficient manner that See Reporting of Security-Based Swap Transaction into effect on July 16, 2011.36 avoids unnecessary disruption to the SB Data, Release No. 34–63094 (Oct. 13, 2010), 75 FR Additionally, this order provided 64643 (Oct. 20, 2010). This interim final temporary temporary relief from provisions of the 38 Id. at 39938. rule was to remain in effect until the earlier of the 39 Id. at 39939. operative date of the permanent recordkeeping and Exchange Act that allow the voiding of 40 reporting rules for SB swap transactions to be contracts made in violation of those Further definition of the term ‘‘security-based adopted by the Commission or January 12, 2012. laws.37 The exemptions granted will swap’’ was proposed in the Product Definitions Commission staff currently is considering what Proposing Release and the term ‘‘eligible contract further action, if any, to recommend the participant’’ was further defined in the Entity 33 Commission take with regard to the interim final See section 774 of the Dodd-Frank Act, 15 Definitions Adopting Release. temporary rule and interpretive note. U.S.C. 77b note. 41 15 U.S.C. 77b(b)–1. 34 32 See Exemptions for Security-Based Swaps Order Pursuant to Sections 15F(b)(6) and 36 of 42 Id. at 78c–1. Issued By Certain Clearing Agencies, Release No. the Securities Exchange Act of 1934 Granting 43 Exemptions for Security-Based Swaps, Release 33–9308 (Mar. 30, 2012), 77 FR 20536 (Apr. 5, Temporary Exemptions and Other Temporary No. 33–9231 (July 1, 2011), 76 FR 40605 (July 11, 2012). These exemptions supplant the temporary Relief, Together With Information on Compliance 2011) (‘‘SB Swaps Interim Final Rule’’). These exemptions the Commission adopted to facilitate Dates for New Provisions of the Securities Exchange interim exemptions will expire upon the the operation of clearing agencies as central Act of 1934 Applicable to Security-Based Swaps, compliance date for the final rules further defining counterparties for eligible credit default swaps. See and Request for Comment, Release No. 34–64678 the terms ‘‘security-based swap’’ and ‘‘eligible Temporary Exemptions for Eligible Credit Default (June 15, 2011), 76 FR 36287 (June 22, 2011) contract participant.’’ Further, the Division of Swaps to Facilitate Operation of Central (‘‘Effective Date Order’’). Corporation Finance issued a no-action letter that Counterparties to Clear and Settle Credit Default 35 See Effective Date Order at 36306–7. addressed the availability of these interim Swaps, Release No. 33–8999 (Jan. 14, 2009), 74 FR 36 Order Granting Temporary Exemptions under exemptions to offers and sales of SB swaps that are 3967 (Jan. 22, 2009). See also Extension of the Securities Exchange Act of 1934 in Connection based on or reference only loans or indexes only of Temporary Exemptions for Eligible Credit Default with the Pending Revision of the Definition of loans. See Cleary Gottlieb Steen & Hamilton LLP Swaps to Facilitate Operation of Central ‘‘Security’’ to Encompass Security-Based Swaps, (July 15, 2011) (‘‘Clearly Gottlieb Letter’’). We Counterparties to Clear and Settle Credit Default and Request for Comment, Release No. 34–64795 understand that Commission staff intends to Swaps, Release No. 33–9232 (Jul. 1, 2011), 76 FR (July 1, 2011), 76 FR 39927 (July 7, 2011) withdraw the Cleary Gottlieb Letter upon the 40223 (Jul. 8, 2011) (extending the expiration date (‘‘Exchange Act Exemptive Order’’). expiration of these interim exemptions. of the temporary exemptions until April 16, 2012). 37 Id. at 39930, 39940. 44 SB Swaps Interim Final Rule at 40611–2.

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swap market.45 As noted in the Effective into effect simultaneously.50 rulemakings 53 that propose to phase in Date Order, the Commission has the Commenters have advocated that such compliance with the swap clearing, ability to establish effective dates and an implementation plan should allow trading, trade documentation, and compliance dates—which may be later market participants enough time to margining requirements of Subtitle A of than the effective dates—for provisions come into compliance with rules to be Title VII of the Dodd-Frank Act 54 by of Title VII that are subject to adopted under Title VII 51 and be category of market participant in the rulemaking.46 Given this ability, the sequenced in some manner to provide following manner: Commission seeks to sequence the for differing compliance dates • Category 1 Entities, which would implementation of the final rules to be depending upon the requirements include swap dealers, SBSDs, major adopted pursuant to Title VII of the involved.52 swap participants and MSBSPs that will Dodd-Frank Act in an appropriate In September 2011, the CFTC be required to register with the CFTC or manner. published two notices of proposed the Commission and ‘‘active funds’’ To engage the public on these issues, (defined as any private fund, as defined the staffs of the Commission and the 50 See, e.g., letter from Alternative Investment in section 202(a) of the Investment CFTC held a two-day joint public Management Association (June 10, 2011), 75 FR Advisers Act of 1940,55 that is not a 80174, at 1 (CFTC only letter; ‘‘we believe that roundtable on May 2–3, 2011, to discuss market participants should be given sufficient time third-party subaccount and that the sequencing of the implementation of to properly understand and prepare themselves to executes 20 or more swaps per month the final rules to be adopted under Title comply with the new regulatory requirements.’’); based upon a monthly average over the VII.47 In connection with this letter from Managed Funds Association, MFA 12 months preceding the CFTC issuing Recommended Timeline for Adoption and roundtable, the Commission and the Implementation of Final Rules Pursuant to Title VII a mandatory clearing determination), CFTC solicited comment on issues of the Dodd-Frank Act (Mar. 24, 2011), 76 FR 3698, would be required to comply with the pertaining to the phased at 1 (CFTC only letter); letter from Tradeweb clearing, trading, trade documentation implementation of Title VII’s final Markets LLC (June 3, 2011), 76 FR 25274, at 2 and margining requirements for swaps (CFTC only letter; ‘‘[a]t the outset, we encourage the 48 rules. Additionally, the Commission [CFTC] to implement the regulatory requirements entered into by Category 1 Entities and the CFTC have received comment over time rather than all at once because a ‘big bang’ within 90 days (1) after the CFTC issues letters in response to specific rules approach to implementation would be too any clearing determination or 30 days disruptive to the marketplace—particularly given proposed under and orders issued in the breadth and complexity of the new rules to be after a swap is made available to trade, connection with Title VII that address implemented and the varying states of readiness of whichever is later; and (2) after the implementation issues pertaining to market participants.’’). adoption of the final trade those rules, as well as implementation 51 See, e.g., letter from American Bankers documentation or margining rule, as issues more generally. Association, ABA Securities Association, The relevant. Clearing House Association L.L.C., Financial • Many commenters have noted that the Services Forum, Financial Services Roundtable, Category 2 Entities, which would Commission and the CFTC have the Futures Industry Association, Institute of include commodity pools, a private flexibility to phase in or sequence the International Bankers, International Swaps and fund as defined in section 202(a) of the Derivatives Association, Investment Company 56 issuance of final rules, as well as the Institute, Managed Funds Association, and Investment Advisers Act of 1940 compliance dates for those rules, in a Securities Industry and Financial Markets other than an active fund, employee manner that produces an orderly Association (Dec. 6, 2010) (‘‘December Trade benefit plans as defined under the implementation plan,49 as opposed to a Association Letter’’), Commission ‘‘Other Employee Retirement Income Security Comments’’ file, at 3 (stating that ‘‘[t]o implement 57 ‘‘big bang’’ approach where all of the a complex new regulatory structure without Act (‘‘ERISA’’), and persons rules to be adopted under Title VII go adequate time to adapt, prepare, and test systems predominantly engaged in activities that also could lead to an ineffective or poorly designed are financial in nature as defined under 45 See Financial Regulatory Reform: The reporting, clearing, and exchange infrastructure the Bank Holding Company Act,58 International Context: Hearing Before the H. Comm. * * *’’); letter from Alternative Investment provided that the entity is not a third- on Fin. Serv., 112th Cong. 18 (2011) (statement of Management Association (June 10, 2011), 75 FR Mary L. Schapiro, Chairman of the Commission). 80174, at 1 (CFTC only letter; noting that ‘‘market party subaccount, would be required to 46 See Effective Date Order at 36289. participants should be given sufficient time to comply with the clearing, trading, trade properly understand and prepare themselves to 47 See Joint Public Roundtable on Issues Related comply with the new regulatory requirements.’’); to the Schedule for Implementing Final Rules for 53 Swap Transaction Compliance and letter from Financial Services Forum, Futures Swaps and Security-Based Swaps Under the Dodd- Implementation Schedule: Clearing and Trade Industry Association, International Swaps and Frank Wall Street Reform and Consumer Protection Execution Requirements Under Section 2(h) of the Derivatives Association, and Securities Industry CEA (Sept. 8, 2011), 76 FR 58186 (Sept. 20, 2011) Act, Release No. 34–64314 (Apr. 20, 2011), 76 FR and Financial Markets Association (May 4, 2011), (‘‘CFTC Clearing and Trade Execution 23221 (Apr. 26, 2011) (Request for Comment; Notice File No. S7–27–10, at 4–5; letter from Investment Implementation Proposal’’); Swap Transaction of Roundtable Discussion). Company Institute (June 10, 2011), 75 FR 76139, at 48 Compliance and Implementation Schedule: Trading See id. 6 (‘‘[p]hasing in the rules will provide market Documentation and Margining Requirements Under 49 See, e.g., letter from Alternative Investment participants with essential time to identify the Section 4s of the CEA (Sept. 8, 2011), 76 FR 58176 Management Association (June 10, 2011), 75 FR cumulative impact of the rule changes, build upon (Sept. 20, 2011) (‘‘CFTC Trading Documentation 80174, at 1 (CFTC only letter; stating that the CFTC the actions of other market participants, and and Margining Implementation Proposal’’). ‘‘should phase in the implementation of the Dodd- manage the cumulative costs of the rule changes.’’). 54 The analogues to the CFTC Clearing and Trade Frank Act rules over time’’); letter from Edison 52 See, e.g., letter from Financial Services Forum, Execution Implementation Proposal and the trade Electric Institute (June 3, 2011), 76 FR 25274, at 7 Futures Industry Association, International Swaps documentation portion of the CFTC Trading (CFTC only letter); letter from Morgan Stanley (Nov. and Derivatives Association, and Securities Documentation and Margining Implementation 1, 2010), File No. S7–16–10, at 6 (noting that Industry and Financial Markets Association (May 4, Proposal are the Commission’s rule proposals set ‘‘Dodd-Frank does not require application of the 2011), File No. S7–27–10, at 7–8 (recommending forth in the Clearing Procedures Proposing Release, various requirements across all over-the-counter that Title VII’s requirements be phased in by asset the SB SEF Proposing Release, and the Trade products on a single effective date or a limited class and market participant type); letter from Documentation Proposing Release. The analogue to range of effective dates. To the contrary, the statute Investment Company Institute (June 10, 2011), 75 the margining proposals in the CFTC Trading permits and even contemplates that implementation FR 76139, at 11; letter from Swaps & Derivatives Documentation and Margining Implementation of the requirements will be phased in over time, as Market Association (June 1, 2011), File No. S7–06– Proposal is the Commission’s forthcoming proposed appropriate and necessary to the continued 11, at 2, 5 (recommending that at each phase of rules on margin requirements for SBSDs and operation of the markets.’’); letter from NextEra implementation (namely, clearing, trading and data MSBSPs. Energy Resources, LLC (Mar. 11, 2011), 75 FR reporting), compliance should be further sequenced 55 80174, at 4 (CFTC only letter; noting that ‘‘[t]he by market participant, with ‘‘those with the highest 15 U.S.C. 80b–2(a). market place is far better served if the [CFTC] volume share * * * lead[ing] the implementation, 56 Id. considers all of the final rules in a comprehensively allowing less frequent users more time to 57 Public Law 93–406, 88 Stat. 829 (1974). organized and logical fashion.’’). comply.’’). 58 12 U.S.C. 1841 et seq.

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documentation and margining comment on, this Statement, which final rules with cross-border requirements for swaps entered into by discusses issues pertaining to, and implications are adopted.61 Category 2 Entities within 180 days (1) presents a general sequence for, the With regard to the rules in the after the CFTC issues any clearing anticipated compliance dates of final remaining four categories, the Statement determination or 30 days after a swap is rules to be adopted by the Commission describes the interconnectedness of the made available to trade, whichever is under Subtitle B of Title VII. The issues compliance dates of the final rules later; and (2) after the adoption of the discussed in this Statement are set out within one category, and where final trade documentation or margining in relation to the following five applicable, the impact of compliance rule, as relevant. 60 dates of final rules within one category • categories of rules: (1) The rules Category 3 Entities, which would further defining the terms ‘‘security- upon those of another category. The include third party sub-accounts and Statement also discusses the based swap,’’ ‘‘security-based swap ‘‘all other swap transactions not dependencies that exist between the agreement,’’ ‘‘mixed swap,’’ ‘‘security- excepted from the mandatory clearing categories of rules. The Statement does based swap dealer,’’ ‘‘major security- requirement,’’ would be required to not provide specific compliance dates comply with the clearing, trading, trade based swap participant,’’ and ‘‘eligible for the final rules to be adopted under documentation and margining contract participant,’’ (the ‘‘Definitional Subtitle B of Title VII, nor does it requirements for swaps entered into by Rules’’) and the rules concerning the provide a conclusive sequencing of Category 3 Entities within 270 days (1) treatment of cross-border SB swap compliance dates. However, the after the CFTC issues any clearing transactions and non-U.S. persons Statement does explain how such dates determination or 30 days after a swap is acting in capacities regulated under could be sequenced in relative terms made available to trade, whichever is Subtitle B of Title VII (the ‘‘Cross-Border and, in this way, seeks to give SB swap later; and (2) after the adoption of the Rules’’); (2) rules pertaining to the market participants clarity into and an final trade documentation or margining registration and regulation of SDRs, the opportunity to comment upon the rule, as relevant. reporting of SB swap transaction data to general order in which they might • With regard to the trade SDRs, and the public dissemination of expect to consider and prepare for documentation and margining SB swap transaction data; (3) rules compliance with these final rules. The requirements, the CFTC Trading pertaining to the mandatory clearing Statement also discusses the relief the Documentation and Margining process of SB swap transactions, Commission has previously granted by Implementation Proposal adds an clearing agency standards, and the end- providing exemptions from certain additional fourth category of entities— user exception from mandatory clearing; provisions of the Securities Act, the Category 4 Entities—for any persons not (4) rules pertaining to the registration Exchange Act, and the Trust Indenture included in Categories 1 through 3. and regulation of SBSDs and MSBSPs; Act for certain SB swaps and when Under this proposal, Category 4 Entities and (5) rules pertaining to the these exemptions will expire. would be subject to the same mandatory trading of SB swap In general, in formulating the compliance date scheduling as Category transactions, including the rules sequencing of compliance dates 3 Entities. pertaining to the registration and described herein, the Commission has taken into consideration four principles In its Clearing and Trade Execution regulation of SB SEFs. Implementation Proposal and its in addition to the primacy of the Trading Documentation and Margining The first category of rules affects Definitional Rules and Cross-Border Implementation Proposal, the CFTC did compliance with rules in the other four Rules described above: (1) Compliance not propose specific adoption or categories. As a result, the Commission with the final rules establishing the compliance dates for rules, but did note believes the Definitional Rules would registration process and duties of SDRs that certain final rules must be adopted need to be adopted and effective prior and the rules governing the reporting of before compliance with others would be to requiring compliance with any of the SB swap transaction data should be the required. For example, the CFTC noted other rules to be adopted under Title VII next step in the implementation in its Clearing and Trade Execution of the Dodd-Frank Act. The Definitional process, following the adoption and Implementation Proposal that before the Rules would help inform market effectiveness of the Definitional Rules mandatory clearing of swaps begins, the participants as to whether they will be and the proposal of the Cross-Border final rules establishing the product and subject to the requirements of Subtitle B Rules, so that the Commission would be entity definitions, the end-user of Title VII, section 12 of the Exchange able to begin utilizing comprehensive exception from mandatory clearing, and Act, and the relevant provisions of the SB swap transaction data reported to pertaining to the segregation of Securities Act and the Trust Indenture registered SDRs in making certain customer collateral must be adopted and Act. Additionally, the Commission determinations required by Subtitle B of that before swap market participants generally believes the Cross-Border Title VII; 62 (2) before SB swaps are could be required to comply with a Rules should be proposed before final trade execution requirement, the CFTC rules with cross-border implications are 61 For example, before requiring compliance with the registration requirements for SBSDs, the must adopt final rules related to swap adopted. We believe the Commission Commission believes the proposed applicability of execution facilities and designated would benefit by being able to take into such registration requirements to non-U.S. persons contract markets.59 account comments on its proposed should be addressed and subject to public approach to cross-border issues before comment. B. Overview of Statement 62 See Letter from Managed Funds Association, MFA Recommended Timeline for Adoption and In order to better effectuate the 60 For the purposes of this Statement, the Implementation of Final Rules Pursuant to Title VII purposes of Title VII and to address the Commission has categorized the twelve rule of the Dodd-Frank Act (Mar. 24, 2011), 76 FR 3698, comments received from market proposals and one adopting release the Commission at 1 (CFTC only letter; noting that certain rules participants, the Commission has has published pursuant to Title VII (other than the should be delayed ‘‘in favor of obtaining market SB Swap Antifraud Proposing Release, compliance data or allowing time for the build out of necessary developed, and is seeking public with which will be addressed in the release systems prior to adoption (e.g., position limits and adopting the final rules contemplated therein) along real-time reporting).’’); but cf., letter from Swaps & 59 See CFTC Clearing and Trade Execution with the proposals the Commission has yet to Derivatives Market Association (June 1, 2011), File Implementation Proposal at 58188–9. publish, as described above, into five categories. Continued

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required to be cleared, the Commission will be addressed in the relevant final effective, the Definitional Rules should intends to determine whether to rulemakings to which they pertain. help provide certainty to market propose amendments to its rules participants with regard to whether the II. Statement on the Sequencing of the regarding net capital and customer products in which they transact and the Compliance Dates for Final Rules protection specifically with regard to SB activities they undertake will be subject Applicable to Security-Based Swaps swap clearing activity in a broker-dealer to the regulatory regime to be Adopted Pursuant to the Securities and whether margin for SB swaps that established through Subtitle B of Title Exchange Act of 1934 and the Dodd- are required to be cleared can be VII and the rules to be adopted by the Frank Wall Street Reform and calculated on a portfolio margining Commission pursuant to it. Except as Consumer Protection Act basis with swaps; 63 (3) the Dodd-Frank otherwise noted below with regard to Act establishes a sequencing of the A. Definitional and Cross-Border Rules section 6(l) of the Exchange Act, upon mandatory clearing and mandatory their effectiveness, the Definitional (i) Definitional Rules trading requirements of Subtitle B of Rules will not, on their own, impose Title VII, as only SB swaps that the The Commission believes the upon market participants engaged in SB Commission requires to be cleared will Definitional Rules, the rules further swaps any of the new requirements to be required to be traded on an exchange defining the terms ‘‘security-based be adopted under Subtitle B of Title or SB SEF, provided that an exchange or swap,’’ ‘‘security-based swap VII.69 SB SEF makes such SB swaps available agreement,’’ and ‘‘mixed swap’’ and the Upon the compliance date of the final to trade, and the implementation rules further defining ‘‘security-based rules further defining the term process should take this sequencing into swap dealer,’’ and ‘‘major security-based 64 ‘‘security-based swap’’ and ‘‘eligible account; and (4) without swap participant,’’ should be the earliest contract participant,’’ two of the unnecessarily delaying the of the final rules of Subtitle B of Title temporary exemptions granted by the implementation of Title VII’s reforms of VII that are adopted and effective. As Commission pursuant to the Exchange the SB swap market, at all stages of the noted above, the Commission already Act Exemptive Order will expire: 70 implementation process, persons has adopted joint rules with the CFTC • regulated pursuant to Subtitle B of Title further defining the terms ‘‘swap The exemption for any person VII should be given adequate, but not dealer,’’ ‘‘security-based swap dealer,’’ meeting the definition of ‘‘eligible excessive, time to come into compliance ‘‘major swap participant,’’ ‘‘major contract participant’’ that was in effect with the final rules applicable to them, security-based swap participant,’’ and prior to the enactment of the Dodd- which includes (a) having an ‘‘eligible contract participant.’’ 67 Frank Act, other than a registered appropriate amount of time to analyze Many commenters have noted the broker-dealer or a self-regulatory and understand the final rules to be importance of the early finalization of organization, from the provisions of the adopted pursuant to Title VII, (b) having the these definitional rules, as they Exchange Act and the rules and an appropriate amount of time to provide the foundation for the regulations thereunder (other than those develop and test new systems required remainder of Title VII’s rules by provisions expressly excluded pursuant as a result of the new regulatory providing further guidance as to what to the Exchange Act Exemptive Order), requirements for SB swaps, and (c) in connection with a person’s activities products constitute SB swaps and 71 being subject to a phasing in of the which participants constitute SBSDs involving SB swaps; and requirements arising from the final rules and MSBSPs.68 Once adopted and • The exemption for a broker or to be adopted pursuant to Title VII, as dealer registered under section 15(b) of 65 appropriate. Association, Inc. (June 2, 2011), 76 FR 25274, at 4 the Exchange Act 72 from certain The Commission is seeking public (CFTC only letter; recommending that the CFTC provisions of the Exchange Act and the comment on all aspects of this ‘‘propose a step-by-step implementation schedule Statement. The Commission appreciates upon which the public may comment that builds on the discussions currently underway between the ‘major swap participant’ ’’); letter from Managed the importance of SB swap market financial regulators and the industry.’’); letter from Funds Association, MFA Recommended Timeline participants having the opportunity to BlackRock, Inc. (June 3, 2011), 76 FR 25274, at for Adoption and Implementation of Final Rules comment upon the sequencing 1–2 (CFTC only letter; noting that ‘‘[a] proper Pursuant to Title VII of the Dodd-Frank Act (Mar. 24, 2011), 76 FR 3698, at 3 (CFTC only letter); letter discussed herein.66 Comments received sequencing of the [CFTC’s] consideration of final rules and a phased, publicly-vetted schedule for from NextEra Energy Resources, LLC (Mar. 11, implementation of compliance with such final rules 2011), 75 FR 80174, at 6 (CFTC only letter); letter No. S7–06–11, at 2 (stating that ‘‘[c]entral clearing will promote a more orderly transition from the from Alternative Investment Management paves the way for electronic trading, which current OTC bilateral market and will allow for the Association (June 10, 2011), 75 FR 80174, at 3 facilitates trade reporting and data gathering.’’). development of a new market structure for cleared (CFTC only letter; ‘‘[i]t is essential that the 63 See infra note 138. derivatives where the interdependent and definitions of products and the categories of firms 64 See, e.g., letter from Wholesale Market Brokers’ interoperable relationships among the various to whom final rules will apply are finalised before Association (June 3, 2011), 76 FR 1214, at 5 (noting entities and market participants (including some implementation of any of the other final rules.’’); that ‘‘upon the plain language of the Dodd-Frank new participants) is well thought through so as to letter from CME Group, Inc. (June 3, 2011), 76 FR Act, the mandatory trade execution requirement preserve and even enhance liquidity.’’); letter from 25274, at 3 (CFTC only letter). will become effective at the time that swaps are Bloomberg L.P. (Apr. 4, 2011), File No. S7–06–11, 69 As of the Effective Date of the Dodd-Frank Act, deemed ‘clearable’ by the appropriate at 7. SB swaps, as securities, were subject to the general Commission.’’). 67 See Entity Definitions Adopting Release. antifraud and anti-manipulation provisions of the 65 Any potential phasing in of any such 68 See, e.g., December Trade Association letter at federal securities laws and the regulations requirements could take a variety of forms, 2; letter from American Gas Association (June 3, thereunder. See, e.g., Exchange Act section 10(b), 15 including, for example, the further sequencing of 2011), 76 FR 25274, at 2 (CFTC only letter; stating U.S.C. 78j, and Securities Act section 17(a), the compliances dates of a particular final rule by that ‘‘any sequencing of final rules must begin with 15 U.S.C. 77q(a). SB swap asset class, SB swap market participant the foundational definitions of ‘swap,’ ‘swap 70 The Commission has subsequently received type, and/or the specific requirements arising from dealer’, and ‘major swap participant.’ ’’ Industry and is considering a request for certain permanent such rule. participants must understand whether and to what exemptions upon the expiration of the temporary 66 See, e.g., letter from Investment Company extent their activities will be regulated before they exemptions contained in the Exchange Act Institute (June 10, 2011), 75 FR 76139, at 2 can assess how those activities should be Exemptive Order. See SIFMA SBS Exemptive Relief (requesting that the Commission and the CFTC regulated.’’); letter from Edison Electric Institute Request (Dec. 5, 2011), http://www.sec.gov/ ‘‘publish for comment their proposed timelines to (June 3, 2011), 76 FR 25274, at 7 (CFTC only letter; comments/s7-27-11/s72711-10.pdf. phase in implementation of the new swaps rules.’’); advocating that the implementation process ‘‘start 71 Exchange Act Exemptive Order at 39938–40. letter from International Swaps and Derivatives with basic definitions of ‘swap,’ ‘swap dealer,’ and 72 15 U.S.C. 78o(a).

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rules and regulations thereunder with 6(l) of the Exchange Act makes it addressing the cross-border aspects of respect to SB swaps.73 unlawful for any person to effect a such rules.85 At the same time, the following transaction in an SB swap with or for a (iii) Request for Comment exemptions granted pursuant to the SB person that is not an ‘‘eligible contract • Swaps Interim Final Rule 74 will expire, participant,’’ unless such transaction is In addition to the Definitional Rules unless the Commission extends or effected on a national securities and the Cross-Border Rules, are there modifies the exemptions or adopts other exchange registered pursuant to section any other rules arising under Title VII exemptions: 75 83 that should be proposed or adopted • 6(b) of the Exchange Act. Upon the The exemption pursuant to effective date of the final rules further before all other Title VII rules? If so, Securities Act rule 240 (‘‘Rule 240’’) defining the term ‘‘eligible contract which ones, and why? • Are there any sets of rules included from all provisions of the Securities Act, participant,’’ which will be 60 days after except the anti-fraud provisions of in this first category that should not be? the rule’s publication in the Federal section 17(a), subject to certain If so, which ones, and why? Register, or July 23, 2012,84 section 6(l) conditions, of the offer and sale of those of the Exchange Act will apply to B. SDR Registration and SB Swap SB swaps that under pre-Dodd-Frank Transaction Reporting Act law were ‘‘security-based swap persons in connection with SB swap agreements’’ (which, under that transactions with counterparties that do Following the adoption and definition, must be entered into between not meet the ‘‘eligible contract effectiveness of the Definitional Rules eligible contract participants and subject participant’’ definition, as amended by and the proposal of the Cross-Border to individual negotiation) and that were the Dodd-Frank Act and as further Rules, the Commission believes the next defined as ‘‘securities’’ under the defined by such rules. step in the implementation process should be requiring SDRs to register Securities Act on the Effective Date (ii) Cross-Border Rules solely due to the provisions of Title with the Commission and comply with VII; 76 The Commission expects to propose applicable duties and core principles. • The exemptions from the provisions the Cross-Border Rules as a single Compliance earlier in the of Exchange Act sections 12(a) 77 and release addressing the application of the implementation process should 12(g) 78 for any SB swaps offered and requirements of Subtitle B of Title VII to facilitate the development and sold in reliance on Rule 240; 79 and cross-border SB swap transactions and utilization of SDRs in a regulated • manner and facilitate the reporting of The exemption from the provisions non-U.S. persons acting in capacities SB swap transaction data by SB swap of the Trust Indenture Act for any SB regulated under Subtitle B of Title VII. market participants to registered SDRs, swaps offered and sold in reliance on The Cross-Border Rules, which the 80 as well as the public dissemination of Rule 240. Commission expects to propose prior to In light of the fact that these SB swap data by registered SDRs. adopting any rules other than the Because the Regulation SBSR Proposing exemptions expire upon the compliance Definitional Rules (except as otherwise date of the final rules further defining Release links the timeframes for noted in sections II.C.(i) and (ii) below), the term ‘‘security-based swap’’ and reporting and publicly disseminating SB generally would not propose to impose ‘‘eligible contract participant,’’ the swap transaction data to the registration additional requirements or obligations Commission is considering what the of SDRs,86 the Commission anticipates upon SB swap market participants, but appropriate compliance date for the that the sooner SDRs are required to rather would propose to address the rules further defining the term register with the Commission and extent to which non-U.S. SB swap ‘‘security-based swap’’ should be. comply with applicable duties and core Additionally, upon the effective date market participants would be subject to principles, the sooner SB swap of the final rules further defining the the requirements arising from Subtitle B transaction data on all SB swaps can be term ‘‘eligible contract participant,’’ the of Title VII by defining the scope of promptly reported to such SDRs and limited exemption granted pursuant to Title VII as it applies to these market disseminated to the public. The the Effective Date Order permitting participants and their SB swap Commission also believes it should compliance with section 6(l) using the transactions involving the U.S. market. require the reporting of SB swap definition of ‘‘eligible contract Because the Cross-Border Rules are transactions to registered SDRs earlier in participant’’ as set forth in section expected to be directly related to, among the implementation process, as has been 1a(12) of the Commodity Exchange Act other things, SB swap data reporting, suggested by commenters, to enable the (as in effect on July 20, 2010),81 as clearing and trading, as well as various Commission to utilize the data reported opposed to the definition of ‘‘eligible registration categories under Title VII, to registered SDRs to inform other contract participant’’ as amended by the the Commission anticipates that certain aspects of the Commission’s efforts with Dodd-Frank Act, will expire.82 Section rulemakings that are affected by the respect to Title VII.87 Cross-Border Rules would address 73 Id. at 39939–40. comments received on the relevant 85 For example and as noted above, before 74 See supra note 43. proposals in the Cross-Border Rules. In requiring compliance with the registration 75 The interim exemptions provide that upon other substantive areas, the Commission requirements for SBSDs, the Commission believes the applicability of such registration requirements their expiration, the Commission must publish a could address comments received by rule to remove the interim exemptions from the to non-U.S. persons should be addressed. Code of Federal Regulations. See, e.g., 17 CFR adopting final rules addressing cross- 86 Regulation SBSR Proposing Release at 75187– 230.240. Further, we understand that Commission border issues in a complementary 8. staff intends to withdraw the Cleary Gottlieb Letter separate rulemaking. In either case, the 87 See, e.g., letter from MarkitSERV (June 10, upon the expiration of these interim exemptions. Commission does not expect to require 2011), 75 FR 63113, at 2–3 (CFTC only letter; noting 76 that ‘‘[d]ata reporting to the Commission will SB Swaps Interim Final Rule at 40611. compliance by participants in the U.S. 77 15 U.S.C. 78l(a). provide the Commission with the significant SB swap market with the final rules amount of market data needed before it can 78 15 U.S.C. 78l(g). determine which swaps should be subject to the 79 arising under the Exchange Act before Id. at 40612. clearing mandate, which ones are ‘available to 80 Id. trade’, and what are the appropriate thresholds for 81 7 U.S.C. 1a(12). 83 15 U.S.C. 78f(l). block trade sizes.’’); letter from Financial Services 82 Effective Date Order at 36307. 84 See supra note 4. Continued

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The Commission further believes well as the relationship of certain of the b. Expiration of Exemptions Granted compliance with final rules resulting proposed rules in the Regulation SBSR Pursuant to the Effective Date Order from the SDR Proposing Release should Proposing Release to those in the SDR The Effective Date Order granted be required as soon as practicable after Proposing Release. temporary exemptions from compliance the effectiveness of the Definitional with a number of provisions of section Rules and proposal of the Cross-Border a. Registration and Compliance With Regulatory Requirements 13(n) of the Exchange Act that apply to Rules, taking into account the necessity SDRs generally, as they do not require of SB swap market participants having The Regulation SBSR Proposing a rulemaking or other Commission an appropriate amount of time to Release would require that an entity action or do not apply only to registered analyze and understand the final rules registered with the Commission as an SDRs. Specifically, the Effective Date and develop and test new policies and SDR also register with the Commission Order provided temporary exemptions systems required as a result of them, to as a securities information processor from compliance with the following facilitate the establishment and (‘‘SIP’’) on existing Form SIP.88 The sections: utilization of registered SDRs. Commission anticipates that the • Section 13(n)(5)(D)(i) of the Furthermore, the Commission believes timeframe within which persons Exchange Act,91 which would require compliance with final rules resulting seeking to operate as SDRs will be an SDR to provide direct electronic from the Regulation SBSR Proposing access to the Commission or any Release should be required at required to register with the designee of the Commission; approximately the same time as Commission would be established in the • Section 13(n)(5)(F) of the Exchange compliance with final rules resulting release adopting final rules resulting Act,92 which would require an SDR to from the SDR Proposing Release, also from the SDR Proposing Release. As maintain the privacy of any and all SB taking into account the necessity of SB noted above, the Commission believes swap transaction information that the swap market participants having an compliance with final rules resulting SDR receives from an SBSD, appropriate amount of time to analyze from the SDR Proposing Release should counterparty, or other registered entity; and understand the final rules and be required as soon as practicable after the effectiveness of the Definitional • Section 13(n)(5)(G) of the Exchange develop and test new policies and 93 systems required as a result of them. As Rules and the proposal of the Cross- Act, which would require an SDR, on a result, the requirement to report SB Border Rules, taking into account the a confidential basis and after notifying swap transactions to registered SDRs necessity of SB swap market the Commission of the request, to make would facilitate the comprehensiveness participants having an appropriate available all data obtained by the SDR, of SB swap data contained in SDRs. amount of time to analyze and including individual counterparty trade Accordingly, except as otherwise noted understand the final rules and develop and position data, to certain enumerated and test new policies and systems entities; in sections II.C.(i) and (ii) below, the • required as a result of them. Section 13(n)(5)(H) of the Exchange final rules resulting from the SDR 94 Proposing Release and the Regulation Accordingly, the Commission Act, which would require an SDR, SBSR Proposing Release would be the anticipates that the final rules governing before sharing information with certain first sets of rules with which the SDR registration process and enumerated entities, to (1) receive a compliance would be required by the applicable duties, core principles, and written agreement from each such entity Commission, following the effectiveness other requirements, as explained that the entity will abide by certain of the Definitional Rules and the immediately below, would be one confidentiality provisions relating to the proposal of the Cross-Border Rules. component of the two sets of rules with information on SB swap transactions The following subsections discuss which compliance would be required that is provided and (2) have each such entity agree to indemnify the SDR and certain additional issues concerning the first. the Commission for any expenses compliance dates for final rules Proposed rules 13n–4 through 13n–11 resulting from (i) the SDR Proposing arising from litigation relating to the are intended to implement the duties information provided; Release and (ii) the Regulation SBSR and core principles established by • Proposing Release. Section 13(n)(7)(A) of the Exchange section 763(i) of the Dodd-Frank Act, Act,95 which would prohibit an SDR (i) SDR Proposing Release which amended the Exchange Act to from adopting any rule or taking any add Exchange Act section 13(n).89 An In accordance with section 763(i) of action that results in any unreasonable Title VII, the Commission issued the SDR would be required to comply with restraint of trade or impose any material SDR Proposing Release, which proposed the final rules establishing the duties anticompetitive burden on the trading, new rules under the Exchange Act and core principles resulting from clearing, or reporting of transactions; • governing the SDR registration process, proposed rules 13n–4 through 13n–11 Section 13(n)(7)(B) of the Exchange as soon as the Commission approves the Act,96 which would require an SDR to duties, and core principles. This 90 subsection discusses issues surrounding SDR’s application for registration. establish transparent governance the timing of the SDR registration arrangements for certain enumerated process and compliance with the duties, 88 Regulation SBSR Proposing Release at 75211. reasons; and 89 core principles, and other requirements SDR Proposing Release at 77367–9. • Section 13(n)(7)(C),97 which would 90 15 U.S.C. 78m(n). Proposed rule 13n–1(c) require an SDR to establish rules to resulting from these proposed rules, as provides that the Commission shall grant the registration of an SDR if the Commission finds that minimize conflicts of interest and Forum, Futures Industry Association, International such SDR is so organized, and has the capacity, to Swaps and Derivatives Association, and Securities be able to assure the prompt, accurate, and reliable 91 15 U.S.C. 78m(n)(5)(D)(i). Industry and Financial Markets Association (May 4, performance of its functions as an SDR, comply 92 Id. at 78m(n)(5)(F). 2011), File No. S7–27–10, at 2, 5–6 (noting that ‘‘the with any applicable provision of the federal 93 Id. at 78m(n)(5)(G). Commissions will be in a better position to adopt securities laws and the rules and regulations 94 rules that achieve Dodd-Frank’s goals while thereunder, and carry out its functions in a manner Id. at 78m(n)(5)(H). maintaining active and viable [SB swap] markets’’ consistent with the purposes of Exchange Act 95 Id. at 78m(n)(7)(A). if SDRs are required to register and data reporting section 13(n) and the rules and regulations 96 Id. at 78m(n)(7)(B). is enabled). thereunder. See SDR Proposing Release at 77313. 97 Id. at 78m(n)(7)(C).

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establish a process for resolving However, as acknowledged by the amount of time to analyze and conflicts of interest. Commission in the Effective Date Order, understand the final rules and develop These temporary exemptions will expire ‘‘even after an SDR is registered, market and test new policies and systems upon the earlier of: (1) The date the participants will need additional time to required as a result of them, which Commission grants registration to the establish connectivity and develop would be the triggering event for the SDR; and (2) the earliest compliance appropriate policies and procedures to reporting obligations contemplated by date set forth in any of the final rules be able to deliver information to the the Regulation SBSR Proposing regarding the registration of SDRs. In registered SDR.’’ 102 Accordingly, Release.105 setting the compliance dates of final pursuant to the Effective Date Order, the Commission granted temporary C. Establishment of Block Trade rules resulting from the SDR Proposing Thresholds Release, the Commission intends to exemptive relief such that no person consider whether it is necessary or would be required to report pre- With respect to defining block trade appropriate in the public interest, and enactment SB swaps pursuant to section thresholds for SB swaps, the consistent with the protection of 3C(e)(1) of the Exchange Act to a Commission stated in the Regulation investors, to take further action with registered SDR until six months after the SBSR Proposing Release that ‘‘it would regard to any of the above-described SDR that is capable of accepting the be appropriate to seek additional exemptions. asset class of the pre-enactment SB comment from the public, as well as to swap is registered by the collect and analyze additional data on (ii) Regulation SBSR Proposing Release Commission.103 The Regulation SBSR the [SB swap] market, in the coming In accordance with sections 763 and Proposing Release proposed to define months’’ before proposing specific block 766 of the Dodd-Frank Act, the pre-enactment SB swaps as those trade thresholds.106 The Commission Commission issued the Regulation entered into before July 21, 2010 the further noted its intent to propose SBSR Proposing Release, which, among terms of which had not expired as of specific block trade thresholds 104 other things, proposed timeframes for that date. simultaneously with the adoption of the reporting of SB swap information to B. Compliance With Other Reporting final rules resulting from the Regulation registered SDRs or to the Commission Requirements SBSR Proposing Release.107 and for the public dissemination of SB As discussed in section B.(i) above, The Commission recognizes that swap transaction, volume, and pricing current data on the nature and size of 98 the Commission believes SDRs should information. As noted in the be required to register with the SB swap transactions reflects a market Regulation SBSR Proposing Release, the Commission and comply with the that is not yet subject to any of the Commission understands that market duties, core principles and other requirements to be adopted under Title participants would need a reasonable requirements applicable to SDRs, as VII, including the requirement that such period of time in which to acquire or soon as practicable after the SB swap transaction data be configure the necessary systems, engage effectiveness of the Definitional Rules disseminated to the public. Data and train the necessary staff, and and the proposal of the Cross-Border collected after these requirements are develop and implement the necessary Rules, taking into account the necessity implemented may provide additional policies and procedures that would be of SB swap market participants having insight into the SB swap market, required by the final rules regarding SB an appropriate amount of time to including whether these requirements 99 swap transaction reporting. analyze and understand the final rules are associated with a change in the Accordingly, through proposed rule and develop and test new policies and nature and size of SB swap transactions. 910, as set forth in the Regulation SBSR systems required as a result of them. The Commission therefore is Proposing Release, the Commission The Commission also believes considering various means of how to aimed to provide clarity as to SB swap compliance with final rules resulting approach establishing block trade reporting and public dissemination from the Regulation SBSR Proposing thresholds, including, for example, timelines by establishing a phased-in Release should be required as soon as establishing an initial period during compliance schedule for those practicable after the effectiveness of the which information regarding SB swaps requirements.100 The following section Definitional Rules and the proposal of would be reported (and subsequently discusses certain issues concerning the the Cross-Border Rules. Accordingly, disseminated publicly) on a delayed timing-related aspects of the Regulation the reporting of SB swap transaction basis, while giving reporting parties the SBSR Proposing Release. information to registered SDRs and the option of reporting their trades on a A. Reporting Requirements for Pre- dissemination of SB swap transaction shorter timeframe. Enactment SB Swaps information to the public pursuant to The Commission continues to analyze the implementation timeframes that the comments it received relating to Proposed rule 910(a) would have would be set forth by the Commission block trade issues, and to consider how required reporting parties to report any final rules resulting from the Regulation to implement the reporting and pre-enactment SB swaps required to be SBSR Proposing Release would begin as dissemination requirements of sections reported pursuant to proposed rule soon as practicable after the registration 763 and 766 of the Dodd-Frank Act in 901(i) to a registered SDR no later than of SDRs, also taking into account the an appropriate manner. The January 12, 2012 (180 days after the necessity of SB swap market Commission notes that it already has effective date of the Dodd-Frank Act), participants having an appropriate proposed a staged implementation pursuant to the requirement of section 101 schedule for the final rules resulting 3C(e)(1) of the Exchange Act. of enactment of section 3C to be reported to a from the Regulation SBSR Proposing registered SDR or the Commission no later than 180 Release via proposed rule 910.108 The 98 See Regulation SBSR Proposing Release at days after the effective date of section 3C (i.e., no 75287–8. later than January 12, 2012). 15 U.S.C. 78c–3(e)(1). 99 Id. at 75242. 102 Effective Date Order at 36291. 105 Id. at 75243 n.156. 100 Id. at 75242–4. 103 Id. at 36291. 106 Id. at 75228. 101 Id. at 75243. Section 3C(e)(1) of the Exchange 104 Regulation SBSR Proposing Release at 75209, 107 Id. Act requires SB swaps entered into before the date 75223–4. 108 See id. at 75243–4.

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Commission also is considering whether reforms of the SB swap market? Would transaction information begins to be and how it might revise that schedule in there be potential advantages and publicly disseminated? Why or why light of comments received, and disadvantages of such delayed not? If yes, how many months of public whether certain issues relating to block compliance? If so, what would they be? dissemination would be sufficient? How trades—such as the required time If there are potential disadvantages, would such a deferral affect the goals of delays—should be reopened for what steps could be taken to mitigate Title VII’s reforms of the SB swap comment in connection with the future them? market? Would there be potential Commission proposal regarding how to • Is it appropriate for the final rules disadvantages of such a deferral? If so, define block thresholds. pertaining to the registration and what would they be and what steps regulation of SDRs resulting from the could be taken to mitigate them? (iii) Request for Comment SDR Proposing Release and the final • In the absence of the definition of • Should the Commission adopt a rules pertaining to the reporting and any block trade thresholds by the phase-in of the SDR duties, core dissemination of SB swap transaction Commission, what form could SB swap principles and other requirements data resulting from the Regulation SBSR transaction data dissemination take? For resulting from the SDR Proposing Proposing Release to be the first rules example, should all trades be Release that includes sequenced (except as otherwise noted in sections disseminated with a delay? If so, how effective and compliance dates aimed at II.C.(i) and (ii) below) after the long should that delay be? Furthermore, providing time for SDRs to complete effectiveness of the Definitional Rules could the public dissemination of SB their analysis of the final rules, develop and the proposal of the Cross-Border swap transaction data be phased such and test systems, submit a completed Rules with which compliance is that initially, public dissemination is Form SDR, and be in a position to required? Why or why not? limited only to certain SB swap demonstrate compliance with the • In determining when SDRs should instruments? If so, which instruments? federal securities laws and the rules and be required to register with the If not, why not? Alternatively, should regulations thereunder? How would Commission, should the Commission the Commission set initial block such a phase-in period affect the goals take into account other authorities’, thresholds based upon data currently of Title VII’s reforms of the SB swap including the CFTC’s, timing for a available about the SB swap market and market? Would there be potential parallel or similar requirement? Why or undertake a study to determine whether advantages or disadvantages of such a why not? If so, what is the most the thresholds should be modified as a phase-in period? If so, what would they appropriate manner of sequencing in result of how the market develops? How be? If there are potential disadvantages, relation to those potentially differing would each of these approaches affect what steps could be taken to mitigate timelines? What would the potential the goals of Title VII’s reforms of the SB them? advantages and disadvantages of doing swap market? What are the potential • Should the Commission offer SDRs so be? If there are potential advantages and disadvantages of each of an avenue to secure a grace period to disadvantages, what steps could be these approaches? If there are potential defer compliance with some or all taken to mitigate them? disadvantages, what steps could be requirements of section 13(n) of the • In determining when SB swap taken to mitigate them? Exchange Act and the SDR duties, core transaction data should be reported to • Can the impact of post-trade principles and other requirements registered SDRs, should the Commission transparency on market behavior be resulting from the SDR Proposing take into account other authorities’, inferred from data collected before post- Release, in order for SDRs to obtain including the CFTC’s, timing for a trade transparency is required? Why or additional time to demonstrate parallel or similar requirement? Why or why not? compliance with the SDR duties, core why not? If so, what is the most • In determining when SB swap principles and other requirements and appropriate manner of sequencing in transaction data should be disseminated to obtain registration with the relation to those potentially differing to the public, should the Commission Commission? If so, for which timelines? What would the potential take into account other authorities’, requirements should a grace period be advantages and disadvantages of doing including the CFTC’s, timing for a made available and how long should so be? If there are potential parallel or similar requirement? Why or such a grace period be? Should such a disadvantages, what steps could be why not? If so, what is the most grace period be conditioned on any taken to mitigate them? appropriate manner of sequencing in steps taken by the SDR, such as • Should the Commission defer its relation to those potentially differing submission of a complete Form SDR proposed rulemaking regarding block timelines? What would the potential within a certain time-frame? Would thresholds until after SDRs register with advantages and disadvantages of doing there be potential advantages or the Commission and the Commission so be? If there are potential disadvantages of such a grace period? If begins to receive and analyze data disadvantages, what steps could be so, what would they be? If there are required to be reported under final rules taken to mitigate them? potential disadvantages, what steps resulting from the Regulation SBSR could be taken to mitigate them? Proposing Release? Why or why not? If C. Mandatory Clearing • Should SDRs be in compliance with yes, how many months of data would be The following discussion explains the all duties, core principles and other sufficient? How would such a deferral sequencing of compliance dates of the requirements resulting from the SDR affect the goals of Title VII’s reforms of final rules regarding mandatory clearing Proposing Release at the time they seek the SB swap market? Would there be of SB swaps pursuant to section 3C of to register with the Commission? Why potential advantages and disadvantages the Exchange Act.109 These rules or why not? Should compliance with of such a deferral? If so, what would include the process for submitting SB some of these requirements be delayed they be? If there are potential swaps for mandatory clearing until a later point in time? If so, for disadvantages, what steps could be determinations, the standards with which requirements, until what point, taken to mitigate them? which clearing agencies must comply, and why should compliance be • Should the Commission defer its and the end-user exception to delayed? How would such delayed proposed rulemaking regarding block compliance affect the goals of Title VII’s thresholds until after SB swap 109 15 U.S.C. 78c–3.

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mandatory clearing. As explained important.111 To fully capture the before counterparties are required to below, the Commission believes it may efficiencies contemplated by this effort clear any SB swaps. be appropriate for the procedural rules to produce a single package of clearing To facilitate this ordering, the related to mandatory clearing procedural rules, it therefore might be Commission believes the compliance determinations to be adopted before the appropriate to adopt the mandatory dates of final rules resulting from the rules further defining the terms ‘‘swap,’’ clearing submission process rules earlier Clearing Agency Standards Proposing ‘‘security-based swap,’’ ‘‘security-based in the implementation process. Release should be tranched and broadly swap agreement,’’ and ‘‘mixed swap’’ However, given the number of final sequenced by rule type. Taking into are adopted and/or effective or before rules the Commission contemplates consideration comments received to the Cross-Border Rules are proposed. would need to be in place before the date by the Commission, we believe the However, given the dependency of the first SB swap mandatory clearing first subset of final rules with which SB swap mandatory clearing regime determination can be made, the compliance should be required are those upon other Title VII final rules yet to be Commission is considering bifurcating resulting from proposed rule 17Ad–22 adopted, the Commission believes SB the effectiveness of final rules resulting of the Clearing Agency Standards swaps should not be required to be from the Clearing Procedures Proposing Proposing Release because this rule cleared until after the later of: (1) The Release for the purposes of Titles VII would address issues central to clearing compliance date of certain of the final and VIII of the Dodd-Frank Act such agency governance, operation, rules resulting from the Clearing Agency that the mandatory clearing process for participation standards, and risk Standards Proposing Release; (2) the the purposes of Title VII would be management practices.114 The compliance date of final rules resulting effective upon a date later than the rules Commission anticipates that compliance from the End-User Clearing Exception relating to advance notice under Title with this subset of final rules would be Proposing Release; and (3) the VIII. Under such an approach, the necessary before any SB swaps are Commission determining whether to Commission would not begin reviewing required to be cleared. propose amendments to the existing net SB swaps to determine whether such SB Additionally, the Commission capital and customer protection swaps are required to be cleared until understands that the final rules requirements applicable to broker- such later date. resulting from proposed rule 17Ad–22 dealers with regard to SB swap clearing (ii) Clearing Agency Standards should be effective at the time, or soon through such broker-dealers and after, registered clearing agencies are whether to address portfolio margining The Commission appreciates the designated by the FSOC as systemically with swaps. views of commenters who have important.115 Under such an approach, suggested that market participants that these rules, together with the final rules (i) Clearing Procedures Proposing perform central clearing services, like resulting from the Clearing Procedures Release clearing agencies, be required to be in Proposing Release that relate to the compliance with the rules resulting advance notice requirement of Title VIII The Commission believes it may be from the Clearing Agency Standards appropriate for final rules resulting from of the Dodd-Frank Act, might need to be Proposing Release pertaining to their adopted before the rules further defining the Clearing Procedures Proposing governance and operation before Release to be adopted before the rules the terms ‘‘swap,’’ ‘‘security-based compliance is required with mandatory swap,’’ ‘‘security-based swap further defining the terms ‘‘swap,’’ clearing requirements.112 As discussed ‘‘security-based swap,’’ ‘‘security-based agreement,’’ and ‘‘mixed swap’’ are in the Clearing Agency Standards adopted and/or effective or before the swap agreement,’’ and ‘‘mixed swap’’ Proposing Release, the rules proposed in are adopted and/or effective or before Cross-Border Rules are proposed. that release are aimed at reducing risk We believe compliance with a second the Cross-Border Rules are proposed. within the financial system by The Commission, in the Clearing subset of rules for clearing agencies— facilitating prompt and accurate those focusing more specifically on Procedures Proposing Release, also clearance and settlement of all securities proposed rule and form amendments to matters of governance and mitigation of transactions and the safety and conflicts of interest—should be implement the requirement that any 113 soundness of clearing agencies. Given complied with subsequently, followed financial market utility (‘‘FMU’’), which that, the Commission believes clearing may include registered clearing by compliance with a third subset agencies should be required to be in composed of the requirements that agencies, that is designated as compliance with certain key systemically important by the Financial address more specific components of a requirements resulting from the Clearing clearing agency’s internal operations Stability Oversight Council (‘‘FSOC’’) Agency Standards Proposing Release pursuant to Title VIII of the Dodd-Frank and administrative practices and other rules concerning clearance and Act provide 60 days advance notice to 111 The Commission understands that the FSOC the Commission of changes to its rules, currently is in the process of considering which settlement services. The Commission procedures, or operations that could FMUs to designate as systemically important in preliminarily believes the clearing of SB materially affect the nature or level of accordance with Title VIII of the Dodd-Frank Act swaps could commence before 110 and the rules of the FSOC adopted in July 2011. See compliance is required with these two risks presented by the FMU. These Authority to Designate Financial Market Utilities as final rule and form amendments would Systemically Important, 76 FR 44763 (July 27, subsets of rules. need to be effective for registered 2011). clearing agencies designated by the 112 See, e.g., letter from Committee on Capital 114 Proposed rule 17Ad–22 would augment the Markets Regulation (June 24, 2011), 76 FR 25274, existing statutory requirements for clearing agencies FSOC as systemically important because at 2 (CFTC only letter; recommending that before under the Exchange Act by establishing minimum such clearing agencies would be requiring ‘‘mandatory central clearing, the CFTC requirements regarding how clearing agencies must required to begin complying with the first needs to finalize the rules for clearinghouses, maintain effective risk management procedures and advance notice requirement as soon as including margin, governance, financial resources, controls as well as meet the statutory requirements and conflicts of interest. This will enable under the Exchange Act on an ongoing basis. See they are designated as systemically clearinghouses to be in compliance before Clearing Agency Standards Proposing Release at mandatory clearing begins.’’). 14476–14492, 14537–14539. 110 See Clearing Procedures Proposing Release at 113 Clearing Agency Standards Proposing Release 115 See Dodd-Frank Act section 805, 12 U.S.C. 82501–3. at 14474. 5464.

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The Commission understands the which compliance would be required, swaps should be required to be views of those commenters that indicate following the effectiveness of the cleared.124 that clearing agencies will need Definitional Rules and the proposal of The Commission recognizes the sufficient time to adjust their current the Cross-Border Rules. Given this, importance of communicating clearly practices and establish new policies, compliance with final rules resulting and in a timely fashion to SB swap procedures, and processes necessary to from the Regulation SBSR Proposing market participants which SB swaps 125 comply with final rules resulting from Release likely would be required before will be required to be cleared. One the Clearing Agency Standards SB swaps are required to be cleared and way in which the Commission could 116 help facilitate such communication is to Proposing Release. Accordingly, the before the compliance date of final rules Commission anticipates that the require the mandatory clearing of SB resulting from the End-User Clearing compliance dates set forth in such final swaps only some specified amount of Exception Proposing Release. The rules would reflect these considerations time after publishing its determination by providing clearing agencies with an Commission believes an appropriate that such SB swaps are required to be appropriate amount of time to comply amount of time should be provided cleared so that SB swap market with these final rules. between the compliance dates of final participants are given appropriate notice rules resulting from the Regulation of the Commission’s SB swap clearing (iii) End-User Exception From SBSR Proposing Release and the determinations. This approach would Mandatory Clearing compliance date of final rules resulting afford the clearing agency and its Before SB swaps are required to be from the End-User Clearing Exception members time to prepare to cleared, the Commission believes Proposing Release so that SB swap accommodate the SB swaps that will be compliance with final rules resulting counterparties that seek to avail required to be cleared. Doing so also from the End-User Clearing Exception themselves of the end-user clearing would allow SB swap market Proposing Release should be exception would already be submitting participants time to establish required.117 Section 3C(g)(1)(C) requires SB swap transaction information to appropriate clearing arrangements with that a counterparty electing the end-user registered SDRs. the clearing agency or indirect clearing exception notify the Commission as to arrangements with members of the how it generally meets its financial (iv) Mandatory Clearing Determinations clearing agency.126 Furthermore, the obligations associated with non-cleared Commission believes early designation As described above, upon the SB swaps.118 The End-User Exception of the SB swaps that will be required to compliance date of the mandatory Proposing Release proposed that a be cleared would facilitate the voluntary clearing submission process rules for SB counterparty that invokes the clearing clearing of such products prior to the swap submissions under Title VII of the exception under section 3C(g)(1) of the compliance date of the clearing Exchange Act would satisfy the notice Dodd-Frank Act, the Commission would requirement. requirement of section 3C(g)(1)(C) by begin reviewing SB swaps submitted by delivering or causing such notice to be clearing agencies to determine whether (v) Expiration of Exemptions Granted delivered to a registered SDR (or to the such SB swaps would be required to be Pursuant to the Effective Date Order Commission if no SDR is available) in cleared. Pursuant to section 3C(b)(3) of The Effective Date Order granted a the form and manner required by final the Exchange Act,121 the Commission is temporary exemption from compliance rules resulting from the Regulation required to make such determinations with Exchange Act section 3C(g)(5)(B), SBSR Proposing Release 119 together not later than 90 days after the which would permit a counterparty to with additional information that is submission has been made, or has been an SB swap that is not subject to the intended to affirm compliance with considered to have been made,122 unless mandatory clearing requirement to elect particular requirements of the Exchange the submitting clearing agency agrees to to require the clearing of such SB swap Act and to aid the Commission in its an extension. in certain circumstances.127 In granting efforts to prevent abuse of the end-user this exemption, the Commission noted exception.120 Section 3C(b)(2) of the Exchange Act requires that a clearing agency submit to the exemption was needed because As described in section B above, the there currently are no central the Commission the SB swaps it plans Commission anticipates that final rules counterparties offering customer establishing the SDR registration and to accept for clearing in order for the Commission to determine whether the regulation regime resulting from the 124 Id. at 78c–3(b)(1). As provided in Exchange SDR Proposing Release and final rules SB swaps described in the submission Act section 3C(b)(1), such determinations can be resulting from the Regulation SBSR are required to be cleared.123 made on an individual basis or by group, category, Proposing Release would be the first Additionally, pursuant to section type, or class of SB swaps. Id. 125 See, e.g., letter from the International Swaps sets of final rules under Title VII with 3C(b)(1) of the Exchange Act, on an and Derivatives Association, Inc. (Feb. 14, 2011), ongoing basis, the Commission shall File No. S7–44–10, at 10–11 (recommending that 116 See, e.g., letter from The Options Clearing review SB swaps to make a the Commission consider an extended period Corporation (Apr. 29, 2011), 76 FR 14472, at 17 determination of whether such SB between a determination being made that a SB swap (noting that Subtitle B of Title VII of the Dodd- is required to be cleared and clearing becoming Frank Act will require clearing agencies, at a mandatory on that product, as ‘‘[t]his period would minimum, to ‘‘develop[] extensive new policies and 121 15 U.S.C. 78c–3(b)(3). provide market participants the opportunity to procedures, draft[], propos[e] and obtain[] approval 122 Section 3C(b)(2)(B) of the Exchange Act make themselves appropriately ready to clear of necessary rules and rules changes, execut[e] provides that any security-based swap or group, mandated transactions without risking either (i) plans to raise additional financial resources, category, type, or class of security-based swaps disruption to their use of derivatives for hedging or conduct[] extensive internal training, hir[e] listed for clearing by a clearing agency as of the (ii) noncompliance with the law.’’). additional compliance personnel, and many other enactment of section 3C(b)(2)(B) shall be considered 126 See, e.g., letter from Financial Services Forum, tasks.’’). submitted to the Commission. 15 U.S.C. Futures Industry Association, International Swaps 117 Section 3C(g)(1) of the Exchange Act, 78c3(b)(2)(B). and Derivatives Association, and Securities 15 U.S.C. 78c–3(g)(1). 123 Id. at 78c–3(b)(2). As provided in Exchange Industry and Financial Markets Association (May 4, 118 15 U.S.C. 78c–3(g)(1)(C). Act section 3C(b)(2), such submissions and 2011), File No. S7–27–10, at 5; letter from The 119 See End-User Exception Proposing Release at determinations can be made on an individual basis Financial Services Roundtable (May 12, 2011), File 80011. or by group, category, type, or class of SB swaps. No. 4–625, at 8–10. 120 See id. at 79995. Id. 127 Effective Date Order at 36291.

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clearing of SB swaps and because resulting from the SDR Proposing potential advantages and disadvantages additional action by the Commission Release and the Regulation SBSR of such phasing in? If so, what would would be necessary to address Proposing Release is required? For they be? If there are potential segregation and other customer example, should the Commission disadvantages, what steps could be protection issues.128 The exemption consider temporarily de-linking the taken to mitigate them? from compliance with the requirements notice requirement of the end-user • Should the Commission phase in of section 3C(g)(5)(B) will expire upon clearing exception from certain of the mandatory clearing by type of market the earliest compliance date set forth in final rules resulting from the SDR participant? For example, should the any of the final rules regarding section Proposing Release and the Regulation Commission phase these requirements 3C(b) of the Exchange Act,129 which SBSR Proposing Release, such that it in the manner proposed by the CFTC in pertains to the mandatory clearing could be utilized earlier in the its Clearing and Trade Execution submission process.130 In setting the implementation process? Why or why Implementation Proposal? 135 What compliance date for the final rules not? What would the potential would the potential advantages and pertaining to the mandatory clearing advantages and disadvantages of doing disadvantages of doing so be? If there submission process, the Commission so be? If there are potential are potential disadvantages, what steps intends to consider whether it is disadvantages, what steps could be could be taken to mitigate them? necessary or appropriate in the public taken to mitigate them? • In determining when SB swaps interest, and consistent with the • Would there be positive or negative would be required to be cleared, should protection of investors, to take further consequences of the Commission the Commission take into account the action with regard to this temporary determining what SB swaps will be mandatory clearing timelines of other exemption. subject to mandatory clearing and authorities? Why or why not? If so, what The Effective Date Order also granted allowing a period of time prior to is the most appropriate manner of a temporary exemption from requiring the clearing of such SB swaps? sequencing in relation to those compliance by registered clearing If so, what are the consequences, why potentially differing timelines? What agencies with Exchange Act section would they occur, and if there are would the potential advantages and 3C(j) until the earliest compliance date negative consequences, what steps disadvantages of doing so be? If there set forth in any of the final rules could be taken to mitigate them? How are potential disadvantages, what steps regarding section 3C(j)(2) of the would the allowance of such a period of could be taken to mitigate them? Exchange Act.131 Exchange Act section time affect the goals of Title VII’s 3C(j) requires registered clearing reforms of the SB swap market? D. SBSD and MSBSP Registration and agencies to designate a chief compliance • Has the Commission appropriately Regulation officer and establishes the duties of the identified in the discussion above those Pursuant to sections 3E 136 and 15F 137 chief compliance officer.132 The rules with which compliance should be of the Exchange Act, the Commission Clearing Agency Standards Proposing required before SB swaps are required to must adopt rules pertaining to the Release contained proposed rules be cleared? Why or why not? regulation of SBSDs and MSBSPs in the • regarding section 3C(j)(2) of the Are there other rules or sets of rules following areas: Exchange Act.133 In setting the with which compliance should be • Registration of SBSDs and MSBSPs; compliance date for the final rules required before SB swaps are required to • Business conduct standards for regarding section 3C(j)(2), the be cleared? If so, which ones, and why? SBSDs and MSBSPs; Commission intends to consider • Should the Commission require the • Trade acknowledgment and whether it is necessary or appropriate in mandatory clearing of SB swaps for a verification of SB swap transactions by the public interest, and consistent with subset of SB swap market participants, SBSDs and MSBSPs; the protection of investors, to take such as SBSDs and their affiliates, • Capital, margin and segregation further action with regard to this before all of the final rules regarding the requirements applicable to SBSDs and temporary exemption. SBSD registration and regulation regime MSBSPs; 138 and are in place? If so, which subset of SB (vi) Request for Comment swap market participants and why? 135 See supra note 53 and the accompanying text • Are there other final rules or sets of Would doing so affect the goals of the for a discussion of the CFTC Clearing and Trade final rules beyond those resulting from Title VII reforms of the SB swap market? Execution Implementation Proposal. • Should the Commission consider 136 15 U.S.C. 78c–5. the SDR Proposing Release and the 137 further phasing in such submissions and 15 U.S.C. 78o–10. Regulation SBSR Proposing Release 138 In addition, the Commission intends to with which compliance should be determinations by type of SB swap? If determine whether to propose amendments to its required before compliance is required so, what further phasing in should rules regarding net capital and customer protection with final rules resulting from the End- occur? For example, should the requirements, Exchange Act Rule 15c3–1 and Rule Commission implement the mandatory 15c3–3, respectively, specifically with regard to SB User Clearing Exception Proposing swap activity in a broker-dealer. The Commission Release? If so, which ones, and why? clearing submission process for credit- understands that many members of clearing Alternatively, should compliance with related SB swaps, then for other SB agencies are dually-registered broker-dealers and final rules resulting from the End-User swaps? 134 Would such phasing in affect futures commission merchants and that much of the Clearing Exception Proposing Release be the goals of the Title VII reforms of the clearing of SB swaps may occur through such dually-registered entities. See, e.g., letter to the accelerated to allow for the use of the SB swap market? Would there be Commission from ICE Clear Credit LLC, dated exception to be established by those November 7, 2011 (‘‘ICE Clear Credit Letter’’), rules before compliance with final rules 134 ‘‘Credit-related SB swaps’’ means any SB swap available at: http://www.sec.gov/rules/petitions/ that is based, in whole or in part, on one or more 2011/petn4-641.pdf (requesting exemptive relief instruments of indebtedness (including loans), or from the application of section 15(c)(3) of the 128 Id. on a credit event relating to one or more issuers or Exchange Act and Rule 15c3–3 thereunder to allow 129 Id. securities, including but not limited to any SB swap ICE Clear Credit, and its members that are dually- 130 15 U.S.C. 78c–3(b). that is a credit default swap, total return swap on registered broker-dealers and futures commission 131 Effective Date Order at 36291–2. one or more debt instruments, debt swaps, debt merchants, to, among other things: (1) Hold 132 15 U.S.C. 78c–3(j). index swaps, or credit spread. ‘‘Other SB swaps’’ customer assets used to margin, secure, or guarantee 133 Clearing Agency Standards Proposing Release means any SB swap not described in the preceding customer positions consisting of cleared credit at 14499–14500. sentence. Continued

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• Reporting and recordkeeping after the last compliance date, rather disclosures to such counterparties,145 requirements applicable to SBSDs and than adopting a conditional registration and would impose additional MSBSPs. process.141 requirements for dealings with ‘‘special The Commission understands that A number of sequencing issues arise entities.’’ 146 SBSDs and MSBSPs would need an in relation to compliance with the In addition, the Commission appropriate amount of time to requirements applicable to SBSDs and understands from commenters that determine whether they are required to MSBSPs pursuant to sections 3E and compliance with documentation register with the Commission and if so, 15F of the Exchange Act that are standards resulting from the Trade to put into place the necessary relevant to both conditional and non- Documentation Proposing Release, infrastructure and documentation to conditional registration processes. which include standards relating to comply with requirements ultimately Specifically, the Commission confirmation, processing, netting, 139 applicable to such entities. The understands that some of the documentation, and valuation of all SB 147 following section discusses the timing requirements that would be applicable swap transactions, may require more of the implementation of these to SBSDs and MSBSPs could be time for full implementation. requirements, the proposed registration complied with by SBSDs and MSBSPs Documentation would need to be process set forth in the SB Swap in a relatively shorter amount of time, developed and processes would need to Participant Registration Proposing while others would require more time. be established to enable SBSDs and Release, and other related issues. This, in turn, counsels against imposing MSBSPs to document, implement, and monitor these new requirements as (i) SBSD and MSBSP Registration and all of the compliance dates for these applied to all SB swap transactions.148 Regulatory Requirements requirements at once and instead However, the Commission believes that suggests phasing in compliance by In the SB Swap Participant some of these documentation standards considering the amount of time Registration Proposing Release, the may require less time for compliance estimated to be required for compliance Commission proposed that SBSDs and than others.149 MSBSPs conditionally register with the with the relevant provisions. For The Commission also understands Commission, and then convert such example, the Commission understands that capital, margin, and segregation conditional registration to ‘‘ongoing from commenters that SBSDs and requirements could have a significant registration’’ by filing a certification on MSBSPs might need a shorter amount of impact upon the business structure of or before the ‘‘last compliance date.’’ 140 time to come into compliance with SBSDs and MSBSPs and this impact The SB Swap Participant Registration certain recordkeeping rules applicable could influence the decision of whether Proposing Release also requested to such persons, as these rules likely a person registers with the Commission comment as to whether the Commission may not necessitate extensive as such or whether it restructures its SB should delay requiring registration until modifications to SBSDs’ and MSBSPs’ swap business such that registration is 142 business practices. not required. Commenters have noted default swaps that include swaps and SB swaps in Some commenters have indicated that that the capital and margin a commingled customer omnibus account subject to SBSDs and MSBSPs might need more requirements required to be adopted by section 4d(f) of the Commodity Exchange Act; and (2) calculate margin for this commingled customer time to come into compliance with final Title VII may result in significant account on a portfolio margin basis); see also rules resulting from the Business changes to the financial arrangements of Commodity Exchange Act section 4d(F)(1) (making Conduct Standards Proposing Release, the impacted persons and, as a result, it unlawful for any person to, among other things, as adherence to these standards and should be sequenced in a manner that accept money and securities from a swaps customer for a cleared swap unless such person has registered duties could involve changes to the with the CFTC as a futures commission merchant). practices, policies, and procedures of 145 See, e.g., proposed rule 15Fh–3(b), id. at In light of the role broker-dealers perform in SBSDs and MSBSPs.143 Among other 42405–10, 42454 (proposing rules that would clearing SB swaps, the Commission recognizes the things, these proposed rules would require disclosures by SBSDs and MSBSPs to importance of considering net capital and customer counterparties of information related to material protection requirements with regard to SB swap require SBSDs and MSBSPs to risks and characteristics the SB swap and material clearing through a broker-dealer prior to requiring communicate with their SB swap incentives or conflicts of interest that an SBSD or that SB swaps be cleared. counterparties in a fair and balanced MSBSP may have in connection with the SB swap). The Commission also recognizes the importance manner 144 and to make certain 146 See, e.g., proposed rule 15Fh–5(a), id. at of determining whether margin for SB swaps that 42425–26, 42457 (proposing to require any SBSD or are required to be cleared can be calculated on a MSBSP that offers to enter into or enters into an SB portfolio margining basis, as there might be 141 See SB Swap Participant Registration Release swap with a special entity to have a reasonable customer capital-related efficiencies that result from at 65788, question #4. basis to believe that the special entity has an holding SB swap and swap positions in a single 142 See, e.g., letter from The Financial Services ‘‘independent representative’’ that meets certain account as opposed to multiple accounts. See ICE Roundtable (May 12, 2011), File No. 4–625, at specified requirements). Clear Credit Letter at 6, 13–14. Commission staff 5 (stating that ‘‘recordkeeping may rely on internal 147 See supra note 21. currently is evaluating the separate statutory and resources, and therefore may be able to be 148 See, e.g., letter from the International Swaps bankruptcy regimes that apply to SB swaps and implemented more quickly * * *.’’). and Derivatives Association (Feb. 22, 2011), 76 FR swap, and is working with the CFTC staff to 143 See, e.g., letter from the Futures Industry 3859 (noting, for example, the ‘‘heavy develop recommendations on any next steps. Association, the International Swaps and documentation burden’’ that would be placed upon 139 See, e.g., letter from Financial Services Derivatives Association, and the Securities Industry the inception of transactions by the proposed rules); Roundtable (May 12, 2011), File No. 4–625, at 7– and Financial Markets Association (Aug. 26, 2011), letter from MarkitSERV (Feb. 22, 2011), 76 FR 3859, 8, 11; letter from Financial Services Forum, Future 76 FR 42396; letter from Managed Funds at 11 (noting that ‘‘the proposed requirements Industry Association, International Swaps and Association (Aug. 29, 2011), 76 FR 42396, at 6–7 regarding the confirmation process and time Derivatives Association, and Securities Industry (noting that the requirements proposed in the periods for such confirmations would be and Financial Markets Association (May 4, 2011), Business Conduct Standards Proposing Release demanding in many cases.’’). File No. S7–27–10, at 9; letter from International would require MSBSPs to implement new processes 149 As one commenter has noted, there are aspects Swaps and Derivatives Association, Inc. (Jan. 24, and procedures, which could result in ‘‘substantial of SB swap transaction documentation that are 2011), 75 FR 71379, at 2 (CFTC only letter). costs’’ and expenditure of ‘‘substantial resources’’). easier to implement, and thus could be 140 The term ‘‘last compliance date’’ is defined, in 144 See proposed rule 15Fh–3(g), Business implemented earlier, and others that may require a proposed rule 15Fb2–1(e), to mean the latest date, Conduct Standards Proposing Release at 42418–19, longer implementation window, as ‘‘aspects of the designated by the Commission, by which SBSDs 42455 (proposing to require SBSDs and MSBSPs to trade documentation rules * * * would represent and MSBSPs must comply with any of the initial communicate with counterparties in a fair and a significant shift from current industry best rules promulgated under section 15F of the balanced manner based on principles of fair dealing practices.’’ Letter from The Financial Services Securities Exchange Act of 1934, 15 U.S.C. 78o–10. and good faith). Roundtable (May 12, 2011), File No. 4–625, at 4.

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allows impacted persons enough time to Commission pursuant to section the goals of Title VII’s reforms of the SB plan to accommodate such changes.150 15F(k)(3) of the Exchange Act, as the swap market? Commenters also have noted that ample process for doing so is subject to • What would be the advantages and time would be needed to adhere to the rulemaking by the Commission 155 and disadvantages of requiring SBSDs and segregation requirements applicable to such rules may not have been adopted MSBSPs to register with the customer collateral collected for cleared by the Commission and/or require Commission prior to the compliance and uncleared SB swaps because these compliance at that time.156 date of the capital, margin, and requirements would necessitate the The Effective Date Order granted a segregation requirements? If there are establishment of policies and temporary exemption from compliance potential disadvantages, what steps procedures related to the collection and with section 3E(f) of the Exchange Act, could be taken to mitigate them? Would maintenance of collateral.151 which requires SBSDs and MSBSPs to SBSDs and MSBSPs be subject to Accordingly, the Commission segregate initial margin amounts additional costs or other burdens if the preliminarily believes the compliance delivered by their counterparties in Commission were to require such date of these rules should reflect the uncleared SB swaps if requested to do persons to register with the Commission amount of time that SBSDs and MSBSPs so by such counterparties.157 This prior to the compliance date for the might need to come into compliance temporary exemption will expire on the capital, margin, and segregation with these new requirements and plans date upon which the rules adopted by requirements? Why or why not? What to address this issue in the relevant final the Commission to register SBSDs and would the impact of doing so be upon rules. MSBSPs become effective.158 the goals of Title VII’s reforms of the SB Moreover, in the Cross-Border Rules, If the Commission adopts a swap market? the Commission intends to address the conditional SBSD and MSBSP • In determining when SBSDs and extent to which non-U.S. SB swap registration process and this temporary MSBPs should be required to register market participants would be subject to exemption expires, SBSDs and MSBSPs with the Commission, should the the SBSD and MSBSP registration and would be required to segregate initial Commission take into account the regulatory requirements. Such market margin amounts delivered by their CFTC’s timing for its parallel participants would need time to counterparties in uncleared SB swaps requirement and/or the timing of other consider the extent to which these before the capital, margin, and jurisdictions? Why or why not? If so, requirements apply to their SB swap segregation rules are adopted or before what is the most appropriate manner of business. compliance with such rules is required. sequencing in relation to those However, the Commission believes it potentially differing timelines? What (ii) Other Timing Issues and Expiration would not be appropriate to require would the potential advantages and of the Exemption Granted Pursuant to SBSDs and MSBSPs to comply with disadvantages of doing so be? If there the Effective Date Order Exchange Act section 3E(f) before the are potential disadvantages, what steps There are additional timing issues Commission adopts and requires could be taken to mitigate them? that are relevant regardless of whether a compliance with the rules pertaining to • What would be the advantages and conditional registration process is the segregation of margin pursuant to disadvantages of requiring SBSDs and employed. Upon registration, SBSDs section 3E of the Exchange Act.159 MSBSPs to comply with final rules and MSBSPs would be required to Given this, if the Commission resulting from the Business Conduct adhere to certain self-operating determines to adopt a conditional Standards Proposing Release prior to the provisions of section 15F of the registration regime, the Commission compliance date of the capital, margin, Exchange Act,152 specifically, the will consider whether it is necessary or and segregation requirements and vice requirement to designate a chief appropriate in the public interest, and versa? If there are potential compliance officer pursuant to section consistent with the protection of disadvantages, what steps could be 15F(k)(1) of the Exchange Act 153 and investors, to extend the exemption from taken to mitigate them? Would SBSDs the obligation of the chief compliance compliance with section 3E(f) of the and MSBSPs be subject to additional officer to adhere to the duties set forth Exchange Act until the later of: (1) The costs or other burdens if the in section 15F(k)(2) of the Exchange date upon which SBSDs and MSBSPs Commission were to require compliance Act.154 However, the chief compliance are required to register with the with final rules resulting from the officer may not be required to prepare Commission; and (2) the last Business Conduct Standards Proposing and submit annual reports to the compliance date of any of the final rules Release prior to the compliance date of to be adopted under sections 3E and 15F the capital, margin, and segregation 150 See, e.g., id. at 11 (noting that ‘‘capital and of the Exchange Act. requirements? Why or why not? What margin changes may lead to significant changes in would the impact of doing so be upon available cash resources that will have broader (iii) Request for Comment financial repercussions for affected organizations, the goals of Title VII’s reforms of the SB including end-users’’ and recommending that the • Should the registration of SBSDs swap market? Commission ‘‘recognize the significance of these and MSBSPs be required before • Would SBSDs and MSBSPs be issues and allow market participants sufficient time compliance with some, but not all, of subject to additional costs or other to revise their financial planning to accommodate them.’’). the rules to be adopted under sections burdens if the Commission were to 151 See, e.g., letter from the Financial Services 3E and 15F of the Exchange Act is require compliance with the capital, Forum, Futures Industry Association, International required? Why or why not? If yes, what margin, and segregation requirements Swaps and Derivatives Association, and Securities would the impact of doing so be upon prior to the compliance date of the Industry and Financial Markets Association (May 4, 2011), File No. S7–27–10, at 5 (noting that ‘‘[l]egal business conduct standards? Why or documentation, treatment of collateral, margin 155 See id. at 78o–10(k)(3)(A). why not? What would the impact of requirements, account setup, and fee negotiations 156 These rules have been proposed as part of the doing so be upon the goals of Title VII’s * * * between Swap clearing houses and their Business Conduct Standards Proposing Release. See reforms of the SB swap market? proposed rule 15Fk–1(c), Business Conduct clearing members will take significant time.’’). • Should compliance with the final 152 SB Swap Participant Registration Proposing Standards Proposing Release at 42459. Release at 65787. 157 15 U.S.C. 78c–5(f). rules to be adopted under sections 3E 153 15 U.S.C. 78o–10(k)(1). 158 Effective Date Order at 36294. and 15F of the Exchange Act be further 154 Id. at 78o–10(k)(2). 159 15 U.S.C. 78c–5. sequenced in some manner beyond the

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estimated amount of time needed for Effective Date Order 163 and the reviews its SB SEF registration compliance, such as by SB swap market Exchange Act Exemptive Order 164 that application. participant type (i.e., SBSD or MSBSP)? permit certain persons that engage in SB In the SB SEF Proposing Release, the If so, how? Are there other factors that swap activities to continue to do so Commission stated that when should be considered in establishing the until the earliest compliance date set considering whether to grant a request compliance dates for these rules? forth in any final rules regarding the for temporary registration, the • In determining when SBSDs and registration of SB SEFs. Commission would review the MSBPs should be subject to the final information provided by the applicant rules to be adopted under sections 3E (i) SB SEF Registration and Core that the Commission believes to be and 15F of the Exchange Act, should the Principles relevant, including, but not limited to: Commission take into account the The Dodd-Frank Act amended the whether the applicant’s trading system CFTC’s timing for its parallel Exchange Act to add new section 3D.165 satisfies the definition of a ‘‘security- requirements and/or the timing of other Section 3D(a)(1) provides that no person based swap execution facility’’ in jurisdictions? Why or why not? If so, may operate a facility for the trading or section 3(a)(77) of the Exchange Act and what is the most appropriate manner of processing of SB swaps, unless the any Commission rules, interpretations sequencing in relation to those facility is registered as an SB SEF or as or guidelines regarding such definition; potentially differing timelines? What a national securities exchange.166 any access requirements or limitations would the potential advantages and Section 3(a)(77) of the Exchange Act imposed by the SB SEF; the ownership disadvantages of doing so be? If there defines ‘‘security-based swap execution and voting structure of the applicant; are potential disadvantages, what steps facility’’ as a trading system or platform and any certifications made by the could be taken to mitigate them? applicant, including with respect to its • in which multiple participants have the Should the Commission phase the ability to execute or trade SB swaps by capacity to function as a SB SEF and its introduction of the SB swap trade accepting bids and offers made by compliance with the Exchange Act and 169 documentation and margining multiple participants in the facility or the rules and regulations thereunder. requirements by type of SB swap market system, through any means of interstate Temporary registration would expire on participant? For example, should the commerce, including any trading the earlier of: (1) The date that the Commission phase these requirements facility that (A) facilitates the execution Commission grants or denies the in the manner proposed by the CFTC in of SB swaps between persons; and (B) applicant’s registration as a SB SEF; or its Trading Documentation and (2) the date that the Commission 160 is not a national securities exchange. Margining Implementation Proposal? Thus, the Commission has proposed to rescinds the applicant’s temporary What would the potential advantages interpret these two provisions, taken registration. As discussed further below, the and disadvantages of doing so be? If together, to require registration as a SB Commission has exempted entities that there are potential disadvantages, what SEF or a national securities exchange for meet the definition of ‘‘security-based steps could be taken to mitigate them? any entity that meets the definition of swap execution facility’’ from having to SB SEF in section 3(a)(77) of the E. SB SEF Registration and Regulation comply with the registration Exchange Act.167 and the Mandatory Trade Execution requirements set forth in section Requirement To facilitate the start of organized 3D(a)(1) of the Exchange Act until the The following section discusses trading of SB swaps, the Commission compliance date set forth in the final timing issues pertaining to the proposed rule 801(c) of proposed rules pertaining to the registration of SB implementation of the registration Regulation SB SEF, which would SEFs. The Commission expects to set requirements and core principles provide a method for the Commission to forth in any future release adopting final applicable to SB SEFs as set forth in grant temporary registration to an SB SEF rules the timing for compliance section 3D of the Exchange Act 161 and applicant to become a registered SB with the registration requirements the mandatory trade execution SEF.168 For any application for (including any temporary registration requirement as set forth in section 3C(h) registration as a SB SEF filed with the requirements), the core principles and of the Exchange Act.162 This section Commission on or before July 31, 2014, the rules thereunder. for which the applicant indicates that it also discusses the timing of the (ii) Proposed Regulation MC compliance dates of final rules resulting would like to be considered for from Proposed Regulation MC that temporary registration, the Commission Proposed Regulation MC would apply would be applicable to SB SEFs and the proposed to grant such temporary governance requirements and sequencing of the mandatory trade registration as long as certain ownership and voting limitations to SB execution requirement as it relates to requirements were met. The SEFs as a means to mitigate conflicts of both the mandatory clearing Commission believes a temporary (or interest for SB SEFs.170 The requirement and the exception from the similar) registration process for Commission may, taking into account mandatory trade execution requirement prospective SB SEFs would serve as a comments received, consider taking for any SB swap that is not made useful tool during the initial final action on the conflicts of interest available to trade by an exchange or SB implementation period to allow an proposals relating to SB SEFs that are SEF. Finally, this section discusses the applicant to operate as a SB SEF for a set forth in proposed Regulation MC as timing of the expiration of the period of time while the Commission part of any final rules the Commission temporary exemptions granted in the may adopt that relate to the regulation 163 See supra note 34. and registration of SB SEFs. The 160 See supra note 53 and the accompanying text 164 See supra note 36. Commission preliminarily believes the for a discussion of the CFTC Clearing and Trade 165 See Public Law 111–203, section 763(c) Execution Implementation Proposal. (adding section 3D of the Exchange Act). 169 SB SEF Proposing Release at 10999. 161 15 U.S.C. 78c–4. 166 Id. 170 See Proposed Regulation MC, supra note 27. 162 Id. at 78c–3(h). See section II.E.(iii) infra for 167 See SB SEF Proposing Release at 10959 n.62. Proposed Regulation MC also would apply a discussion of the mandatory trade execution 168 See proposed rule 801(c) of proposed governance requirements and ownership and voting requirement set forth in section 3C(h) of the Regulation SB SEF, SB SEF Proposing Release at limitations on national securities exchanges that Exchange Act. 11054. post or make available for trading SB swaps.

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proposed rules for SB SEFs contained in Proposing Release and the End-User trade’’ pursuant to such standards; and Proposed Regulation MC 171 align in Exception Proposing Release and before (3) such ‘‘made available to trade’’ scope with proposed Rule 820 the Commission considers appropriate determination has become effective. implementing Core Principle 11, as set steps to address potential issues relating As discussed above, the specific forth in proposed Regulation SB SEF,172 to the existing broker-dealer net capital compliance dates for the core principles because both proposals include rules and customer protection requirements applicable to SB SEFs as set forth in the that are designed to minimize and and portfolio margining with swaps, as Exchange Act, and any final rules resolve conflicts of interest with respect SB swaps would not be required to be relating to SB SEFs that are adopted by to SB SEFs. cleared until the Commission has the Commission, including registration determined that SB swaps are required (iii) Statutory Sequencing of the SB rules, will be addressed in any release to be cleared and the clearing adopting such final rules. The Swap Mandatory Trade Execution requirement has become operative. Requirement Commission understands that some The Dodd-Frank Act additionally entities that intend to seek to register Section 3C(h) of the Exchange Act provides that SB swaps that are subject with the Commission as an SB SEF or requires that transactions in SB swaps to mandatory clearing but that have not to be exempt from such registration that are subject to the clearing been made available to trade by an would do so as soon as possible, which requirement of section 3C(a)(1) of the exchange or SB SEF would not be likely would be, as discussed above, Exchange Act must be executed on an subject to the mandatory trade 175 before the mandatory trade execution exchange or on a SB SEF registered with execution requirement. In the SB SEF requirement becomes operational.179 the Commission (or a SB SEF exempt Proposing Release, the Commission Based upon Commission staff from registration), unless no exchange proposed to interpret the phrase ‘‘made conversations with industry or SB SEF makes the SB swap available available to trade’’ to mean something participants, the Commission believes to trade (referred to as the ‘‘mandatory more than the decision to simply trade that some entities that meet the trade execution requirement’’) or the SB an SB swap on a SB SEF or an exchange, definition of an SB SEF may seek to swap transaction is subject to the and that SB swaps subject to mandatory register with the Commission (or be clearing exception in section 3C(g) of clearing would not be subject to exempt from such registration) before the Exchange Act.173 The Commission mandatory exchange or SB SEF trading the mandatory trade execution believes this section provides a certain simply because they are listed on a SB requirement becomes operational. sequencing of the SB swap mandatory SEF or exchange.176 The Commission trade execution requirement, as it states further proposed that the determination (iv) Expiration of Exemptions and that only a SB swap that has been as to when a SB swap would be Exceptions Granted Pursuant to the determined by the Commission to be considered to be ‘‘made available to Effective Date Order and the Exchange required to be cleared, and that has been trade’’ on an exchange or a SB SEF be Act Exemptive Order made available to trade on an exchange made pursuant to objective measures or registered SB SEF, must be executed established by the Commission, rather The compliance dates of certain of the on an exchange or registered SB SEF.174 than by one or a group of SB SEFs.177 rules pertaining to SB SEFs will result As discussed in section II.C above, the The Commission further noted that it in the expiration of certain of the Commission anticipates that SB swap did not, at that time, have sufficient data temporary exemptions and exceptions transactions that the Commission to propose standards pursuant to which granted pursuant to the Effective Date determines are subject to mandatory a determination of whether an SB swap Order and the Exchange Act Exemptive clearing would not be required to be is ‘‘made available to trade’’ should be Order. Specifically, the following cleared until the later of: (1) The made, and requested that commenters temporary exemptions granted pursuant compliance date of certain of the final provide suggestions as to those objective to the Effective Date Order will expire rules to be adopted pursuant to the standards that would be appropriate.178 upon the earliest compliance date set Clearing Agency Standards Proposing The Commission is reviewing comments forth in any of the final rules pertaining Release; (2) the compliance date of the received on its proposal relating to the to the registration of SB SEFs: final rules adopted pursuant to the End- determination of when a SB swap • The exemption from compliance User Exception Proposing Release; and should be ‘‘made available to trade’’. If with section 3D(a)(1) of the Exchange (3) the Commission determining the Commission adopts its Act’s prohibition against any person whether to propose amendments to the interpretation of ‘‘made available to operating a facility for the trading or existing net capital and customer trade’’ as proposed, the Commission processing of SB swaps unless the protection requirements applicable to anticipates that it would ultimately facility is registered as a SB SEF or as broker-dealers with regard to SB swap adopt standards for determining when a a national securities exchange; 180 and clearing through such broker-dealers SB swap has been ‘‘made available to • The exemption from compliance and whether to address portfolio trade.’’ Thus, if the Commission adopts with section 3D(c) of the Exchange Act’s margining with swaps. The Commission the proposed interpretation, the requirement that a national securities expects there would be no mandatory Commission expects that there would be exchange (to the extent that it also exchange or SB SEF trading of SB swap no mandatory exchange or SB SEF operates a SB SEF and uses the same transactions (thus allowing such SB trading of SB swaps (and thus such SB electronic trade execution system for swap transactions to continue to trade swaps may continue to trade OTC) listing and executing trades of SB swaps OTC) before compliance is required before: (1) Any such standards have on or through the exchange and the with any final rules adopted pursuant to been finalized; (2) a SB swap has been facility) identify whether electronic the Clearing Agency Standards determined to be ‘‘made available to trading of SB swaps is taking place on

171 Proposed Regulation MC at 65890–12, 65931– 175 Exchange Act section 3C(h)(2), 15 U.S.C. 179 See, e.g., letter from Tradeweb Markets LLC 2. 78c–3(h)(2). (Apr. 4, 2011), File No. S7–06–11, at 1; letter from 172 SB SEF Proposing Release at 11064. 176 SB SEF Proposing Release at 10969. MarketAxess Corporation (Apr. 4, 2011), File No. 173 15 U.S.C. 78c–3(h). 177 Id. S7–06–11, at 1. 174 See id. 178 Id. 180 Effective Date Order at 36306.

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or through the national securities of the Effective Date. In setting the exemption from section 3D in the exchange or the SB SEF.181 compliance dates for the final rules Effective Date Order for any entity that Also upon the earliest compliance pertaining to the registration and submits an application for temporary SB date set forth in the any of the final rules regulation of SB SEFs, the Commission SEF registration to permit it to operate pertaining to the registration of SB SEFs, intends to consider whether it is as a SB SEF pending submission of an the temporary exceptions from the necessary or appropriate in the public application for permanent SB SEF following Exchange Act requirements interest, and consistent with the registration, or pending Commission will expire: protection of investors, to take further approval or disapproval of its • The temporary exemption from action with regard to any of the above- permanent application? If so, should the Exchange Act sections 5 and 6; 182 described temporary exemptions. Commission condition such extension • The exemption applicable to any (v) Request for Comment or granting of an exemption on the person other than a clearing agency prospective SB SEF complying with • acting as a central counterparty in SB Pursuant to the sequencing certain conditions such as, for example, swaps from the requirements to register described herein, rules implementing meeting the Commission’s as a national securities exchange under the regulation and registration of SB interpretation of the definition of SB sections 5 and 6 of the Exchange Act SEFs would be sequenced later in the SEF, satisfying any requirements and the rules and regulations process than other rules implementing relating to fair access, and providing the thereunder solely in connection with SB swap provisions of the Dodd-Frank Commission with access to its books the person’s activities involving SB Act. Do commenters believe this and records? Why or why not? If so, swaps; 183 sequencing is appropriate or should any which conditions should the • The exemption applicable to final rules governing SB SEFs be Commission impose on the SB SEF’s broker-dealers from section 5 of the considered at an earlier point in time? operations prior to the Commission Exchange Act solely in connection with Why or why not? How would this taking action on its application for the broker’s or dealer’s activities sequencing affect the goals of Title VII’s registration, and why? involving SB swaps that it effects or reforms of the SB swap market? • • If the Commission were to permit reports on an exchange that is exempted Should an SB SEF be required to entities to submit applications for from registration pursuant to the comply with all duties, core principles temporary SB SEF registration prior to Exchange Act Exemptive Order’s and other requirements upon receiving their permanent SB SEF applications, temporary exemption from Exchange approval of its registration with the how soon after an entity submitted its Act sections 5 and 6; 184 Commission or should compliance with application for temporary SB SEF • The exemption applicable to credit some of these requirements be delayed registration should it be required to default swap central counterparties from until a later point in time? Why or why submit its application for permanent SB the requirements of sections 5 and 6 of not? If so, for which requirements and SEF registration? For example, would the Exchange Act and the rules and until what point in time should 360 days be sufficient? Should a shorter regulations thereunder solely in compliance be delayed? What factors, if or longer time period be applied? If so, connection with their calculation of any, should be considered in what is an appropriate time period and mark-to-market prices for opened establishing the compliance dates for why? positions in cleared credit default any SB SEF requirements that should be • In the SB SEF Proposing Release, swaps; 185 subject to delayed or phased-in the Commission proposed an initial • The exemption applicable to any compliance, and why should such implementation phase for the member of a credit default swap central factors be considered? How would such registration of SB SEFs, which phase counterparty from the requirements of a delay or phasing in affect the goals of would begin on the date of Regulation section 5 of the Exchange Act solely to Title VII’s reforms of the SB swap SB SEF’s effectiveness and end on July the extent such member uses any market? Would there be potential 31, 2014.189 Based upon the sequencing transactions in cleared credit default advantages and disadvantages of such a of the compliance dates of the final swaps to effect any transaction in delay or phasing in? If so, what would rules described herein that would result cleared credit default swaps, or to report they be? If there are potential in the regulation and registration of SB any such transaction, in connection disadvantages, what steps could be SEFs later in the implementation with the credit default swap central taken to mitigate them? process, is this time period initially • In the SB SEF Proposing Release, counterparty’s clearance and risk proposed to implement the registration the Commission proposed a rule that management process for cleared credit of SB SEFs appropriate? Why or why 186 would permit applicants to apply for default swaps. not? If not, what would be a more temporary registration as a SB SEF.187 The Commission granted the appropriate time period? The Commission believes temporary foregoing exemptions in the Exchange • In determining when to require SB registration for SB SEFs could serve as Act Exemptive Order because certain SEFs to register with the Commission, a useful tool during the initial persons, particularly those that would should the Commission take into implementation period and should meet the statutory definition of account the CFTC’s timing for its provide the Commission sufficient time ‘‘security-based swap execution parallel requirement and/or the timing to review an application more facility,’’ may be engaging in activities of other jurisdictions? Why or why not? thoroughly when considering an that would subject them to the If so, what is the most appropriate application for registration that is not restrictions and requirements of manner of sequencing in relation to limited in duration.188 Should the Sections 5 and 6 of the Exchange Act as those potentially differing timelines? Commission consider granting an What would the advantages and 181 exemption from section 3D of the Id. at 36306. disadvantages of doing so be? If there 182 Exchange Act Exemptive Order at 39939. Exchange Act or extending the current 183 Id. are potential disadvantages, what steps 184 Id. 187 See SB SEF Proposing Release at 10999– could be taken to mitigate them? 185 Id. at 39939–40. 11000; see also section II.E.(i) supra. 186 Id. at 39940. 188 See SB SEF Proposing Release at 11000. 189 See id. at 10998.

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• Should the Commission consider a additional regulatory action may be Copyright Office Web site at http:// delayed implementation schedule for necessary. The Commission is soliciting www.copyright.gov/docs/soaaudit/. The any conflicts of interest rules that it may comment on all aspects of this Web site interface requires submitters to adopt for SB SEFs? Why or why not? Statement and the guidance it provides complete a form specifying name and How would such a delayed regarding compliance dates for the rules other required information, and to implementation schedule affect the to be adopted under Subtitle B of Title upload comments as an attachment. To goals of Title VII’s reforms of the SB VII. Comments received will be meet accessibility standards, all swap market? Would there be potential addressed in the relevant final comments must be uploaded in a single advantages and disadvantages of doing rulemakings to which they pertain. file in either the Adobe Portable so? If so, what would they be? If there By the Commission. Document File (PDF) format that are potential disadvantages, what steps Dated: June 11, 2012. contains searchable, accessible text (not could be taken to mitigate them? Elizabeth M. Murphy, an image); Microsoft Word; • Are there other rules or sets of rules WordPerfect; Rich Text Format (RTF); or Secretary. with which compliance should be ASCII text file format (not a scanned required, or which must be effective, [FR Doc. 2012–14576 Filed 6–13–12; 8:45 am] document). The maximum file size is before SB swaps subject to the BILLING CODE 8011–01–P 6 megabytes (MB). The name of the mandatory trade execution requirement submitter and organization should are required to be traded? If so, which appear on both the form and the face of ones, and why? LIBRARY OF CONGRESS the comments. All comments will be • Should the Commission phase in posted publicly on the Copyright Office Copyright Office compliance with the mandatory trade Web site exactly as they are received, execution requirement by type of market 37 CFR Part 201 along with names and organizations if participant? For example, should the provided. If electronic submission of Commission phase in this requirement [Docket No. 2012–5] comments is not feasible, please contact by market participant type in the the Copyright Office at (202) 707–8380 manner proposed by the CFTC in its Verification of Statements of Account for special instructions. Submitted by Cable Operators and Clearing and Trade Execution FOR FURTHER INFORMATION CONTACT: 190 Satellite Carriers Implementation Proposal? Why or Tanya Sandros, Deputy General why not? What would the advantages AGENCY: Copyright Office, Library of Counsel, or Erik Bertin, Attorney and disadvantages of doing so be? If Congress. Advisor, Copyright GC/I&R, P.O. Box there are potential disadvantages, what ACTION: Notice of proposed rulemaking 70400, Washington, DC 20024. steps could be taken to mitigate them? • and request for comments. Telephone: (202) 707–8380. Telefax: In determining when to require (202) 707–8366. compliance with the mandatory trade SUMMARY : The Copyright Office is SUPPLEMENTARY INFORMATION: execution requirement, should the proposing a new regulation to Commission take into account the implement provisions in the Satellite I. Background CFTC’s timing for its parallel Television Extension and Localism Act Every five years Congress considers requirement and/or the timing of other of 2010 (‘‘STELA’’) that will allow legislation to reauthorize the statutory jurisdictions? Why or why not? If so, copyright owners to audit certain license that allows satellite carriers to what is the most appropriate manner of Statements of Account filed with the retransmit television programs that are sequencing in relation to those Copyright Office. Cable operators and embodied in distant broadcast potentially differing timelines? What satellite carriers pay royalties to and file transmissions, provided that the would the advantages and Statements of Account with the satellite carrier files a Statement of disadvantages of doing so be? If there Copyright Office every six months as Account and pays royalties to the are potential disadvantages, what steps required by law for the use of the Copyright Office. 17 U.S.C. 119. In May could be taken to mitigate them? statutory licenses that allow for the 2010, Congress passed the Satellite III. Solicitation of Comments retransmission of programming carried Television Extension and Localism Act on over-the-air broadcast signals. The Commission intends to monitor of 2010 (‘‘STELA’’), Public Law 111– However, until the passage of STELA 175, 124 Stat. 1218, for this purpose. closely the imposition of the new the licenses did not authorize the regulatory regime upon SB swaps and STELA reauthorized the Section 119 copyright owners, who are the statutory license for satellite carriers SB swap market participants to beneficiaries of the royalties collected, determine to what extent, if any, and, in addition, it made certain to audit the information on Statements amendments to the Section 119 license of Account and the amounts paid for and a second statutory license, set forth 190 See supra note 53 and accompanying text for use of the statutory licenses. a discussion of the CFTC’s proposals to phase in in Section 111 of title 17 of the United compliance with the swap clearing, trading, trade DATES: Comments on the proposed States Code, that allows cable systems to documentation, and margining requirements arising regulation must be received in the retransmit television and radio under Subtitle A of Title VII of the Dodd-Frank Act Office of the General Counsel of the by category of market participant. See also supra programs that are embodied in local and note 59 and accompanying text noting that, in the Copyright Office no later than 5 p.m. distant broadcast transmissions. CFTC Clearing and Trade Execution Eastern Daylight Time (EDT) on August A significant change to the law is the Implementation Proposal, the CFTC stated that 13, 2012. Reply comments must be addition of new provisions directing the before the mandatory clearing of swaps begins, the received in the Office of the General product and entity definitions, the end-user Register of Copyrights to develop exception from mandatory clearing, and the rules Counsel no later than 5 p.m. EDT on procedures for the verification of the pertaining to the segregation of customer collateral September 12, 2012. Statements of Account and royalty fees must be adopted and that before swap market ADDRESSES: The Copyright Office that cable operators and satellite carriers participants could be required to comply with a trade execution requirement, the CFTC must adopt strongly prefers that comments be deposit with the Copyright Office under final rules related to swap execution facilities and submitted electronically. A comment Sections 111 and 119. Specifically, designated contract markets. submission page is posted on the Section 119(b)(2) directs the Register to

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‘‘issue regulations to permit interested beneficiaries of the royalties that are qualifications of the auditor, and the parties to verify and audit the paid under the Section 111 and 119 deadline for initiating an audit, among statements of account and royalty fees statutory licenses.1 The copyright other requirements. submitted by satellite carriers under owners asked the Office to adopt However, the differences between the [that] subsection.’’ Similarly, Section separate regulations for Statements of two provisions do not preclude the 111(d)(6) directs the Register to ‘‘issue Account that are filed by cable operators Register from adopting a single regulations to provide for the and satellite carriers and provided the regulation for verification procedures confidential verification by copyright Office with proposed language for each conducted under Section 111(d)(6) and owners whose works were embodied in regulation. Separate regulations, 119(b)(2). Nor is there anything in the secondary transmissions of primary however, do not appear to be necessary Section 111(d)(6) that directly transmissions pursuant to [section 111] because the basic elements for verifying contradicts the requirements of of the information reported on the and auditing Statements of Account 119(b)(2) (or vice versa). Section semiannual statements of account filed filed under Section 111 and 119 should 119(b)(2) allows ‘‘interested parties’’ to under this subsection for accounting be the same. Therefore, the Office is verify and audit Statements of Account periods beginning on or after January 1, proposing a single regulation setting and royalty payments filed by a satellite 2010, in order that the auditor forth a process for verifying Statements carrier. By contrast, Section 111(d)(6) designated under subparagraph of Account that would apply to cable only allows ‘‘copyright owners whose [111(d)(6)(A)] is able to confirm the operators and to satellite carriers. In works were embodied in the secondary correctness of the calculations and formulating this regulation, the Office transmission of primary transmissions’’ royalty payments reported therein.’’ has adopted some of the suggestions to audit Statements of Account and These provisions authorize the included in the Petition for Rulemaking royalty payments filed by a cable implementation of a process by which and welcomes comments on the operator. While the statutory language copyright owners, whose works are proposed regulation from copyright in Section 111(d)(6) is more precise and retransmitted under the statutory owners, cable operators, satellite identifies who may request an audit, it licenses, can for the first time verify the carriers, accounting professionals, and is nonetheless reasonable to assume that accuracy of the royalty payments made other interested parties. by cable operators and satellite carriers. the only parties who would have an They also make clear that the Register II. Verification Procedures interest in verifying Statements of Account and royalty payments filed should consider the interests of the A. Cable Operators and Satellite under Section 119 would be copyright parties who will be subject to this Carriers Would Be Subject to the Same verification procedure. For example, Verification Procedure owners whose works were embodied in Section 111(d)(6) directs the Register to a secondary transmission made by the As discussed above, Section 119(b)(2) party that filed that Statement. give cable operators an opportunity to directs the Register to issue regulations review the auditor’s conclusions, to Moreover, virtually the same set of to allow ‘‘interested parties’’ to verify copyright owners participates in remedy any errors identified in the the Statements of Account and royalty auditor’s report, and to correct any proceedings before the Copyright fees that are filed with the Copyright Royalty Board concerning the underpayments that the auditor may Office under Section 119. The term discover. Congress indicated that a distribution of royalties under the cable ‘‘interested parties’’ was not defined, and satellite licenses. single auditor should conduct the and the statute does not provide any verification procedure on behalf of all guidance on the nature and extent of Consequently, because Congress copyright owners and that the Register this verification procedure. For provided a blueprint for the verification should limit the number of times that a example, Section 119(b)(2) does not of Statements of Account in Section party may be subjected to an audit. indicate whether satellite carriers 111(d)(6) and because those Congress also directed the Register to should be allowed to review the requirements are similar to verification establish procedures for protecting the auditor’s conclusions or to correct any procedures that the Office has adopted confidentiality of non-public financial underpayments that the auditor may in the past, the Office is inclined to use and business information that may be discover. Nor does it provide for the this provision as the framework for the provided to the auditor during the confidential treatment of information regulations governing the verification of course of his or her investigation. that the satellite carrier may provide to Statements of Account and royalty fees Generally speaking, the proposed the auditor. Section 111(d)(6), on the filed by both cable operators and regulation is based on similar 2 other hand, contains detailed satellite carriers. Adoption of the same regulations that the Office has adopted instructions regarding the verification of procedures for both statutory licenses for the verification of Statements of Statements of Account and royalty has advantages. It will reduce regulatory Account and royalty payments that are payments filed by cable operators, complexity for copyright owners, it will made under the statutory licenses for including the number of times that a promote fairness among statutory the use of ephemeral recordings and the cable system may be audited, the licensees, and it will encourage auditors digital performance of sound recordings to develop best practices that could be under 17 U.S.C. sections 112(e) and 1 Representatives of Program Suppliers used regardless of whether an audit 114(f), and for the importation and (commercial entertainment programming); Joint involves Statements of Account filed by distribution of or the manufacture and Sports Claimants (professional and college sports a cable operator or a satellite carrier. distribution of digital audio recording programming); Commercial Television Claimants The copyright owners apparently agree devices under 17 U.S.C. chapter 10. See (local commercial television programming); Music Claimants (musical works included in television with this approach. Although they generally 37 CFR 201.30, 260.5, 260.6, programming); Public Television Claimants proposed separate regulations for cable 261.6, 261.7, 262.6, and 262.7. The (noncommercial television programming); Canadian operators and satellite carriers their Office also considered a Petition for Claimants (Canadian television programming); drafts are essentially identical, except Rulemaking [http://www.copyright.gov/ National Public Radio (noncommercial radio programming); Broadcaster Claimants Group (U.S. docs/soaaudit/soa-audit-petition.pdf] commercial television stations), and Devotional 2 As the proposed regulation applies to both cable which was filed on behalf of the Claimants (religious television programming) filed operators and satellite carriers, they are collectively copyright owners who are the the petition jointly. referred to as ‘‘statutory licensees.’’

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for one difference which is discussed in cable operators. On the other hand, the provide a brief statement establishing more detail in the next section. lack of similar language in Section 119 that it owns at least one work that was The Office invites comments on is not an indication that Congress embodied in a secondary transmission whether Section 111(d)(6) should be intended to allow retroactive made by that licensee. used as the framework for the verification of Statements of Account Under the proposed regulation a verification of Statements of Account filed by satellite carriers. notice of intent to audit filed by one filed under Sections 119(b)(2) or ‘‘Retroactivity is not favored in the copyright owner would preserve the whether there are policy or law. Thus, congressional enactments right of all interested copyright owners administrative reasons for adopting a and administrative rules will not be to participate in the audit procedure. different approach for the verification of construed to have retroactive effect This would mean that once the Office Statements and royalties filed by cable unless their language requires this has received a notice of intent to audit operators and satellite carriers. result. By the same principle, a statutory a particular semiannual Statement of grant of legislative rulemaking authority Account, it would not accept another B. Retroactivity will not, as a general matter, be notice of intent to audit that same As discussed above, the copyright understood to encompass the power to Statement. As discussed in Section G owners have asked the Office to adopt promulgate retroactive rules unless that below, a satellite carrier or cable separate regulations for cable operators power is conveyed by Congress in operator that owns one cable system and satellite carriers and they have express terms.’’ Bowen v. Georgetown would be subject to no more than one provided the Office with a proposed University Hospital, 488 U.S. 204, 208 audit per year, while a cable operator draft for each regulation. The primary (1988) (citations omitted). See also that owns multiple cable systems would difference between the two suggested Motion Picture Association of America, be subject to no more than three audits regulations is that the copyright owners’ Inc. v. Oman, 969 F.2d 1154, 1156 (D.C. per year. This would mean that once the draft regulation for satellite carriers Cir. 1992) (explaining that the Register Office has received a notice of intent to would apply retroactively, while their of Copyrights does ‘‘not have authority audit a particular satellite carrier or a draft regulation for cable operators to promulgate retroactive rules unless particular cable system that owns a would apply on a prospective basis Congress gives [her] that authority in single cable system, the Office would only. Specifically, the copyright owners’ express terms’’). not accept another notice of intent to draft regulation for cable operators Because the copyright owners are audit that licensee until January 1st of would apply to Statements of Account asking ‘‘for something the Office could the following year. Likewise, once the for accounting periods beginning on or not give as a matter of law,’’ Motion Office has received three notices of after January 1, 2010 (i.e., the Picture Association of America, 969 intent to audit a particular multiple semiannual accounting period that was F.2d at 1156, i.e., allowing copyright cable system operator within a specific in effect when the President signed owners to audit Statements of Account calendar year, it would not accept STELA into law on May 27, 2010). By for accounting periods that preceded the another notice of intent to audit that contrast, the copyright owners’ draft for 2010/1 accounting period, the Office has same licensee until January 1st of the satellite carriers would apply to any not adopted the draft language that they following year.3 Statement of Account, even if the proposed for the verification of The filing of the notice would then Statement was filed with the Office Statements of Account filed by satellite require the Office to publish a notice in before STELA was enacted. carriers. the Federal Register within 30 days In support of this distinction, after receiving the notice of intent to C. Initiation of an Audit copyright owners argue that Section audit. The Federal Register notice 119(b)(2) of ‘‘STELA permits The proposed regulation follows the would identify the Statement(s) of verification of Statements of Account same approach that is used to initiate Account and statutory licensee that filed by satellite carriers prior to the audit and verification procedures for would be subject to audit, it would 2010–1 accounting period.’’ Petition for examining Statements of Account filed identify the copyright owner that filed Rulemaking at 4. However, Section under the Section 112 and 114 licenses the notice of intent to audit, and it 119(b)(2) does not contain any language and under Chapter 10. In keeping with would provide appropriate contact that expressly permits copyright owners this approach, a copyright owner would information for that party. Any other to audit a Statement of Account for an have to notify the Copyright Office in copyright owner that wishes to accounting period that predated the writing in order to initiate an audit participate in the audit of the enactment of STELA. Nor does it procedure, and at the same time, it Statement(s) of Account identified in contain any language that expressly would have to serve a copy of that the Federal Register notice would have permits the Office to adopt regulations notice on the statutory licensee that to contact the copyright owner that filed providing for the verification of would be subject to the audit. The the notice of intent to audit. Copyright Statements of Account on a retroactive Office does not intend to create a form owners that join in the audit would be basis. On the contrary, when STELA for this notice, but at a minimum, the entitled to participate in the selection of does address this issue, it clearly states proposed regulation requires the the auditor, and they would be entitled that copyright owners may audit a cable copyright owner to identify the to participate in the selection of operator’s Statements of Account, but Statement(s) of Account and accounting additional cable systems that may be only with respect to ‘‘accounting period(s) that would be included in the included in an expanded audit, if the periods beginning on or after January 1, audit and the statutory licensee that audit involves a multiple cable system 2010 * * *.’’ Section 111(b)(6). The fact filed those Statement(s) with the Office. operator which has been shown to have that the verification procedure for cable In addition, the notice of intent to audit operators only applies to the accounting would have to provide specific 3 However, if a copyright owner filed a notice of period that was in effect when STELA information about the copyright owner intent to audit a particular Statement of Account or was enacted and any subsequent filing the notice, including its name, a particular statutory licensee in calendar year 2013 and if that audit was still ongoing as of January 1, accounting period is clear evidence that address, telephone number, facsimile 2014, the Office would accept a notice of intent to Congress did not intend to impose a number, and email address (if any), and audit filed in calendar year 2014 concerning other retroactive verification requirement on the copyright owner would have to Statements filed by that same licensee.

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underpaid its royalties during the initial auditor,’’ but it does not require the Conduct of the American Institute of examination. In addition, copyright Office to make this designation. The Certified Public Accountants owners that join in the audit would be Office does not have the knowledge, (‘‘AICPA’’), in the Statements on entitled to receive a copy of the experience, or resources needed to Auditing Standards promulgated by the auditor’s report and they would be select an appropriate auditor or to Auditing Standards Board of the AICPA, required to pay for the auditor for his or manage the selection process beyond and in the Interpretations thereof issued her work in connection with the audit. the initial notification step, and doing by the Auditing Standards Division of Conversely, a copyright owner that so would be a dramatic departure from the AICPA. See, e.g., AICPA Code of failed to join the audit within 30 days the audit regulations that the Office has Professional Conduct, ET Section 101 would not be permitted to participate in adopted in the past. See 37 CFR (Independence), 102 (Integrity and the selection of the auditor or the 201.30(d)(2), 260.5(c), 260.6(c), 261.6(c), Objectivity), 191 (Ethics Rulings on selection of cable systems that would be 261.7(c). Therefore, the Office is not Independence, Integrity, and included in an audit of a multiple inclined to adopt the copyright owners’ Objectivity), available at http:// system operator. Nor would they be proposal. Moreover, the Office is www.aicpa.org/interestareas/ entitled to receive a copy of the unaware of any problems with this professionalethics/resources/ auditor’s report. Moreover, a copyright initiation practice as used in the codeofconduct/pages/default.aspx. owner that failed to join the audit verification process for auditing However, the Office does agree with the within the time allowed would not be statements of account filed under the copyright owners that an auditor should permitted to conduct its own audit of Section 112 and 114 licenses or under be disqualified if there is any conflict of the semiannual Statement(s) of Account Chapter 10. interest that would prevent him or her identified in the Federal Register notice The Office believes that the copyright from participating in the verification at a later time. If the licensee identified owners should be responsible for procedure, and notes that conflicts of in the Federal Register notice is a designating an auditor who will verify interest are prohibited under AICPA satellite carrier or a single cable system the Statement(s) of Account and royalty Code of Professional Conduct Section operator, a copyright owner that failed payments on their behalf and for 102–2. to join the audit within 30 days would resolving any disputes amongst The standard for evaluating an not be permitted to conduct another themselves over the selection of the auditor’s independence is based on the audit of that same licensee until the auditor. Likewise, the Office believes Office’s audit regulation for digital following year because under the that the copyright owners who join in audio recording technology, which has proposed regulations these systems the audit should be responsible for been in effect since 1996. See 37 CFR shall be subject only to a single audit paying the auditor for his or her work 201.30(j)(3). The Office welcomes during a given calendar year. See in connection with the audit, and for comments from accounting Section G, Frequency of the Audit resolving any disputes amongst professionals and other interested Procedure. Likewise, if the Office themselves concerning the allocation of parties as to whether accountants already published three Federal those costs.4 The Office can establish currently use this standard to evaluate Register notices involving a multiple regulatory guidelines for the verification their independence or whether the cable system operator, a copyright process, but it strongly believes that the standard has changed over the past 16 owner that failed to join any of these copyright owners are better situated to years. audits within the time allowed would assume the costs and the responsibility If a statutory licensee has reason to not be permitted to conduct another for selecting the auditor and believe that an auditor is not qualified audit of Statements filed by that same coordinating the verification procedure, or independent, it would have to raise licensee for additional accounting including the identification of those those concerns with the copyright periods until the following year. copyright owners who wish to owner(s) who selected the auditor participate in the verification process. before the audit begins. If the parties are D. Designation of the Auditor To this end, the proposed regulation unable to resolve the matter, the cable Under the copyright owners’ would establish clear guidelines for the operator or satellite carrier could raise proposal, the Office would be process, such as defining what its concerns with AICPA’s Professional responsible for selecting a qualified and constitutes a ‘‘qualified’’ and Ethics Division or with the State Board independent person to conduct the ‘‘independent’’ auditor. Specifically, an of Accountancy that licensed the audit, and copyright owners and auditor would be considered auditor. Consistent with the verification statutory licensees would be given an ‘‘qualified’’ if he or she is a certified procedures that the Office has adopted opportunity to comment on the public accountant. Consistent with for other statutory licenses, the auditor proposed auditor before the final Section 111(d)(6)(A)(ii), an auditor would be allowed to proceed with the selection is made. Copyright owners would be considered ‘‘independent’’ if audit while his or her qualifications who wished to participate in the audit he or she is not an officer, employee, or were under review. See 37 CFR and to receive a copy of the auditor’s agent of a copyright owner for any 201.30(j)(1). final report would have 15 days after the purpose other than the audit. In E. Time Period for Conducting an Audit selection of the auditor to notify the addition, an auditor would be Office of their intention to join the audit considered ‘‘independent’’ for purposes Section 111(d)(6) allows copyright process, and the Office would be of this procedure if that person is owners to audit Statements of Account responsible for posting the names of considered to be ‘‘independent’’ as that and royalty payments filed with the these copyright owners on its Web site. term is used in the Code of Professional Copyright Office for any accounting The Office has considered the period beginning on or after January 1, copyright owners’ approach but can see 4 The copyright owners’ proposal states that the 2010. In order to provide cable operators little justification for this degree of copyright owners that join in the audit ‘‘shall pay with a measure of certainty and to involvement by the Copyright Office. the costs of the Qualified Independent Auditor.’’ encourage copyright owners to exercise However, they did not indicate whether those costs Section 111(d)(6)(A) directs the Office to should be split evenly among the copyright owners their audit rights in a prompt manner, ‘‘establish procedures for the or whether those costs should be divided in some Congress directed the Register to set a designation of a qualified independent other manner. deadline for initiating an audit

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procedure. Specifically, Section necessary to confirm the correctness of explains that a Statement of Account 111(d)(6)(D) states that the Register shall the calculations and royalty payments may be audited no more than once. ‘‘permit requests for verification of a reported in a Statement of Account for However, this basic limitation to a statement of account to be made only at least five years after the Statement has single audit for each Statement of within 3 years after the last day of the been filed. While the Office agrees that Account does not address Congress’s year in which the statement of account statutory licensees should be required to directive to ‘‘limit the frequency of is filed.’’ retain their records until the deadline requests for verification for a particular Taking its cue from the statutory text, for auditing a Statement of Account has cable system and the number of audits the proposed regulation would provide passed, it is not clear that such records that a multiple system operator can be that the deadline for initiating a need to be maintained for five years. required to undergo in a single year.’’ 17 verification procedure would be See, e.g., 37 CFR 260.4(f) and 261.5(f) U.S.C. 111(d)(6)(D). The statute does not calculated from the last day of the year (requiring books and records relating to indicate what those limits should be in which the Statement of Account was the payment of statutory licensing fees and there is no legislative history for filed. Thus, the final date for filing a to be kept for three years). STELA. It is clear that Congress did not notice of intent to audit a particular Under the proposed regulation, a intend to overburden cable operators Statement would be December 31, statutory licensee would be required to that own and operate multiple systems, regardless of whether the Statement was retain such records for a minimum of but striking an appropriate balance is filed by a cable operator or a satellite three and a half years (e.g., 42 months) not an easy question. carrier, whether the Statement covers after the last day of the year in which Under the copyright owners’ the first or second half of the year, or the Statement of Account was filed with proposal, it appears that a satellite whether the Statement was filed before the Office. Should the Office announce carrier or a cable operator that owns one or after the filing deadline. If the the receipt of a notice of intent to audit cable system would be subject to no copyright owner intends to audit more a particular Statement, the statutory more than one audit per year. However, than one Statement of Account, the licensee would be required to retain its a cable operator that owns more than notice of intent to audit would have to records concerning the calculations and one system would be subject to as many be filed within three years after the last royalty payments reported in that as three audits per year. day of the year that the earliest Statement for at least three years after The Office included the copyright Statement was filed with the Office. For the date that the auditor delivers his or owners’ proposal in the initial draft of example, a notice of intent to audit three her final report to the copyright the regulation, because the statute does Statements of Account filed by a owner(s). This will preserve the records not provide any meaningful guidance satellite carrier on July 30, 2010, January for the benefit of all parties in the event concerning the phrase ‘‘limit the 30, 2011, and July 30, 2011 would have that the copyright owner(s) decide to frequency of requests for verification.’’ to be received in the Office on or before take legal action based on the facts and However, this is merely a starting point December 31, 2013. conclusions set forth in the auditor’s for further discussion on this issue. The The copyright owners’ draft report. Conversely, if the Office does not Office welcomes comment from regulation would require the Office to announce the receipt of a notice of interested parties concerning the limit designate an auditor within 60 days intent to audit within three and a half on the total number of audits that a after the notice of intent to audit was years (e.g., 42 months) after the last day satellite carrier, a cable system operator published in the Federal Register. The of the year in which a particular that owns a single cable system, or a auditor would be required to contact the Statement of Account was filed, the multiple system operator can be statutory licensee within 30 days statutory licensee would no longer be required to undergo in a single year, and thereafter, and the statutory licensee required to retain its records concerning in particular, whether there is a would be required to make its records that Statement, at least for the purpose legitimate reason for treating cable available to the auditor 30 days later. of verifying the Statement of Account operators differently depending on The Office assumes that the amount of under this regulation. whether they own one cable system or time required for an audit will vary more than one system (i.e., whether the depending on the number and G. Frequency of the Audit Procedure multiple system operator should be complexity of the Statements of Section 111(d)(6)(A)(i) appears to subject to a single audit or up to three Account that will be subject to review. provide copyright owners with a single audits per year). The only statutory requirement is that opportunity to verify a particular By contrast, the proposed regulation the request for verification must be Statement of Account. This provision does not fully embrace the copyright made ‘‘within 3 years after the last day directs the Register to ‘‘establish owners’ proposal concerning multiple of the year in which the statement of procedures for the designation of a system cable operators, because it does account is filed.’’ 17 U.S.C. 111(d)(6)(E). qualified independent auditor with not appear to place any meaningful Therefore, the Office is not inclined to exclusive authority to request limit on the number of cable systems set a precise deadline for when the verification of such a statement of that can be included within each audit. auditor should be selected, when the account on behalf of all copyright Allowing the auditor to evaluate all of audit should begin, or when the audit owners. * * *’’ Once an auditor has the cable systems owned by a multiple should be completed. Nor is it aware been selected, he or she would conduct system operator may be unduly that failure to establish a regulatory that audit on behalf of ‘‘all’’ copyright burdensome for the operator— timeline for completing these tasks has owners, regardless of whether they depending on the number of systems been a problem with the verification of decide to join the audit or not. Once the within its portfolio. In order to protect Statements of Accounts filed under auditor has completed his or her review the interests of a multiple system other statutory licenses. of that Statement, there is no apparent operator, the proposed regulation need for additional audits, because all directs the auditor to study a sampling F. Retention of Records copyright owners would have been of the cable systems owned by that The copyright owners’ draft given an opportunity to audit that operator. At the same time, the regulation would require statutory Statement already. In light of this regulation protects the interests of licensees to keep records that may be reading, the proposed regulation copyright owners by allowing them to

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maximize their opportunity by However, this is merely a preliminary explains that the auditor should deliver including more than one Statement of suggestion, and the Office solicits a copy of that report to the statutory Account in each audit. comments from all interested parties. licensee before it is delivered to any of According to the AICPA, ‘‘the basic The Office invites comments on the copyright owner(s) that are concept of sampling is well established whether a sampling approach should be participating in the audit. However, in auditing practice.’’ American used for audits involving a multiple there is one exception to this rule. The Institute of CPAs, Statement on system operator, and if so, whether an auditor may deliver a copy of his or her Auditing Standards § 350.06 at 516, audit involving up to fifty percent of the report directly to the copyright owner(s) available at http://www.aicpa.org/ systems owned by a particular operator without sharing it with the statutory Research/Standards/AuditAttest/ is likely to produce a statistically licensee if the auditor has reason to DownloadableDocuments/AU- significant result or whether this suspect that the statutory licensee has 00350.pdf. It involves ‘‘the application threshold would be unduly burdensome committed fraud and that disclosing his of an audit procedure to less than 100 for the operator and, if so, what or her conclusions to the statutory percent of the items within * * * [a] percentage would be appropriate. The licensee would prejudice further class of transactions for the purposes of Office also invites comments on investigation of that fraud. The Office evaluating some characteristic of the whether copyright owners should be has taken a similar approach in other * * * class.’’ Id. at 515. ‘‘The size of a allowed to increase the number of audit regulations. See 37 CFR 261.6(g), sample necessary to provide sufficient systems subject to audit if the auditor 261.7(f), 262.6(f), 262.7(f). audit evidence depends on both the discovers an underpayment of royalties, Consistent with Section objectives and the efficiency of the and if so, whether the underpayment 111(d)(6)(C)(i), the auditor would be sample.’’ Id. should be higher or lower than five required to review his or her report with The proposed regulation does not percent in order to trigger this a designee of the statutory licensee require the auditor to review a specific requirement. before it is delivered to the copyright number of cable systems, because the owner(s). Specifically, the auditor H. Proposed Remedies for Cable number of systems owned by each would be required to consult with a Operators and Satellite Carriers multiple system operator will vary. On designee of the statutory licensee within the one hand, an audit involving five or STELA directed the Register to 30 days after the auditor has delivered six cable systems may impose an undue ‘‘require a consultation period for the his or her report to the licensee. The burden on the operator if it owns only independent auditor to review its Office assumes that the consultation a half dozen systems. On the other conclusions with a designee of the cable would take place at a time and place hand, if a multiple system operator system.’’ In addition, Congress directed that is mutually convenient for both owns dozens of cable systems, e.g., the Register to ‘‘establish a mechanism parties, and that it would be conducted Time Warner, an audit involving only for the cable system to remedy any in person, by telephone, or video five of those systems may not be errors identified in the auditor’s report conference as the parties may agree. statistically significant given the size of and to cure any underpayment Because the issues presented in each the company. identified,’’ and to ‘‘provide an audit will be unique, the regulation does To address this conundrum, the opportunity to remedy any disputed not provide specific topics that the Office believes that the interests of facts or conclusions.’’ See 17 U.S.C. parties should review. But as discussed multiple system cable operators, 111(d)(6)(C)(i)–(ii). Congress did not in Section H.3 below, if the statutory copyright owners, and the auditor indicate whether the regulation should licensee discovers any factual errors or would be better served by allowing the provide these remedies to satellite erroneous conclusions in the auditor’s auditor to study a percentage of the carriers, but as discussed above there is report, the designee must bring those cable systems owned by a multiple nothing in Sections 111(d)(6)(C)(i)–(ii) issues to the auditor’s attention during system operator. The proposed or 119(b)(2) that prevents the Office the consultation. regulation states that, in the case where from taking this approach and the Office The Office invites comment on there are two or more systems under can think of no good reason to adopt whether the regulation should provide a common ownership, audits should different approaches for the two precise amount of time for the auditor involve no more than fifty percent of licenses. Therefore, the Office is to meet and confer with the statutory those systems. However, if the auditor proposing a single regulation for both licensee’s designee, and if so, whether discovers an underpayment of five cable operators and satellite carriers 30 days would be a sufficient amount of percent or more in any Statement of which would allow any statutory time for the consultation period. Account filed by that operator, the size licensee to review the auditor’s of the sample could be expanded to conclusions before the auditor delivers 2. Correcting Errors and Curing include any and all of the systems his or her report to the copyright Underpayments Identified in the owned by that operator. The specific owner(s), to correct errors and Auditor’s Report cable systems that would be included underpayments identified in the STELA directed the Register to within the sample of the expanded audit auditor’s report, and to dispute any of ‘‘establish a mechanism for the cable would be selected by the copyright the facts and conclusions set forth in system to remedy any errors identified owner(s) who elected to participate in that report. Each of these remedies is in the auditor’s report and to cure any the audit. Setting the trigger at five discussed below. underpayment identified.’’ The Office percent would be generally consistent already has a process that allows cable with the copyright owners’ proposal for 1. Consultation With the Statutory operators and satellite carriers to amend allocating the cost of the audit, which Licensee their Statements of Account and to would require the auditor’s fee to be Once the auditor has completed his or make additional royalty payments that paid by the statutory licensee if the her review of the Statements of may be due. See 37 CFR 201.11(h) and auditor concludes that there was an Account, the proposed regulation 201.17(m). The Office is inclined to use underpayment of five percent or more directs the auditor to prepare a written the same approach here. reported in any Statement of Account report setting forth his or her If the auditor concludes that any of that was included in the audit. conclusions. The proposed regulation the information in a Statement of

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Account is incorrect or incomplete, that be a sufficient amount of time, and I. Cost of the Audit Procedure the calculation of the royalty fee was should the deadline be based on the The statute does not indicate whether incorrect, or that the statutory licensee date that the auditor delivers his or her the costs of the audit should be paid by failed to deposit the royalties owed with preliminary report to the statutory the copyright owners or by the statutory the Office, the statutory licensee may licensee or the date that the auditor licensee. The Office has, however, correct those errors by filing an delivers his or her final report to the considered this same issue in its amended Statement of Account or by copyright owner(s)? regulations concerning the audit of submitting supplemental royalty Statements of Account and royalty payments to the Office. To do so, the 3. Disputing the Facts and Conclusions payments made under Section 112, licensee must comply with the Set Forth in the Auditor’s Report Section 114, and Chapter 10, and it is procedures set forth in 37 CFR If the statutory licensee disagrees with inclined to use the same approach in 201.11(h)(1) and 201.17(m)(3), including any of the facts or conclusions set forth this regulation. See 37 CFR 201.30(i), the obligation to pay interest on any in the auditor’s report, the licensee’s 260.5(f), 260.6(f), 261.6(g), 261.7(g), underpayment that may be due and the designee must raise those issues during 262.6(g), 262.7(g).5 requisite filing fee set forth in 37 CFR As a general rule, the copyright 201.3. the initial consultation with the auditor. The copyright owners apparently If the auditor agrees that a mistake has owner(s) who selected the auditor agree with this approach. Their been made, he or she should correct would be expected to pay for the proposed regulation states that the those errors before the report is auditor’s work in connection with the statutory licensee ‘‘may * * * remedy delivered to the copyright owner(s). If audit. Copyright owner(s) who do not any errors identified in the [auditor’s] facts or conclusions set forth in the participate in the verification procedure report * * * and cure any report remain in dispute after the would not be required to pay for the underpayment identified (subject to the consultation, the licensee may provide auditor’s services, and consequently filing fee and interest requirements the auditor with a written response they would not be entitled to receive a generally applicable to late, corrected, setting forth its views. The licensee’s copy of the auditor’s report, although or supplemental Statements of Account deadline for providing this response they would benefit from the payment of and royalty fees).’’ Petition for would be two weeks (e.g., 14 calendar any additional royalty fees made as a Rulemaking at 10. However, the days) after the date of the initial result of the audit. However, if the copyright owners’ proposal would give consultation between the auditor and auditor concludes that there was an licensees only a brief opportunity to the licensee’s representative. underpayment of five percent or more reported in any Statement of Account correct errors or underpayments Within 60 days after the auditor that was included in the audit, the identified in the auditor’s report. delivers his or her report to the statutory proposed regulation would require the Specifically, corrections and licensee, the auditor would be required auditor’s fee to be paid by the statutory underpayments would have to be made to prepare a final report setting forth his licensee that filed that Statement with during a 30-day consultation period or her conclusions and would be the Office with the proviso that if a when the auditor would be required to required to deliver that report to the court, in a final judgment (i.e., after all discuss his or her tentative findings copyright owner(s) that participated in appeals have been exhausted) rejects with a representative of the licensee. the audit process. At the same time, the that determination, the copyright The statute directs the Office to auditor would be required to provide owners would have to reimburse the establish a mechanism for correcting the statutory licensee with a copy of the licensee for its payment of the auditor’s errors identified in the auditor’s report final report. (The copyright owners services. The copyright owners included and for curing underpayments, but it made a similar suggestion in their draft a similar proposal in their draft does not specify a deadline for making regulation, but they did not specify a regulation. these adjustments. The proposed deadline for the delivery of the final regulation would allow the Office to The Office invites comment on report nor did they offer to share the accept corrected Statements of Account whether the regulation should include a final report with the statutory licensee.) and supplemental royalty payments cost-shifting provision, and if so, If the statutory licensee prepared a before, during, or after a verification whether the percentage of written response contesting the facts or procedure. Certainly, it would be in the underpayment needed to trigger a cost conclusions set forth in the auditor’s best interest of the licensee to file an shifting to the statutory licensee should report, the auditor would be required to amended Statement of Account and any be more or less than five percent. include that response as an attachment royalties fees owed as soon as possible to his or her final report to the copyright to avoid accruing additional interest J. Confidentiality owner(s). payments and possible exposure to an STELA directed the Register to issue infringement suit. The Office invites comment on regulations ‘‘to provide for the The Office welcomes comment on whether the proposed regulation confidential verification’’ of Statements whether the proposed regulation provides statutory licensees with an of Account and royalty payments, and provides statutory licensees with an adequate ‘‘opportunity to remedy any to ‘‘establish procedures for adequate opportunity to ‘‘remedy any disputed facts or conclusions’’ as safeguarding all non-public financial errors identified in the auditor’s report required by Section 111(d)(6)(C)(iii). and to cure any underpayments The Office also welcomes comment on 5 There is no legislative history for STELA, identified,’’ as required by Section whether two weeks would be a although a prior iteration of the legislation contained language concerning the verification of 111(d)(6)(C)(ii). The Office also sufficient amount of time for the Statements of Account. The House Report for the welcomes comment on whether it statutory licensee to prepare a written earlier bill stated that ‘‘[t]he rules adopted by the would be beneficial to give statutory response to the auditor’s report (if any), Office shall include procedures allocating licensees a specific deadline for and whether 60 days would be a responsibility for the cost of audits consistent with such procedures in other audit provisions in its correcting errors in their Statements of sufficient amount of time for the auditor rules.’’ See Satellite Home Viewer Update and Account and for making supplemental to prepare his or her final report for the Reauthorization Act of 2009, H. Rep. No. 111–319, royalty payments. If so, would 30 days copyright owners. 111th Cong., 1st Sess., at 10 (2009).

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and business information’’ that may be statute provides no guidance on the (4) Generally accepted auditing provided during the course of the issue and the copyright owners did not standards (GAAS) means the auditing investigation. The proposed regulation address this issue in their draft standards promulgated by the American explains that confidential information regulation. Therefore, the Office seeks Institute of Certified Public should be made available for use in the comment on whether and, if so, the Accountants. audit procedure, and that access to that circumstances under which access to (5) The term satellite carrier has the information should be limited to the confidential information by copyright meaning set forth in section 119(d)(6) of auditor who conducts the procedure. owner(s) is appropriate and the best title 17 of the United States Code. The auditor may share confidential approach for protecting the information (6) The term secondary transmission information with his or her employees, from unauthorized disclosure in such has the meaning set forth in section agents, consultants, and independent situations. 111(f)(2) of title 17 of the United States contractors who need access to the Code, as amended by Public Law 111– III. Conclusion information in order to perform their 175. duties in connection with the audit. The Office seeks comment from the (7) Statement of Account or Statement However, the auditor’s employees, public on the subjects discussed above means a semiannual Statement of agents, consultants, and independent related to the implementation of the Account filed with the Copyright Office contractors would be required to enter audit provisions adopted by Congress for an accounting period beginning on into an appropriate confidentiality with the passage of the Satellite or after January 1, 2010 under sections agreement governing the use of the Television Extension and Localism Act 111(d)(1) or 119(b)(1) of title 17 of the confidential information and they could of 2010. United States Code, as amended by not be employees, officers, or agents of Public Law 111–175. List of Subjects in 37 CFR Part 201 (8) Statutory licensee or licensee a copyright owner for any purpose other means a cable system or satellite carrier than the audit. In addition, the auditor Copyright, General provisions. that filed a Statement of Account with and any other person that receives Proposed Regulations the Office under sections 111(d)(1) or confidential information would have to 119(b)(1) of title 17 of the United States implement procedures to safeguard that In consideration of the foregoing, the Code, as amended by Public Law 111– information, using at least the same Copyright Office proposes to amend part 201 of 37 CFR Chapter II, as follows: 175. level of security that they would use to (c) Notice of intent to audit. Any protect his or her own confidential PART 201—GENERAL PROVISIONS copyright owner that intends to audit a information. semiannual Statement of Account must The Office also seeks comment on 1. The authority citation for part 201 notify the Register of Copyrights no later whether there are situations where reads as follows: than three years after the last day of the copyright owner(s) would have a Authority: 17 U.S.C. 702, 17 U.S.C. year in which the Statement was filed legitimate need to review the 111(d)(6), and 17 U.S.C. 119(b)(2). with the Office. The notice shall confidential information that may be identify the statutory licensee that filed 2. Add new § 201.16 to read as provided by the licensee and, if so, the Statement(s) with the Copyright follows: whether the licensee’s legitimate Office, the Statement(s) and accounting interest in safeguarding that information § 201.16 Verification of a Statement of period(s) that will be subject to the would be adequately protected by Account and royalty fee payments for audit, and the copyright owner that filed adopting a regulation requiring the secondary transmissions made by cable the notice, including its name, address, copyright owner(s) to enter into an systems and satellite carriers. telephone number, facsimile number, appropriate non-disclosure agreement (a) General. This section prescribes and email address, if any. In addition, with the statutory license. Under most general rules pertaining to the the notice shall include a statement of the audit regulations adopted by the verification of a Statement of Account establishing that the copyright owner Office, access to confidential and royalty fees filed with the Copyright owns a work that was embodied in a information has been limited to the Office pursuant to sections 111(d)(1) secondary transmission made by the auditor and his or her employees and and 119(b)(1) of title 17 of the United statutory licensee during the accounting agents. See 37 CFR 260.4(d)(2), States Code, as amended by Public Law period(s) specified in the Statement(s) of 261.5(d)(2), 262.5(d)(2). The Office’s 111–175. Account that will be subject to the regulations concerning digital audio (b) Definitions. (1) Auditor means a audit. The copyright owner shall serve recording technology allow copyright qualified and independent accountant the notice of intent to audit on the owners to access confidential who is not an officer, employee or agent statutory licensee at the same time that information ‘‘for verification purposes,’’ of a copyright owner, but has been the notice is filed with the Copyright but only if the copyright owner is selected to audit a Statement of Account Office. Within 30 days after the notice neither owned nor controlled by another on behalf of copyright owners under has been received in the Office, the manufacturing or importing party that is sections 111(d)(6) and 119(b)(2) of title Office will publish a notice in the subject to royalty obligations under 17 of the United States Code, as Federal Register announcing the receipt Chapter 10. See 37 CFR 201.29(d)(1), amended by Public Law 111–175. of the notice of intent to audit. 201.29(f)(2). By contrast, the regulations (2) The term cable system has the (d) Selection of the auditor. Any other concerning ephemeral recordings allow meaning set forth in § 201.17(b)(2) of copyright owner who wishes to the copyright owners and their this chapter. participate in the audit of the attorneys, consultants, and other (3) Copyright owner means the Statement(s) of Account identified in a authorized agents to access confidential copyright owner of a work embodied in notice of intent to audit must notify the information ‘‘[i]n connection with bona a secondary transmission made by a copyright owner that filed the notice of fide royalty disputes or claims * * * statutory licensee that filed a Statement intent to audit within 30 days of the and under an appropriate of Account with the Copyright Office for publication of the notice in the Federal confidentiality agreement or protective an accounting period beginning on or Register. Those copyright owner(s) who order * * *’’. 37 CFR 262.5(d)(e). The after January 1, 2010. have agreed to participate in the audit

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shall designate an independent and of the facts or conclusions set forth in semiannual Statement of Account has qualified auditor to audit the the report, the licensee may provide the been received in the Office, a notice of Statement(s) on behalf of all copyright auditor with a written response setting intent to audit the same Statement of owners who own a work that was forth its views within two weeks after Account will not be accepted for embodied in a secondary transmission the date of the initial consultation publication in the Federal Register. made by the statutory licensee during between the auditor and the licensee’s (2) A satellite carrier or a cable the accounting period(s) specified in designee. If the auditor agrees that there operator that owns a single cable system those Statement(s). Any dispute about are errors in the report, he or she shall shall be subject to no more than one the selection of the auditor shall be correct those errors before the report is audit per calendar year. resolved by these copyright owner(s). delivered to the copyright owner(s). The (3) A cable operator that owns Promptly after the auditor has been auditor shall include the licensee’s multiple cable systems shall be subject selected, these copyright owner(s) shall written response, if any, as an to no more than three audits per provide the statutory licensee with the attachment to his or her report before it calendar year. Each audit shall be auditor’s name, address, telephone is delivered to any copyright owner(s). limited to a sampling of no more than number, facsimile number, and email (h) Corrections and supplemental fifty percent of the cable systems owned address, if any. payments. Where the auditor has by that operator, unless the auditor (e) Independence and qualifications concluded that any of the information concludes that there was an of the auditor. (1) The auditor shall be given in a Statement of Account is underpayment of five percent or more qualified and independent as defined in incorrect or incomplete, that the reported in any Statement of Account this subsection. If the statutory licensee calculation of the royalty fee payable for filed by that operator, in which case, the has reason to believe that the auditor is a particular accounting period was audit may be expanded to include any not qualified or independent, it shall incorrect, or that the amount deposited and all of the cable systems owned by raise the matter with the copyright in the Copyright Office for that period that operator. The specific cable systems owner(s) who selected the auditor was too low, a licensee may file a to be included within each sampling before the commencement of the audit. correction to the Statement of Account shall be selected by the copyright If the matter is not resolved, the and supplemental royalty fee payments owner(s) who retained the auditor’s statutory licensee may raise the issue with the Office in accordance with the services. The limitation on the number with the American Institute of Certified procedures set forth in §§ 201.11(h) or of systems under common ownership Public Accountants’ Professional Ethics 201.17(m). that can be audited in a calendar year Division and/or the auditor’s State (i) Distribution of the auditor’s report. does not limit in any way the number Board of Accountancy while the audit is No less than 60 days after the date that of Statements of Account submitted by being performed. the auditor delivered his or her report the selected systems that may be (2) An auditor shall be considered to the statutory licensee and subject to audited in a calendar year. qualified if: the confidentiality provisions set forth (l) Retention of records. For each (i) He or she is a certified public in paragraph (m) of this section, the semiannual Statement of Account that a accountant, auditor shall deliver a written report to statutory licensee files with the (ii) He or she is not an officer, the copyright owner(s) who retained the Copyright Office for accounting periods employee, or agent of a copyright owner auditor’s services setting forth his or her beginning on or after January 1, 2010, for any purpose other than the audit; conclusions. At the same time the the licensee shall maintain all records (iii) He or she is independent as that auditor shall deliver a copy of that necessary to confirm the correctness of term is used in the Code of Professional report to the statutory licensee. The the calculations and royalty payments Conduct of the American Institute of copyright owner(s) shall retain this reported in each Statement for at least Certified Public Accountants, including report for a period of not less than three three and a half years after the last day the Principles, Rules, and years. of the year in which that Statement was Interpretations of such Code applicable (j) Costs of the audit. The copyright filed with the Office. If the Office generally to attest engagements; and owner(s) who selected the auditor shall publishes a Federal Register notice (iv) He or she is independent as that pay the auditor for his or her work in announcing the receipt of a notice of term is used in the Statements on connection with the audit, unless the intent to audit a specific Statement of Auditing Standards promulgated by the auditor concludes that there was an Account, the statutory licensee shall Auditing Standards Board of the AICPA underpayment of five percent or more maintain all records necessary to and Interpretations thereof issued by the reported in any Statement of Account confirm the correctness of the Auditing Standards Division of the that is subject to the audit, in which calculations and royalty payments AICPA. case, the auditor’s fee shall be paid by reported in that Statement for at least (f) Scope of the audit. The audit shall the statutory licensee that deposited that three years after the date that the auditor be performed in accordance with Statement with the Copyright Office delivers a written report setting forth his generally accepted auditing standards with the proviso that if a court, in a final or her conclusions to the copyright (GAAS). judgment (i.e., after all appeals have owner(s) who retained the auditor’s (g) Consultation. Before delivering a been exhausted) rejects that services. report to any copyright owner(s), except determination, the copyright owners (m) Confidentiality. (1) For purposes where the auditor has a reasonable basis will reimburse the licensee for its of this section, confidential information to suspect fraud and that disclosure payment of the auditor’s services. shall include any non-public financial would, in the reasonable opinion of the (k) Frequency of verification. (1) or business information pertaining to a auditor, prejudice the investigation of Subject to the limitations in paragraph Statement of Account that has been such suspected fraud, the auditor shall (k)(3) of this section, a copyright owner subjected to an audit under sections deliver a copy of that report to the may include more than one Statement of 111(d)(6) or 119(b)(2) of title 17 of the statutory licensee and shall review his Account in its notice of intent to audit, United States Code, as amended by or her conclusions with a designee of but each Statement of Account shall be Public Law 111–175. Confidential the licensee within 30 days thereafter. If subject to audit only once. Once a notice information also shall include any the statutory licensee disagrees with any of intent to audit a particular information so designated in a

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confidentiality agreement which has has attained the 2008 lead NAAQS. In whose disclosure is restricted by statute. been duly executed between a statutory this action, EPA is proposing to Do not submit through licensee and any other interested party, determine that the Bristol www.regulations.gov or email, or between one or more interested nonattainment area (hereafter also information that you consider to be CBI parties; provided that all such referred to as the ‘‘Bristol Area’’ or or otherwise protected. The information shall be made available for ‘‘Area’’) has attained the 2008 lead www.regulations.gov Web site is an the audit procedure provided for in this NAAQS. This proposed determination ‘‘anonymous access’’ system, which section. of attainment is based upon complete, means EPA will not know your identity (2) Access to confidential information quality-assured and certified ambient air or contact information unless you under this section shall be limited to: monitoring data for the 2009—2011 provide it in the body of your comment. (i) The auditor; and period showing that the Area has If you send an email comment directly (ii) Subject to an appropriate monitored attainment of the 2008 lead to EPA without going through confidentiality agreement, those NAAQS. EPA is further proposing that, www.regulations.gov, your email employees, agents, consultants and if EPA finalizes this proposed address will be automatically captured independent contractors of the auditor determination of attainment, the and included as part of the comment who are not employees, officers, or requirements for the Area to submit an that is placed in the public docket and agents of a copyright owner for any attainment demonstration, together with made available on the Internet. If you purpose other than the audit, who are reasonably available control measures submit an electronic comment, EPA engaged in the audit of a Statement of (RACM), a reasonable further progress recommends that you include your Account or activities directly related (RFP) plan, and contingency measures name and other contact information in hereto, and who require access to the for failure to meet RFP and attainment the body of your comment and with any confidential information for the purpose deadlines shall be suspended for so long disk or CD–ROM you submit. If EPA of performing such duties during the as the Area continues to attain the 2008 cannot read your comment due to ordinary course of their employment. lead NAAQS. technical difficulties and cannot contact (3) The auditor and any person DATES: Comments must be received on you for clarification, EPA may not be identified in paragraph (m)(2)(ii) of this or before July 16, 2012. able to consider your comment. section shall implement procedures to ADDRESSES: Submit your comments, Electronic files should avoid the use of safeguard all confidential information identified by Docket ID No. EPA–R04– special characters, any form of received from any third party in OAR–2012–0323, by one of the encryption, and be free of any defects or connection with an audit, using a following methods: viruses. For additional information reasonable standard of care, but no less 1. www.regulations.gov: Follow the about EPA’s public docket visit the EPA than the same degree of security used to on-line instructions for submitting Docket Center homepage at http:// protect confidential financial and comments. www.epa.gov/epahome/dockets.htm. business information or similarly 2. Email: R4–[email protected]. Docket: All documents in the sensitive information belonging to the 3. Fax: (404) 562–9040. electronic docket are listed in the auditor or such person. 4. Mail: EPA–R04–OAR–2012–023, www.regulations.gov index. Although Dated: June 8, 2012. Regulatory Development Section, Air listed in the index, some information is David O. Carson, Planning Branch, Air, Pesticides and not publicly available, i.e., CBI or other General Counsel. Toxics Management Division, U.S. information whose disclosure is Environmental Protection Agency, restricted by statute. Certain other [FR Doc. 2012–14454 Filed 6–13–12; 8:45 am] material, such as copyrighted material, BILLING CODE 1410–30–P Region 4, 61 Forsyth Street SW., Atlanta, Georgia 30303–8960. is not placed on the Internet and will be 5. Hand Delivery: Lynorae Benjamin, publicly available only in hard copy Chief, Regulatory Development Section, form. Publicly available docket ENVIRONMENTAL PROTECTION materials are available either AGENCY Air Planning Branch, Air, Pesticides and Toxics Management Division, U.S. electronically in www.regulations.gov or in hard copy at the Regulatory 40 CFR Part 52 Environmental Protection Agency, Region 4, 61 Forsyth Street SW., Development Section, Air Planning [EPA–R04–OAR–2012–0323; FRL–9686–7] Atlanta, Georgia 30303–8960. Such Branch, Air, Pesticides and Toxics deliveries are only accepted during the Management Division, U.S. Approval and Promulgation of Regional Office normal hours of Environmental Protection Agency, Implementation Plans and operation, and special arrangements Region 4, 61 Forsyth Street SW., Designations of Areas for Air Quality should be made for deliveries of boxed Atlanta, Georgia 30303–8960. EPA Planning Purposes; Tennessee: information. The Regional Office official requests that if at all possible, you Bristol; Determination of Attainment hours of business are Monday through contact the person listed in the FOR for the 2008 Lead Standards Friday, 8:30 a.m. to 4:30 p.m., excluding FURTHER INFORMATION CONTACT section to AGENCY: Environmental Protection Federal holidays. schedule your inspection. The Regional Agency (EPA). Instructions: Direct your comments to Office’s official hours of business are Monday through Friday, 8:30 a.m. to ACTION: Proposed rule. Docket ID No. EPA–R04–OAR–2012– 0323. EPA’s policy is that all comments 4:30 p.m., excluding Federal holidays. SUMMARY: On April 4, 2012, the State of received will be included in the public FOR FURTHER INFORMATION CONTACT: Tennessee, through the Tennessee docket without change and may be Steve Scofield or Richard Wong, Department of Environment and made available online at Regulatory Development Section, Air Conservation (TDEC), submitted a www.regulations.gov, including any Planning Branch, Air, Pesticides and request to EPA to make a determination personal information provided, unless Toxics Management Division, U.S. that the Bristol nonattainment area for the comment includes information Environmental Protection Agency, the 2008 lead national ambient air claimed to be Confidential Business Region 4, 61 Forsyth Street SW., quality standards (NAAQS or standard) Information (CBI) or other information Atlanta, Georgia 30303–8960.

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Mr. Scofield may be reached by phone its initial air quality designations and Utah, 1-hour ozone); 61 FR 20458 (May at (404) 562–9034 or via electronic mail classifications for the 2008 lead NAAQS 7, 1996) (Cleveland Akron-Lorain, Ohio, at [email protected]. Mr. Wong based upon air quality monitoring data 1-hour ozone); 61 FR 31832 (June 21, may be reached by phone at (404) 562– from those monitors for calendar years 1996) (Grand Rapids, Michigan, 1-hour 8726 or via electronic mail at wong. 2007–2009. These designations became ozone); 65 FR 37879 (June 19, 2000) [email protected]. effective on December 31, 2010.1 The (Cincinnati-Hamilton, Ohio-Kentucky, SUPPLEMENTARY INFORMATION: Bristol Area was designated 1-hour ozone); 66 FR 53094 (October 19, nonattainment for the 2008 lead 2001) (Pittsburgh-Beaver Valley, I. What actions is EPA taking? NAAQS. See 40 CFR 81.343. II. What is the background for these actions? Pennsylvania, 1-hour ozone); 68 FR III. Application of EPA’s Clean Data Policy to On April 4, 2012, the State of 25418 (May 12, 2003) (St Louis, the 2008 Lead NAAQS Tennessee, through TDEC, submitted a Missouri, 1-hour ozone); 69 FR 21717 IV. Does the Bristol area meet the 2008 lead request to EPA to make a determination (April 22, 2004) (San Francisco Bay NAAQS? that the Bristol Area for the 2008 lead Area, 1-hour ozone), 75 FR 6570 A. Criteria NAAQS has attained that standard (February 10, 2010) (Baton Rouge, B. Bristol Area Air Quality based on complete, quality-assured, Louisiana, 1-hour ozone), 75 FR 27944 V. What is the effect of these actions? quality-controlled monitoring data from (May 19, 2010) (Coso Junction, VI. Statutory and Executive Order Reviews 2 2009 through 2011. California, PM10). I. What actions is EPA taking? III. Application of EPA’s Clean Data EPA also incorporated its EPA is proposing to determine that Policy to the 2008 Lead NAAQS interpretation under the Clean Data the Bristol Area (comprising the portion Following enactment of the CAA Policy in implementation rules. See of Sullivan County bounded by a 1.25 Amendments of 1990, EPA promulgated Clean Air Fine Particle Implementation kilometer radius surrounding the its interpretation of the requirements for Rule, 72 FR 20586 (April 25, 2007); Universal Transverse Mercator (UTM) implementing the NAAQS in the Final Rule To Implement the 8-Hour coordinates 4042923 meters E, 386267 general preamble for the Ozone National Ambient Air Quality meters N, Zone 17, which surrounds the Implementation of Title I of the CAA Standard—Phase 2, 70 FR 71612 Exide Technologies Facility) has Amendments of 1990 (General (November 29, 2005). The Court of attained the 2008 lead NAAQS. This Preamble) 57 FR 13498, 13564 (April 16, Appeals for the District of Columbia proposal is based upon complete, 1992). In 1995, based on the Circuit (D.C. Circuit) upheld EPA’s rule quality-assured and certified ambient air interpretation of CAA sections 171 and embodying the Clean Data Policy for the monitoring data for the 2009–2011 172, and section 182 in the General 1997 8-hour ozone standard. NRDC v. monitoring period that show that the Preamble, EPA set forth what has EPA, 571 F.3d 1245 (D.C. Cir. 2009). Area has monitored attainment of the become known as its ‘‘Clean Data Other courts have reviewed and 2008 lead NAAQS. Policy’’ for the 1-hour ozone NAAQS. considered rulemakings applying EPA’s Further, EPA is proposing that, if this See Memorandum from John S. Seitz, Clean Data Policy, and have consistently proposed determination of attainment is Director, Office of Air Quality Planning upheld them. Sierra Club v. EPA, 99 F. made final, the requirements for the and Standards, ‘‘RFP, Attainment 3d 1551 (10th Cir. 1996); Sierra Club v. Bristol Area to submit an attainment Demonstration, and Related EPA, 375 F. 3d 537 (7th Cir. 2004); Our demonstration together with RACM, a Requirements for Ozone Nonattainment Children’s Earth Foundation v. EPA, No. RFP plan, and contingency measures for Areas Meeting the Ozone National 04–73032 (9th Cir. June 28, 2005 failure to meet RFP and attainment Ambient Air Quality Standard’’ (May (Memorandum Opinion)), Latino Issues deadlines would be suspended for so 10, 1995). In 2004, EPA indicated its Forum v. EPA, Nos. 06–75831 and 08– long as the Area continues to attain the intention to extend the Clean Data 71238 (9th Cir. March 2, 2009 2008 lead NAAQS. As discussed below, Policy to the PM2.5 NAAQS. See (Memorandum Opinion)). EPA sets forth EPA’s proposal is consistent with EPA’s Memorandum from Steve Page, Director, below a brief explanation of the Clean regulations and with its longstanding EPA Office of Air Quality Planning and Data Policy. EPA also incorporates the interpretation of subpart 1 of part D of Standards, ‘‘Clean Data Policy for the discussions of its interpretation set forth the Clean Air Act (CAA or Act). Fine Particle National Ambient Air in prior rulemakings, including the If this proposed rulemaking is Quality Standards’’ (December 14, PM2.5 implementation rulemaking. See finalized and EPA subsequently 2004). also 75 FR 31288 (June 3, 2010) (Rhode determines, after notice-and-comment Since 1995, EPA has applied its Island, 1997 8-hour ozone), 75 FR 62470 rulemaking in the Federal Register, that interpretation under the Clean Data (October 12, 2010) (Knoxville, the Area has violated the 2008 lead Policy in many rulemakings, Tennessee, 1997 8-hour ozone), 75 FR NAAQS, the basis for the suspension of suspending certain attainment-related 53219 (August 31, 2010) (Greater these attainment planning requirements planning requirements for individual Connecticut Area, 1997 8-hour ozone), would no longer exist for the Bristol areas, based on a determination of 75 FR 54778 (September 9, 2010) (Baton Area, and the Area would thereafter attainment. See 60 FR 36723 (July 18, Rouge, Louisiana, 1997 8-hour ozone), have to address such requirements. 1995) (Salt Lake and Davis Counties, 75 FR 64949 (October 21, 2010) (Providence, Rhode Island, 1997 8-hour II. What is the background for these 1 EPA completed a second and final round of ozone), 76 FR 11080 (March 1, 2011) actions? designations for the 2008 Lead NAAQS on (Milwaukee-Racine and Sheboygan On November 12, 2008 (73 FR 66964), November 22, 2011. See 76 FR 72097. No additional Areas, 1997 8-hour ozone), 76 FR 31273 areas in Sullivan County, Tennessee were EPA established a 2008 primary and designated as nonattainment for the 2008 Lead (May 31, 2011) (Pittsburgh-Beaver secondary lead NAAQS at 0.15 NAAQS. Valley, 1997 8-hour ozone), 76 FR 33647 micrograms per cubic meter (mg/m3) 2 This Area has ambient air monitoring data for (June 9, 2011) (St. Louis, Missouri- based on a maximum arithmetic 3- forty-seven (47) months for the period of February Illinois, 1997 8-hour ozone), 76 FR 7145 2008 through December 31, 2011, which show month mean concentration for a 3-year attainment of the 2008 lead NAAQS. Preliminary (November 15, 2011) (Charlotte, North period. See 40 CFR 50.16. On November 2012 data indicates that this Area is continuing to Carolina-South Carolina, 1997 8-hour 22, 2010 (75 FR 71033), EPA published attain the 2008 lead NAAQS. ozone), 77 FR 31496 (May 29, 2012)

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(Boston-Lawrence-Worchester, A component of the attainment plan the attainment date applicable under Massachusetts, 1997 8-hour ozone). See specified under section 172(c)(1) is the this part. Such measures shall be also, 75 FR 56 (January 4, 2010) requirement to provide for ‘‘the included in the plan revision as (Greensboro-Winston-Salem-High Point, implementation of all reasonably contingency measures to take effect in 1997 PM2.5), 75 FR 230 (January 5, 2010) available control measures as any such case without further action by (Hickory-Morganton, Lenoir, 1997 expeditiously as practicable’’ (RACM). the State or [EPA].’’ This contingency PM2.5), 75 FR 57186 (September 20, Since RACM is an element of the measure requirement is inextricably tied 2010) (Birmingham, Alabama, 2006 attainment demonstration, see General to the reasonable further progress and PM2.5) 76 FR 12860 (March 9, 2011) Preamble (57 FR 13560), for the same attainment demonstration requirements. (Louisville, Kentucky-Indiana, 1997 reason the attainment demonstration no Contingency measures are implemented PM2.5), 76 FR 1850 (April 5, 2011) longer applies by its own terms, RACM if reasonable further progress targets are (Rome, Georgia, 1997 PM2.5), 76 FR also no longer applies. Furthermore, not achieved, or if attainment is not 31239 (May 31, 2011) (Chattanooga, EPA has consistently interpreted this realized by the attainment date. Where Tennessee-Georgia-Alabama, 1997 provision to require only an area has already achieved attainment PM2.5), 76 FR 31858 (June 2, 2011) implementation of potential RACM by the attainment date, it has no need (Macon, Georgia, 1997 PM2.5), 76 FR measures that could advance to rely on contingency measures to 36873 (June 23, 2011) (Atlanta, Georgia attainment.4 Thus, where an area is come into attainment or to make further 1997 PM2.5), 76 FR 38023 (June 29, already attaining the standard, no progress to attainment. As EPA stated in 2011) (Birmingham, Alabama 1997 additional RACM measures are the General Preamble: ‘‘The section PM2.5), 76 FR 5542 (September 7, 2011) required. EPA’ s interpretation that the 172(c)(9) requirements for contingency (Huntington-Ashland, West Virginia- statute requires only implementation of measures are directed at ensuring RFP Kentucky-Ohio, 1997 PM2.5), 76 FR RACM measures that would advance and attainment by the applicable date.’’ 60373 (September 29, 2011) (Cincinnati, attainment was upheld by the United See 57 FR 13564. Thus these Ohio-Kentucky-Indiana, 1997 PM2.5), States Court of Appeals for the Fifth requirements no longer apply when an (November 18, 2011) (Charleston, West Circuit (Sierra Club v. EPA, 314 F. 3d area has attained the standard. Virginia, 2006 PM2.5), 77 FR 18922 735, 743–745, 5th Cir. 2002) and by the It is important to note that should an (March 29, 2012) (Harrisburg-Lebonon- United States Court of Appeals for the area attain the lead standards based on Carlisle-York Allentown, Johnstown and D.C. Circuit (Sierra Club v. EPA, 294 F. 3 years of data, its obligation to submit Lancaster, 1997 PM2.5) 3d 155, 162–163, D.C. Cir. 2002). See an attainment demonstration and The Clean Data Policy represents also the final rulemakings for related planning submissions is EPA’s interpretation that certain Pittsburgh-Beaver Valley, Pennsylvania, suspended only for so long as the area requirements of subpart 1 of part D of 66 FR 53096 (October 19, 2001) and St. continues to attain the standard. If EPA the Act are by their terms not applicable Louis, 68 FR 25418 (May 12, 2003). subsequently determines, after notice- to areas that are attaining the NAAQS.3 CAA section 172(c)(2) provides that and-comment rulemaking, that the Area As explained below, the specific state implementation plan (SIP) has violated the 2008 lead NAAQS, the requirements that are inapplicable to an provisions in nonattainment areas must requirements for the State to submit a area attaining the standard are the require ‘‘reasonable further progress.’’ SIP to meet the previously suspended requirements to submit a SIP that The term ‘‘reasonable further progress’’ requirements would be reinstated. It is provides for: Attainment of the NAAQS; is defined in section 171(1) as ‘‘such likewise important to note that the area implementation of all reasonably annual incremental reductions in remains designated nonattainment available control measures; reasonable emissions of the relevant air pollutant as pending a further redesignation action. further progress; and implementation of are required by this part or may contingency measures for failure to meet reasonably be required by the IV. Does the Bristol area meet the 2008 deadlines for RFP and attainment. Administrator for the purpose of lead NAAQS? ensuring attainment of the applicable CAA section 172(c)(1), the A. Criteria requirement for an attainment NAAQS by the applicable date.’’ Thus, demonstration, provides in relevant part by definition, the ‘‘reasonable further Today’s proposed rulemaking assesses that SIPs ‘‘shall provide for attainment progress’’ provision requires only such whether Bristol Area has attained the of the [NAAQS].’’ EPA has interpreted reductions in emissions as are necessary 2008 Lead NAAQS, based on the most this requirement as not applying to to attain the NAAQS. If an area has recent 3 years of quality-assured data. areas that have attained the standard. If attained the NAAQS, the purpose of the The Bristol Area comprises the portion an area has attained the standard, there RFP requirement has been fulfilled, and of Sullivan County bounded by a 1.25 is no need to submit a plan since the area has already attained, kilometer radius surrounding the UTM demonstrating how the area will reach showing that the State will make RFP coordinates 4042923 meters E, 386267 attainment. In the General Preamble (57 towards attainment ‘‘[has] no meaning meters N, Zone 17, which surrounds the FR 13564), EPA stated that no other at that point.’’ General Preamble, 57 FR Exide Technologies Facility. measures to provide for attainment 13498, 13564 (April 16, 1992). Under EPA regulations at 40 CFR would be needed by areas seeking CAA section 172(c)(9) provides that 50.16, the 2008 primary and secondary redesignation to attainment since SIPs in nonattainment areas ‘‘shall lead standards are met when the ‘‘attainment will have been reached.’’ provide for the implementation of maximum arithmetic 3-month mean See also Memorandum from John specific measures to be undertaken if concentration for a 3-year period, as Calcagni, ‘‘Procedures for Processing the area fails to make reasonable further determined in accordance with 40 CFR Requests to Redesignate Areas to progress, or to attain the [NAAQS] by part 50, Appendix R, is less than or 3 Attainment,’’ (September 4, 1992), at equal to 0.15 mg/m at all relevant 4 This interpretation was adopted in the General monitoring sites in the subject area. page 6. Preamble, see 57 FR 13498, and has been upheld as applied to the Clean Data Policy, as well as to B. Bristol Area Air Quality 3 This discussion refers to subpart 1 because nonattainment SIP submissions. See NRDC v. EPA, subparts 1 and 5 contain the requirements relating 571 F.3d 1245 (D.C. Cir. 2009); Sierra Club v. EPA, EPA has reviewed the ambient air to attainment of the lead NAAQS. 294 F.3d 155 (D.C. Cir. 2002). monitoring data for the Bristol Area in

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accordance with the provisions of 40 per year * * *.’’ The Exide operated from January 1, 2009 through CFR part 50, Appendix R. All data Technologies facility in Bristol is December 31, 2009 (AQS ID 47–163– considered are complete, quality- responsible for operating the monitors 4002). Beginning January 1, 2010, assured, certified, and recorded in that meet this requirement. EPA’s Tennessee’s monitor was relocated 0.3 EPA’s Air Quality System (AQS) review shows that Exide has been miles to its current location, database. This review addresses air exceeding the minimum monitoring approximately 10 feet from Exide’s quality data collected in 3-year period of requirement of one monitor, and is design value monitor (47–163–3001), 2009–2011 which are the most recent currently operating three Federal which is an area of expected maximum quality-assured data available. reference method (FRM) source-oriented concentration at the site. 40 CFR part 58, Appendix D, Section monitors at the facility, which meet the Table 1 shows the 2009–2011 design 4.5, states that ‘‘At a minimum, there quality assurance requirements of 40 values at the Bristol Area monitors (the must be one source-oriented State and CFR part 58, Appendix A. In addition, metrics calculated in accordance with Local Air Monitoring Station site the State of Tennessee is also operating 40 CFR part 50, Appendix R, for located to measure the maximum Pb one additional source-oriented FRM determining compliance with the [lead] concentration in ambient air monitor (AQS ID 47–163–3004, NAAQS) for the 2008 lead NAAQS. It resulting from each non-airport Pb identified in Table 1) at the Exide also shows the maximum 3-month source which emits 0.50 or more tons facility. The State’s monitor originally rolling average for each individual year.

TABLE 1—DESIGN VALUE FOR MONITORS IN THE BRISTOL NONATTAINMENT AREA FOR THE 2008 LEAD NAAQS

2009 Max 3- 2010 Max 3- 2011 Max 3- 2009–2011 Location AQS site ID month rolling avg month rolling avg month rolling avg design value (μg/m3) (μg/m3) (μg/m3) (μg/m3)

364 Exide Drive ...... 5 47–163–3001 0.09 0.08 0.06 0.09 47–163–3002 0.06 0.04 0.04 0.06 47–163–3003 0.06 0.04 0.05 0.06 47–163–3004 ...... 0.05 0.08 ...... 47–163–4002 0.04 ......

EPA’s review of these data indicates final, the requirements for the Bristol If the Bristol Area continues to that the Bristol Area has attained and Area to submit an attainment monitor attainment of the 2008 lead continues to attain the 2008 Lead demonstration and associated RACM, a NAAQS, EPA proposes that the NAAQS, with a design value of 0.09 mg/ RFP plan, contingency measures, and requirements for the Bristol Area to m3 for the period of 2009–2011. EPA is any other planning SIPs related to submit an attainment demonstration soliciting public comments on the attainment of the 2008 lead NAAQS and associated RACM, a RFP plan, issues discussed in this document. would be suspended for so long as the contingency measures, and any other These comments will be considered Area continues to attain the 2008 lead planning SIPs related to attainment of before taking final action. NAAQS. EPA’s proposal is consistent the annual PM2.5 NAAQS will remain V. What is the effect of these actions? and in keeping with its long-held suspended. If this proposed rulemaking is finalized and EPA subsequently EPA is proposing to determine that interpretation of CAA requirements, as well as with EPA’s regulations for determines, after notice-and-comment the Bristol Area has attained the 2008 rulemaking in the Federal Register, that lead NAAQS, based on complete, similar determinations for ozone (see 40 CFR 51.918) and fine particulate matter the Area has violated the 2008 Lead quality-assured and certified data for NAAQS, the basis for the suspension of 2009–2011. Preliminary data available (see 40 CFR 51.1004(c)). As described below, any such determination would these attainment planning requirements for 2012 indicates that the area would no longer exist for the Bristol not be equivalent to the redesignation of continues to be in attainment. EPA Area, and the Area would thereafter the Area to attainment for the 2008 Lead further proposes that, if its proposed have to address such requirements. determination of attainment is made NAAQS. Finalizing this proposed action would VI. Statutory and Executive Order 5 According to 40 CFR 58.12(b) ‘‘For Pb manual not constitute a redesignation of the Reviews methods, at least one 24-hour sample must be collected every 6 days except during periods or Area to attainment of the 2008 Lead Under Executive Order 12866 (58 FR seasons exempted by the Regional Administrator.’’ NAAQS under section 107(d)(3) of the 51735, October 4, 1993), this proposed All three Exide monitors met and exceeded this CAA. Further, finalizing this proposed requirement, and collected a sample every three action is not a ‘‘significant regulatory days. EPA also publishes an annual recommended action does not involve approving a action’’ and therefore is not subject to national sampling calendar, which contains maintenance plan for the Area as review by the Office of Management and suggested days of the week for sampling. While this required under section 175A of the Budget. For this reason, this action is schedule is recommended, it is not a CFR requirement. From March 30, 2011–November 23, CAA, nor would it find that the Area also not subject to Executive Order 2011, the Exide facility’s monitors inadvertently has met all other requirements for 13211, ‘‘Actions Concerning Regulations operated on a schedule that deviated from the redesignation. Even if EPA finalizes the that Significantly Affect Energy Supply, recommended national schedule by one day of the proposed action, the Bristol Area would week. However, since the monitors still collected a Distribution, or Use’’ (66 FR 28355, May sample every six days, the data collection remain designated nonattainment for 22, 2001). This action proposes to make requirements were met by all three Exide monitors the 2008 Lead NAAQS until such time a determination based on air quality for the Area. EPA has thus counted the samples as EPA determines that the Area meets data and to suspend certain Federal collected using the alternate sampling schedule as the CAA requirements for redesignation creditable samples and calculated valid design requirements. Accordingly, the values supporting a clean data determination for the to attainment and takes action to Administrator certifies that this rule Area. redesignate the Area. will not have a significant economic

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impact on a substantial number of small responsibilities among the various provisions of the CAA. This proposed entities under the Regulatory Flexibility levels of government, as specified in rule does not impose an information Act (5 U.S.C. 601, et seq.). Because this Executive Order 13132 (64 FR 43255, collection burden under the provisions rule proposes to make a determination August 10, 1999), because it only of the Paperwork Reduction Act of 1995 based on air quality data and to suspend proposes to make a determination based (44 U.S.C. 3501, et seq.). Under certain Federal requirements, it does not on air quality data and suspend certain Executive Order 12898, EPA finds that contain any unfunded mandate or Federal requirements, and does not alter this rule involves a proposed significantly or uniquely affect small the relationship or the distribution of determination of attainment based on governments, as described in the power and responsibilities established air quality data and will not have Unfunded Mandates Reform Act of 1995 in the CAA. This proposed rule also is disproportionately high and adverse (Pub. L. 104–4). This proposed rule also not subject to Executive Order 13045 human health or environmental effects does not have tribal implications ‘‘Protection of Children from because it will not have a substantial Environmental Health Risks and Safety on any communities in the area, direct effect on one or more Indian Risks’’ (62 FR 19885, April 23, 1997), including minority and low-income. tribes, on the relationship between the because it proposes to determine that air List of Subjects in 40 CFR Part 52 Federal Government and Indian tribes, quality in the affected area is meeting or on the distribution of power and Federal standards. The requirements of Environmental protection, Air responsibilities between the Federal section 12(d) of the National pollution control, Lead, Reporting and Government and Indian tribes, as Technology Transfer and Advancement Recordkeeping requirements. specified by Executive Order 13175 (65 Act of 1995 (15 U.S.C. 272 note) do not Authority: 42 U.S.C. 7401 et seq. FR 67249, November 9, 2000). This apply because it would be inconsistent proposed action also does not have with applicable law for EPA, when Dated: June 5, 2012. Federalism implications because it does determining the attainment status of an A. Stanley Meiburg, not have substantial direct effects on the area, to use voluntary consensus Acting Regional Administrator, Region 4. states, on the relationship between the standards in place of promulgated air [FR Doc. 2012–14566 Filed 6–13–12; 8:45 am] national government and the states, or quality standards and monitoring BILLING CODE 6560–50–P on the distribution of power and procedures that otherwise satisfy the

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Notices Federal Register Vol. 77, No. 115

Thursday, June 14, 2012

This section of the FEDERAL REGISTER whether the information will have DEPARTMENT OF COMMERCE contains documents other than rules or practical utility; (b) the accuracy of the proposed rules that are applicable to the agency’s estimate of the burden of the National Oceanic and Atmospheric public. Notices of hearings and investigations, collection of information including the Administration committee meetings, agency decisions and validity of the methodology and rulings, delegations of authority, filing of RIN 0648–XA626 petitions and applications and agency assumptions used; (c) ways to enhance statements of organization and functions are the quality, utility, and clarity of the Marine Mammals; File Nos. 16163, examples of documents appearing in this information to be collected; and (d) 16160, and 15569 section. ways to minimize the burden of the collection of information on AGENCY: National Marine Fisheries respondents, including through the use Service (NMFS), National Oceanic and DEPARTMENT OF AGRICULTURE of appropriate automated, electronic, Atmospheric Administration (NOAA), mechanical or other technological Commerce. Rural Utilities Service collection techniques or other forms of ACTION: Notice; issuance of permits. information technology. Comments may Information Collection Activity; SUMMARY: Notice is hereby given that be sent to Michele Brooks, Director, Comment Request permits have been issued to the Program Development and Regulatory Northwest Fisheries Science Center Analysis, USDA Rural Development, AGENCY: Rural Utilities Service, USDA. (NWFSC, Dr. M. Bradley Hanson, U.S. Department of Agriculture, STOP ACTION: Notice and request for Principal Investigator) [File No. 16163], 1522, 1400 Independence Ave. SW., comments. 2725 Montlake Blvd. East, Seattle, WA Washington, DC 20250–1522. Fax: (202) 98112–2097; The Whale Museum (Jenny SUMMARY: In accordance with the 720–8435. Paperwork Reduction Act of 1995 (44 Atkinson, Responsible Party) [File No. Title: Request for Approval to Sell U.S.C. chapter 35, as amended), the 16160], P.O. Box 945, Friday Harbor, Capital Assets. United States Department of Agriculture WA 98250; and The Center for Whale (USDA) Rural Development administers OMB Control Number: 0572–0020. Research (CWR; Kenneth C. Balcomb III, rural utilities programs through the Type of Request: Extension of a Responsible Party) [File No. 15569], Rural Utilities Service. The USDA Rural currently approved collection. P.O. Box 1577, Friday Harbor, WA Development invites comments on the 98250 to conduct research on marine Abstract: A borrower’s assets provide mammals. following information collections for the security for a government loan. The which the Agency intends to request selling of assets reduces the security and ADDRESSES: The permit and related approval from the Office of Management increases the risk to the government. documents are available for review and Budget (OMB). RUS Form 369 allows the borrower to upon written request or by appointment DATES: Comments on this notice must be seek agency permission to sell some of in the following offices: See received by August 13, 2012. its assets. The form collects detailed SUPPLEMENTARY INFORMATION. FOR FURTHER INFORMATION CONTACT: information regarding the proposed FOR FURTHER INFORMATION CONTACT: The Michele Brooks, Director, Program sales of a portion of the borrower’s following Analysts at (301) 427–8401: Development and Regulatory Analysis, systems. USDA Rural Development Joselyd Garcia-Reyes [for File No. USDA Rural Development, U.S. electric utility borrowers complete this 16160]; Laura Morse [for File No. Department of Agriculture, 1400 form to request USDA Rural 16163]; and Jennifer Skidmore [for File Independence Ave. SW., STOP 1522, Development approval in order to sell No. 15569]. Room 5162, South Building, capital assets when the fair market value SUPPLEMENTARY INFORMATION: On Washington, DC 20250–1522. exceeds 10 percent of the borrower’s net November 3, 2011, notice was published Telephone: (202) 690–1078. Fax: (202) utility plant. in the Federal Register (76 FR 213) that 720–8435. Estimate of Burden: Public Reporting a request for permits to conduct SUPPLEMENTARY INFORMATION: The Office burden for this collection of information research on marine mammals had been of Management and Budget’s (OMB) is estimated to average 3 hours per submitted by the above-named regulation (5 CFR part 1320) response. applicants. The requested permits have implementing provisions of the been issued under the authority of the Respondents: Not-for-profit Paperwork Reduction Act of 1995 (Pub. Marine Mammal Protection Act of 1972, institutions; Business or other for profit. L. 104–13) requires that interested as amended (16 U.S.C. 1361 et seq.), the members of the public and affected Estimated Number of Respondents: 5. regulations governing the taking and agencies have an opportunity to Estimated Number of Responses per importing of marine mammals (50 CFR comment on information collection and Respondent: 1. part 216), the Endangered Species Act of recordkeeping activities [see 5 CFR Estimated Total Annual Burden on 1973, as amended (ESA; 16 U.S.C. 1531 1320.8(d)]. This notice identifies Respondents: 15 hours. et seq.), and the regulations governing information collections that RUS is the taking, importing, and exporting of Dated: May 30, 2012. submitting to OMB for extension. endangered and threatened species (50 Comments are invited on: (a) Whether Jonathan Adelstein, CFR parts 222–226). this collection of information is Administrator, Rural Utilities Service. File No. 16163: Authorizes take of necessary for the proper performance of [FR Doc. 2012–14525 Filed 6–13–12; 8:45 am] forty-two species of marine mammals in the functions of the agency, including BILLING CODE P all U.S. and international waters in the

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Pacific Ocean, including waters of Documents may be reviewed in the before August 13, 2012 to be assured of Alaska, Washington, Oregon, California, following locations: consideration. and Hawaii. Harassment of all species of Permits and Conservation Division, ADDRESSES: You may submit comments cetaceans will occur through vessel Office of Protected Resources, NMFS, by any of the following methods: approach for sighting surveys, 1315 East-West Highway, Room • Electronic: photographic identification, behavioral 13705, Silver Spring, MD 20910; [email protected]. research, opportunistic sampling phone (301) 427–8401; fax (301) 427– • Mail/Hand Delivery/Courier: Direct (breath, sloughed skin, fecal material, 2521; all written comments to Consumer and prey remains), acoustic imaging Northwest Region, NMFS, 7600 Sand Financial Protection Bureau (Attention: with echosounders, and aerial surveys. Point Way NE., BIN C15700, Bldg. 1, PRA Office), 1700 G Street NW., Twenty seven cetacean species and Seattle, WA 98115–0700; phone (206) Washington, DC 20552. unidentified mesoplodon species will 526–6150; fax (206) 526–6426; Instructions: Submissions should be biopsied, dart, and/or suction-cup Alaska Region, NMFS, P.O. Box 21668, include the agency name and collection tagged. Ultrasound sampling will be Juneau, AK 99802–1668; phone (907) title. Comments will be available for directed at killer whales including the 586–7221; fax (907) 586–7249; public inspection and copying at 1700 Southern Resident stock. Active Southwest Region, NMFS, 501 West G Street NW., Washington, DC 20552 on acoustic playback studies will be Ocean Blvd., Suite 4200, Long Beach, official business days between the hours directed at Southern Resident killer CA 90802–4213; phone (562) 980– of 10 a.m. and 5 p.m. Eastern Time. You whales. Import and export of marine 4001; fax (562) 980–4018; and can make an appointment to inspect mammal prey specimens, skin and Pacific Islands Region, NMFS, 1601 comments by telephoning (202) 435– blubber, sloughed skin, fecal and breath Kapiolani Blvd., Rm 1110, Honolulu, 7275. All comments, including samples obtained is authorized. The HI 96814–4700; phone (808) 973– attachments and other supporting permit is valid until June 6, 2017. 2935; fax (808) 973–2941. materials, will become part of the public File No. 16160: Authorizes take of Dated: June 8, 2012. record and subject to public disclosure. eight species of cetaceans in the inland P. Michael Payne, You should only submit information waters of Washington State. Harassment Chief, Permits and Conservation Division, that you wish to make available of all species will occur through close Office of Protected Resources, National publicly. vessel approach for photo-identification, Marine Fisheries Service. FOR FURTHER INFORMATION CONTACT: behavioral observation, and monitoring. [FR Doc. 2012–14587 Filed 6–13–12; 8:45 am] Requests for additional information or The permit is valid until June 6, 2017. BILLING CODE 3510–22–P copies of the documents contained File No. 15569: Authorizes take of under this approval number should be twenty-two species of marine mammals directed to the Consumer Financial in the coastal eastern North Pacific from BUREAU OF CONSUMER FINANCIAL Protection Bureau, (Attention: PRA the southern boundary of California to PROTECTION Office), 1700 G Street NW., Washington, Alaskan waters east of Kodiak Island, DC 20552, or through the Internet at including all territorial waters up to 200 Proposed Collection; Comment [email protected]. Request nautical miles offshore. Harassment of SUPPLEMENTARY INFORMATION: all species of cetaceans will occur AGENCY: Bureau of Consumer Financial Title: Generic Clearance for Collection through vessel approach for Protection. of Information on Compliance Costs and photographic identification, behavioral ACTION: Notice and request for public Other Effects of Regulations. research, opportunistic sampling (fecal comment. OMB Control Number: 3170–XXXX. material and prey remains), remote Abstract: Under the Dodd-Frank Act, measuring (aerial and laser techniques), SUMMARY: The Bureau of Consumer the Bureau has the responsibility for and passive acoustic recording. The Financial Protection (the ‘‘CFPB’’ or the rulemaking, supervision, and permit is valid until June 6, 2017. ‘‘Bureau’’), as part of its continuing enforcement with respect to various An environmental assessment (EA) effort to reduce paperwork and Federal consumer financial protection was prepared analyzing the effects of respondent burden, invites the general laws. Among other things, the Dodd- the permitted activities on the human public and other federal agencies to Frank Act directs the Bureau to environment in compliance with the comment on a proposed information promulgate rules regulating various National Environmental Policy Act of collection, as required by the Paperwork aspects of consumer financial protection 1969 (42 U.S.C. 4321 et seq.). Based on Reduction Act of 1995, Public Law 104– and establishing supervisory authority the analyses in the EA, NMFS 13 (44 U.S.C. 3506(c)(2)(A)). Currently, over certain non-depository providers of determined that issuance of the permits the Bureau is soliciting comments consumer financial products and will not significantly impact the quality concerning the information collection services. For many of these directives of the human environment and that requirements relating to gather there is a corresponding statutory preparation of an environmental impact information from various depository deadline for a proposed or final rule. statement was not required. That and non-depository providers of A number of Federal laws require determination is documented in a consumer financial products and agencies to consider the benefits, costs, Finding of No Significant Impact services (‘‘providers’’) regarding the and impacts of rulemaking actions, (FONSI), signed on June 4, 2012. compliance costs and other effects of including the Regulatory Flexibility Act As required by the ESA, issuance of proposed and existing regulations, and the Paperwork Reduction Act. these permits was based on a finding pursuant to the Bureau’s authorities Furthermore, Section 1022(b)(2)(A) of that such permits: (1) Were applied for under the Dodd-Frank Wall Street the Dodd-Frank Act calls for the Bureau in good faith; (2) will not operate to the Reform and Consumer Protection Act to consider the potential benefits and disadvantage of such endangered (‘‘Dodd-Frank Act’’), Public Law 111– costs of certain rules to consumers and species; and (3) are consistent with the 203. ‘‘covered persons,’’ including purposes and policies set forth in DATES: Written comments are depository and non-depository section 2 of the ESA. encouraged and must be received on or providers of consumer financial

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products and services (‘‘providers.’’) Estimated Time per Respondent: 90 Congress. In March 2012, the Bureau This consideration includes an minutes for questions administered via launched the intake of borrower assessment of the impacts of rules on focus groups, structured interviews, and complaints on private education loans. consumers in rural areas and on conference calls. 60 minutes for In order to ‘‘compile and analyze data’’ depository institutions and credit questions delivered via email or on complaints processed through other unions with total assets of $10 billion or administered through online survey. mechanisms, with this Notice and less as described in section 1026 of the Estimated Total Annual Burden Request for Information, the Dodd-Frank Act. As part of its analysis Hours: 1,950 hours. Ombudsman seeks information on of benefits and costs of certain Request for Comments: Comments borrower complaints about private rulemakings, the Bureau will consider, submitted in response to this notice will education loans. among other things, the potential be summarized and/or included in the DATES: Comments must be received on ongoing costs for a provider as well as request for OMB approval. All or before August 13, 2012, to be the implementation costs the provider comments will become a matter of considered and analyzed to develop may incur in order to comply with a public record. Comments are invited on: recommendations as specified in regulation. (a) Whether the collection of Section 1035(c)(4). In order to fulfill the Bureau’s information is necessary for the proper ADDRESSES: You may submit comments rulemaking mandates, the Bureau seeks performance of the functions of the by any of the following methods: to collect qualitative information from agency, including whether the • http://www.regulations.gov. Follow industry participants regarding the information shall have practical utility; the instructions for submitting compliance costs and other effects on (b) the accuracy of the agency’s estimate comments. providers and consumers, both as to of the burden of the collection of • Mail/Hand Delivery/Courier: existing regulations in force as well as information, including the validity of Monica Jackson, Office of the Executive to proposed new regulations. Through the methodology and the assumptions Secretary, Consumer Financial the collections under this generic used; (c) ways to enhance the quality, Protection Bureau, 1700 G Street NW., clearance, the Bureau aims to utility, and clarity of the information to Washington, DC 20552. understand the effects of potential be collected; and (d) ways to minimize Instructions: The Bureau encourages regulations on providers and the burden of the collection of the early submission of comments. All consumers, the ways in which providers information on respondents, including submissions must include the agency may comply with potential regulations, through the use of automated collection name and docket number, CFPB–2012– and the costs associated with techniques or other forms of information 0024. Please note the number of the compliance. technology. question you are answering at the top of The Bureau has already begun to Dated: June 8, 2012. each response (you do not need to answer all questions). In general, all review existing regulations through a Chris Willey, request for public comment on comments received will be posted Chief Information Officer, Bureau of without change to http:// streamlining inherited regulations. The Consumer Financial Protection. information gathered on compliance www.regulations.gov. In addition, [FR Doc. 2012–14592 Filed 6–13–12; 8:45 am] costs and other effects through this comments will be available for public generic information collection will BILLING CODE 4810–AM–P inspection and copying at 1700 G Street further enhance the Bureau’s NW., Washington, DC 20552, on official understanding of how existing BUREAU OF CONSUMER FINANCIAL business days between the hours of 10 regulations are affecting providers. PROTECTION a.m. and 5 p.m. Eastern Time. You can In order to gather the information make an appointment to inspect the indicated above, the Bureau intends to [Docket No. CFPB–2012–0024] documents by calling (202) 435–7275. use structured interviews, focus groups, All comments, including attachments Request for Information Regarding conference calls, and written and other supporting materials, will Complaints From Private Education questionnaires—delivered via email or become part of the public record and Loan Borrowers administered through an online survey. subject to public disclosure. Sensitive The Bureau will seek different AGENCY: Bureau of Consumer Financial personal information such as account providers’ estimates of compliance Protection. numbers or Social Security numbers should not be included. Comments will burdens on their respective institutions. ACTION: Notice and request for not be edited to remove any identifying The Bureau recognizes that burdens information. vary depending on the size and type of or contact information. the institution, as well as on the SUMMARY: Section 1035 of the Dodd- FOR FURTHER INFORMATION CONTACT: For products and services offered. Frank Wall Street Reform and Consumer general inquiries and submission Therefore, the collections of information Protection Act of 2010 (Dodd-Frank Act) process questions, please call Monica will seek to sample providers that are established a Private Education Loan Jackson at (202) 435–7275. representative of markets affected by a Ombudsman (Ombudsman) within the SUPPLEMENTARY INFORMATION: Section proposed rule, or are already under the Consumer Financial Protection Bureau 1035 of the Dodd-Frank Act establishes authority of existing regulations. (Bureau) to provide timely assistance to a Private Education Loan Ombudsman Type of Review: New Generic borrowers of private education loans. (Ombudsman) within the Consumer Collection. Among other things, the Dodd-Frank Financial Protection Bureau (Bureau). Affected Public: U.S. depository and Act directs the Ombudsman to ‘‘compile Section 1035(c)(3) requires the non-depository financial institutions. and analyze data on borrower Ombudsman to compile and analyze Annual Burden Estimates: Below is a complaints’’ regarding private education data on borrower complaints regarding preliminary estimate of the aggregate loans and make appropriate private education loans. Sections burden hours. recommendations to the Director of the 1035(d) and 1035(c)(4) further require Estimated Number of Respondents: Bureau, the Secretary of the Treasury, the Ombudsman to prepare an annual 1,500 institutions. the Secretary of Education, and report to Congress and make appropriate

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recommendations to the Director of the a. Whether the complainant is the DEPARTMENT OF DEFENSE Bureau, to the Secretary of the Treasury, primary borrower, co-signer, school, or the Secretary of Education, and to other party; Office of the Secretary Congress. b. The topic or topics featured in [Docket ID DoD–2012–OS–0065] In support of the duties of the complaints (e.g., credit reporting, debt Ombudsman under section 1035 of collection, billing disputes); Proposed Collection; Comment Dodd-Frank, the Bureau seeks c. The types of institutions of higher Request information on borrower complaints education that complainants attended; AGENCY: Washington Headquarters about private education loans.1 To or Services, DoD. supplement the data that the d. Generalized descriptions or ACTION: Notice. Ombudsman will receive through the summaries of individual private Bureau’s consumer complaint intake education loan borrower complaints In compliance with Section function and to capture qualitative that do not include personally 3506(c)(2)(A) of the Paperwork information that may help to inform the identifiable information. Reduction Act of 1995, the Washington Ombudsman’s recommendations, this 2. What processes do institutions have Headquarters Services announces a notice and request for information in place to respond to complaints from proposed new public information therefore seeks responses from the private education loan borrowers? collection and seeks public comment on public, including: Among other things, the Bureau invites the provisions thereof. Comments are • Institutions of higher education’s comments on topics such as: invited on: (a) Whether the proposed financial aid offices; a. How institutions receive collection of information is necessary • State attorneys general; complaints from private student loan for the proper performance of the • State and local banking and borrowers; and functions of the agency, including consumer protection agencies; b. How institutions respond to whether the information shall have • Borrower advocates and legal aid complaints from private student loan practical utility; (b) the accuracy of the entities; or borrowers. agency’s estimate of the burden of the • proposed information collection; (c) Complaint resolution departments Dated: June 11, 2012. of lenders and servicers; ways to enhance the quality, utility, and Meredith Fuchs, • Other interested parties. clarity of the information to be Chief of Staff, Bureau of Consumer Financial collected; and (d) ways to minimize the To assist the Bureau in satisfying the Protection. requirement that the Ombudsman shall burden of the information collection on [FR Doc. 2012–14588 Filed 6–13–12; 8:45 am] ‘‘compile and analyze data on borrower respondents, including through the use complaints’’ mandated by Section 1035, BILLING CODE 4810–AM–P of automated collection techniques or the Bureau is interested in receiving other forms of information technology. comments that could bear on its DATES: Consideration will be given to all comments received by August 13, 2012. analysis of data regarding borrower CONSUMER PRODUCT SAFETY ADDRESSES: You may submit comments, complaints. The Bureau is therefore COMMISSION interested in responses to the questions identified by docket number and title, outlined below, including, where Sunshine Act Meeting by any of the following methods: known, information on the volume of • Federal eRulemaking Portal: http:// complaints received and complaint TIME AND DATE: Wednesday, June 20, www.regulations.gov. Follow the outcomes. Please note that the Bureau is 2012, 10 a.m.–12 Noon. instructions for submitting comments. • Mail: Federal Docket Management not soliciting individual borrower PLACE: Room 420, Bethesda Towers, complaints in response to this notice System Office, 4800 Mark Center Drive, 4330 East-West Highway, Bethesda, East Tower, Suite 02G09, Alexandria, and request for information. Nor is the Maryland. Bureau seeking personally identifiable VA 22350–3100. information (PII) regarding borrower STATUS: Commission Meeting—Open to Instructions: All submissions received complaints, from the parties to the the Public. must include the agency name, docket number and title for this Federal complaint or any third party. Responses Matters To Be Considered to this subsection should not contain Register document. The general policy account numbers, Social Security Hearing: Agenda and Priorities for for comments and other submissions numbers or other personal information Fiscal Year 2014. from members of the public is to make that could be used to identify the A live webcast of the Meeting can be these submissions available for public viewing on the Internet at http:// complainant or another party identified viewed at www.cpsc.gov/webcast. www.regulations.gov as they are in a complaint, or in any way otherwise For a recorded message containing the received without change, including any reveal personally identifiable latest agenda information, call (301) personal identifiers or contact information. Below are some general 504–7948. information. areas for which information is being CONTACT PERSON FOR MORE INFORMATION: sought. Please feel free to respond to Todd A. Stevenson, Office of the FOR FURTHER INFORMATION CONTACT: To any or all of the questions below: Secretary, U.S. Consumer Product request more information on this 1. What complaints are submitted by Safety Commission, 4330 East-West proposed information collection or to borrowers of private student loans? Highway, Bethesda, MD 20814, (301) obtain a copy of the proposal and Among other things, responses can 504–7923. associated collection instruments, please write to Washington address topics that relate to some or all Dated: June 12, 2012. of following areas: Headquarters Services, Human Todd A. Stevenson, Resources Directorate, ATTN: Jo-Anna Secretary. 1 As used in Section 1035 of Dodd-Frank, ‘‘private Griffith, 4800 Mark Center Drive, Suite education loans’’ is defined by section 140 of the [FR Doc. 2012–14665 Filed 6–12–12; 4:15 pm] 03D08, Alexandria, VA 22350–3200, or Truth in Lending Act (15 U.S.C. 1650). BILLING CODE 6355–01–P call (571) 372–4034.

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Title; Associated Form; and OMB the proposed collection of information Average Burden per Response: 40 Number: Confirmation of Request for is necessary for the proper performance hours. Reasonable Accommodation; WHS of the functions of the agency, including Frequency: Annual. Form 09; OMB Control Number 0704– whether the information shall have SUPPLEMENTARY INFORMATION: TBD. practical utility; (b) the accuracy of the Summary of Information Collection Needs and Uses: The information agency’s estimate of the burden of the collection requirement is necessary to proposed information collection; (c) Respondents are LRAs that have obtain and record requests for ways to enhance the quality, utility, and executed EDC agreements with a reasonable accommodation, with the clarity of the information to be Military Department that transferred intent to measure and ensure Agency collected; and (d) ways to minimize the property from a closed military compliance with Rehabilitation Act of burden of the information collection on installation. As provided by Public Law 1973, Public Law 93–112; Rehabilitation respondents, including through the use 101–510 such agreements require that Act Amendments of 1992, Public Law of automated collection techniques or the LRA reinvest the proceeds from any 102–569; Americans with Disabilities other forms of information technology. sale or lease of EDC property (or any portion thereof) during at least the first Act of 1990, Public Law 101–336; DATES: Consideration will be given to all seven years after the date of the initial Americans with Disabilities Act comments received by August 13, 2012. Amendments Act of 2008, Public Law transfer of the property to support the ADDRESSES: You may submit comments, 110–325. economic redevelopment of, or related identified by docket number and title, Affected Public: Individuals or to, the installation. The Secretary of by any of the following methods: households. Defense may recoup from the LRA such • Federal eRulemaking Portal: http:// Annual Burden Hours: 5. portion of these proceeds not used to www.regulations.gov. Follow the Number of Respondents: 20. support the economic redevelopment of, instructions for submitting comments. or related to, the installation. Military Responses per Respondent: 1. • Average Burden per Response: 15 Mail: Federal Docket Management Departments monitor LRA compliance minutes. System Office, 4800 Mark Center Drive, with this provision by requiring an Frequency: On occasion. East Tower, Suite 02G09, Alexandria, annual financial statement certified by VA 22350–3100. an independent Certified Public SUPPLEMENTARY INFORMATION: Instructions: All submissions received Accountant. No specific form is Summary of Information Collection must include the agency name, docket required. number and title for this Federal The completed form will document Dated: January 31, 2012. Register document. The general policy requests for reasonable Patricia L. Toppings, for comments and other submissions accommodation(s) (regardless of type of from members of the public is to make OSD Federal Register Liaison Officer, accommodation) and the outcome of Department of Defense. these submissions available for public such requests. Respondents are viewing on the Internet at http:// [FR Doc. 2012–14568 Filed 6–13–12; 8:45 am] employees of WHS serviced www.regulations.gov as they are BILLING CODE 5001–06–P components or applicants for received without change, including any employment of WHS serviced personal identifiers or contact components. DEPARTMENT OF DEFENSE information. Dated: May 7, 2012. FOR FURTHER INFORMATION CONTACT: To GENERAL SERVICES Patricia L. Toppings, request more information on this ADMINISTRATION OSD Federal Register Liaison Officer, proposed information collection or to Department of Defense. obtain a copy of the proposal, please NATIONAL AERONAUTICS AND [FR Doc. 2012–14567 Filed 6–13–12; 8:45 am] write to the Director, Office of Economic SPACE ADMINISTRATION BILLING CODE 5001–06–P Adjustment, 400 Army Navy Drive, [OMB Control No. 9000–0057; Docket 2012– Suite 200, Arlington, VA 22202–4704, 0076; Sequence 7] or call the Director, Office of Economic DEPARTMENT OF DEFENSE Adjustment at (703) 604–6020. Federal Acquisition Regulation; Office of the Secretary Title and OMB Number: Revitalizing Information Collection; Evaluation of Base Closure Communities, Economic Export Offers [Docket ID: DoD–2012–OS–0066] Development Conveyance Annual AGENCIES: Department of Defense (DOD), Financial Statement; OMB Number General Services Administration (GSA), Proposed Collection; Comment 0790–0004. Request and National Aeronautics and Space Needs and Uses: The information Administration (NASA). collection requirement is necessary to AGENCY: Office of the Secretary of ACTION: Notice of request for public verify that Local Redevelopment Defense, DoD. comments regarding an extension to an Authority (LRA) recipients of Economic ACTION: Notice. existing OMB clearance. Development Conveyances (EDCs) are in SUMMARY: In compliance with Section compliance with the requirement that SUMMARY: Under the provisions of the 3506(c)(2)(A) of the Paperwork the LRA reinvest proceeds from the sale Paperwork Reduction Act, the Reduction Act of 1995, the Office of the or lease of EDC property for at least Regulatory Secretariat will be Deputy Under Secretary of Defense seven years. submitting to the Office of Management (Installations and Environment), Office Affected Public: State, Local or Tribal and Budget (OMB) a request to review of Economic Adjustment announces the Governments; and Not-for-Profit and approve an extension of a proposed extension of a public Institutions. previously approved information information collection and seeks public Annual Burden Hours: 1600. collection requirement concerning the comment on the provisions thereof. Number of Respondents: 40. provision at FAR 52.247–51, entitled Comments are invited on: (a) Whether Responses per Respondent: 1. ‘‘Evaluation of Export Offers.’’

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Public comments are particularly Government at the overseas port of Huntington District will prepare a invited on: Whether this collection of discharge, via methods and ports General Reevaluation Report (GRR) and information is necessary; whether it will compatible with required delivery dates Draft Supplemental Environmental have practical utility; whether our and conditions affecting transportation Impact Statement (SEIS) to disclose estimate of the public burden of this known at the time of evaluation. FAR potential impacts to the natural, collection of information is accurate, provision 52.247–51, ‘‘Evaluation of physical, and human environment and based on valid assumptions and Export Offers,’’ is required for insertion resulting from the implementation of methodology; ways to enhance the in Government solicitations when alternatives to reduce foreseeable traffic quality, utility, and clarity of the supplies are to be exported through delays and associated economic losses information to be collected; and ways in Contiguous United States (CONUS) that occur during periodic maintenance which we can minimize the burden of ports and offers are solicited on a free at the Greenup Locks and Dam located the collection of information on those onboard (f.o.b.) origin or f.o.b. on the Ohio River. A Feasibility Report who are to respond, through the use of destination basis. The provision has and Environmental Impact Statement appropriate technological collection three alternates, to be used (1) when the (EIS) was previously completed for the techniques or other forms of information CONUS ports of export are DoD water project in April 2000. This study technology. terminals, (2) when offers are solicited recommended a 600-foot (ft) extension DATES: Submit comments on or before on an f.o.b. origin only basis, and (3) of the existing auxiliary lock chamber to August 13, 2012. when offers are solicited on an f.o.b. a length of 1200 ft. The project was ADDRESSES: Submit comments destination only basis. The provision authorized by Congress in 2000; identified by Information Collection collects information regarding the however, no funds have been 9000–0057, Evaluation of Export Offers, vendor’s preference for delivery ports. appropriated for project construction. by any of the following methods: The information is used to evaluate Due to the amount of time that has • Regulations.gov: http:// offers [on the basis of shipment through elapsed since completion of the www.regulations.gov. Submit comments the port resulting in the lowest cost to Feasibility Report, and the associated via the Federal eRulemaking portal by the Government]. economic, environmental and reliability changes that may have occurred during inputting ‘‘Information Collection 9000– B. Annual Reporting Burden 0057, Evaluation of Export Offers’’ this time, the Federal interest must be under the heading ‘‘Enter Keyword or Respondents: 100. reevaluated. The project alternatives ID’’ and selecting ‘‘Search’’. Select the Responses per Respondent: 4. being considered include the plans link ‘‘Submit a Comment’’ that Annual Responses: 400. considered in the previous study as well corresponds with ‘‘Information Hours per Response: 0.25. as variations to these plans which may Collection 9000–0057, Evaluation of Total Burden Hours: 100. include both structural and Export Offers’’. Follow the instructions Obtaining Copies of Proposals: nonstructural operational measures, and provided at the ‘‘Submit a Comment’’ Requesters may obtain a copy of the the No Action alternative. screen. Please include your name, information collection documents from DATES: A public scoping meeting will be company name (if any), and the General Services Administration, held on June 28, 2012 from 5:30–7:30 ‘‘Information Collection 9000–0057, Regulatory Secretariat Division (MVCB), p.m. 1275 First Street NE., Washington, DC Evaluation of Export Offers’’ on your ADDRESSES: The public scoping meeting attached document. 20417, telephone (202) 501–4755. Please • cite OMB Control No. 9000–0057, will be held in the Kentucky room of the Fax: 202–501–4067. Ashland Plaza Hotel, located at 1441 • Mail: General Services Evaluation of Export Offers in all Winchester Avenue, Ashland, KY Administration, Regulatory Secretariat correspondence. 41101. (MVCB), 1275 First Street NE., Dated: June 8, 2012. Washington, DC 20417. ATTN: Hada Laura Auletta, FOR FURTHER INFORMATION CONTACT: Flowers/IC 9000–0057, Evaluation of Director, Office of Governmentwide Rebecca Black, U.S. Army Corps of Export Offers. Acquisition Policy, Office of Acquisition Engineers, Huntington District, 502 Instructions: Please submit comments Policy, Office of Governmentwide Policy. Eighth Street, Huntington, WV 25701– only and cite Information Collection [FR Doc. 2012–14482 Filed 6–13–12; 8:45 am] 2070. Telephone: (304) 399–5172. 9000–0057, Evaluation of Export Offers, BILLING CODE 6820–EP–P Email: in all correspondence related to this [email protected]. collection. All comments received will SUPPLEMENTARY INFORMATION: be posted without change to http:// DEPARTMENT OF DEFENSE 1. Authority: Investigation and www.regulations.gov, including any justification of the proposed action was personal and/or business confidential Department of the Army, Corps of conducted under the authority of United information provided. Engineers States Senate, Committee on Public FOR FURTHER INFORMATION CONTACT: Mr. Intent To Prepare a Draft Supplemental Works resolution dated May 16, 1955; Curtis E. Glover, Sr., Procurement and, United States House of Analyst, Office of Governmentwide Environmental Impact Statement for the Greenup Locks and Dam, General Representatives, Committee on Public Acquisition Policy, GSA, (202) 501– Works and Transportation resolution 4082 or via email at Reevaluation Report, Greenup County, KY dated March 11, 1982. Construction of [email protected]. the project was authorized by Section SUPPLEMENTARY INFORMATION: AGENCY: Department of the Army, U.S. 101(b) (15) of the Water Resources Army Corps of Engineers, DoD. Development Act of 2000. A. Purpose ACTION: Notice of intent. 2. Background: a. The primary Offers submitted in response to concern at Greenup Locks and Dam Government solicitations must be SUMMARY: Pursuant to the National involves traffic delays. Greenup is one evaluated and awards made on the basis Environmental Policy Act (NEPA), the of the most heavily used locks on the of the lowest laid down cost to the U.S. Army Corps of Engineers (Corps), Ohio River. When the main 1200 ft

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chamber is closed, all traffic must lock participate in this NEPA evaluation recovery and mitigation activities through the smaller, land-side 600 ft process. Assistance will be provided currently underway. The Corps chamber resulting in long delays for all upon request to anyone having established the MRRIC as required by lockages. Reducing delays could save difficulty with learning how to the U.S. Congress through the Water millions of dollars in transportation participate. Resources Development Act of 2007 costs and reduce the impacts of waiting- c. Public comments are welcomed (WRDA), Section 5018. tows on aquatic resources adjacent to anytime throughout the NEPA process. DATES: The agency must receive the locks and dam. The Feasibility Formal opportunities for public completed applications and Report and EIS completed in 2000 participation include: (1) Public meeting endorsement letters no later than July considered various alternatives to either to be held in the community of Ashland; 16, 2012. minimize maintenance closure time (2) Anytime during the NEPA process and/or to increase traffic throughput via mail, telephone or email; (3) During ADDRESSES: Mail completed when one or the other chamber is closed Review and Comment on the Draft SEIS; applications and endorsement letters to to traffic. and (4) Review of the Final SEIS. U.S. Army Corps of Engineers, Omaha b. In 2000, the Chief of Engineers Schedules and locations will be District (Attn: MRRIC), 1616 Capitol recommended that the Greenup Locks announced in local news media. Avenue, Omaha, NE 68102–4901 or and Dam be modified for the purposes Interested parties should submit contact email completed applications to of navigation efficiency and reliability. information to be included on the [email protected]. Please put ‘‘MRRIC’’ in The Greenup plan of improvement mailing list for public distribution of the subject line. included a 600 ft extension of the meeting announcements and FOR FURTHER INFORMATION CONTACT: existing auxiliary lock chamber to a documents. Please address all written Mary S. Roth, 402–995–2919. length of 1200 ft, extension of the comments and suggestions concerning SUPPLEMENTARY INFORMATION: The downstream guidewall, filling and this proposed project to Natalie operation of the MRRIC is in the public emptying system improvements, McKinley, CELRH–PM–PD–F, U.S. interest and provides support to the installation of a miter gate quick Army Corps of Engineers, Huntington Corps in performing its duties and changeout system for faster repairs to District, 502 Eighth Street, Huntington, responsibilities under the Endangered the lock miter gates, an off-site dry dock WV 25701–2070. Telephone: 304–399– Species Act, 16 U.S.C. 1531 et seq.; Sec. to minimize transportation impacts 5842. Email: 601(a) of the Water Resources during construction, and environmental [email protected]. Development Act (WRDA) of 1986, mitigation measures. 4. Schedule: The GRR and Draft SEIS Public Law 99–662; Sec. 334(a) of c. The District is currently utilizing are scheduled to be released for public WRDA 1999, Public Law 106–53, and Operation and Maintenance funds to review and comment in June 2014. The Sec. 5018 of WRDA 2007, Public Law replace the miter gates in the main Final GRR and SEIS are scheduled to be 110–114. The Federal Advisory chamber. Replacement of the miter gates completed in September 2014. Committee Act, 5 U.S.C. App. 2, does is expected to increase the reliability of not apply to the MRRIC. main chamber operation, resulting in Brenda S. Bowen, fewer traffic delays at the lock. In Army Federal Register Liaison Officer. A Charter for the MRRIC has been developed and should be reviewed prior addition, barge traffic at the lock has [FR Doc. 2012–14555 Filed 6–13–12; 8:45 am] to applying for a stakeholder decreased in recent years and future BILLING CODE 3720–58–P traffic forecasts are expected to reflect a representative membership position on continuation of that trend. the Committee. The Charter, operating d. The without project conditions DEPARTMENT OF DEFENSE procedures, and stakeholder application developed in the 2000 Feasibility Report forms are available electronically at and EIS have changed for the Greenup Department of the Army; Army Corps www.MRRIC.org. Locks due to the length of time since the of Engineers Purpose and Scope of the Committee. report was completed, changes in the The duties of the MRRIC cover two Notice of Solicitation of Applications reliability of the main chamber, and a areas: for Stakeholder Representative potential for decreased traffic at the 1. The Committee provides guidance Members of the Missouri River project. Therefore, the Corps will to the Corps, and affected Federal Recovery Implementation Committee complete a study to reevaluate the agencies, State agencies, or Native feasibility of project alternatives AGENCY: Department of the Army, U.S. American Indian Tribes on a study of including their economic and Army Corps of Engineers, DoD. the Missouri River and its tributaries to environmental effects to identify federal ACTION: Notice. determine the actions required to interest. mitigate losses of aquatic and terrestrial 3. Public Participation: a. The Corps SUMMARY: The Commander of the habitat, to recover federally listed will conduct a public scoping meeting Northwestern Division of the U.S. Army species protected under the Endangered (see DATES and ADDRESSES) to gain input Corps of Engineers (Corps) is soliciting Species Act, and to restore the river’s from interested agencies, organizations, applications to fill vacant stakeholder ecosystem to prevent further declines and the general public concerning the representative member positions on the among other native species. This study content of the SEIS, issues and impacts Missouri River Recovery is identified in Section 5018 (a) of the to be addressed in the document, and Implementation Committee (MRRIC). WRDA. It will result in a single, alternatives that should be analyzed. Members are sought to fill vacancies on comprehensive plan to guide the b. The Corps invites full public a committee to represent various implementation of mitigation, recovery, participation to promote open categories of interests within the and restoration activities in the Missouri communication and better decision- Missouri River basin. The MRRIC was River Basin. This plan is referred to as making. All persons and organizations formed to advise the Corps on a study the Missouri River Ecosystem that have an interest in the Greenup of the Missouri River and its tributaries Restoration Plan (MRERP). For more Lock improvements and its potential and to provide guidance to the Corps information about the MRERP go to effects on the environment are urged to with respect to the Missouri River www.MRERP.org.

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2. The MRRIC also provides guidance a. Environmental/Conservation 6. A written endorsement letter from to the Corps with respect to the Organizations; an organization, local government body, Missouri River recovery and mitigation b. Hydropower; or formal constituency, which plan currently in existence, including c. Irrigation; demonstrates that the applicant recommendations relating to changes to d. Local Government; represents an interest group(s) in the e. Navigation; the implementation strategy from the Missouri River basin. use of adaptive management; f. Thermal Power; coordination of the development of g. Water Quality; To be considered, the application h. Water Supply; must be complete and received by the consistent policies, strategies, plans, i. Waterway Industries; and programs, projects, activities, and close of business on July 16, 2012, at the j. At Large. location indicated (see ADDRESSES). priorities for the Missouri River Terms of stakeholder representative Applications must include an recovery and mitigation plan. members of the MRRIC are three years. Information about the Missouri River There is no limit to the number of terms endorsement letter to be considered Recovery Program is available at a member may serve. Incumbent complete. Full consideration will be www.MoRiverRecovery.org. Committee members seeking given to all complete applications 3. Other duties of MRRIC include reappointment do not need to re-submit received by the specified due date. exchange of information regarding an application. However, they must Application Review Process. programs, projects, and activities of the submit a renewal letter and related Committee stakeholder applications will agencies and entities represented on the materials as outlined in the be forwarded to the current members of Committee to promote the goals of the ‘‘Streamlined Process for Existing Missouri River recovery and mitigation the MRRIC. The MRRIC will provide Members’’ portion of the document membership recommendations to the plan; establishment of such working Process for Filling MRRIC Stakeholder groups as the Committee determines to Corps as described in Attachment A of Vacancies (www.MRRIC.org). the Process for Filling MRRIC be necessary to assist in carrying out the Members and alternates of the Stakeholder Vacancies document duties of the Committee, including Committee will not receive any (www.MRRIC.org). The Corps is duties relating to public policy and compensation from the federal scientific issues; facilitating the government for carrying out the duties responsible for appointing stakeholder resolution of interagency and of the MRRIC. Travel expenses incurred members. The Corps will consider intergovernmental conflicts between by members of the Committee will not applications using the following criteria: entities represented on the Committee be reimbursed by the federal • Ability to commit the time required. associated with the Missouri River government. • Commitment to make a good faith recovery and mitigation plan; Application for Stakeholder (as defined in the Charter) effort to seek coordination of scientific and other Membership. Persons who believe that balanced solutions that address multiple research associated with the Missouri they are or will be affected by the River recovery and mitigation plan; and Missouri River recovery and mitigation interests and concerns. annual preparation of a work plan and activities and are not employees of • Agreement to support and adhere to associated budget requests. federal agencies, tribes, or state the approved MRRIC Charter and Administrative Support. To the extent agencies, may apply for stakeholder Operating Procedures. authorized by law and subject to the membership on the MRRIC. • Demonstration of a formal availability of appropriations, the Corps Applications for stakeholder provides funding and administrative designation or endorsement by an membership may be obtained organization, local government, or support for the Committee. electronically at www.MRRIC.org. constituency as its preferred Committee Membership. Federal Applications may be emailed or mailed representative. agencies with programs affecting the to the location listed (see ADDRESSES). In Missouri River may be members of the order to be considered, each application • Demonstrations of an established MRRIC through a separate process with must include: communication network to keep the Corps. States and Federally 1. The name of the applicant and the constituents informed and efficiently recognized Native American Indian primary stakeholder interest category seek their input when needed. tribes, as described in the Charter, are that person is qualified to represent; • Agreement to participate in eligible for Committee membership 2. A written statement describing the collaboration training as a condition of through an appointment process. applicant’s area of expertise and why Interested State and Tribal government the applicant believes he or she should membership. representatives should contact the Corps be appointed to represent that area of All applicants will be notified in for information about the appointment expertise on the MRRIC; writing as to the final decision about process. 3. A written statement describing how their application. This Notice is for individuals the applicant’s participation as a Certification. I hereby certify that the interested in serving as a stakeholder Stakeholder Representative will fulfill establishment of the MRRIC is necessary member on the Committee. In the roles and responsibilities of MRRIC; accordance with the Charter for the 4. A written description of the and in the public interest in connection MRRIC, stakeholder membership is applicant’s past experience(s) working with the performance of duties imposed limited to 28 people, with each member collaboratively with a group of on the Corps by the Endangered Species having an alternate. Members and individuals representing varied interests Act and other statutes. alternates must be able to demonstrate towards achieving a mutual goal, and Mary S. Roth, that they meet the definition of the outcome of the effort(s); ‘‘stakeholder’’ found in the Charter of 5. A written description of the Project Manager for the Missouri River Recovery Implementation Committee the MRRIC. Applications are currently communication network that the (MRRIC). being accepted for representation in the applicant plans to use to inform his or stakeholder interest categories listed her constituents and to gather their [FR Doc. 2012–14553 Filed 6–13–12; 8:45 am] below: feedback, and BILLING CODE 3720–58–P

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DEPARTMENT OF EDUCATION public comment addressing the undertaken; and determine how the following issues: (1) Is this collection findings from performance reporting Notice of Proposed Information necessary to the proper functions of the and evaluations were used both by Collection Requests; Office of Department; (2) will this information be grantees and by the Department. Planning, Evaluation and Policy processed and used in a timely manner; This study will be based upon a Development; Study of Strategies for (3) is the estimate of burden accurate; systematic review of existing Improving the Quality of Local Grantee (4) how might the Department enhance documentation as well as interviews Program Evaluation the quality, utility, and clarity of the with selected grantees and with federal information to be collected; and (5) how staff and federal contractors involved in SUMMARY: This study is intended to might the Department minimize the grant monitoring and in the provision of inform the Department’s decisions about burden of this collection on the technical assistance to grantees. The how to structure future grant respondents, including through the use interviews with selected grantees are the competitions; how to support evaluation of information technology. Please note subject of this OMB clearance request. and performance reporting activities that written comments received in This study will focus on two grant among funded grantees, including response to this notice will be programs within the Department’s technical assistance to improve the considered public records. Office of Innovation and Improvement: quality of evaluations and performance Title of Collection: Study of Strategies the Charter Schools Program: State reporting; and how to make the best for Improving the Quality of Local Educational Agencies (CSP SEA) possible use of grantee evaluation Grantee Program Evaluation. program and the Voluntary Public findings. OMB Control Number: 1875–NEW. School Choice (VPSC) program. A brief DATES: Interested persons are invited to Type of Review: New. description of each program is provided submit comments on or before August Total Estimated Number of Annual below. 13, 2012. Responses: 20. 1. Voluntary Public School Choice Total Estimated Number of Annual ADDRESSES: Written comments (authorized under the Elementary and Burden Hours: 20. Secondary Education Act of 1965, as regarding burden and/or the collection Abstract: The U.S. Department of activity requirements should be amended, Title V, Part B, Subpart 3, (20 Education provides support to states, U.S.C. 7225–7225g)). The goal of the electronically mailed to districts and schools through a number [email protected] or mailed to U.S. VPSC program is to support the creation of competitive and formula grant and development of a large number of Department of Education, 400 Maryland programs. Through these programs, the Avenue SW., LBJ, Washington, DC high-quality charter schools that are federal government funds a wide array held accountable for enabling students 20202–4537. Copies of the proposed of activities, from professional information collection request may be to reach challenging state performance development for teachers to turnaround standards, and are open to all students. accessed from http://edicsweb.ed.gov, efforts for failing schools. High-quality The program was first enacted as part of by selecting the ‘‘Browse Pending evaluation plays an essential role the No Child Left Behind Act of 2001 Collections’’ link and by clicking on informing policy makers about program (Pub. L. No. 107–110, § 115, Stat. 1425) link number 04869. When you access performance, outcomes and impact. to support the emergence and growth of the information collection, click on Performance reporting with high-quality choice initiatives across the country. ‘‘Download Attachments’’ to view. data can indicate whether a funded VPSC’s goal is to assist states and local Written requests for information should project is meeting its goals and taking school districts in creating, expanding, be addressed to U.S. Department of place as planned. Project evaluations and implementing public school choice Education, 400 Maryland Avenue SW., can explore how best to implement a programs. The program has awarded LBJ, Washington, DC 20202–4537. particular educational practice, whether two cycles of competitive grants to Requests may also be electronically positive student outcomes were states, local education agencies, and mailed to [email protected] or faxed attained, or whether a particular partnerships that include public, to 202–401–0920. Please specify the educational intervention actually nonprofit and for-profit organizations. complete title of the information caused the outcomes observed. In 2007, the most recent award year, the collection and OMB Control Number To date, the Department lacks program awarded a total of 14 when making your request. comprehensive information about the competitive grants to two states, eight Individuals who use a quality or rigor of the performance school districts, a charter school, an telecommunications device for the deaf reporting and evaluation activities its intermediate school district, and KIPP (TDD) may call the Federal Information grantees are undertaking and whether schools in Texas. Relay Service (FIRS) at 1–800–877– the technical assistance provided has 2. Charter Schools Program: State 8339. been useful in improving the quality of Educational Agencies (authorized under SUPPLEMENTARY INFORMATION: Section the performance reporting or the Elementary and Secondary 3506 of the Paperwork Reduction Act of evaluations. Accordingly, the focus of Education Act of 1965, Section 5201– 1995 (44 U.S.C. Chapter 35) requires this study is to examine the influence of 5211 (20 U.S.C. 7221a)). Federal support that Federal agencies provide interested Department-funded technical assistance for charter schools began in 1995 with parties an early opportunity to comment practices on the quality and rigor of the authorization of the CSP. The CSP on information collection requests. The grantee evaluations and performance SEA program awards competitive grants Director, Information Collection reporting in two Department programs to state education agencies to plan, Clearance Division, Privacy, Information (described below). It will describe the design, and implement new charter and Records Management Services, technical assistance provided by the schools, as well as to disseminate Office of Management, publishes this Department to support grantee information on successful charter notice containing proposed information performance reporting and evaluation; schools. The key goals of the CSP SEA collection requests at the beginning of explore how grantees perceive the program are to increase the number of the Departmental review of the technical assistance has influenced their charter schools in operation across the information collection. The Department activities; assess the quality of nation and to increase the number of of Education is especially interested in performance reporting and evaluations students who are achieving proficiency

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on state assessments of math and review whether the initial set of activities, while Part B describes the reading. The CSP statute also addresses performance measures changed as a data collection and analysis procedures. expanding the number of high-quality result of the technical assistance charter schools and encouraging states received, and examine the quality and Darrin A. King, to provide support for facilities appropriateness of data collection for Director, Information Collection Clearance financing equal to what states provide those measures. Division, Privacy, Information and Records Management Services, Office of Management. for traditional public schools. Grants Impact Evaluation have been awarded to 40 states, [FR Doc. 2012–14593 Filed 6–13–12; 8:45 am] including awards to 33 states since While documenting implementation BILLING CODE 4000–01–P 2005. Grants are typically awarded for activities and outcomes can be useful to three years and may be renewed. school and district administrators, it This study will review all technical does not provide information on the DEPARTMENT OF EDUCATION effectiveness of funded interventions. assistance provided to CSP SEA and The Fund for the Improvement of The only evaluation designs that VPSC grantees on performance reporting Postsecondary Education (FIPSE) provide credible evidence about the and evaluations and how grantees National Board conduct these activities. All CSP SEA impacts of interventions are rigorous and VPSC grantees are required by the experimental and quasi-experimental AGENCY: The Fund for the Improvement Department to conduct performance designs. Impact evaluations can provide of Postsecondary Education (FIPSE) reporting. Although grantees are not guidance about what interventions National Board, U.S. Department of required to conduct any particular type should be considered for future funding Education. of evaluation, the study will review both and replication. ACTION: Notice of an open impact evaluations and non-impact This study will review the quality and teleconference meeting. evaluations conducted by grantees. The rigor of all impact evaluations being study approach, with respect to the conducted of higher-order outcomes, SUMMARY: This notice sets forth the review of performance reporting, impact particularly student achievement, using schedule and agenda of an upcoming evaluations, and non-impact criteria that were adapted from the What open teleconference meeting of the evaluations, is described below. Works Clearinghouse review standards National Board (Board) of the Fund for for grantees as part of the Department’s the Improvement of Postsecondary Performance Reporting Data Quality Initiative. These criteria Education. The notice also describes the The goal of performance reporting is were revised by Abt Associates as part functions of the Board. Notice of this to measure performance and track of its annual review of Mathematics and meeting is required by Section 10(a)(2) outcomes of the project’s stated goals Science Partnership final-year of the Federal Advisory Committee Act and objectives. The collection of evaluations. The criteria are listed in and is intended to notify the public of accurate data on program performance Appendix A. The study will also their opportunity to attend. is necessary for the reporting required examine the completeness and clarity of DATES: Thursday, June 28, 2012. by the Government Performance and evaluation reports submitted as part of Time: 2:00 p.m.–4:00 p.m., Eastern Results Act (GPRA), which was passed an impact evaluation. Standard Time. by Congress in 1993 and updated Non-Impact Evaluation ADDRESSES: 1990 K Street NW., through the GPRA Modernization Act of Washington, DC 20006, Telephone: 2010. The latter will require even more Grantees may choose to conduct non- (202) 502–7500. frequent reporting—quarterly instead of impact evaluations to examine program FOR FURTHER INFORMATION CONTACT: annually. outcomes and implementation Sarah T. Beaton, U.S. Department of In addition to requiring grantees to processes. Non-impact evaluations may Education, 1990 K Street NW., collect annual data in support of GPRA include both formative implementation Washington, DC 20006–8544; telephone: reporting, the CSP SEA and VPSC and process evaluations that evaluate a (202) 502–7621; email: programs encourage grantees to develop program as it is unfolding, and [email protected]. implementation and outcome measures summative descriptive evaluations that in support of other program goals. examine changes in final outcomes in a SUPPLEMENTARY INFORMATION: The Throughout this document, when we non-causal manner. A full framework of National Board of the Fund for the refer to grantee performance measures, formative and summative evaluations is Improvement of Postsecondary we are referring to the measures included in Appendix B. Education is established in Title VII, grantees use not only for GPRA The main focus of the review of non- Part B, Section 742 of the Higher reporting, but also for reporting on other impact evaluations will be on those that Education Act of 1965, as amended activities and outcomes. focus on a change in higher-order (20 U.S.C. 1138a). The Board is The CSP and VPSC programs provide outcomes using a one-group pre-post authorized to advise the Director of the technical assistance to grantees on design. For these evaluations, the study Fund and the Assistant Secretary for developing appropriate objectives and will examine the appropriateness of Postsecondary Education on (1) performance measures and on obtaining data collection strategies for the design priorities for the improvement of quality data in support of those chosen and whether the findings of the postsecondary education, including measures. Because all grantees conduct study are described appropriately based recommendations for the improvement some kind of performance reporting, on the design. The study will also of postsecondary education and for the this study’s examination of performance describe other non-impact evaluations evaluation, dissemination, and reporting encompasses all grantees. It that grantees have undertaken, without adaptation of demonstrated will describe the type of technical commenting on their quality. improvements in postsecondary assistance provided, categorize the types Data collection, including conducting educational practice; and (2) the of performance measures that grantees interviews and reviewing extant operation of the Fund, including advice address, determine whether the documents, is required to complete this on planning documents, guidelines, and measures are responsive to the GPRA study. Part A of this request discusses procedures for grant competitions indicators defined for each program, the justification for these data collection prepared by the Fund.

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On Thursday, June 28, 2012, from feature at this site, you can limit your Secretary of the Commission, 888 First 2:00 p.m. to 4:00 p.m., Eastern Standard search to documents published by the Street NE., Washington, DC 20426. Time, the Board will conduct business Department. Instructions: All submissions must be in an open teleconference. The agenda formatted and filed in accordance with for the meeting will include discussion Eduardo M. Ochoa, submission guidelines at: http:// of the Fund’s programs and special Assistant Secretary for Postsecondary www.ferc.gov/help/submission- initiatives. Education. guide.asp. For user assistance contact Teleconference calling instructions [FR Doc. 2012–14583 Filed 6–13–12; 8:45 am] FERC Online Support by email at are as follows: Please call 1–877–952– BILLING CODE P [email protected], or by phone 3216 and use participant code 1826857. at: (866) 208–3676 (toll-free), or (202) The maximum number of members of 502–8659 for TTY. the public that can access the DEPARTMENT OF ENERGY Docket: Users interested in receiving teleconference meeting (listen only) is automatic notification of activity in this 50. Callers will be accepted on a first Federal Energy Regulatory docket or in viewing/downloading come, first served basis. Individuals Commission comments and issuances in this docket who use a telecommunications device [Docket No. IC12–8–000] may do so at http://www.ferc.gov/docs- for the deaf (TDD) may call the Federal filing/docs-filing.asp. Information Relay Service (FRS), toll- Commission Information Collection FOR FURTHER INFORMATION CONTACT: free, at 1–800–877–8339, Monday Activities (FERC–567); Comment Ellen Brown may be reached by email through Friday, between the hours of Request at [email protected], by 8:00 a.m. and 8:00 p.m., Eastern AGENCY: Federal Energy Regulatory telephone at (202) 502–8663, and by fax Standard Time. at (202) 273–0873. Individuals who will need Commission, Energy. accommodations for a disability in order ACTION: Comment request. SUPPLEMENTARY INFORMATION: to participate in the teleconference (e.g., Title: FERC–567, Gas Pipeline SUMMARY: In compliance with the interpreting services, assistance Certificates: Annual Reports of System listening devices, or materials in requirements of the Paperwork Flow Diagrams and System Capacity. alternative format) should notify Sarah Reduction Act of 1995, 44 United States OMB Control No.: 1902–0005. T. Beaton at (202)502–7621, no later Code (U.S.C.) 3507(a)(1)(D), the Federal Type of Request: Three-year extension than June 18, 2012. We will attempt to Energy Regulatory Commission of the FERC–567 information collection meet requests for accommodations after (Commission or FERC) is submitting the requirements with no changes to the this date but cannot guarantee their information collection FERC–567, Gas reporting requirements. availability. Pipeline Certificates: Annual Reports of Abstract: The Commission uses the Members of the public are encouraged System Flow Diagrams and System information from the FERC–567 to to submit written comments related to Capacity to the Office of Management obtain accurate data on pipeline the FIPSE Program or the Board to the and Budget (OMB) for review of the facilities and the peak capacity of these attention of Sarah T. Beaton, 1990 K information collection requirements. facilities. Additionally, the Commission Street NW., Room 6154, Washington, Any interested person may file validates the need for new facilities DC 20006–8544, or by email at comments directly with OMB and proposed by pipelines in certificate [email protected]. should address a copy of those applications. By modeling a applicant’s Records are kept of all Board comments to the Commission as pipeline system, Commission staff proceedings and are available for public explained below. The Commission utilizes the FERC–567 data to determine inspection at the office of the Fund for issued a Notice in the Federal Register configuration and location of installed the Improvement of Postsecondary (77 FR 11520, 02/27/2012) requesting pipeline facilities; verify and determine Education, Sixth Floor, 1990 K Street public comments. FERC received no the receipt and delivery points between NW., Washington, DC 20006–8544, from comments on the FERC–567 and is shippers, producers and pipeline the hours of 8:00 a.m. to 4:30 p.m., making this notation in its submittal to companies; determine the location of Eastern Standard Time, Monday OMB. receipt and delivery points and through Friday. DATES: Comments on the collection of emergency interconnections on a Electronic Access to This Document: information are due by July 16, 2012. pipeline system; determine the location The official version of this document is ADDRESSES: Comments filed with OMB, of pipeline segments, laterals and the document published in the Federal identified by the OMB Control No. compressor stations on a pipeline Register. Free internet access to the 1902–0005, should be sent via email to system; verify pipeline segment lengths official edition of the Federal Register the Office of Information and Regulatory and pipeline diameters; justify the and the Code of Federal Regulations is Affairs: [email protected]. maximum allowable operating pressures available via the Federal Digital System Attention: Federal Energy Regulatory and suction and discharge pressures at at: www.gpo.gov/fdsys. At this site you Commission Desk Officer. The Desk compressor stations; verify the installed can view this document, as well as all Officer may also be reached via horsepower and volumes compressed at other documents of this Department telephone at 202–395–4718. each compressor station; determine the published in the Federal Register, in A copy of the comments should also existing shippers and producers text or Adobe Portable Document be sent to the Federal Energy Regulatory currently using each pipeline company; Format (PDF). To use PDF, you must Commission, identified by the Docket verify peak capacity on the system; and have Adobe Acrobat Reader, which is No. IC12–8–000, by either of the develop and evaluate alternatives to the available free at the site. following methods: proposed facilities as a means to You may also access documents of the • eFiling at Commission’s Web Site: mitigate environmental impact of new Department published in the Federal http://www.ferc.gov/docs-filing/ pipeline construction. Register by using the article search efiling.asp. 18 Code of Federal Regulations (CFR) feature at: www.federalregister.gov. • Mail/Hand Delivery/Courier: 260.8(a) requires each major natural gas Specially, through the advanced search Federal Energy Regulatory Commission, pipeline with a system delivery capacity

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exceeding 100,000 Mcf per day to part of any other data collection Estimate of Annual Burden: 1 The submit by June 1 of each year, diagrams requirement. Commission proposed an erroneous reflecting operating conditions on the Type of Respondents: Applicants burden estimate on the 60-day notice 2 pipeline’s main transmission system proposing hydropower projects on (or for this information collection. The during the previous 12 months ended changes to existing projects located Commission estimates the corrected December 31. These physical/ within) lands owned by the United total Public Reporting Burden for this engineering data are not included as States. information collection as:

FERC–567 (IC12–8–000): GAS PIPELINE CERTIFICATES: ANNUAL REPORTS OF SYSTEM FLOW DIAGRAMS AND SYSTEM CAPACITY

Number of Average burden Number of responses per Total number hours per Estimated total respondents respondent of responses response annual burden

(A) (B) (A) × (B) = (C) (D) (C) × (D)

Data Proposed on 60-day notice 2 for FERC–567

Natural Gas Pipelines ...... 103 1 103 1 103

Corrected Data Proposed for FERC–567

Natural Gas Pipelines ...... 103 1 103 55 5,665

The Commission revised the DEPARTMENT OF ENERGY FERC Online links at http:// erroneous figures (presented within the www.ferc.gov. To facilitate electronic 60-day notice for this information Federal Energy Regulatory service, persons with Internet access collection 2) based on an improved Commission who will eFile a document and/or be internal analysis. We were remiss in our [Docket No. ER12–1913–000] listed as a contact for an intervenor previous analysis that resulted in the must create and validate an underestimated burden calculation. RE McKenzie 3 LLC; Supplemental eRegistration account using the The total estimated annual cost Notice That Initial Market-Based Rate eRegistration link. Select the eFiling burden to respondents is $ [5,665 hours Filing Includes Request for Blanket link to log on and submit the Section 204 Authorization ÷ 2,080 3 hours/year = 2.72355 * intervention or protests. $143,540/year 4 = $390,938.37] This is a supplemental notice in the Persons unable to file electronically The estimated annual cost of filing the above-referenced proceeding of RE should submit an original and 14 copies FERC–567 per response is $3,795.52 McKenzie 3 LLC application for market- of the intervention or protest to the [$390,938.37 ÷ 103 responses = based rate authority, with an Federal Energy Regulatory Commission, $3,795.52/response]. accompanying rate tariff, noting that 888 First Street NE., Washington, DC such application includes a request for 20426. Comments: Comments are invited on: blanket authorization, under 18 CFR The filings in the above-referenced (1) Whether the collection of part 34, of future issuances of securities proceeding are accessible in the information is necessary for the proper and assumptions of liability. performance of the functions of the Any person desiring to intervene or to Commission’s eLibrary system by Commission, including whether the protest should file with the Federal clicking on the appropriate link in the information will have practical utility; Energy Regulatory Commission, 888 above list. They are also available for (2) the accuracy of the agency’s estimate First Street NE., Washington, DC 20426, review in the Commission’s Public of the burden and cost of the collection in accordance with Rules 211 and 214 Reference Room in Washington, DC. of information, including the validity of of the Commission’s Rules of Practice There is an eSubscription link on the the methodology and assumptions used; and Procedure (18 CFR 385.211 and Web site that enables subscribers to (3) ways to enhance the quality, utility 385.214). Anyone filing a motion to receive email notification when a and clarity of the information collection; intervene or protest must serve a copy document is added to a subscribed and (4) ways to minimize the burden of of that document on the Applicant. docket(s). For assistance with any FERC the collection of information on those Notice is hereby given that the Online service, please email who are to respond, including the use deadline for filing protests with regard [email protected]. or call of automated collection techniques or to the applicant’s request for blanket (866) 208–3676 (toll free). For TTY, call other forms of information technology. authorization, under 18 CFR part 34, of (202) 502–8659. Dated: June 1, 2012. future issuances of securities and Dated: June 1, 2012. assumptions of liability, is June 21, Nathaniel J. Davis, Sr., 2012. Nathaniel J. Davis, Sr., Deputy Secretary. The Commission encourages Deputy Secretary. [FR Doc. 2012–14516 Filed 6–13–12; 8:45 am] electronic submission of protests and [FR Doc. 2012–14512 Filed 6–13–12; 8:45 am] BILLING CODE 6717–01–P interventions in lieu of paper, using the BILLING CODE 6717–01–P

1 Burden is defined as the total time, effort, or explanation of what is included in the information 2 77 FR 11520 (2/27/2012) financial resources expended by persons to collection burden, reference 5 Code of Federal 3 2080 hours = 40 hours/week * 52 weeks (1 year). generate, maintain, retain, or disclose or provide Regulations 1320.3. 4 Average annual salary per employee in 2012. information to or for a Federal agency. For further

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DEPARTMENT OF ENERGY [email protected] or call Commission’s eLibrary system by (866) 208–3676 (toll free). For TTY, call clicking on the appropriate link in the Federal Energy Regulatory (202) 502–8659. above list. They are also available for Commission Dated: June 1, 2012. review in the Commission’s Public [Docket No. ER12–1915–000] Nathaniel J. Davis, Sr., Reference Room in Washington, DC. There is an eSubscription link on the Deputy Secretary. RE McKenzie 4 LLC; Supplemental Web site that enables subscribers to Notice That Initial Market-Based Rate [FR Doc. 2012–14513 Filed 6–13–12; 8:45 am] receive email notification when a Filing Includes Request for Blanket BILLING CODE 6717–01–P document is added to a subscribed Section 204 Authorization docket(s). For assistance with any FERC Online service, please email DEPARTMENT OF ENERGY This is a supplemental notice in the [email protected] or call above-referenced proceeding of RE Federal Energy Regulatory (866) 208–3676 (toll free). For TTY, call McKenzie 4 LLC application for market- (202) 502–8659. based rate authority, with an Commission Dated: June 1, 2012. accompanying rate tariff, noting that [Docket No. ER12–1917–000] such application includes a request for Nathaniel J. Davis, Sr., blanket authorization, under 18 CFR RE McKenzie 6 LLC; Supplemental Deputy Secretary. part 34, of future issuances of securities Notice That Initial Market-Based Rate [FR Doc. 2012–14515 Filed 6–13–12; 8:45 am] and assumptions of liability. Filing Includes Request for Blanket BILLING CODE 6717–01–P Any person desiring to intervene or to Section 204 Authorization protest should file with the Federal Energy Regulatory Commission, 888 This is a supplemental notice in the DEPARTMENT OF ENERGY First Street NE., Washington, DC 20426, above-referenced proceeding of RE in accordance with Rules 211 and 214 McKenzie 6 LLC application for market- Federal Energy Regulatory of the Commission’s Rules of Practice based rate authority, with an Commission accompanying rate tariff, noting that and Procedure (18 CFR 385.211 and [Docket No. ER12–1875–000] 385.214). Anyone filing a motion to such application includes a request for intervene or protest must serve a copy blanket authorization, under 18 CFR AltaGas Renewable Energy Colorado of that document on the Applicant. part 34, of future issuances of securities LLC; Supplemental Notice That Initial Notice is hereby given that the and assumptions of liability. Market-Based Rate Filing Includes deadline for filing protests with regard Any person desiring to intervene or to Request for Blanket Section 204 to the applicant’s request for blanket protest should file with the Federal Authorization authorization, under 18 CFR part 34, of Energy Regulatory Commission, 888 future issuances of securities and First Street NE., Washington, DC 20426, This is a supplemental notice in the assumptions of liability, is June 21, in accordance with Rules 211 and 214 above-referenced proceeding of AltaGas 2012. of the Commission’s Rules of Practice Renewable Energy Colorado LLC The Commission encourages and Procedure (18 CFR 385.211 and application for market-based rate electronic submission of protests and 385.214). Anyone filing a motion to authority, with an accompanying rate interventions in lieu of paper, using the intervene or protest must serve a copy tariff, noting that such application FERC Online links at http:// of that document on the Applicant. includes a request for blanket www.ferc.gov. To facilitate electronic Notice is hereby given that the authorization, under 18 CFR part 34, of service, persons with Internet access deadline for filing protests with regard future issuances of securities and who will eFile a document and/or be to the applicant’s request for blanket assumptions of liability. listed as a contact for an intervenor authorization, under 18 CFR part 34, of Any person desiring to intervene or to must create and validate an future issuances of securities and protest should file with the Federal eRegistration account using the assumptions of liability, is June 21, Energy Regulatory Commission, 888 eRegistration link. Select the eFiling 2012. First Street NE., Washington, DC 20426, link to log on and submit the The Commission encourages in accordance with Rules 211 and 214 intervention or protests. electronic submission of protests and of the Commission’s Rules of Practice Persons unable to file electronically interventions in lieu of paper, using the and Procedure (18 CFR 385.211 and should submit an original and 14 copies FERC Online links at http:// 385.214). Anyone filing a motion to of the intervention or protest to the www.ferc.gov. To facilitate electronic intervene or protest must serve a copy Federal Energy Regulatory Commission, service, persons with Internet access of that document on the Applicant. 888 First Street NE., Washington, DC who will eFile a document and/or be Notice is hereby given that the 20426. listed as a contact for an intervenor deadline for filing protests with regard The filings in the above-referenced must create and validate an to the applicant’s request for blanket proceeding are accessible in the eRegistration account using the authorization, under 18 CFR part 34, of Commission’s eLibrary system by eRegistration link. Select the eFiling future issuances of securities and clicking on the appropriate link in the link to log on and submit the assumptions of liability, is June 21, above list. They are also available for intervention or protests. 2012. review in the Commission’s Public Persons unable to file electronically The Commission encourages Reference Room in Washington, DC. should submit an original and 14 copies electronic submission of protests and There is an eSubscription link on the of the intervention or protest to the interventions in lieu of paper, using the Web site that enables subscribers to Federal Energy Regulatory Commission, FERC Online links at http:// receive email notification when a 888 First Street NE., Washington, DC www.ferc.gov. To facilitate electronic document is added to a subscribed 20426. service, persons with Internet access docket(s). For assistance with any FERC The filings in the above-referenced who will eFile a document and/or be Online service, please email proceeding are accessible in the listed as a contact for an intervenor

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must create and validate an future issuances of securities and First Street NE., Washington, DC 20426, eRegistration account using the assumptions of liability, is June 21, in accordance with Rules 211 and 214 eRegistration link. Select the eFiling 2012. of the Commission’s Rules of Practice link to log on and submit the The Commission encourages and Procedure (18 CFR 385.211 and intervention or protests. electronic submission of protests and 385.214). Anyone filing a motion to Persons unable to file electronically interventions in lieu of paper, using the intervene or protest must serve a copy should submit an original and 14 copies FERC Online links at http:// of that document on the Applicant. of the intervention or protest to the www.ferc.gov. To facilitate electronic Notice is hereby given that the Federal Energy Regulatory Commission, service, persons with Internet access deadline for filing protests with regard 888 First Street NE., Washington, DC who will eFile a document and/or be to the applicant’s request for blanket 20426. listed as a contact for an intervenor authorization, under 18 CFR part 34, of The filings in the above-referenced must create and validate an future issuances of securities and proceeding are accessible in the eRegistration account using the assumptions of liability, is June 21, Commission’s eLibrary system by eRegistration link. Select the eFiling 2012. clicking on the appropriate link in the link to log on and submit the The Commission encourages above list. They are also available for intervention or protests. electronic submission of protests and review in the Commission’s Public Persons unable to file electronically interventions in lieu of paper, using the Reference Room in Washington, DC. should submit an original and 14 copies FERC Online links at http:// There is an eSubscription link on the of the intervention or protest to the www.ferc.gov. To facilitate electronic Web site that enables subscribers to Federal Energy Regulatory Commission, service, persons with Internet access receive email notification when a 888 First Street NE., Washington, DC who will eFile a document and/or be document is added to a subscribed 20426. listed as a contact for an intervenor docket(s). For assistance with any FERC The filings in the above-referenced must create and validate an Online service, please email proceeding are accessible in the eRegistration account using the [email protected] or call Commission’s eLibrary system by eRegistration link. Select the eFiling (866) 208–3676 (toll free) For TTY, call clicking on the appropriate link in the link to log on and submit the (202) 502–8659. above list. They are also available for intervention or protests. Persons unable to file electronically review in the Commission’s Public Dated: June 1, 2012. should submit an original and 14 copies Reference Room in Washington, DC. Nathaniel J. Davis, Sr., of the intervention or protest to the There is an eSubscription link on the Deputy Secretary. Federal Energy Regulatory Commission, Web site that enables subscribers to 888 First Street NE., Washington, DC [FR Doc. 2012–14518 Filed 6–13–12; 8:45 am] receive email notification when a BILLING CODE 6717–01–P 20426. document is added to a subscribed The filings in the above-referenced docket(s). For assistance with any FERC proceeding are accessible in the Online service, please email DEPARTMENT OF ENERGY Commission’s eLibrary system by [email protected] or call clicking on the appropriate link in the Federal Energy Regulatory (866) 208–3676 (toll free). For TTY, call above list. They are also available for Commission (202) 502–8659. review in the Commission’s Public Dated: June 1, 2012. Reference Room in Washington, DC. [Docket No. ER12–1911–000] Nathaniel J. Davis, Sr., There is an eSubscription link on the RE McKenzie 1 LLC; Supplemental Deputy Secretary. Web site that enables subscribers to Notice That Initial Market-Based Rate [FR Doc. 2012–14520 Filed 6–13–12; 8:45 am] receive email notification when a document is added to a subscribed Filing Includes Request for Blanket BILLING CODE 6717–01–P Section 204 Authorization docket(s). For assistance with any FERC Online service, please email This is a supplemental notice in the DEPARTMENT OF ENERGY [email protected] or call above-referenced proceeding of RE (866) 208–3676 (toll free). For TTY, call McKenzie 1 LLC application for market- Federal Energy Regulatory (202) 502–8659. based rate authority, with an Commission Dated: June 1, 2012. accompanying rate tariff, noting that Nathaniel J. Davis, Sr., such application includes a request for [Docket No. ER12–1912–000] Deputy Secretary. blanket authorization, under 18 CFR RE McKenzie 2 LLC; Supplemental part 34, of future issuances of securities [FR Doc. 2012–14521 Filed 6–13–12; 8:45 am] Notice That Initial Market-Based Rate BILLING CODE 6717–01–P and assumptions of liability. Filing Includes Request for Blanket Any person desiring to intervene or to Section 204 Authorization protest should file with the Federal DEPARTMENT OF ENERGY Energy Regulatory Commission, 888 This is a supplemental notice in the First Street NE., Washington, DC 20426, above-referenced proceeding of RE Federal Energy Regulatory in accordance with Rules 211 and 214 McKenzie 2 LLC application for market- Commission of the Commission’s Rules of Practice based rate authority, with an and Procedure (18 CFR 385.211 and accompanying rate tariff, noting that [Docket No. ER12–1880–000] 385.214). Anyone filing a motion to such application includes a request for Minco Wind III, LLC; Supplemental intervene or protest must serve a copy blanket authorization, under 18 CFR Notice That Initial Market-Based Rate of that document on the Applicant. part 34, of future issuances of securities Filing Includes Request for Blanket Notice is hereby given that the and assumptions of liability. Section 204 Authorization deadline for filing protests with regard Any person desiring to intervene or to to the applicant’s request for blanket protest should file with the Federal This is a supplemental notice in the authorization, under 18 CFR part 34, of Energy Regulatory Commission, 888 above-referenced proceeding of Minco

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Wind III, LLC application for market- DEPARTMENT OF ENERGY [email protected] or call based rate authority, with an (866) 208–3676 (toll free). For TTY, call accompanying rate tariff, noting that Federal Energy Regulatory (202) 502–8659. Commission such application includes a request for Dated: June 1, 2012. blanket authorization, under 18 CFR [Docket No. ER12–1916–000] Nathaniel J. Davis, Sr., part 34, of future issuances of securities Deputy Secretary. and assumptions of liability. RE McKenzie 5 LLC; Supplemental Notice That Initial Market-Based Rate [FR Doc. 2012–14514 Filed 6–13–12; 8:45 am] Any person desiring to intervene or to Filing Includes Request for Blanket BILLING CODE 6717–01–P protest should file with the Federal Section 204 Authorization Energy Regulatory Commission, 888 First Street, NE., Washington, DC 20426, This is a supplemental notice in the DEPARTMENT OF ENERGY in accordance with Rules 211 and 214 above-referenced proceeding of RE of the Commission’s Rules of Practice McKenzie 5 LLC application for market- Western Area Power Administration based rate authority, with an and Procedure (18 CFR 385.211 and Conformed Power Marketing Criteria or accompanying rate tariff, noting that 385.214). Anyone filing a motion to Regulations for the Boulder Canyon such application includes a request for intervene or protest must serve a copy Project of that document on the Applicant. blanket authorization, under 18 CFR part 34, of future issuances of securities Notice is hereby given that the AGENCY: Western Area Power and assumptions of liability. Administration, DOE. deadline for filing protests with regard Any person desiring to intervene or to ACTION: Conformance of power to the applicant’s request for blanket protest should file with the Federal marketing criteria in accordance with authorization, under 18 CFR part 34, of Energy Regulatory Commission, 888 the Hoover Power Allocation Act of future issuances of securities and First Street NE., Washington, DC 20426, 2011. assumptions of liability, is June 21, in accordance with Rules 211 and 214 2012. of the Commission’s Rules of Practice SUMMARY: The Western Area Power The Commission encourages and Procedure (18 CFR 385.211 and Administration (Western), a Federal electronic submission of protests and 385.214). Anyone filing a motion to power marketing agency of the interventions in lieu of paper, using the intervene or protest must serve a copy Department of Energy (DOE), is FERC Online links at http:// of that document on the Applicant. modifying Part C of its Conformed www.ferc.gov. To facilitate electronic Notice is hereby given that the General Consolidated Power Marketing service, persons with Internet access deadline for filing protests with regard Criteria or Regulations for Boulder City who will eFile a document and/or be to the applicant’s request for blanket Area Projects (1984 Conformed Criteria) listed as a contact for an intervenor authorization, under 18 CFR part 34, of published in the Federal Register on must create and validate an future issuances of securities and December 28, 1984, as required by the eRegistration account using the assumptions of liability, is June 21, Hoover Power Allocation Act of 2011 eRegistration link. Select the eFiling 2012. (HPAA) described herein. This The Commission encourages modification will result in the link to log on and submit the electronic submission of protests and intervention or protests. conformance of the 1984 Conformed interventions in lieu of paper, using the Criteria to the HPAA. The 2012 Persons unable to file electronically FERC Online links at http:// Conformed General Consolidated Power should submit an original and 14 copies www.ferc.gov. To facilitate electronic Marketing Criteria or Regulations for of the intervention or protest to the service, persons with Internet access Boulder City Area Projects (2012 Federal Energy Regulatory Commission, who will eFile a document and/or be Conformed Criteria) will provide the 888 First Street NE., Washington, DC listed as a contact for an intervenor basis for marketing the long-term 20426. must create and validate an hydroelectric resources of the Boulder The filings in the above-referenced eRegistration account using the Canyon Project (BCP) beyond September proceeding are accessible in the eRegistration link. Select the eFiling 30, 2017, when Western’s current Commission’s eLibrary system by link to log on and submit the electric service contracts expire. intervention or protests. clicking on the appropriate link in the Additional power marketing criteria for Persons unable to file electronically new allocations will be established by above list. They are also available for should submit an original and 14 copies Western through a subsequent public review in the Commission’s Public of the intervention or protest to the process. This Federal Register notice Reference Room in Washington, DC. Federal Energy Regulatory Commission, (FRN) is not a call for applications. A There is an eSubscription link on the 888 First Street NE., Washington, DC call for applications from those Web site that enables subscribers to 20426. receive email notification when a The filings in the above-referenced interested in an allocation of BCP power document is added to a subscribed proceeding are accessible in the will be provided for in a future notice. docket(s). For assistance with any FERC Commission’s eLibrary system by DATES: The 2012 Conformed Criteria Online service, please email clicking on the appropriate link in the will become effective July 16, 2012. [email protected] or call above list. They are also available for ADDRESSES: Information regarding the (866) 208–3676 (toll free). For TTY, call review in the Commission’s Public 2012 Conformed Criteria is available for (202) 502–8659. Reference Room in Washington, DC. public inspection at the Desert Dated: June 1, 2012. There is an eSubscription link on the Southwest Customer Service Regional Web site that enables subscribers to Office, Western Area Power Nathaniel J. Davis, Sr., receive email notification when a Administration, 615 South 43rd Deputy Secretary. document is added to a subscribed Avenue, Phoenix, AZ 85005 or at its [FR Doc. 2012–14519 Filed 6–13–12; 8:45 am] docket(s). For assistance with any FERC Web site: http://www.wapa.gov/dsw/ BILLING CODE 6717–01–P Online service, please email pwrmkt.

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FOR FURTHER INFORMATION CONTACT: Mr. Public Land Management Act of 2009 Schedule A and/or Schedule B for Mike Simonton, Public Utilities (Pub. L. 111–11; 123 Stat.1327)), and to deliveries commencing October 1, 2017. Specialist, Desert Southwest Region, execute the Boulder Canyon Project (ii) Additional guidance related to the Western Area Power Administration, Implementation Agreement Contract No. disposition of contingent capacity and P.O. Box 6457, Phoenix, AZ 85005, 95–PAO–10616 (Implementation firm energy to existing contractors and telephone (602) 605–2675, email Agreement). potential new allottees as described in [email protected]. (2) Section 2(g)(1)(A) that requires the 2012 Conformed Criteria. SUPPLEMENTARY INFORMATION: each contract offered shall expire on (iii) Guidance related to the The BCP was authorized by the September 30, 2067. disposition Schedule D contingent Boulder Canyon Project Act of 1928 (3) Section 2(g)(2)(A) that prescribes capacity and firm energy that is not (Act) (43 U.S.C. 617). Under Section 5 the contract offered to the Metropolitan allocated and contracted for prior to of the Act, the Secretary of the Interior Water District of Southern California October 1, 2017, as described in the marketed the capacity and energy from (MWD) will not restrict use of capacity 2012 Conformed Criteria. the BCP under electric service contracts and energy, provided that to the extent (5) Section 2(i) that provides guidance effective through May 31, 1987. On practicable and consistent with sound in the event any existing contractor fails December 28, 1984, Western published water management and conservation to accept an offered contract as the 1984 Conformed Criteria (49 FR practice, MWD shall allocate such described in the 2012 Conformed 50582) to implement applicable capacity and energy to pump available Criteria. provisions of the Hoover Power Plant Colorado River water prior to using such (6) Section 2(j) that provides guidance Act of 1984 (43 U.S.C. 619) for the capacity and energy to pump California regarding Western’s obligations in the marketing of BCP power through State project water. event water is not available to produce September 30, 2017. On December 20, (4) Section 2(g)(4) that requires each the contingent capacity and firm energy 2011, Congress enacted the Hoover contract offered shall (i) authorize and set forth in Schedule A, Schedule B, and Power Allocation Act of 2011 (Pub. L. require Western to collect from new Schedule D, as described in the 2012 112–72), which provides direction and allottees a pro rata share of Hoover Dam Conformed Criteria. guidance in several key aspects of repayable advances paid for by Regulatory Procedure Requirements marketing BCP power after the existing contractors prior to October 1, 2017, and contracts expire in 2017. remit such amounts to the contractors Determination Under Executive Order Section 2(f) of the HPAA provides that paid such advances in proportion to 12866 that Subdivision C of the 1984 the amounts paid by such contractors as Western has an exemption from Conformed Criteria shall be deemed to specified in Section 6.4 of the centralized regulatory review under have been modified to conform to the Implementation Agreement; (ii) permit Executive Order 12866; accordingly, no HPAA, and the Secretary of Energy shall transactions with an independent clearance of this notice by the Office of cause to be included in the Federal system operator; and (iii) contain the Management and Budget is required. Register notice conforming the text of same material terms included in Section the regulations to such modifications. 5.6 of the current BCP firm electric Environmental Compliance This FRN conforms the text of the 1984 service power sales contracts in In accordance with the DOE National Conformed Criteria, as appropriate, to existence on December 20, 2011, the Environmental Policy Act Implementing the HPAA. date of enactment of the HPAA. Procedures (10 CFR 1021), Western has determined that these actions fit within Description of Revisions to Subdivision Part VI. Boulder Canyon Project a class of action B4.1 Contracts, policies, C of the 1984 Conformed Criteria Part VI of the 1984 Conformed Criteria and marketing and allocation plans for Required by the Enactment of HPAA is replaced in its entirety in order to electric power, in Appendix B to Part 1. General conform to and facilitate the following Subpart D to Part 1021—Categorical provisions of Section 2 of the HPAA: Exclusions Applicable to Specific Section A—Purpose and Scope (1) Section 2(a) that provides for Agency Actions. A reference to HPAA has been contract offers to existing Schedule A integrated into the purpose and scope contractors in predefined contract Revised 2012 Conformed Criteria section. quantities for delivery commencing Part I and Part VI of Section C of the October 1, 2017. 1984 Conformed Criteria are amended to Section B—Authorities (2) Section 2(b) that provides for read as follows: The HPAA has been added to the contract offers to existing Schedule B listed authorities. contractors in predefined contract C. Conformed General Consolidated Power quantities for delivery commencing Marketing Criteria or Regulations for Desert Section C—Contractual Information Southwest Region Projects October 1, 2017. The section has been updated to (3) Section 2(c) that provides for Part I. General incorporate the following provisions of excess energy provisions for deliveries Section A. Purpose and Scope. In HPAA: commencing October 1, 2017. accordance with Federal power marketing (1) Section 2(d)(2)(E) that requires (4) Section 2(d)(2) that provides for authorities in Reclamation Law and the each contract offered pursuant to the following: Department of Energy Organization Act of Schedule D shall include a provision (i) The creation of a resource pool 1977, Western has developed and, pursuant requiring the new allottee to pay a equal to 5 percent of BCP’s full rated to the Hoover Power Allocation Act of 2011 proportionate share of its State’s capacity of 2,074,000 kilowatts, and (Pub. L. 112–72) (HPAA), has modified the respective contribution (determined in associated firm energy, as depicted in Conformed General Consolidated Power Marketing Criteria or Regulations for Boulder accordance with each State’s applicable Schedule D. Western shall offer City Area Projects (1984 Conformed Criteria) funding agreement) to the cost of the prescribed portions of Schedule D published in the Federal Register (49 FR Lower Colorado River Multi-Species contingent capacity and firm energy to 50582) on December 28, 1984. These 2012 Conservation Program (MSCP) (as entities not receiving contingent Conformed Criteria establish general defined in Section 9401 of the Omnibus capacity and firm energy under marketing principles for power generated at

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Federal projects under the marketing Western’s obligations to deliver BCP power operating or scheduling instructions. Energy jurisdiction of Western’s Desert Southwest to the contractors will be subject to used for the purpose of supplying unloaded Regional Office (DSW). This document will availability of the water needed to produce synchronized generation to BCP power serve as new general power marketing such contingent capacity and firm energy. In contractors will be accounted for on a criteria for the Boulder Canyon Project (BCP) the event that water is not available to monthly basis, and will be supplied by the resource. Western may establish additional produce the contingent capacity and firm individual contractors through reductions in power marketing criteria, as deemed energy set forth in Schedule A, Schedule B, energy deliveries, in subsequent months, or necessary and appropriate as determined by and Schedule D, Western shall adjust the as otherwise mutually agreed by Western and Western, in a subsequent public process. The contingent capacity and firm energy offered the contractor, as specified in the power power marketing criteria for the Parker-Davis under those schedules in the same contracts. Project (PDP) and Central Arizona Project proportion as those contractors’ allocations of Whenever actual generation in any year is (CAP) remain unchanged with the Schedule A, Schedule B, and Schedule D less than the firm commitments (4,527.001 implementation of the 2012 Conformed contingent capacity and firm energy bears to million kilowatt-hours (kWh)), such Criteria. The establishment of these 2012 the full rated contingent capacity and firm deficiency shall be borne by the holders of Conformed Criteria shall serve as energy obligations. contracts in the ratio that the sum of the conformance of the 1984 Conformed Criteria Contracts for BCP power will allow for quantities of firm energy to which each pursuant to Section 2 (f) of the HPAA. reductions in capacity due to generating unit contractor is entitled, to the total firm Section B. Authorities. Federal power in outages or available capacity reductions commitments. Upon an individual the Desert Southwest Region is marketed in caused by forced outages, planned or contractor’s request, Western will purchase accordance with the power marketing unplanned maintenance activities, or energy, if necessary, specifically for the authorities in Federal Reclamation Law (Act reservoir drawdown. These reductions will purpose of fulfilling the energy obligations of June 17, 1902, (32 Stat. 388), and all acts also be applied on a proportionate basis as resulting from Schedule A, Schedule B, and amendatory thereof or supplementary previously described. Schedule D allocations. Any costs incurred thereto); the Department of Energy Each BCP contractor will be required to as a result of the contractor’s request for Organization Act of 1977 (91 Stat. 565); and contractually agree to supply its own reserves firming energy shall be borne solely by the in particular, those acts and amendments for power that meet or exceed the Western requesting contractor and will be reimbursed enabling the Boulder Canyon Project (45 Stat. Electricity Coordinating Council’s minimum in the year in which the costs were incurred. 1057); Hoover Power Plant Act of 1984 (Pub. reserve requirements. The individual projects will remain L. 98–381); Hoover Power Allocation Act of Each contract for BCP power will contain financially segregated for the purposes of 2011 (Pub. L. 112–72); Parker-Davis Project a provision by which any dispute or accounting and project repayment. The Desert Southwest Region rate schedules for (49 Stat. 1028, 1039; 68 Stat. 143); and the disagreement as to interpretation or each individual project will be developed to Colorado River Basin Project (82 Stat. 885). performance of the provisions of the Hoover satisfy cost recovery criteria for each project. Section C. Contractual Information. Power Power Allocation Act of 2011, or of In general, the cost recovery criteria will contracts will be implemented as existing applicable regulations or of the contract may include components such as operation and contracts terminate. The existing BCP be determined by arbitration or court maintenance, replacements, betterments, contracts terminate on September 30, 2017. proceedings. amortization of long-term debt with interest, Western will offer power contracts to each The contract offer to the Metropolitan and other financial obligations of the project. contractor containing the terms and Water District of Southern California for BCP Until the end of the repayment period for the conditions and any special provisions that capacity and energy will not restrict the use CAP, BCP and PDP will provide for surplus may be applicable to the power marketed to which capacity and energy contracted for revenues by including the equivalent of 41⁄2 under the 2012 Conformed Criteria. The by the Metropolitan Water District of mills per kWh in the rates charged to contracts will identify the amounts of Southern California may be placed within the contractors in Arizona and by including the capacity and energy to be delivered, the State of California; provided, that to the equivalent of 21⁄2 mills per kWh in the rates point(s) of delivery, and the maximum rate extent practicable and consistent with sound charged to contractors in California and of delivery at each point of delivery. The water management and conservation Nevada. After the repayment period of the contracts will be prepared and modified as practice, the Metropolitan Water District of CAP, the equivalent of 21⁄2 mills per kWh necessary. Western shall endeavor to Southern California shall allocate such shall be included in the rates charged to all maintain similar, if not identical, contractual capacity and energy to pump available contractors in Arizona, Nevada, and terms and conditions and any special Colorado River water prior to using such California. provisions amongst all BCP contractors. capacity and energy to pump California State In order to allow Reclamation to comply Each long-term power service contract water project water. with required minimum water releases and to entered into or amended shall contain Contracts offered shall contain the same allow Western to receive purchased energy provisions requiring the contractor to material terms included in Section 5.6 of during offpeak load hours, all power develop and implement energy conservation those long-term contracts for purchases from contractors may be required to schedule a measures as demonstrated in integrated the Hoover Power Plant that were made in minimum rate of delivery during such resource planning documents. accordance with the Hoover Power Plant Act offpeak load hours. The percentage of energy The PDP, CAP, and BCP projects shall be of 1984 and are in existence as of December to be taken by the contractors at the operationally integrated to improve the 20, 2011, the enactment date of the Hoover minimum scheduled rate of delivery shall be efficiency of the Federal system in Power Allocation Act of 2011. These established on a seasonal basis, and may be accordance with: the operational constraints provisions outline the use of generation by increased or decreased as conditions dictate. of the Colorado River, hydro-project power the contractor. Within the constraints of river The monthly minimum rate of delivery for plants, as may be imposed by the Secretary operation, each BCP power contractor is each power contractor will be computed by of the Interior or authorized representatives; permitted to schedule loaded and unloaded dividing the number of kilowatt-hours to be applicable laws; the general terms, synchronized generation, the sum of which taken during the month by a contractor at the conditions, and principles contained in these cannot exceed the amount of contingent minimum rate of delivery, by the number of 2012 Conformed Criteria; and the General capacity reserved for the individual offpeak load hours in the month. The number Power Contract Provisions in effect. contractor. To the extent that energy of kilowatt-hours to be taken during offpeak Long-term contracts for BCP power will entitlements are not exceeded, such load hours at the minimum rate of delivery commence on October 1, 2017, and terminate previously scheduled unloaded synchronized will not exceed 25 percent of the contractor’s on September 30, 2067. generation may be used for regulation, monthly energy entitlement. Offpeak load Contingent capacity is capacity that is ramping, and spinning reserves through the hours will be defined in the contracts based normally available, except during either use of a dynamic signal. These functions will on individual system characteristics. forced or planned outages, or unit de-ratings be deployed by Western and the Bureau of No contractor shall sell for profit any of its that affect power plant capability. All BCP Reclamation (Reclamation), in cooperation allocated capacity and energy to any capacity shall be marketed by Western as with the BCP power contractors, and customer of the contractor for resale by that contingent capacity to the contractors. implemented by contract through written customer.

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Contracts for BCP power shall permit collect such payments from new allottees or Species Conservation Program (as defined in transactions with an independent system existing contractors with an increased Section 9401 of the Omnibus Public Land operator. allocation and remit such amounts to the Management Act of 2009 (Pub. L. 111–11; Contract offers shall contain a provision contractors that paid such advances in 123 Stat. 1327)). requiring the new allottee to execute the proportion to the amounts paid by such Parts II through V remain unchanged. Boulder Canyon Project Implementation contractors as specified in Section 6.4 of the Agreement Contract No. 95–PAO–10616 Implementation Agreement. Part VI. Boulder Canyon Project (Implementation Agreement). Contract offers shall contain a provision Section A. Schedule A Long-Term Any new allottees or existing contractors requiring the new allottee to pay a Contingent Power. Electric service contracts with an increased allocation shall be required proportionate share of its State’s respective for long-term contingent capacity and firm to pay a pro rata share of Hoover Dam contribution (determined in accordance with energy under new terms and conditions will repayable advances paid for by contractors each State’s applicable funding agreement) to be offered to existing Boulder Canyon Project prior to October 1, 2017. Western shall the cost of the Lower Colorado River Multi- contractors in the following amounts:

Section B. Schedule B Long-Term for long-term contingent capacity and firm be offered to existing Boulder Canyon Project Contingent Power. Electric service contracts energy under new terms and conditions will contractors in the following amounts:

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Contracts for the amounts of capacity and Nevada respectively, as the agency specified Section C. Energy in Excess of Firm associated energy for the States of Arizona by State law as the agent of such State for Commitments. Energy generated in any year and Nevada resulting from Schedule B shall purchasing power from the Boulder Canyon of operation in excess of 4,501.001 million be offered to the Arizona Power Authority Project. kilowatt-hours shall be delivered in the and the Colorado River Commission of following order:

SCHEDULE C—EXCESS ENERGY

Priority of excess energy

A. First: The first 200 million kWh for use within the State of Arizona; Provided, That in the event excess energy in the amount of 200 million kWh is not generated during any year of operation, Arizona shall accumulate a first right to delivery of excess energy subsequently generated in an amount not to exceed 600 million kWh, inclusive of the current year’s 200 million kWh. Said first right of delivery shall accrue at a rate of 200 million kWh per year for each year excess energy in the amount of 200 million kWh is not generated, less amounts of excess energy delivered. B. Second: Meeting Hoover Dam contractual obligations under Section A (Schedule A), Section B (Schedule B), and Section D (Schedule D), not to exceed 26 million kWh in each year of operation. C. Third: Meeting the energy requirements of the States of Arizona, California, and Nevada; such available excess energy to be divided equally among the three States.

Section D. Schedule D Long-term entities not receiving contingent capacity and Electric service contracts for long-term Contingent Power. A resource pool of firm energy under Section A (Schedule A) or contingent capacity and firm energy under contingent capacity and associated firm Section B (Schedule B) (referred to herein as new terms and conditions will be offered to energy is created for allocation by Western to ‘‘New Allottees’’) for delivery commencing eligible entities in the following amounts: eligible entities. Western shall offer Schedule October 1, 2017. D contingent capacity and firm energy to

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In the case of resources committed to New 66.7 percent of Schedule D contingent C. Schedule D—33.3 Percent Allocated by Entities Allocated by State referred to in capacity and firm energy: State Schedule D, the following is prescribed: (1) In the case of Arizona and Nevada, Any of the 33.3 percent of Schedule D A. Western is allocating 11.1 percent of the Schedule D contingent capacity and firm contingent capacity and firm energy that is to total Schedule D contingent capacity and energy for New Allottees other than federally be distributed within the States of Arizona, firm energy to the Arizona Power Authority recognized Indian tribes shall be offered Nevada, and California that is not allocated for allocation to New Allottees in the State through the Arizona Power Authority and the and placed under contract by October 1, of Arizona, for delivery commencing October Colorado River Commission of Nevada, 2017, shall be returned to the Schedule A 1, 2017, for use in the Boulder City Area respectively. Schedule D contingent capacity and Schedule B contractors within the State marketing area. and firm energy allocated to federally in which the Schedule D contingent capacity B. Western is allocating 11.1 percent of the recognized Indian tribes shall be contracted and firm energy were to be distributed, in the total Schedule D contingent capacity and for directly with Western. same proportion as those contractors’ firm energy to the Colorado River (2) Western shall prescribe additional allocations of Schedule A and Schedule B Commission of Nevada for allocation to New marketing criteria developed pursuant to a contingent capacity and firm energy. Allottees in the State of Nevada, for delivery public process. commencing October 1, 2017, for use in the Section F. Contract Offer Schedule. In the Parts VII through VIII remain Boulder City Area marketing area. event that contract offers for Schedule A, unchanged. C. Western shall allocate 11.1 percent of Schedule B, or Schedule D are not accepted Dated: June 7, 2012. the total Schedule D contingent capacity and by existing contractors or new allottees, the firm energy to New Allottees within the State following shall determine the distribution of Anthony H. Montoya, of California, for delivery commencing the associated contingent capacity and firm Acting Administrator. October 1, 2017, for use in the Boulder City energy: [FR Doc. 2012–14572 Filed 6–13–12; 8:45 am] Area marketing area. A. Schedule A and Schedule B BILLING CODE 6450–01–P Section E. General Marketing Criteria. Western is establishing the following general If any existing contractor fails to accept an marketing criteria to be used in the allocation offered contract, Western shall offer the of Schedule D contingent capacity and firm contingent capacity and firm energy thus ENVIRONMENTAL PROTECTION energy: available first to other entities in the same AGENCY State listed in Schedule A and Schedule B, A. General Eligibility Criteria second to other entities listed in Schedule A [FRL–9687–5] Western will apply the following general and Schedule B, third to other entities in the eligibility criteria to applicants seeking a same State that receive contingent capacity Public Water System Supervision power allocation: and firm energy under Schedule D, and last Program Revision for the State of (1) All qualified applicants must be eligible to other entities that receive contingent Texas to enter into contracts under Section 5 of the capacity and firm energy under Schedule D. AGENCY: United States Environmental Boulder Canyon Project Act (43 U.S.C. 617d) B. Schedule D—66.7 Percent Allocated by or be Federally recognized Indian tribes. Western Protection Agency (EPA). (2) All qualified applicants must be located ACTION: Notice of tentative approval. within the established Boulder City Area Any of the 66.7 percent of Schedule D marketing area. contingent capacity and firm energy that is to SUMMARY: Notice is hereby given that be allocated by Western that is not allocated the State of Texas is revising its B. General Allocation Criteria and placed under contract by October 1, Western will apply the following general 2017, shall be returned to those contractors approved Public Water System allocation criteria to applicants seeking an shown in Schedule A and Schedule B in the Supervision Program. Texas has allocation of the 11.1 percent of Schedule D same proportion as those contracts’ adopted the Lead and Copper Rule contingent capacity and firm energy to New allocations of Schedule A and Schedule B (LCR) Short-Term Revisions. EPA has Entities Allocated by State and the remaining contingent capacity and firm energy. determined that the proposed LCR

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Short-Term Revision submitted by ENVIRONMENTAL PROTECTION additive for use by any person in motor Texas is no less stringent than the AGENCY vehicles manufactured after model year corresponding federal regulation. 1974, which is not substantially similar [EPA–HQ–OAR–2011–0894; FRL–9681–1] Therefore, EPA intends to approve the to any fuel or fuel additive utilized in program revision. Regulation of Fuel and Fuel Additives; the certification of any model year 1975, or subsequent model year, vehicle or DATES: All interested parties may Modification to Octamix Waiver (TOLAD) engine under section 206 of the Act. The request a public hearing. A request for Environmental Protection Agency (EPA a public hearing must be submitted by AGENCY: Environmental Protection or the Agency) last issued an July 16, 2012 to the Regional Agency (EPA). interpretive rule on the phrase Administrator at the EPA Region 6 ACTION: Notice. ‘‘substantially similar’’ at 73 FR 22281 address shown below. Frivolous or (April 25, 2008). Generally speaking, insubstantial requests for a hearing may SUMMARY: The Environmental Protection this interpretive rule describes the types be denied by the Regional Agency has reconsidered a portion of a of unleaded gasoline that are likely to be Administrator. However, if a substantial fuel waiver granted to the Texas considered ‘‘substantially similar’’ to request for a public hearing is made by Methanol Corporation (Texas Methanol) the unleaded gasoline utilized in EPA’s July 16, 2012, a public hearing will be under the Clean Air Act on February 8, certification program by placing limits held. If no timely and appropriate 1988. This waiver was previously on a gasoline’s chemical composition as request for a hearing is received and the reconsidered and modified on October well as its physical properties, Regional Administrator does not elect to 28, 1988 in a Federal Register including the amount of alcohols and hold a hearing on his own motion, this publication titled ‘‘Fuel and Fuel ethers (oxygenates) that may be added to determination shall become final and Additives; Modification of a Fuel gasoline. Fuels that are found to be effective on July 16, 2012. Any request Waiver Granted to the Texas Methanol ‘‘substantially similar’’ to EPA’s for a public hearing shall include the Corporation.’’ Today’s notice approves certification fuels may be registered and following information: The name, the use of an alternative corrosion introduced into commerce. The current address, and telephone number of the inhibitor, TOLAD MFA–10A, in Texas ‘‘substantially similar’’ interpretive rule individual, organization, or other entity Methanol’s gasoline-alcohol fuel, for unleaded gasoline allows no more requesting a hearing; a brief statement of OCTAMIX. than 2.7 percent oxygen by weight for the requesting person’s interest in the ADDRESSES: certain ethers and alcohols. Regional Administrator’s determination EPA has established a docket for this action under Docket ID Section 211(f)(4) of the Act provides and a brief statement of the information that upon application of any fuel or fuel that the requesting person intends to Number EPA–HQ–OAR–2011–0894. All documents and public comments in the additive manufacturer, the submit at such hearing; and the Administrator may waive the signature of the individual making the docket are listed on the http:// www.regulations.gov Web site. prohibitions of section 211(f)(1) if the request, or, if the request is made on Administrator determines that the behalf of an organization or other entity, Publically available docket materials are available either electronically through applicant has established that the fuel or the signature of a responsible official of fuel additive, or a specified the organization or other entity. http://www.regulations.gov or in hard copy at the Air Docket, EPA concentration thereof, will not cause or ADDRESSES: All documents relating to Headquarters Library, Mail Code: contribute to a failure of any emission this determination are available for 2822T, EPA West Building, 1301 control device or system (over the useful inspection between the hours of Constitution Ave. NW., Washington, life of the motor vehicle, motor vehicle 8:00 a.m. and 4:30 p.m., Monday DC. The Public Reading Room is open engine, nonroad engine or nonroad through Friday, at the following offices: from 8:30 a.m. to 4:30 p.m., Monday vehicle in which such device or system Texas Commission on Environmental through Friday, excluding holidays. The is used) to achieve compliance by the Quality, Water Supply Division, Public Public Reading Room is open from vehicle or engine with the emission Drinking Water Section (MC–155), 8:30 a.m. to 4:30 p.m., Monday through standards to which it has been certified Building F, 12100 Park 35 Circle, Friday, excluding holidays. The pursuant to sections 206 and 213(a) of Austin, TX 78753; and United States telephone number for the Public the Act. The statute requires that the Environmental Protection Agency, Reading Room is (202) 566–1742, and Administrator shall take final action to Region 6, Drinking Water Section the facsimile number for the Air Docket grant or deny an application after public (6WQ–SD), 1445 Ross Avenue, Suite is (202) 566–9744. notice and comment, within 270 days of 1200, Dallas, Texas 75202. receipt of the application. FOR FURTHER INFORMATION CONTACT: For The Texas Methanol Corporation FOR FURTHER INFORMATION CONTACT: information regarding this notice received a waiver under CAA section Damon McElroy, EPA Region 6, contact, Joseph R. Sopata, U.S. 211(f)(4) for a gasoline-alcohol fuel Drinking Water Section at the Dallas Environmental Protection Agency, blend, known as OCTAMIX,1 provided address given above or at telephone Office of Air and Radiation, Office of that the resultant fuel is composed of a (214) 665–7159, or by email at Transportation and Air Quality, (202) maximum of 3.7 percent by weight [email protected]. 343–9034, fax number, (202) 343–2800, oxygen, a maximum of 5 percent by email address: [email protected]. Authority: Section 1413 of the Safe volume methanol, a minimum of 2.5 Drinking Water Act, as amended (1996), and SUPPLEMENTARY INFORMATION: percent by volume co-solvents 2 and 40 CFR part 142 of the National Primary I. Background Drinking Water Regulations. 1 OCTAMIX waiver decision, 53 FR 3636 Section 211(f)(1) of the Clean Air Act (February 8, 1988). Dated: June 7, 2012. (CAA or the Act) makes it unlawful for 2 The co-solvents are any one or a mixture of Samuel Coleman, any manufacturer of any fuel or fuel ethanol, propanols, butanols, pentanols, hexanols, Acting Regional Administrator, Region 6. heptanols and octanols with the following additive to first introduce into constraints: the ethanol, propanols and butanols or [FR Doc. 2012–14570 Filed 6–13–12; 8:45 am] commerce, or to increase the mixtures thereof must compose a minimum of 60 BILLING CODE 6560–50–P concentration in use of, any fuel or fuel Continued

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42.7 milligrams per liter (mg/l) of MFA–10, used in the OCTAMIX volume percent and ethanol at 2.5 Petrolite TOLAD MFA–10 corrosion waiver.7 volume percent. The use of higher inhibitor.3 In the OCTAMIX waiver, the In order to determine whether the molecular weight cosolvent alcohols, Agency invited other corrosion inhibitor OCTAMIX waiver would meet the such as propanols or butanols, would manufacturers to submit test data to criteria of section 211(f) if TOLAD tend to be less corrosive. Both TOLAD establish, on a case-by-case basis, MFA–10A were to be used an MFA–10 and TOLAD MFA–10A passed whether their fuel additive formulations alternative corrosion inhibitor, EPA the NACE corrosion test with the most are acceptable as alternatives to TOLAD reviewed all data submitted with or aggressive fuel allowed under the MFA–10.4 referenced by the Baker Hughes OCTAMIX waiver. Since TOLAD MFA– On October 14, 2011, Baker Hughes application. Baker Hughes provided 10A passed the NACE corrosion test requested EPA allow the use of its data showing their corrosion inhibitor, using the most aggressive fuel alternative corrosion inhibitor, TOLAD MFA–10A, met the NACE formulation allowed under the TOLADTM MFA–10A, in the OCTAMIX corrosion test.8 EPA also considered the OCTAMIX waiver, the Agency believes gasoline-alcohol fuel blend which information received from the public that Baker Hughes has demonstrated otherwise would not be allowed under during the public comment period. that TOLAD MFA–10A is an effective the waiver.5 TOLADTM MFA–10A is a There were four public comments corrosion inhibitor for use under the fuel additive formulation consisting of a submitted to the Agency in response to OCTAMIX waiver. corrosion inhibitor. the notice published on January 20, With regard to the question of the On January 20, 2012, EPA published 2012. Carbon Recycling International,9 emissions impacts of TOLAD MFA– a notice in the Federal Register (77 FR Methanex,10 Methanol Institute 11 and 10A, its minimum treat rate of 25 mg/ 2979) announcing receipt of Baker TEIR Associates Incorporated 12 l is about 40 percent less than TOLAD Hughes’s request and inviting comment submitted comments in support of MFA–10. The chemical composition on it. The comment period closed on allowing TOLAD MFA–10A as an and treat rate of TOLAD MFA–10A, February 21, 2012. EPA received alternative corrosion inhibitor for use in which is less than 0.01 mass percent by comments from four commenters the OCTAMIX fuel. Two of these weight, is such that it is a fuel additive (discussed below). commenters noted that the original falling under the baseline gasoline fuel corrosion inhibitor, TOLAD MFA–10, 14 II. Discussion grouping category under our fuel and had been used successfully by several fuel additive registration regulations. In One of the major areas of concern to refiners on a commercial basis as an addition, the chemical composition and EPA in reviewing any waiver request is effective corrosion inhibitor. Two treat rate of TOLAD MFA–10A is such the problem of materials compatibility. commenters, in addition to Baker that it is a fuel additive that meets our Materials compatibility data could show Hughes, stated that the active gasoline substantially similar a potential failure of fuel systems, ingredients for corrosion inhibitor definition.15 Given that TOLAD MFA– emissions related parts and emission efficacy are the same for both TOLAD 10A is a fuel additive that is both control parts from use of the fuel or fuel MFA–10 and TOLAD MFA–10A, while substantially similar to the fuel additive. Any failure could result in one commenter in addition to Baker additives used in our certification greater emissions that would cause or Hughes noted that the only difference program and a fuel additive falling contribute to the engines or vehicles between these two corrosion inhibitor under our baseline gasoline fuel exceeding their emissions standards. formulations is a solvent to improve category, one would not expect Initially, Texas Methanol requested the additive handling in commerce. Three significant emissions changes from the use of TOLAD MFA–10 or an commenters noted that the Baker use of TOLAD MFA–10A compared to appropriate concentration of any other Hughes’ evaluation of both TOLAD other fuel additives that fall under the corrosion inhibitor such that the fuel MFA–10 and TOLAD MFA–10A baseline gasoline fuel category, which will pass the National Association of resulted in equivalent passing also includes TOLAD MFA–10 and Corrosion Engineer’s TM–01–72 (NACE performance with regards to the NACE DMA–67. Therefore, as long as the other 13 RUST TEST). However, EPA concluded corrosion test. conditions of the OCTAMIX waiver are that compliance with the NACE Rust TOLAD MFA–10A is a fuel additive met, which include applicable gasoline containing the same active ingredients Test alone was not adequate in volatility specifications,16 gasoline for corrosion inhibitor efficacy with determining suitability of a corrosion phase separation specifications 17 and OCTAMIX gasoline-alcohol fuels as the inhibitor for use under the OCTAMIX alcohol purity conditions,18 the Agency waiver.6 The Agency decided, therefore, original corrosion inhibitor approved in the OCTAMIX waiver, TOLAD MFA–10. to look at corrosion inhibitors on a case- 14 See 40 CFR 79.56(e)(3)(i). by-case basis to establish whether each The only difference between TOLAD 15 For our most recent substantially similar formulation would be acceptable as an MFA–10 and TOLAD MFA–10A is a gasoline interpretative rule, please see: http:// alternative to the formulation of the solvent formulation change to improve www.epa.gov/fedrgstr/EPA-AIR/2008/April/Day-25/ original corrosion inhibitor, TOLAD additive handling in commerce. Both a8944.pdf. TOLAD MFA–10 and TOLAD MFA– 16 See 40 CFR 80.27 for applicable volatility specifications for conventional gasoline, or 40 CFR percent by weight of the co-solvent mixture; a 10A were evaluated under the most 80 Subpart D for reformulated gasoline maximum limit of 40 percent by weight of the co- aggressive fuel formulation of alcohols requirements, or any applicable state solvents mixture is placed on the pentanols, allowed under the OCTAMIX waiver implementation plan approved by EPA that hexanols, heptanols and octanols; and the that included only methanol at 5 includes low RVP fuel. heptanols and octanols are limited to 5 percent by 17 See American Society for Testing and Materials weight of the co-solvent mixture. (ASTM) D4814 for applicable gasoline phase 3 7 53 FR at 3637. Additional conditions were the final fuel must separation conditions. 8 NACE Standard TM–01–72. meet ASTM volatility specifications contained in 18 Additional conditions were the final fuel must 9 ASTM D439–85a, as well as phase separation EPA–HQ–OAR–2011–0894–0008. meet ASTM volatility specifications contained in conditions specified in ASTM D–2 Proposal P–176 10 EPA–HQ–OAR–2011–0894–0007. ASTM D439–85a (ASTM D4814 supercedes ASTM and Texas Methanol alcohol purity specifications. 11 EPA–HQ–OAR–2011–0894–0005. D439–85a), as well as phase separation conditions 4 53 FR at 3637. 12 EPA–HQ–OAR–2011–0894–0006. specified in ASTM D–2 Proposal P–176 (ASTM 5 EPA–HQ–OAR–2011–0894–0001. 13 EPA–HQ–OAR–2011–0894–0002 and EPA– D4814 supercedes ASTM D–2 Proposal P–176) and 6 53 FR at 3637. HQ–OAR–2011–0894–0003. Texas Methanol alcohol purity specifications.

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believes the that the use of TOLAD the various statutory and other Government Review Time: 50 hours. MFA–10A in place of TOLAD MFA–10 provisions applicable to a rulemaking. Cost to the Government: $2,000. will allow engines and vehicles to Dated: June 7, 2012. Sharon A. Whitt, remain compliant with their emissions Lisa P. Jackson, standards when using fuels made as Agency Clearance Officer. Administrator. approved under the original conditions [FR Doc. 2012–14551 Filed 6–13–12; 8:45 am] granted for the OCTAMIX waiver. [FR Doc. 2012–14569 Filed 6–13–12; 8:45 am] BILLING CODE 6690–01–P BILLING CODE 6560–50–P III. Finding and Conclusion Based on the information submitted EXPORT-IMPORT BANK OF THE by Baker Hughes in its application, and EXPORT-IMPORT BANK OF THE UNITED STATES the additional information received UNITED STATES [Public Notice 2012–0136] during the public comment period, I [Public Notice 2012–0134] conclude that the performance of Agency Information Collection TOLAD MFA–10A in OCTAMIX would Agency Information Collection Activities: Final Collection; Comment be comparable to TOLAD MFA–10, the Activities: Final Collection; Comment Request original corrosion inhibitor approved Request AGENCY: Export-Import Bank of the U.S. under the OCTAMIX waiver. Therefore, AGENCY: I am modifying condition (3) of the Export-Import Bank of the U.S. ACTION: Submission for OMB Review OCTAMIX waiver to read as follows: ACTION: Submission for OMB review and and Comments Request. comments request. (3) Any one of the following four Form Title: EIB 94–08 Notification corrosion inhibitors must be included: Form Title: EIB 09–01 Payment and Assignment by Insured to Financial (a) Petrolite’s corrosion inhibitor Default Report OMB 3048–0028. Institution of Medium Term Export formulation, TOLAD MFA–10, blended SUMMARY: Credit Insurance Policy. in the final fuel at 42.7 mg/l; The Export-Import Bank of OR the United States (Ex-Im Bank), as a part SUMMARY: The Export-Import Bank of (b) DuPont’s corrosion inhibitor of its continuing effort to reduce the United States (Ex-Im Bank), as a part formulation, DMA–67, blended in the paperwork and respondent burden, of its continuing effort to reduce final fuel at 31.4 mg/l; invites the general public and other paperwork and respondent burden, OR Federal Agencies to comment on the invites the general public and other (c) Spirit of 21st Century LLC’s proposed information collection, as Federal Agencies to comment on the corrosion inhibitor formulation, required by the Paperwork Reduction proposed information collection, as TXCeed, blended in the final fuel at 3.9 Act of 1995. required by the Paperwork Reduction ml/gal (987.6 mg/l); This collection allows insured/ Act of 1995. Ex-Im Bank is requesting an OR guaranteed parties and insurance emergency approval of Ex-Im Bank form (d) Baker Hughes’s corrosion inhibitor brokers to report overdue payments EIB 94–08, Notification and Assignment formulation, TOLAD MFA–10A, from the borrower and/or guarantor. Ex- by Insured to Financial Institution of blended in the final fuel at 25 mg/l. Im Bank customers will submit this Medium Term Export Credit Insurance This action should provide additional form electronically through Ex-Im Policy. Ex-Im Bank’s exporter policy flexibility to any manufacturer wishing Online, replacing paper reporting. Ex-Im holders, along with the financial to produce the OCTAMIX blend. At the Bank has simplified reporting of institution providing it with financing, same time, any manufacturer wishing to payment defaults in this form by provide this form to Ex-Im Bank. The use a corrosion inhibitor other than the including checkboxes and providing for form transfers the duties and obligations four permitted by the OCTAMIX waiver many fields to be self-populated. Ex-Im of the insured exporter to the financial must apply for a further modification of Bank provides insurance, loads, and institution. It also provides the waiver. Since EPA is still unaware guarantees for the financing of exports certifications to the financial institution of any basis for extrapolating findings in of goods and services. and Ex-Im Bank that the financed export the emissions impact of one corrosion DATES: Comments should be received on transaction results in a valid, inhibitor to other corrosion inhibitors, or before August 13, 2012 to be assured enforceable, and performing debt the Agency will continue to examine the of consideration. obligation. Exporter policy holders need emissions impact of specific corrosion ADDRESSES: Direct all comments to this form to obtain financing for their inhibitor formulations on a case-by-case Mauricio Paredes, Export-Import Bank medium term export sales. Ex-Im Bank basis. of the United States, 811 Vermont Ave. believes that EIB 94–08 requires NW., Washington, DC 20571. emergency approval in order to IV. Miscellaneous continue operation of its medium term SUPPLEMENTARY INFORMATION: This waiver modification decision is Titles and Form Number: EIB 09–01 program for U.S. exporters. final agency action of national Lack of an emergency approval of this Payment Default Report. applicability for purposes of section OMB Number: 3048–0028. form would greatly restrict our ability to 307(b)(1) of the Act. Pursuant to CAA Type of Review: Regular. support many of the export sales made section 307(b)(1), judicial review of this Need and Use: the information by U.S. businesses. Without this form, it final agency action may be sought only requested enables insured/guaranteed would not be possible for financial in the United States Court of Appeals parties and insurance brokers to report institutions to obtain sufficient comfort for the District of Columbia Circuit. overdue payments from the borrower to provide funding to our exporter Petitions for review must be filed by and/or guarantor. policy holders. This would adversely August 13, 2012. Judicial review of this Affected Public: Insured/guaranteed impact Ex-Im Bank’s ability to finance final agency action may not be obtained parties and brokers. small business exporters and its overall in subsequent proceedings, pursuant to Annual Number of Respondents: 200. mission to support U.S. exports and CAA section 307(b)(2). This action is Estimated Time per Respondent: 15 maintain U.S. jobs. Accordingly, Ex-Im not a rulemaking and is not subject to minutes. Bank requests emergency approval of

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EIB 94–08 in order to continue Internal personnel rules and FEDERAL RESERVE SYSTEM operation of this important export procedures or matters affecting a program. particular employee. Change in Bank Control Notices; The form can be viewed at Investigatory records compiled for Acquisitions of Shares of a Bank or www.exim.gov/pub/pending/eib94– law enforcement purposes, or Bank Holding Company 08.pdf. information which if written would be DATES: Comments should be received on contained in such records. The notificants listed below have Information the premature disclosure or before July 16, 2012 to be assured of applied under the Change in Bank of which would be likely to have a consideration. Control Act (12 U.S.C. 1817(j)) and considerable adverse effect on the ADDRESSES: Comments may be § 225.41 of the Board’s Regulation Y implementation of a proposed (12 CFR 225.41) to acquire shares of a submitted electronically on Commission action. www.regulations.gov or by mail to bank or bank holding company. The Arnold Chow, Export-Import Bank of * * * * * factors that are considered in acting on the United States, 811 Vermont Ave. PERSON TO CONTACT FOR INFORMATION: the notices are set forth in paragraph 7 NW., Washington, DC 20571. Judith Ingram, Press Officer, Telephone: of the Act (12 U.S.C. 1817(j)(7)). (202) 694–1220. SUPPLEMENTARY INFORMATION: The notices are available for Titles and Form Number: EIB 94–08 Signed: immediate inspection at the Federal Notification and Assignment by Insured Shelley E. Garr, Reserve Bank indicated. The notices to Financial Institution of Medium Term Deputy Secretary of the Commission. also will be available for inspection at Export Credit Insurance Policy. [FR Doc. 2012–14669 Filed 6–12–12; 4:15 pm] the offices of the Board of Governors. OMB Number: 3048–xxx. BILLING CODE 6715–01–P Interested persons may express their Type of Review: Regular. views in writing to the Reserve Bank Need and Use: The form transfers the indicated for that notice or to the offices duties and obligations of the insured FEDERAL MARITIME COMMISSION of the Board of Governors. Comments exporter to the financial institution. It must be received not later than June 29, also provides certifications to the Notice of Agreement Filed 2012. financial institution and Ex-Im Bank that the financed export transaction The Commission hereby gives notice A. Federal Reserve Bank of New results in a valid, enforceable, and of the filing of the following agreement York (Ivan Hurwitz, Vice President) 33 performing debt obligation. Exporter under the Shipping Act of 1984. Liberty Street, New York, New York policy holders need this form to obtain Interested parties may submit comments 10045–0001: financing for their medium term export on the agreement to the Secretary, 1. Muhammad Habib, Zurich, sales. Federal Maritime Commission, Switzerland; to retain a controlling Affected Public: This form affects Washington, DC 20573, within ten days interest in Maham entities involved in the export of U.S of the date this notice appears in the Beteiligungsgessellschaft AG, Zurich, goods and services. Federal Register. A copy of the Switzerland, and thereby indirectly Annual Number of Respondents: 50. agreement is available through the retain control of Habib American Bank, Estimated Time per Respondent: 10 Commission’s Web site (www.fmc.gov) New York, New York. minutes. or by contacting the Office of Government Annual Burden Hours: 5 Agreements at (202) 523–5793 or B. Federal Reserve Bank of Atlanta hours. [email protected]. (Chapelle Davis, Assistant Vice Frequency of Reporting or Use: As Agreement No.: 201215. President) 1000 Peachtree Street NE., needed. Title: Port of Los Angeles Data Atlanta, Georgia 30309: Sharon A. Whitt, Delivery Agreement. 1. Robert Roschman and the Robert Parties: Port of Los Angeles; PierPass Agency Clearance Officer. Roschman Revocable Trust, Robert Inc.; APM Terminals Pacific; California Roschman trustee, all of Fort [FR Doc. 2012–14552 Filed 6–13–12; 8:45 am] United Terminals, Inc.; Eagle Marine Lauderdale, Florida; to retain control of BILLING CODE 6690–01–P Services, Ltd.; Seaside Transportation Giant Holdings, Inc., and thereby Services LLC; Trapac Inc.; Yusen indirectly retain control of Landmark Terminals, Inc.; and West basin Bank, NA, both in Fort Lauderdale, FEDERAL ELECTION COMMISSION Container Terminal L.L.C. Florida. Filing Party: David F. Smith, Esq., Sunshine Act Meeting Cozen O’Connor; 1627 I Street NW., C. Federal Reserve Bank of Kansas City (Dennis Denney, Assistant Vice AGENCY: Federal Election Commission. Suite 1100; Washington, DC 20006– President) 1 Memorial Drive, Kansas DATE AND TIME: Tuesday, June 19, 2012 4007. Synopsis: The agreement would City, Missouri 64198–0001: at 10:00 a.m. provide for delivery of data to the Port 1. David L. Spehar, Olathe, Kansas; PLACE: 999 E Street NW., Washington, of Los Angeles by the participating DC. Charles E. Thacker, Fulton, Illinois; marine terminal operators and PierPass Larry G. Barcus, Rockville, Missouri; STATUS: This meeting will be closed to Inc., and various arrangements John G. Sturtridge, Oro Valley, Arizona; the public. associated with that data delivery. and Keith L. Roberts, Leawood, Kansas; ITEMS TO BE DISCUSSED: all as a group acting in concert, to Compliance matters pursuant to By Order of the Federal Maritime Commission. acquire control of First Bancshares, Inc., 2 U.S.C. 437g. and thereby indirectly acquire control of Audits conducted pursuant to 2 Dated: June 11, 2012. The First State Bank of Kansas City, U.S.C. 437g, 438(b), and Title 26, U.S.C. Karen V. Gregory, Matters concerning participation in Secretary. Kansas, both in Kansas City, Kansas. civil actions or proceedings or [FR Doc. 2012–14539 Filed 6–13–12; 8:45 am] Board of Governors of the Federal Reserve arbitration. BILLING CODE P System.

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Dated: June 11, 2012. in mortgage lending activities pursuant available for inspection at the offices of Robert deV. Frierson, to section 225.28(b)(1) and (2). the Board of Governors. Interested Deputy Secretary of the Board. In addition, Diamond A Financial, persons may express their views in [FR Doc. 2012–14579 Filed 6–13–12; 8:45 am] L.P., and Hilltop Holdings Inc.; have writing on the standards enumerated in applied to retain an interest in SWS BILLING CODE 6210–01–P the HOLA (12 U.S.C. 1467a(e)). If the Group, Inc., and indirectly retain an proposal also involves the acquisition of interest in Southwest Securities, FSB, a nonbanking company, the review also FEDERAL RESERVE SYSTEM both in Dallas, Texas, and thereby includes whether the acquisition of the engage in the operation of a savings nonbanking company complies with the Formations of, Acquisitions by, and association pursuant to section standards in section 10(c)(4)(B) of the Mergers of Bank Holding Companies 225.28(b)(4)(ii). Applicants also have HOLA (12 U.S.C. 1467a(c)(4)(B)). Unless applied to engage in the following otherwise noted, nonbanking activities The companies listed in this notice activities: extending credit and servicing will be conducted throughout the have applied to the Board for approval, loans activities, pursuant to section United States. pursuant to the Bank Holding Company 225.28(b)(1) and (2); financial and Unless otherwise noted, comments Act of 1956 (12 U.S.C. 1841 et seq.) investment advisory activities, pursuant regarding each of these applications (BHC Act), Regulation Y (12 CFR part to section 225.28(b)(6); agency must be received at the Reserve Bank 225), and all other applicable statutes transactional services for customers, indicated or the offices of the Board of and regulations to become a bank including providing securities brokerage Governors not later than July 9, 2012. holding company and/or to acquire the services, pursuant to section A. Federal Reserve Bank of assets or the ownership of, control of, or 225.28(b)(7); acting as riskless-principal Philadelphia (William Lang, Senior the power to vote shares of a bank or and providing private-placement Vice President) 100 North 6th Street, bank holding company and all of the services and other transactional services Philadelphia, Pennsylvania 19105– banks and nonbanking companies as agent for customers, pursuant to 1521: owned by the bank holding company, section 225.28(b)(7); underwriting and 1. Northfield Bancorp, MHC, Staten including the companies listed below. dealing in government obligations and Island, New York; to convert to a stock The applications listed below, as well money market investments, pursuant to form and merge with and into as other related filings required by the section 225.28(b)(8); community Northfield Bancorp, Inc., Woodbridge, Board, are available for immediate development activities, pursuant to New Jersey, which will become a inspection at the Federal Reserve Bank section 225.28(b)(12); and issuing and savings and loan holding company by indicated. The applications will also be selling money orders, savings bonds, acquiring Northfield Bank, Staten available for inspection at the offices of traveler’s checks and similar consumer Island, New York. the Board of Governors. Interested payment instruments, pursuant to Board of Governors of the Federal Reserve persons may express their views in section 225.28(b)(13). System. writing on the standards enumerated in Board of Governors of the Federal Reserve Dated: June 11, 2012. the BHC Act (12 U.S.C. 1842(c)). If the System. Robert deV. Frierson, proposal also involves the acquisition of Dated: June 11, 2012. Deputy Secretary of the Board. a nonbanking company, the review also Robert deV. Frierson, [FR Doc. 2012–14580 Filed 6–13–12; 8:45 am] includes whether the acquisition of the Deputy Secretary of the Board. BILLING CODE 6210–01–P nonbanking company complies with the [FR Doc. 2012–14578 Filed 6–13–12; 8:45 am] standards in section 4 of the BHC Act BILLING CODE 6210–01–P (12 U.S.C. 1843). Unless otherwise DEPARTMENT OF HEALTH AND noted, nonbanking activities will be HUMAN SERVICES conducted throughout the United States. FEDERAL RESERVE SYSTEM Unless otherwise noted, comments Office of the Secretary regarding each of these applications Formations of, Acquisitions by, and must be received at the Reserve Bank Mergers of Savings and Loan Holding Notice of Interest Rate on Overdue indicated or the offices of the Board of Companies Debts Governors not later than July 9, 2012. The companies listed in this notice Section 30.18 of the Department of A. Federal Reserve Bank of Dallas (E. have applied to the Board for approval, Health and Human Services’ claims Ann Worthy, Vice President) 2200 pursuant to the Home Owners’ Loan Act collection regulations (45 CFR part 30) North Pearl Street, Dallas, Texas 75201– (12 U.S.C. 1461 et seq.) (HOLA), provides that the Secretary shall charge 2272: Regulation LL (12 CFR part 238), and an annual rate of interest, which is 1. Diamond A Financial, L.P., Hilltop Regulation MM (12 CFR part 239), and determined and fixed by the Secretary Holdings Inc., and Meadow all other applicable statutes and of the Treasury after considering private Corporation, all in Dallas, Texas; to regulations to become a savings and consumer rates of interest on the date become bank holding companies by loan holding company and/or to acquire that the Department of Health and acquiring 100 percent of the voting the assets or the ownership of, control Human Services becomes entitled to shares of PlainsCapital Corporation, and of, or the power to vote shares of a recovery. The rate cannot be lower than its subsidiary bank, PlainsCapital Bank, savings association and nonbanking the Department of Treasury’s current both in Dallas, Texas. companies owned by the savings and value of funds rate or the applicable rate In connection with this application, loan holding company, including the determined from the ‘‘Schedule of Applicants also have applied to acquire companies listed below. Certified Interest Rates with Range of PrimeLending, a PlainsCapital The applications listed below, as well Maturities’’ unless the Secretary waives Company, and indirectly acquire as other related filings required by the interest in whole or part, or a different PrimeLending Ventures Management, Board, are available for immediate rate is prescribed by statute, contract, or LLC, and PrimeLending Ventures, LLC, inspection at the Federal Reserve Bank repayment agreement. The Secretary of all in Dallas, Texas; and thereby engage indicated. The application also will be the Treasury may revise this rate

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quarterly. The Department of Health and DEPARTMENT OF HEALTH AND Payments Information Act provides for Human Services publishes this rate in HUMAN SERVICES estimates and reports of improper the Federal Register. payments by Federal agencies. Subpart The current rate of 107⁄8%, as fixed by Administration for Children and K of 45 CFR, Part 98 requires the Secretary of the Treasury, is certified Families preparation and submission of a report for the quarter ended March 31, 2012. of errors occurring in the administration This interest rate is effective until the Submission for OMB Review; Comment Request of Child Care Development Fund Secretary of the Treasury notifies the (CCDF) grant funds once every three Department of Health and Human Title: Child Care Development Fund years. The information collected will be Services of any change. (CCDF)—Reporting Improper used to prepare the annual Agency Dated: May 25, 2012. Payments—Instructions for States. Financial Report (AFR) and will provide Margie Yanchuk, OMB No.: 0970–0323. information necessary to offer technical Director, Office of Financial Policy and Description: The Improper Payments assistance to grantees. Reporting. Information Act of 2002 requires Respondents: State grantees, the [FR Doc. 2012–14526 Filed 6–13–12; 8:45 am] Federal agencies to annually report error District of Columbia, and Puerto Rico. BILLING CODE 4150–04–P rate measures. Section 2 of the Improper

ANNUAL BURDEN ESTIMATES

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

OMB #0970–0323 Record Review Worksheet ...... 17 276 .38 15 .43 72,497 .24 OMB #0970–0323 Data Entry Form ...... 17 276 .38 0.18 845 .72 OMB # 0970–0323 State Improper Authorizations for Payment Report 17 1 639 10,863

Estimated Total Annual Burden DEPARTMENT OF HEALTH AND collection associated with the Hours: 84,205.96 HUMAN SERVICES Evaluation for the Aging and Disability Resource Center (ADRC) Program is Additional Information Administration for Community Living necessary to determine the overall effect of ADRCs on both long term support Copies of the proposed collection may Agency Information Collection and service systems and individuals. be obtained by writing to the Activities; Submission for OMB ACL will gather information about how Administration for Children and Review; Comment Request; Evaluation Families, Office of Planning, Research of the Aging and Disability Resource ADRCs provide services and whether and Evaluation, 370 L’Enfant Center Program consumers, who access ADRCs, as Promenade SW., Washington, DC 20447, compared to consumers who access AGENCY: Attn: ACF Reports Clearance Officer. All Administration for Community other systems, report that the experience requests should be identified by the title Living, HHS. is more personalized, consumer- of the information collection. Email ACTION: Notice. friendly, streamlined, and efficient. Staff address: [email protected]. of the Administration for Community SUMMARY: The Administration for Living’s Administration on Aging’s OMB Comment Community Living (formerly the Office of Nutrition and Health Administration on Aging (AoA)) is Promotion Programs will use the OMB is required to make a decision announcing that the proposed collection information and recommendations concerning the collection of information of information listed below has been resulting from the evaluation of the submitted to the Office of Management between 30 and 60 days after Aging and Disability Resource Centers and Budget (OMB) for review and publication of this document in the to both determine the value of the ADRC clearance under the Paperwork Federal Register. Therefore, a comment model and to improve program Reduction Act of 1995. is best assured of having its full effect operations. In response to the 60-day if OMB receives it within 30 days of DATES: Submit written comments on the Federal Register notice related to this publication. Written comments and collection of information by July 16, proposed data collection and published recommendations for the proposed 2012. on October 14, 2011, one set of information collection should be sent ADDRESSES: Submit written comments comments was received. The majority of directly to the following: Office of on the collection of information by fax the comments focused on the practical Management and Budget, Paperwork 202.395.6974 to the OMB Desk Officer utility of the proposed collection of Reduction Project, Fax: 202–395–7285, for ACL, Office of Information and information. The remaining comments Email: Regulatory Affairs, OMB. provided suggestions for enhancing the [email protected], FOR FURTHER INFORMATION CONTACT: quality and clarity of the information to Attn: Desk Officer for the Susan Jenkins, 202.357.3591. be collected. Many of the latter Administration for Children and SUPPLEMENTARY INFORMATION: In comments resulted in revisions to the Families. compliance with 44 U.S.C. 3507, the proposed data collection tools. The Administration for Community Living originally proposed data collection Robert Sargis, (Formerly the Administration for Aging) tools, the comments with responses and Reports Clearance Officer. has submitted the following proposed a revised set of data collection tools may [FR Doc. 2012–14484 Filed 6–13–12; 8:45 am] collection of information to OMB for be found on the AoA Web site: http:// BILLING CODE 4184–01–P review and clearance. The data www.aoa.gov/AoA_programs/

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Tools_Resources/docs/ Management, Food and Drug xenotransplantation that may pose a ADRC_Eval_Data_Collection.pdf. ACL Administration, 1350 Piccard Dr., hazard to the public health. The estimates the burden of this collection Rockville, MD 20850, 301–796–7726, collection of information described in of information as follows 1,118 hours [email protected]. this guideline is intended to provide for individuals and 463 hours for SUPPLEMENTARY INFORMATION: Under the general guidance on the following organizations—Total Burden for Study PRA (44 U.S.C. 3501–3520), Federal topics: (1) The development of 1581 hours. Agencies must obtain approval from the xenotransplantation clinical protocols, Dated: June 7, 2012. Office of Management and Budget (2) the preparation of submissions to FDA, and (3) the conduct of Kathy Greenlee, (OMB) for each collection of xenotransplantation clinical trials. Also, information they conduct or sponsor. Administrator and Assistant Secretary for the collection of information will help Aging. ‘‘Collection of information’’ is defined ensure that the sponsor maintains in 44 U.S.C. 3502(3) and 5 CFR [FR Doc. 2012–14317 Filed 6–13–12; 8:45 am] important information in a cross- 1320.3(c) and includes Agency requests BILLING CODE 4154–01–P referenced system that links the relevant or requirements that members of the records of the xenotransplantation public submit reports, keep records, or product recipient, xenotransplantation provide information to a third party. DEPARTMENT OF HEALTH AND product, source animal(s), animal Section 3506(c)(2)(A) of the PRA (44 HUMAN SERVICES procurement center, and significant U.S.C. 3506(c)(2)(A)) requires Federal Food and Drug Administration nosocomial exposures. The PHS Agencies to provide a 60-day notice in guideline describes an occupational [Docket No. FDA–2012–N–0559] the Federal Register concerning each health service program for the proposed collection of information, protection of health care workers Agency Information Collection including each proposed extension of an involved in xenotransplantation Activities; Proposed Collection; existing collection of information, procedures, caring for Comment Request; Public Health before submitting the collection to OMB xenotransplantation product recipients, Service Guideline on Infectious for approval. To comply with this and performing associated laboratory Disease Issues in Xenotransplantation requirement, FDA is publishing notice testing. The PHS guideline is intended of the proposed collection of to protect the public health and to help AGENCY: Food and Drug Administration, information set forth in this document. HHS. ensure the safety of using With respect to the following xenotransplantation products in ACTION: Notice. collection of information, FDA invites humans by preventing the introduction, comments on: (1) Whether the proposed SUMMARY: The Food and Drug transmission, and spread of infectious collection of information is necessary Administration (FDA) is announcing an diseases associated with for the proper performance of FDA’s opportunity for public comment on the xenotransplantation. functions, including whether the proposed collection of certain The PHS guideline also recommends information will have practical utility; information by the Agency. Under the that certain specimens and records be (2) the accuracy of FDA’s estimate of the Paperwork Reduction Act of 1995 (the maintained for 50 years beyond the date burden of the proposed collection of PRA), Federal Agencies are required to of the xenotransplantation. These information, including the validity of publish notice in the Federal Register include: (1) Records linking each the methodology and assumptions used; concerning each proposed collection of xenotransplantation product recipient (3) ways to enhance the quality, utility, information, including each proposed with relevant health records of the and clarity of the information to be extension of an existing collection of source animal, herd or colony, and the collected; and (4) ways to minimize the information, and to allow 60 days for specific organ, tissue, or cell type burden of the collection of information public comment in response to this included in or used in the manufacture on respondents, including through the notice. This notice solicits comments on of the product (3.2.7.1); (2) aliquots of use of automated collection techniques, the collection of information contained serum samples from randomly selected when appropriate, and other forms of in the Public Health Service (PHS) animal and specific disease information technology. guideline entitled ‘‘PHS Guideline on investigations (3.4.3.1); (3) source Infectious Disease Issues in PHS Guideline on Infectious Disease animal biological specimens designated Xenotransplantation,’’ dated January 19, Issues in Xenotransplantation—(OMB for PHS use (3.7.1), animal health 2001. Control Number 0910–0456)—Extension records (3.7.2), including necropsy results (3.6.4); and (4) recipients’ DATES: Submit either electronic or The statutory authority to collect this biological specimens (4.1.2). The written comments on the collection of information is provided under sections retention period is intended to assist information by August 13, 2012. 351 and 361 of the PHS Act (42 U.S.C. health care practitioners and officials in ADDRESSES: Submit electronic 262 and 264) and the provisions of the surveillance and in tracking the source comments on the collection of Federal Food, Drug, and Cosmetic Act of an infection, disease, or illness that information to http:// that apply to drugs (21 U.S.C. 301 et might emerge in the recipient, the www.regulations.gov. Submit written seq.). The PHS guideline recommends source animal, or the animal herd or comments on the collection of procedures to diminish the risk of colony after a xenotransplantation. information to the Division of Dockets transmission of infectious agents to the The recommendation for maintaining Management (HFA–305), Food and Drug xenotransplantation product recipient records for 50 years is based on clinical Administration, 5630 Fishers Lane, rm. and to the general public. The PHS experience with several human viruses 1061, Rockville, MD 20852. All guideline is intended to address public that have presented problems in human comments should be identified with the health issues raised by to human transplantation and are docket number found in brackets in the xenotransplantation, through therefore thought to share certain heading of this document. identification of general principles of characteristics with viruses that may FOR FURTHER INFORMATION CONTACT: Ila prevention and control of infectious pose potential risks in S. Mizrachi, Office of Information diseases associated with xenotransplantation. These

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characteristics include long latency periods, e.g., approximately 30 years for for xenotransplantation in humans. periods and the ability to establish hepatitis C. Other respondents for this collection of persistent infections. Several also share In addition, the PHS guideline information are an estimated four source the possibility of transmission among recommends that a record system be animal facilities, which provide source individuals through intimate contact developed that allows easy, accurate, xenotransplantation product material to with human body fluids. Human and rapid linkage of information among sponsors for use in human immunodeficiency virus (HIV) and the specimen archive, the recipient’s xenotransplantation procedures. These human T-lymphotropic virus are human medical records, and the records of the four source animal facilities keep retroviruses. Retroviruses contain source animal for 50 years. The medical records of the herds/colonies as ribonucleic acid that is reverse- development of such a record system is well as the medical records of the transcribed into deoxyribonucleic acid a one-time burden. Such a system is individual source animal(s). The total (DNA) using an enzyme provided by the intended to cross-reference and locate annual reporting and recordkeeping relevant records of recipients, products, burden is estimated to be approximately virus and the human cell machinery. source animals, animal procurement 45 hours. The burden estimates are That viral DNA can then be integrated centers, and nosocomial exposures. based on FDA’s records of into the human cellular DNA. Both Respondents to this collection of xenotransplantation-related INDs and viruses establish persistent infections information are the sponsors of clinical estimates of time required to complete and have long latency periods before the studies of investigational the various reporting, recordkeeping, onset of disease, 10 years, and 40 to 60 xenotransplantation products under and third-party disclosure tasks years, respectively. The human hepatitis investigational new drug applications described in the PHS guideline. viruses are not retroviruses, but several (INDs) and xenotransplantation product FDA is requesting an extension of share with HIV the characteristic that procurement centers, referred to as OMB approval for the following they can be transmitted through body source animal facilities. There are an reporting, recordkeeping, and third- fluids, can establish persistent estimated 2 respondents who are party disclosure recommendations in infections, and have long latency sponsors of INDs that include protocols the PHS guideline:

TABLE 1—REPORTING RECOMMENDATIONS

PHS guideline section Description

3.2.7.2 ...... Notify sponsor or FDA of new archive site when the source animal facility or sponsor ceases operations.

TABLE 2—RECORDKEEPING RECOMMENDATIONS

PHS guideline section Description

3.2.7 ...... Establish records linking each xenotransplantation product recipient with relevant records. 4.3 ...... Sponsor to maintain cross-referenced system that links all relevant records (recipient, product, source animal, animal procure- ment center, and nosocomial exposures). 3.4.2 ...... Document results of monitoring program used to detect introduction of infectious agents which may not be apparent clinically. 3.4.3.2 ...... Document full necropsy investigations including evaluation for infectious etiologies. 3.5.1 ...... Justify shortening a source animal’s quarantine period of 3 weeks prior to xenotransplantation product procurement. 3.5.2 ...... Document absence of infectious agent in xenotransplantation product if its presence elsewhere in source animal does not preclude using it. 3.5.4 ...... Add summary of individual source animal record to permanent medical record of the xenotransplantation product recipient. 3.6.4 ...... Document complete necropsy results on source animals (50-year record retention). 3.7 ...... Link xenotransplantation product recipients to individual source animal records and archived biologic specimens. 4.2.3.2 ...... Record base-line sera of xenotransplantation health care workers and specific nosocomial exposure. 4.2.3.3 and 4.3.2 Keep a log of health care workers’ significant nosocomial exposure(s). 4.3.1 ...... Document each xenotransplant procedure. 5.2 ...... Document location and nature of archived PHS specimens in health care records of xenotransplantation product recipient and source animal.

TABLE 3—DISCLOSURE RECOMMENDATIONS

PHS guideline section Description

3.2.7.2 ...... Notify sponsor or FDA of new archive site when the source animal facility or sponsor ceases operations. 3.4 ...... Standard operating procedures (SOPs) of source animal facility should be available to review bodies. 3.5.1 ...... Include increased infectious risk in informed consent if source animal quarantine period of 3 weeks is shortened. 3.5.4 ...... Sponsor to make linked records described in section 3.2.7 available for review. 3.5.5 ...... Source animal facility to notify clinical center when infectious agent is identified in source animal or herd after xenotransplantation product procurement.

FDA estimates the burden for this collection of information as follows:

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TABLE 4—ESTIMATED ANNUAL REPORTING BURDEN 1

Number of PHS Guideline section Number of responses per Total annual Average burden per Total hours respondents respondent responses response

3.2.7.2 2 ...... 1 1 1 0.50 (30 minutes) ...... 0.50 1 There are no capital costs or operating and maintenance costs associated with this collection of information. 2 FDA is using one animal facility or sponsor for estimation purposes.

TABLE 5—ESTIMATED ANNUAL RECORDKEEPING BURDEN 1

Number of Number of records Total annual Average burden per PHS guideline section recordkeepers per recordkeeper records recordkeeping Total hours

3.2.7 2 ...... 1 1 1 16 ...... 16 4.3 3 ...... 2 1 2 0.75 (45 minutes) ...... 1 .50 3.4.2 4 ...... 2 16 32 0.25 (15 minutes) ...... 8 3.4.3.2 5 ...... 2 4 8 0.25 (15 minutes) ...... 2 3.5.1 6 ...... 2 0.50 1 0.50 (30 minutes) ...... 0.50 3.5.2 6 ...... 2 0.50 1 0.25 (15 minutes) ...... 0.25 3.5.4 ...... 2 1 2 0.17 (10 minutes) ...... 0.34 3.6.4 7 ...... 2 4 8 0.25 (15 minutes) ...... 2 3.7 7 ...... 4 2 8 .0 0.08 (5 minutes) ...... 0 .64 4.2.3.2 8 ...... 2 25 50 0.17 (10 minutes) ...... 8 .50 4.2.3.2 6 ...... 2 0 .50 1 0.17 (10 minutes) ...... 0 .17 4.2.3.3 and 4.3.2 6 ...... 2 0 .50 1 0.17 (10 minutes) ...... 0.17 4.3.1 ...... 2 1 2 0.25 (15 minutes) ...... 0.50 5.2 9 ...... 2 6 12 0.08 (5 minutes) ...... 0 .96

Total ...... 41 .53 1 There are no capital costs or operating and maintenance costs associated with this collection of information. 2 A one-time burden for new respondents to set up a recordkeeping system linking all relevant records. FDA is using one new sponsor for esti- mation purposes. 3 FDA estimates there is minimal recordkeeping burden associated with maintaining the record system. 4 Monitoring for sentinel animals (subset representative of herd) plus all source animals. There are approximately 6 sentinel animals per herd × 1 herd per facility × 4 facilities = 24 sentinel animals. There are approximately 8 source animals per year (see footnote 7 of this table); 24 + 8 = 32 monitoring records to document. 5 Necropsy for animal deaths of unknown cause estimated to be approximately 2 per herd per year × 1 herd per facility × 4 facilities = 8. 6 Has not occurred in the past 3 years and is expected to continue to be a rare occurrence. 7 On average two source animals are used for preparing xenotransplantation product material for one recipient. The average number of source animals is 2 source animals per recipient × 4 recipients annually = 8 source animals per year. (See footnote 5 of table 6 of this document.) 8 FDA estimates there are approximately 2 clinical centers doing xenotransplantation procedures × approximately 25 health care workers in- volved per center = 50 health care workers. 9 Eight source animal records + 4 recipient records = 12 total records.

TABLE 6—ESTIMATED ANNUAL THIRD-PARTY DISCLOSURE BURDEN 1

Number of PHS Guideline section Number of disclosures per Total annual Average burden per Total hours respondents respondent disclosures disclosure

3.2.7.2 2 ...... 1 1 1 0.50 (30 minutes) ...... 0 .50 3.4 3 ...... 4 0.50 2 0.08 (5 minutes) ...... 0.16 3.5.1 4 ...... 4 0.25 1 0.25 (15 minutes) ...... 0.25 3.5.4 5 ...... 4 1 4 0.50 (30 minutes) ...... 2 3.5.5 4 ...... 4 0.25 1 0.25 (15 minutes) ...... 0.25

Total ...... 3.16 1 There are no capital costs or operating and maintenance costs associated with this collection of information. 2 FDA is using one animal facility or sponsor for estimation purposes. 3 FDA’s records indicate that an average of two INDs are expected to be submitted per year. 4 To our knowledge, has not occurred in the past 3 years and is expected to continue to be a rare occurrence. 5 Based on an estimate of 12 patients treated over a 3-year period, the average number of xenotransplantation product recipients per year is estimated to be 4.

Because of the potential risk for cross- PRA (5 CFR 1320.3(h)(5)). Also, because regulations and approved under the species transmission of pathogenic of the limited number of clinical studies OMB control numbers as follows: (1) persistent virus, the guideline with small patient populations, the ‘‘Current Good Manufacturing Practice recommends that health records be number of records is expected to be for Finished Pharmaceuticals,’’ 21 CFR retained for 50 years. Since these insignificant at this time. 211.1 through 211.208, approved under records are medical records, the Information collections in this OMB control number 0910–0139; (2) retention of such records for up to 50 guideline not included in tables 1 ‘‘Investigational New Drug years is not information subject to the through 6 can be found under existing Application,’’ 21 CFR 312.1 through

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312.160, approved under OMB control and experience with burdens are included in tables 1 through number 0910–0014; and; (3) information xenotransplantation, that any 6. included in a biologics license xenotransplantation product subject to In table 7 of this document, FDA application, 21 CFR 601.2, approved FDA regulation within the next 3 years identifies those collection of under OMB control number 0910–0338. will most likely be regulated as a information activities that are already (Although it is possible that a biological product.) However, FDA encompassed by existing regulations or xenotransplantation product may not be recognized that some of the information are consistent with voluntary standards regulated as a biological product (e.g., it collections go beyond approved which reflect industry’s usual and may be regulated as a medical device), collections; assessments for these FDA believes, based on its knowledge customary business practice.

TABLE 7—COLLECTION OF INFORMATION REQUIRED BY CURRENT REGULATIONS AND STANDARDS

21 CFR section PHS guideline section Description of collection of information activity (unless otherwise stated)

2.2.1 ...... Document off-site collaborations ...... 312.52. 2.5 ...... Sponsor ensures counseling patient + family + contacts ...... 312.62(c). 3.1.1 and 3.1.6 ...... Document well-characterized health history and lineage of source animals 312.23(a)(7)(a) and 211.84. 3.1.8 ...... Registration with and import permit from the Centers for Disease Control 42 CFR 71.53. and Prevention. 3.2.2 ...... Document collaboration with accredited microbiology labs ...... 312.52. 3.2.3 ...... Procedures to ensure the humane care of animals ...... 9 CFR parts 1, 2, and 3 and PHS Policy.1 3.2.4 ...... Procedures consistent for accreditation by the Association for Assessment AAALAC International Rules of Ac- and Accreditation of Laboratory Animal Care International (AAALAC creditation 2 and NRC Guide.3 International) and consistent with the National Research Council’s (NRC) Guide. 3.2.5, 3.4, and 3.4.1 ...... Herd health maintenance and surveillance to be documented, available, 211.100 and 211.122. and in accordance with documented procedures; record standard veteri- nary care. 3.2.6 ...... Animal facility SOPs ...... PHS Policy.1 3.3.3 ...... Validate assay methods ...... 211.160(a). 3.6.1 ...... Procurement and processing of xenografts using documented aseptic con- 211.100 and 211.122. ditions. 3.6.2 ...... Develop, implement, and enforce SOP’s for procurement and screening 211.84(d) and 211.122(c). processes. 3.6.4 ...... Communicate to FDA animal necropsy findings pertinent to health of re- 312.32(c). cipient. 3.7.1 ...... PHS specimens to be linked to health records; provide to FDA justification 312.23(a)(6). for types of tissues, cells, and plasma, and quantities of plasma and leu- kocytes collected. 4.1.1 ...... Surveillance of xenotransplant recipient; sponsor ensures documentation 312.23(a)(6)(iii)(f) and (g), and of surveillance program life-long (justify >2 yrs.); investigator case his- 312.62(b) and (c). tories (2 yrs. after investigation is discontinued). 4.1.2 ...... Sponsor to justify amount and type of reserve samples ...... 211.122. 4.1.2.2 ...... System for prompt retrieval of PHS specimens and linkage to medical 312.57(a). records (recipient and source animal). 4.1.2.3 ...... Notify FDA of a clinical episode potentially representing a xenogeneic in- 312.32. fection. 4.2.2.1 ...... Document collaborations (transfer of obligation) ...... 312.52. 4.2.3.1 ...... Develop educational materials (sponsor provides investigators with infor- 312.50. mation needed to conduct investigation properly). 4.3 ...... Sponsor to keep records of receipt, shipment, and disposition of investiga- 312.57 and 312.62(b). tive drug; investigator to keep records of case histories. 1 The ‘‘Public Health Service Policy on Humane Care and Use of Laboratory Animals’’ (http://www.grants.nih.gov/grants/olaw/references/ phspol.htm). 2 AAALAC International Rules of Accreditation (http://www.aaalac.org/accreditation/rules.cfm). 3 The NRC’s ‘‘Guide for the Care and Use of Laboratory Animals.’’

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Dated: June 8, 2012. www.regulations.gov. Submit written of automated collection techniques, Leslie Kux, comments on the collection of when appropriate, and other forms of Assistant Commissioner for Policy. information to the Division of Dockets information technology. Management (HFA–305), Food and Drug [FR Doc. 2012–14483 Filed 6–13–12; 8:45 am] Dietary Supplement Labeling Administration, 5630 Fishers Lane, Rm. BILLING CODE 4160–01–P Requirements and Recommendations 1061, Rockville, MD 20852. All comments should be identified with the Under the Dietary Supplement and Nonprescription Drug Consumer DEPARTMENT OF HEALTH AND docket number found in brackets in the heading of this document. Protection Act—(OMB Control Number HUMAN SERVICES 0910–0642)—Extension FOR FURTHER INFORMATION CONTACT: Food and Drug Administration Domini Bean, Office of Information In 2006, the DSNDCPA (Pub. L. 109– Management, Food and Drug 462, 120 Stat. 3469) amended the [Docket No. FDA–2012–N–0564] Administration, 1350 Piccard Dr., PI50– Federal Food, Drug, and Cosmetic Act Agency Information Collection 400T, Rockville, MD 20850, (the FD&C Act) with respect to serious Activities; Proposed Collection; [email protected]. adverse event reporting for dietary Comment Request; Dietary SUPPLEMENTARY INFORMATION: Under the supplements and nonprescription drugs Supplement Labeling Requirements PRA (44 U.S.C. 3501–3520), Federal marketed without an approved and Recommendations Under the Agencies must obtain approval from the application. The DSNDCPA also Dietary Supplement and Office of Management and Budget amended the FD&C Act to add section Nonprescription Drug Consumer (OMB) for each collection of 403(y) (21 U.S.C. 343(y)), which Protection Act information they conduct or sponsor. requires the label of a dietary ‘‘Collection of information’’ is defined supplement marketed in the United AGENCY: Food and Drug Administration, in 44 U.S.C. 3502(3) and 5 CFR States to include a domestic address or HHS. 1320.3(c) and includes Agency requests domestic telephone number through ACTION: Notice. or requirements that members of the which the product’s manufacturer, public submit reports, keep records, or packer, or distributor may receive a SUMMARY: The Food and Drug provide information to a third party. report of a serious adverse event Administration (FDA) is announcing an Section 3506(c)(2)(A) of the PRA (44 associated with the dietary supplement. opportunity for public comment on the U.S.C. 3506(c)(2)(A)) requires Federal In the Federal Register of September proposed collection of certain Agencies to provide a 60-day notice in 1, 2009 (74 FR 45221), FDA announced information by the Agency. Under the the Federal Register concerning each the availability of a guidance document Paperwork Reduction Act of 1995 (the proposed collection of information, entitled, ‘‘Guidance for Industry: PRA), Federal Agencies are required to including each proposed extension of an Questions and Answers Regarding the publish notice in the Federal Register existing collection of information, Labeling of Dietary Supplements as concerning each proposed collection of before submitting the collection to OMB Required by the Dietary Supplement information, including each proposed for approval. To comply with this and Nonprescription Drug Consumer extension of an existing collection of requirement, FDA is publishing notice Protection Act.’’ The guidance information, and to allow 60 days for of the proposed collection of document contains questions and public comment in response to the information set forth in this document. answers related to the labeling notice. This notice solicits comments on With respect to the following requirements in section 403(y) of the the information collection provisions of collection of information, FDA invites FD&C Act and provides guidance to the Dietary Supplement and comments on these topics: (1) Whether industry on the use of an explanatory Nonprescription Drug Consumer the proposed collection of information statement before the domestic address Protection Act (the DSNDCPA) and the is necessary for the proper performance or telephone number. The guidance guidance document entitled ‘‘Guidance of FDA’s functions, including whether document provides the Agency’s for Industry: Questions and Answers the information will have practical interpretation of the labeling Regarding the Labeling of Dietary utility; (2) the accuracy of FDA’s requirements for section 403(y) of the Supplements as Required by the Dietary estimate of the burden of the proposed FD&C Act and the Agency’s views on Supplement and Nonprescription Drug collection of information, including the the information that should be included Consumer Protection Act.’’ validity of the methodology and on the label. The Agency believes that DATES: Submit either electronic or assumptions used; (3) ways to enhance the guidance will enable persons to written comments on the collection of the quality, utility, and clarity of the meet the criteria for labeling that are information by August 13, 2012. information to be collected; and (4) established in section 403(y) of the ADDRESSES: Submit electronic ways to minimize the burden of the FD&C Act. comments on the collection of collection of information on FDA estimates the burden of this information to http:// respondents, including through the use collection of information as follows:

TABLE 1—ESTIMATED ANNUAL THIRD-PARTY DISCLOSURE BURDEN 1

Number of Number of disclosures Total annual Average Activity respondents per burden per Total hours disclosures disclosure respondent 2

Domestic address or phone number labeling requirement (21 U.S.C. 343(y)) ...... 1,460 3.8 5,560 0.5 2,780 FDA recommendation for label statement explaining pur- pose of domestic address or phone number ...... 1,460 3.8 5,560 0.5 2,780

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TABLE 1—ESTIMATED ANNUAL THIRD-PARTY DISCLOSURE BURDEN 1—Continued

Number of Total annual Average Activity Number of disclosures burden per Total hours respondents per disclosures disclosure respondent 2

Total ...... 5,560 1 There are no capital costs or operating and maintenance costs associated with this collection of information. 2 Number has been rounded to the nearest tenth.

The labeling requirements of section label, which lets consumers know the available to the public on FDA’s Web 403(y) of the FD&C Act became effective purpose of the domestic address or site. The BE recommendations on December 22, 2007, although FDA telephone number on the label of the identified in this notice were developed exercised enforcement discretion until dietary supplement product. Based using the process described in that September 30, 2010, to enable all firms upon its knowledge of food and dietary guidance. to meet the labeling requirements for supplement labeling, FDA estimates that DATES: Although you can comment on dietary supplements. FDA estimates that firms would require less than 0.5 hour any guidance at any time (see 21 CFR all labels required to include the per product to comply with the 10.115(g)(5)), to ensure that the Agency domestic address or telephone number Agency’s recommendations on the use considers your comments on these draft pursuant to section 403(y) of the FD&C of an explanatory statement. The total and revised draft guidances before it Act have been revised by the effective hour burden of this task is shown in row begins work on the final versions of the date. Thus, in succeeding years, the 2 of table 1. guidances, submit either electronic or Agency estimates that the burden hours The total reporting hour burden is written comments on the draft and associated with the labeling 5,560 hours, which equals the burden revised draft product-specific BE requirements of section 403(y) of the for the required domestic address or recommendations listed in this notice FD&C Act and the Agency’s telephone (2,780) plus the burden for by August 13, 2012. recommendations on the use of an the explanatory statement before the ADDRESSES: Submit written requests for explanatory statement will apply only to domestic address or telephone number single copies of the individual BE new product labels. Based on the A.C. (2,780). guidances to the Division of Drug Nielsen Sales Scanner Data, FDA Dated: June 8, 2012. Information, Center for Drug Evaluation estimated that the number of dietary Leslie Kux, and Research, Food and Drug supplement SKUs for which sales of the Assistant Commissioner for Policy. Administration, 10903 New Hampshire products are greater than zero is 55,600. [FR Doc. 2012–14487 Filed 6–13–12; 8:45 am] Ave., Bldg. 51, rm. 2201, Silver Spring, Assuming that the flow of new products MD 20993–0002. Send one self- BILLING CODE 4160–01–P is 10 percent per year, then addressed adhesive label to assist that approximately 5,560 new dietary office in processing your requests. See supplement products will come on the DEPARTMENT OF HEALTH AND the SUPPLEMENTARY INFORMATION section market each year. FDA also estimates HUMAN SERVICES for electronic access to the draft that there are about 1,460 dietary guidance recommendations. supplement manufacturers, re- Food and Drug Administration Submit electronic comments on the packagers, re-labelers, and holders of draft product-specific BE dietary supplements. Assuming the [Docket No. FDA–2007–D–0369] recommendations to http:// approximately 5,560 new products are Draft and Revised Draft Guidances for www.regulations.gov. Submit written split equally among the firms, then each comments to the Division of Dockets Industry Describing Product-Specific firm would prepare labels for close to Management (HFA–305), Food and Drug Bioequivalence Recommendations; four new products per year (5,560 new Administration, 5630 Fishers Lane, rm. Availability products/1,460 firms is approximately 1061, Rockville, MD 20852. 3.8 labels per firm). Thus, the estimated AGENCY: Food and Drug Administration, FOR FURTHER INFORMATION CONTACT: K. total annual disclosures are 5,560 (1,460 HHS. Geoffrey Wu, Center for Drug Evaluation × firms 3.8 labels per year = 5,560). ACTION: Notice. and Research (HFD–600), Food and The Agency expects that firms Drug Administration, 7519 Standish Pl., prepare the required labeling for their SUMMARY: The Food and Drug Rockville, MD 20855, 240–276–9326. products in a manner that takes into Administration (FDA) is announcing the SUPPLEMENTARY INFORMATION: account at one time all information availability of additional draft and required to be disclosed on their revised draft product-specific I. Background product labels. Based upon its bioequivalence (BE) recommendations. In the Federal Register of June 11, knowledge of food and dietary The recommendations provide product- 2010, FDA announced the availability of supplement labeling, FDA estimates that specific guidance on the design of BE a guidance for industry entitled firms would require less than 0.5 hour studies to support abbreviated new drug ‘‘Bioequivalence Recommendations for per product to comply with the applications (ANDAs). In the Federal Specific Products,’’ which explained the requirement to include the domestic Register of June 11, 2010 (75 FR 33311), process that would be used to make address or telephone number pursuant FDA announced the availability of a product-specific BE recommendations to section 403(y) of the FD&C Act. The guidance for industry entitled available to the public on FDA’s Web total hour burden of this task is shown ‘‘Bioequivalence Recommendations for site at http://www.fda.gov/Drugs/ in row 1 of table 1. Specific Products,’’ which explained the GuidanceComplianceRegulatory FDA estimates that all firms will process that would be used to make Information/Guidances/default.htm. As include an explanatory statement on the product-specific BE recommendations described in that guidance, FDA

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adopted this process as a means to Podofilox Dated: June 8, 2012. develop and disseminate product- R Leslie Kux, specific BE recommendations and Rotigotine Assistant Commissioner for Policy. Rufinamide provide a meaningful opportunity for [FR Doc. 2012–14477 Filed 6–13–12; 8:45 am] the public to consider and comment on T those recommendations. Under that Tapentadol HCl BILLING CODE 4160–01–P process, draft recommendations are Tetrabenazine Z posted on FDA’s Web site and DEPARTMENT OF HEALTH AND announced periodically in the Federal Zolpidem tartrate HUMAN SERVICES Register. The public is encouraged to III. Drug Products for Which Revised submit comments on those Draft Product-Specific BE Food and Drug Administration recommendations within 60 days of Recommendations Are Available their announcement in the Federal Register. FDA considers any comments FDA is announcing revised draft [Docket No. FDA–2010–D–0146] received and either publishes final product-specific BE recommendations Guidance for Industry on Irritable recommendations or publishes revised for drug products containing the Bowel Syndrome—Clinical Evaluation draft recommendations for comment. following active ingredients: of Drugs for Treatment; Availability; Recommendations were last announced D in the Federal Register of March 28, Dexamethasone; tobramycin (multiple Correction 2012 (77 FR 18827). This notice RLDs) AGENCY: Food and Drug Administration, announces draft product-specific E recommendations, either new or Everolimus HHS. L revised, that are being posted on FDA’s ACTION: Notice; correction. Web site concurrently with publication Loteprednol etabonate of this notice. Loteprednol etabonate; tobramycin S SUMMARY: The Food and Drug II. Drug Products for Which New Draft Sorafenib tosylate Administration (FDA) is correcting a Product-Specific BE Recommendations For a complete history of previously notice that appeared in the Federal Are Available published Federal Register notices Register of May 31, 2012 (77 FR 32124). The document announced the FDA is announcing new draft related to product-specific BE product-specific BE recommendations recommendations, please go to http:// availability of a guidance for industry for drug products containing the www.regulations.gov and enter docket entitled ‘‘Irritable Bowel Syndrome— following active ingredients: number FDA–2007–D–0369. Clinical Evaluation of Drugs for These draft and revised draft Treatment.’’ The document was A guidances are being issued consistent Aliskiren hemifumarate; amlodipine published with an incorrect docket with FDA’s good guidance practices besylate number. This document corrects that regulation (21 CFR 10.115). These Alvimopan error. guidances represent the Agency’s Azilsartan medoxomil current thinking on product-specific FOR FURTHER INFORMATION CONTACT: B Joyce Strong, Office of Policy and Bacitracin design of BE studies to support ANDAs. Boceprevir They do not create or confer any rights Planning, Food and Drug C for or on any person and do not operate Administration, 10903 New Hampshire Cefpodoxime proxetil (multiple to bind FDA or the public. An Ave., Bldg. 32, Rm. 3208, Silver Spring, reference listed drugs (RLDs)) alternative approach may be used if MD 20993–0002, 301–796–9148. Cefprozil (multiple RLDs) such approach satisfies the requirements of the applicable statutes SUPPLEMENTARY INFORMATION: In FR Doc. Cetirizine HCl 2012–13143, appearing on page 32124 Ciprofloxacin HCl; hydrocortisone and regulations. in the Federal Register of Thursday, Clomiphene citrate IV. Comments D May 31, 2012, the following correction Dabigatran etexilate mesylate Interested persons may submit to the is made: Dexamethasone; tobramycin Division of Dockets Management (see 1. On page 32124, in the first column, Dinoprostone ADDRESSES) either electronic or written in the headings section of the document, Diphenhydramine; ibuprofen comments on any of the specific BE ‘‘[Docket No. FDA–2012–D–0146]’’ is E recommendations posted on FDA’s Web corrected to read ‘‘[Docket No. FDA– Erythromycin site. Identify comments with the docket 2010–D–0146]’’. F number found in brackets in the Famotidine; ibuprofen heading of this document. The Dated: June 8, 2012. G guidances, notices, and received Leslie Kux, Gabapentin enacarbil comments may be seen in the Division Assistant Commissioner for Policy. I of Dockets Management between 9 a.m. [FR Doc. 2012–14485 Filed 6–13–12; 8:45 am] and 4 p.m., Monday through Friday. Itraconazole BILLING CODE 4160–01–P K V. Electronic Access Ketoconazole L Persons with access to the Internet Lacosamide may obtain the document at either M http://www.fda.gov/Drugs/Guidance Malathion ComplianceRegulatoryInformation/ Morphine sulfate; naltrexone HCl Guidances/default.htm or http:// P www.regulations.gov.

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DEPARTMENT OF HEALTH AND Agency’s Division of Dockets continue to include a notice of HUMAN SERVICES Management. opportunity to request review of the order under section 515(g) of the FD&C ADDRESSES: Food and Drug Administration Submit written requests for copies of summaries of safety and Act. The 30-day period for requesting effectiveness data to the Division of reconsideration of an FDA action under [Docket Nos. FDA–2011–M–0726, FDA– Dockets Management (HFA–305), Food § 10.33(b) (21 CFR 10.33(b)) for notices 2011–M–0919, FDA–2012–M–0024, FDA– and Drug Administration, 5630 Fishers announcing approval of a PMA begins 2012–M–0056, FDA–2012–M–0074, FDA– Lane, rm. 1061, Rockville, MD 20852. on the day the notice is placed on the 2012–M–0075, FDA–2012–M–0082, FDA– Internet. Section 10.33(b) provides that 2012–M–0112, FDA–2012–M–0172, FDA– Please cite the appropriate docket number as listed in table 1 of this FDA may, for good cause, extend this 2012–M–0173, FDA–2012–M–0177, FDA– 30-day period. Reconsideration of a 2012–M–0180, FDA–2012–M–0181, FDA– document when submitting a written denial or withdrawal of approval of a 2012–M–0207, FDA–2012–M–0208, FDA– request. See the SUPPLEMENTARY PMA may be sought only by the 2012–M–0209, FDA–2012–M–0210, FDA– INFORMATION section for electronic 2012–M–0221, and FDA–2012–M–0250] access to the summaries of safety and applicant; in these cases, the 30-day effectiveness. period will begin when the applicant is Medical Devices; Availability of Safety notified by FDA in writing of its and Effectiveness Summaries for FOR FURTHER INFORMATION CONTACT: decision. Premarket Approval Applications Nicole Wolanski, Center for Devices and The regulations provide that FDA Radiological Health, Food and Drug publish a quarterly list of available AGENCY: Food and Drug Administration, Administration, 10903 New Hampshire safety and effectiveness summaries of HHS. Ave., Bldg. 66, rm. 1650, Silver Spring, PMA approvals and denials that were ACTION: Notice. MD 20993–0002, 301–796–6570. announced during that quarter. The SUPPLEMENTARY INFORMATION: following is a list of approved PMAs for SUMMARY: The Food and Drug which summaries of safety and Administration (FDA) is publishing a I. Background effectiveness were placed on the list of premarket approval applications In accordance with section 515(d)(4) Internet from January 1, 2012, through (PMAs) that have been approved. This and (e)(2) of the Federal Food, Drug, and March 31, 2012. There were no denial list is intended to inform the public of Cosmetic Act (the FD&C Act) (21 U.S.C. actions during this period. The list the availability of safety and 360e(d)(4) and (e)(2)), notification of an provides the manufacturer’s name, the effectiveness summaries of approved order approving, denying, or product’s generic name or the trade PMAs through the Internet and the withdrawing approval of a PMA will name, and the approval date.

TABLE 1—LIST OF SAFETY AND EFFECTIVENESS SUMMARIES FOR APPROVED PMAS MADE AVAILABLE FROM JANUARY 1, 2012, THROUGH MARCH 31, 2012

PMA No., Docket No. Applicant Trade name Approval date

P090012, FDA–2012–M–0074 ...... Mela Sciences, Inc ...... MelaFind ...... November 1, 2011. H100008, FDA–2011–M–0726 ...... TriVascular, Inc ...... OVATION Abdominal Stent Graft Sys- November 1, 2011. tem. H090002, FDA–2011–M–0848 ...... BSD Medical Corporation ...... BSD–2000 Hyperthermia System ...... November 18, 2011. H100004, FDA–2011–M–0919 ...... Berlin Heart, Inc ...... Berlin Heart EXCOR Pediatric Ventric- December 16, 2011. ular Assist Device. P110031, FDA–2012–M–0024 ...... Roche Diagnostics Corp ...... Elecsys Anti-HBc IgM Immunoassay January 3, 2012. and Elecsys PreciControl Anti-HBc IgM. P040043.S040, FDA–2012–M–0056 ... W.L. Gore & Associates, Inc ...... Gore TAG Thoracic Endoprosthesis ... January 13, 2012. P100039, FDA–2012–M–0075 ...... Siemens Healthcare Diagnostics Inc .. ADVIA Centaur Anti-HBs2 Assay and January 20, 2012. Quality Control Material. P100005, FDA–2012–M–0082 ...... Vucomp, Inc ...... M–Vu Algorithm Engine ...... January 23, 2012. P110016, FDA–2012–M–0112 ...... St. Jude Medical, Inc. (parent com- Therapy Cool Path Duo/Safire BLU January 25, 2012. pany for Irvine Biomedical, Inc.). Duo Ablation Catheter and IBI 1500T9–CP V1.6 Cardiac Ablation Generator. P080012, FDA–2012–M–0180...... Flowonix Medical, Inc. (approved Prometra Programmable Infusion February 7, 2012. under Medasys, Inc.). Pump System. P100007, FDA–2012–M–0172 ...... Almen Laboratories, Inc ...... Breast Companion Software System .. February 10, 2012. P100033, FDA–2012–M–0173 ...... Gen-Probe Inc ...... PROGENSA PCA3 Assay ...... February 13, 2012. P110013, FDA–2012–M–0177 ...... Medtronic Vascular ...... Resolute MicroTrac/Resolute Integrity February 17, 2012. Zotarolimus-Eluting Coronary Stent System. P110028, FDA–2012–M–0181 ...... Abbott Vascular Inc ...... Absolute Pro Vascular Self-Expanding February 22, 2012. Stent System. P100025, FDA–2012–M–0207 ...... Otsuka America Pharmaceutical, Inc .. BreathTek UBT H. pylori Kit and Pedi- February 22, 2012. atric Urea Hydrolysis Rate Calcula- tion Application (PUHR–CA), Version 1.0. P100023.S015, FDA–2012–M–0208 ... Boston Scientific Corp ...... ION Paclitaxel-Eluting Coronary Stent February 22, 2012. System (Monorail and Over-The- Wire Delivery Systems).

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TABLE 1—LIST OF SAFETY AND EFFECTIVENESS SUMMARIES FOR APPROVED PMAS MADE AVAILABLE FROM JANUARY 1, 2012, THROUGH MARCH 31, 2012—Continued

PMA No., Docket No. Applicant Trade name Approval date

P060008.S046, FDA–2012–M–0210 ... Boston Scientific Corp ...... TAXUS Liberte´ Paclitaxel-Eluting Cor- February 22, 2012. onary Stent System (Monorail and Over-The-Wire Delivery Systems). P030025.S086, FDA–2012–M–0209 ... Boston Scientific Corp ...... TAXUS Express2 Paclitaxel-Eluting February 22, 2012. Coronary Stent System (Monorail and Over-The-Wire Delivery Sys- tems). P110023, FDA–2012–M–0221 ...... ev3, Inc ...... Everflex Self-Expanding Peripheral March 7, 2012. Stent System (Everflex). P070004, FDA–2012–M–0250...... Sientra, Inc...... SIENTRA Silicone Gel Breast Im- March 9, 2012. plants.

II. Electronic Access LOCATION: The meeting will be held at submissions. In the process of Persons with access to the Internet the FDA White Oak Campus, 10903 considering these changes, FDA has may obtain the documents at http:// New Hampshire Ave., Bldg. 31 previously made available for comment www.fda.gov/MedicalDevices/ Conference Center, Great Room 1503, versions of documents that support ProductsandMedicalProcedures/ Silver Spring, MD 20993. The following making regulatory submissions in DeviceApprovalsandClearances/ link contains public meeting attendee electronic format using the (eCTD) information as well as frequently asked PMAApprovals/default.htm and http:// specifications. These draft documents questions and answers regarding public www.fda.gov/MedicalDevices/ represented FDA’s major updates to meetings at White Oak: http:// ProductsandMedicalProcedures/ Module 1 of the eCTD based on www.fda.gov/AboutFDA/ DeviceApprovalsandClearances/ previous comments. FDA will make WorkingatFDA/BuildingsandFacilities/ HDEApprovals/ucm161827.htm. available revised versions of these WhiteOakCampusInformation/ documents in preparation for this Dated: June 8, 2012. ucm241740.htm. meeting. These documents will be Leslie Kux, CONTACT: Julie Quinonez, Center for posted at: http://www.fda.gov/Drugs/ Assistant Commissioner for Policy. Drug Evaluation and Research, Food DevelopmentApprovalProcess/ [FR Doc. 2012–14486 Filed 6–13–12; 8:45 am] and Drug Administration, 10903 New FormsSubmissionRequirements/ BILLING CODE 4160–01–P Hampshire Ave., Bldg. 22, Rm. 1135, ElectronicSubmissions/ucm253101.htm. Silver Spring, MD 20993, 301–796– If you need special accommodations 0282, FAX: 301–796–9876, email: due to a disability, please contact Julie DEPARTMENT OF HEALTH AND [email protected]. Quinonez (see Contact) at least 7 days HUMAN SERVICES Registration: Send registration in advance. information (including name, title, firm Dated: June 8, 2012. Food and Drug Administration name, address, telephone, and fax Leslie Kux, number) to Julie Quinonez (see [Docket No. FDA–2012–N–0001] Contact). Registrations will be accepted Assistant Commissioner for Policy. in the order that they are received with [FR Doc. 2012–14469 Filed 6–13–12; 8:45 am] Update to Electronic Common BILLING CODE 4160–01–P Technical Document Module 1 a limit of 350. SUPPLEMENTARY INFORMATION: The eCTD AGENCY: Food and Drug Administration, is an International Conference on DEPARTMENT OF HEALTH AND HHS. Harmonization (ICH) standard based on HUMAN SERVICES ACTION: Notice of meeting. specifications developed by ICH and its member parties. The Center for Drug Food and Drug Administration The Food and Drug Administration Evaluation and Research (CDER) and the (FDA) is announcing the following Center for Biologics Evaluation and [Docket No. FDA–2012–N–0517] meeting: Update to Electronic Common Research (CBER) have been receiving Notice of Withdrawal of Certain Technical Document Module 1. The submissions in the eCTD format since topic to be discussed is final Unapproved Abbreviated New Drug 2003, and the eCTD has been the Applications documentation of the Electronic standard for electronic submissions to Common Technical Document (eCTD) CDER and CBER since January 1, 2008. AGENCY: Food and Drug Administration, Module 1, which is used for electronic In fact, the majority of new electronic HHS. submission of administrative and submissions are now received in eCTD ACTION: Notice. prescribing information by industry. format. Since adoption of the eCTD The purpose of the meeting is to provide standard, it has become necessary to SUMMARY: The Food and Drug clarification and answer questions from update the administrative portion of the Administration (FDA or the Agency) is industry and software vendors regarding eCTD Module 1 to reflect regulatory announcing its intention to deem to be the changes being made to this module. changes; to provide clarification of withdrawn any abbreviated new drug Registration is required in advance and business rules for submission, applications (ANDAs) that have been participation will be limited. processing, and review; to refine the determined to be incomplete and as to DATES: Date and Time: The meeting characterization of promotional labeling which the ANDA applicant has not will be held on Tuesday, September 18, and advertising material; and to communicated with FDA since July 8, 2012, from 8 a.m. to 11:30 a.m. facilitate automated processing of 1991. Each of these applications will be

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deemed to have been withdrawn the applicant informs the Agency in Abraxis Pharmaceutical Products voluntarily by the applicant unless the writing by the date set forth under DATES AH Robins, Co. applicant informs the Agency in writing in this document of its intent to actively Alpharma US Pharmaceuticals Division that it intends to actively pursue pursue approval of the application. Ambix Laboratories Division of approval of the application(s) (see Therefore, in the absence of a written Organics Corp America DATES). notice with respect to an Inactive ANDA Ankerfarm SpA DATES: The applicant of an ANDA by the date specified in this notice, the Ankerman SpA covered by this notice that intends to ANDA will be considered to have been Antibioticos SA actively pursue approval of its withdrawn by the applicant. No further Arcum Pharmaceutical Corp. application must submit a written notice of the withdrawal of Inactive Banner Pharmacaps, Inc. notification to FDA by August 13, 2012. ANDAs will be provided. Withdrawal of Barr Laboratories, Inc. an unapproved application is without Baxter Healthcare Corp. ADDRESSES: Applicants should submit prejudice to resubmission of that Beecham Laboratories Division of written notifications to the ANDA application (21 CFR 314.65). Because of Beecham Inc. archival file to the Office of Generic the length of time that has passed since Beecham SA Drugs, Center for Drug Evaluation and these applications were submitted, FDA Bel Mar Laboratories, Inc. Research, Food and Drug strongly recommends that any applicant Biocraft Laboratories, Inc. Administration, Document Control intending to actively pursue approval Biometric Testing, Inc. Room, MPN7, 7620 Standish Pl., review the application carefully to Boots Laboratories, Inc., Division of Rockville, MD 20855. A copy of written determine whether it satisfies current Boots Pharmaceuticals Inc. notifications should also be submitted ANDA requirements (21 CFR part 314). Bristol Laboratories, Inc., Division of to Thomas Hinchliffe, Center for Drug Bristol Myers Co. Evaluation and Research (HFD–617), III. Action by the Applicant Bristol Myers Co. International Division Food and Drug Administration, 7500 If the applicant wishes to actively Bristol Myers Industrial Division Standish Pl., rm. N–142, MPN2, pursue approval of an Inactive ANDA Bristol Myers Squibb Rockville, MD 20855, FAX: 240–276– and does not wish the application to be Camall Co., Inc. 8440, email: [email protected]. deemed by FDA to have been Carlo Erba SpA FOR FURTHER INFORMATION CONTACT: voluntarily withdrawn, the applicant Century Pharmaceuticals, Inc. Thomas Hinchliffe, Center for Drug must inform the Agency in writing Chemibiotic Ireland, Ltd. Evaluation and Research (HFD–617), within the time specified in this Chromalloy Laboratories Division of Food and Drug Administration, 7500 document. Written notice should be Chromalloy Pharmaceuticals, Inc. Standish Pl., rm. N–142, MPN2, provided to Thomas Hinchliffe and the Clifford Chemical Corp. Rockville, MD 20855, 240–276–8433, Office of Generic Drugs (see ADDRESSES). CM Bundy Co. FAX: 240–276–9310, email: FDA also asks any applicant that Comatic Laboratories, Inc. [email protected]. agrees to consider its application to be Credo Co. SUPPLEMENTARY INFORMATION: voluntarily withdrawn to send a written Delco Chemical Co., Inc. notice to Thomas Hinchliffe and the Dell Laboratories, Inc. I. Background Office of Generic Drugs (see ADDRESSES) Dermasave Laboratories, Inc. FDA has identified 364 ANDAs for to confirm that agreement. However, Dista Products Co. Division of Eli Lilly which FDA has not received any applicants of Inactive ANDAs covered & Co. communication from the ANDA by this notice who wish their DM Pharmaceuticals, Inc. applicant since July 8, 1991, or earlier applications to be withdrawn are not Dorasol Laboratories (Inactive ANDAs). (See section IV of this required to provide written notice to Dunhall Pharmaceuticals, Inc. document for the list of Inactive FDA. ER Squibb and Sons Pharmaceutical ANDAs). For purposes of this Laboratories document, the term ‘‘applicant’’ IV. Details About Inactive ANDAs Ersana, Inc., Subsidiary of ER Squibb includes any successor in interest. Information about the Inactive and Sons FDA’s regulations provide that the ANDAs is listed in this section of the Everylife Agency will consider withdrawn any document. To protect applicant Fallek Products Co., Inc. application for which the applicant has confidentiality, this notice lists the Farmila Farmaceutica not contacted the Agency about its application number and drug name for Faton Pharmaceuticals, Inc. intention regarding such application each Inactive ANDA and separately lists Fermion Oy within 1 year after issuance of a the name of the applicant as shown in Ferndale Laboratories, Inc. complete response letter to the the information on file with FDA, Fisons Corp. applicant (see 21 CFR 314.110(c)). The without linking identified applicants Forest Laboratories, Inc. Inactive ANDAs, however, predate, and with specific applications or drug Forest Pharmaceuticals, Inc. consequently are not subject to this names. In some cases, the identified Forrest Laboratories, Inc. regulation. Therefore, the Inactive applicants may no longer exist as G & W Co. ANDAs have not been deemed ongoing business entities. If an Glenwood Laboratories, Inc. withdrawn although there has been no identified applicant is unsure which Global Pharmaceutical Corp. communication from the applicants application(s) belong to it (if any), it Gruppo Lepetit SpA Subsidiary of since July 8, 1991, or earlier. may contact Thomas Hinchliffe (see FOR Merrell Dow Pharmaceuticals, Inc. FURTHER INFORMATION CONTACT). Heather Drug Co., Inc. II. Withdrawal of Inactive ANDAs Herald Pharmacal, Inc. At this time, the Agency is Alphabetical List of Abbreviated New Hoffmann La Roche, Inc. announcing its intention to deem all Drug Application Applicants ICI Ltd. Inactive ANDAs to have been 1st Texas Pharmaceuticals, Inc., Ingram Pharmaceutical Co. voluntarily withdrawn by the respective Subsidiary of Scherer Laboratories Inwood Laboratories, Inc., Subsidiary of applicants as of August 13, 2012, unless Inc. Forest Laboratories, Inc.

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ISF Parke Davis Division of Warner Lambert Schering Corp. Subsidiary of Schering Kasar Laboratories Division of Kasar Co. Co. Plough Corp. Kasco EFCO Laboratories, Inc., Division Pasadena Research Laboratories, Inc. Smith Kline and French Laboratory Co. of Byk Gulden, Inc. Penick Corp. Subsidiary of SmithKline Beckman KV Pharmaceutical, Co. Person and Covey, Inc. Societa Italiana Prodotti Schering Lannett Co, Inc. Pfizer Co. Lederle Laboratories Division of Pfizer, Inc. Sperti Drug Products, Inc. American Cyanamid Co. Pharmaceutical Associates, Inc. Stayner Corp. Leiner Health Products, Inc. Pharmacia and Upjohn Co. Steri Med, Inc. Subsidiary of Ketchum Lemmon Co. Subsidiary of Tag Pharmadyne Laboratories, Inc. Laboratories, Inc. Pharmaceutical, Inc. Pharmavite Pharmaceuticals Tablicaps, Inc. Life Laboratories, Inc. Phoenix Laboratories, Inc. Tera Pharmaceuticals, Inc. Linden Laboratories, Inc., Subsidiary of Polfa Pharmaceutical Works Teva Pharmaceuticals USA, Inc. Chromalloy American Corp. Premo Pharmaceutical Laboratories, Inc. Titan Pharmacal, Co. Luitpold Pharmaceuticals, Inc. Purepac Pharmaceutical Co. Marshall Pharmacal Corp. Rachelle Laboratories Italia SpA Travenol Laboratories, Inc. MD Pharmaceutical, Inc. Reed and Carnrick Division of Block Valeant Pharmaceuticals International Medev, Inc. Drug Co., Inc. Watson Laboratories, Inc. Mission Pharmacal Co. Rexar Pharmacal Western Research Laboratories, Inc. M M Mast & Co. Richlyn Laboratories, Inc. West-Ward Pharmaceutical Corp. Mutual Pharmaceutical Company, Inc. Robinson Laboratories, Inc. Wharton Laboratories, Inc., Division of Newtron Pharmaceuticals, Inc. Roussel Corp. US Ethicals Novartis Pharmaceuticals Corp. Rovers Pharmacal, Inc. Nylos Trading Co., Inc. RP Scherer Corp. Whiteworth Towne Paulsen, Inc. Panray Corp Subsidiary of Ormont Drug Sandoz, Inc. Wyeth Ayerst Laboratories and Chemical Co., Inc. Scherer Laboratories, Inc. Zenith Laboratories, Inc.

TABLE 1—ABBREVIATED NEW DRUG APPLICATION (ANDA) NUMBERS WITH PRODUCT NAMES

ANDA No. Product name

60881 ...... Tetracycline hydrochloride. 60913 ...... Dicloxacillin sodium. 60919 ...... Neomycin sulfate; bacitracin. 60965 ...... Neomycin sulfate; polymyxin b sulfates; bacitracin. 61046 ...... Penicillin g sodium. 61091 ...... Phenethicillin potassium. 61093 ...... Penicillin g potassium. 61097 ...... Troleandomycin. 61099 ...... Doxycycline hyclate. 61102 ...... Oxytetracycline calcium. 61114 ...... Chlortetracycline hydrochloride. 61116 ...... Ampicillin trihydrate. 61117 ...... Phenethicillin potassium. 61118 ...... Cloxacillin sodium. 61119 ...... Dicloxacillin sodium. 61120 ...... Tetracycline. 61121 ...... Tetracycline phosphate. 61142 ...... Penicillin g potassium. 61144 ...... Amphotericin b. 61145 ...... Penicillin g potassium. 61152 ...... Tetracycline hydrochloride. 61170 ...... Bacitracin. 61171 ...... Bacitracin zinc. 61191 ...... Tetracycline hydrochloride. 61192 ...... Tetracycline hydrochloride. 61194 ...... Paromomycin sulfate. 61197 ...... Tetracycline hydrochloride. 61382 ...... Ampicillin trihydrate. 61420 ...... Tetracycline. 61422 ...... Oxytetracycline hydrochloride. 61423 ...... Oxytetracycline. 61428 ...... Chloramphenicol palmitate. 61429 ...... Tetracycline. 61430 ...... Chloramphenicol. 61431 ...... Chloramphenicol. 61432 ...... Chloramphenicol sodium succinate. 61433 ...... Chloramphenicol sodium succinate. 61440 ...... Tetracycline hydrochloride. 61442 ...... Erythromycin estolate. 61556 ...... Tetracycline. 61564 ...... Methacycline hydrochloride. 61565 ...... Paromomycin sulfate. 61570 ...... Hetacillin.

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TABLE 1—ABBREVIATED NEW DRUG APPLICATION (ANDA) NUMBERS WITH PRODUCT NAMES—Continued

ANDA No. Product name

61581 ...... Tetracycline hydrochloride. 61582 ...... Tetracycline. 61597 ...... Ampicillin trihydrate. 61604 ...... Ampicillin sodium. 61608 ...... Tetracycline hydrochloride. 61629 ...... Penicillin g benzathine. 61630 ...... Streptomycin sulfate. 61631 ...... Dihydrostreptomycin sulfate. 61749 ...... Dicloxacillin sodium. 61750 ...... Ampicillin trihydrate. 61751 ...... Doxycycline hyclate. 61754 ...... Griseofulvin. 61775 ...... Tetracycline. 61777 ...... Mitomycin. 61778 ...... Erythromycin. 61779 ...... Erythromycin stearate. 61784 ...... Tetracycline hydrochloride. 61795 ...... Oxacillin sodium. 61796 ...... Oxacillin sodium. 61797 ...... Methicillin sodium. 61804 ...... Carbenicillin indanyl sodium. 61824 ...... Tetracycline. 61825 ...... Tetracycline. 61843 ...... Penicillin v potassium. 61844 ...... Ampicillin. 61845 ...... Ampicillin trihydrate. 61852 ...... Tetracycline phosphate complex. 61993 ...... Cloxacillin sodium. 62016 ...... Amoxicillin trihydrate. 62019 ...... Tetracycline hydrochloride. 62020 ...... Tetracycline phosphate. 62344 ...... Cloxacillin sodium. 80004 ...... Propylthiouracil. 80088 ...... Sulfadiazine. 80200 ...... Succinylcholine chloride. 80313 ...... Methyltestosterone. 80350 ...... Prednisone. 80351 ...... Prednisolone. 80359 ...... Prednisone. 80452 ...... Hydrocortisone. 80456 ...... Hydrocortisone. 80501 ...... Diphenhydramine hydrochloride. 80559 ...... Cyanocobalamin. 80560 ...... Pyridoxine hydrochloride. 80561 ...... Thiamine hydrochloride. 80616 ...... Cyanocobalamin. 80676 ...... Testosterone propionate. 80840 ...... Propylthiouracil. 80943 ...... Vitamin a palmitate. 80947 ...... Aminosalicylate sodium. 80956 ...... Vitamin d. 80985 ...... Vitamin a. 83002 ...... Diethylstilbestrol. 83003 ...... Diethylstilbestrol. 83004 ...... Diethylstilbestrol. 83005 ...... Diethylstilbestrol. 83006 ...... Diethylstilbestrol. 83007 ...... Diethylstilbestrol. 83114 ...... Vitamin a palmitate. 83133 ...... Folic acid. 83134 ...... Vitamin a. 83197 ...... Propoxyphene hydrochloride. 83203 ...... Niacin. 83208 ...... Cortisone acetate. 83233 ...... Hydrocortisone acetate. 83243 ...... Chlorpheniramine maleate. 83258 ...... Butabarbital sodium. 83259 ...... Pentobarbital sodium. 83268 ...... Butabarbital sodium. 83269 ...... Butabarbital sodium. 83293 ...... Propoxyphene hydrochloride. 83311 ...... Vitamin a palmitate.

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TABLE 1—ABBREVIATED NEW DRUG APPLICATION (ANDA) NUMBERS WITH PRODUCT NAMES—Continued

ANDA No. Product name

83321 ...... Vitamin a palmitate. 83335 ...... Prednisolone acetate. 83343 ...... Meprobamate. 83374 ...... Estrogens, esterified. 83394 ...... Chlorpheniramine maleate. 83421 ...... Probenecid. 83439 ...... Quinidine sulfate. 83444 ...... Rauwolfia serpentina. 83454 ...... Lidocaine. 83494 ...... Meprobamate. 83503 ...... Negatol. 83537 ...... Secobarbital sodium. 83553 ...... Procainamide hydrochloride. 83562 ...... Prednisolone acetate. 83578 ...... Butabarbital sodium. 83674 ...... Diphenhydramine hydrochloride. 83675 ...... Prednisolone. 83676 ...... Prednisone. 83756 ...... Piperazine citrate. 83772 ...... Pyridoxine hydrochloride. 83864 ...... Secobarbital sodium. 83865 ...... Promethazine hydrochloride. 83867 ...... Rauwolfia serpentina. 83880 ...... Propoxyphene hydrochloride. 83912 ...... Vitamin a palmitate. 83926 ...... Ergotamine tartrate; caffeine. 83929 ...... Cortisone acetate. 83940 ...... Diethylstilbestrol. 83958 ...... Propylthiouracil. 83960 ...... Prednisolone. 83974 ...... Trihexyphenidyl hydrochloride. 84008 ...... Chlorpheniramine maleate. 84009 ...... Prednisone. 84016 ...... Dextroamphetamine hydrochloride. 84027 ...... Promethazine hydrochloride. 84073 ...... Benzthiazide. 84080 ...... Promethazine hydrochloride. 84097 ...... Dicyclomine hydrochloride. 84237 ...... Niacin. 84257 ...... Dicyclomine hydrochloride. 84262 ...... Phenylbutazone. 84263 ...... Dimenhydrinate. 84293 ...... Dicyclomine hydrochloride. 84298 ...... Hydrochlorothiazide. 84311 ...... Phenylbutazone. 84365 ...... Dexamethasone sodium phosphate. 84382 ...... Meclizine hydrochloride. 84410 ...... Trichlormethiazide. 84428 ...... Propantheline bromide. 84459 ...... Propylthiouracil. 84485 ...... Phentermine hydrochloride. 84552 ...... Aminophylline. 84559 ...... Theophylline. 84632 ...... Aminophylline. 84670 ...... Chlordiazepoxide. 84671 ...... Chlordiazepoxide. 84672 ...... Chlordiazepoxide. 84695 ...... Phentermine hydrochloride. 84736 ...... Rescinnamine. 84846 ...... Methocarbamol. 84856 ...... Cortisone acetate. 84871 ...... Prednisolone acetate. 84906 ...... Reserpine; hydrochlorothiazide. 84979 ...... Hydrocortisone. 85033 ...... Methocarbamol. 85115 ...... Prednisone. 85170 ...... Prednisolone. 85174 ...... Cortisone acetate. 85185 ...... Diethylpropion hydrochloride. 85207 ...... Reserpine. 85242 ...... Chlordiazepoxide hydrochloride. 85258 ...... Chlordiazepoxide.

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TABLE 1—ABBREVIATED NEW DRUG APPLICATION (ANDA) NUMBERS WITH PRODUCT NAMES—Continued

ANDA No. Product name

85259 ...... Chlordiazepoxide. 85270 ...... Methyltestosterone. 85280 ...... Chlordiazepoxide hydrochloride. 85281 ...... Chlordiazepoxide hydrochloride. 85308 ...... Phenytoin sodium. 85325 ...... Methylprednisolone. 85360 ...... Chlordiazepoxide hydrochloride. 85405 ...... Perphenazine. 85412 ...... Tripelennamine hydrochloride. 85419 ...... Quinidine sulfate. 85439 ...... Butalbital; aspirin; phenacetin; caffeine. 85442 ...... Chlordiazepoxide hydrochloride. 85489 ...... Probenecid. 85516 ...... Theophylline. 85576 ...... Estradiol. 85590 ...... Oxyphenbutazone. 85592 ...... Brompheniramine maleate. 85613 ...... Phendimetrazine tartrate. 85647 ...... Amitriptyline hydrochloride. 85649 ...... Amitriptyline hydrochloride. 85678 ...... Amitriptyline hydrochloride. 85680 ...... Amitriptyline hydrochloride. 85696 ...... Isoniazid; pyridoxine hydrochloride. 85707 ...... Isopropamide iodide. 85716 ...... Hydralazine hydrochloride. 85717 ...... Hydralazine hydrochloride. 85725 ...... Phendimetrazine tartrate. 85730 ...... Cyanocobalamin. 85731 ...... Phentermine hydrochloride. 85760 ...... Chlorothiazide. 85774 ...... Methyltestosterone. 85776 ...... Methyltestosterone. 85806 ...... Reserpine; hydralazine hydrochloride; hydrochlorotiazide. 85807 ...... Meclizine hydrochloride. 85808 ...... Meclizine hydrochloride. 85812 ...... Propoxyphene hydrochloride. 85901 ...... Imipramine hydrochloride. 85918 ...... Ergotamine tartrate; caffeine. 85942 ...... Amitriptyline hydrochloride. 85943 ...... Triamcinolone acetonide. 85946 ...... Amitriptyline hydrochloride. 85947 ...... Amitriptyline hydrochloride. 85948 ...... Amitriptyline hydrochloride. 85949 ...... Amitriptyline hydrochloride. 85950 ...... Amitriptyline hydrochloride. 85954 ...... Methyltestosterone. 85955 ...... Methyltestosterone. 85972 ...... Acetaminophen; salicylamide; caffeine; codeine phosphate. 86068 ...... Triamcinolone acetonide. 86111 ...... Amodiaquine hydrochloride. 86115 ...... Bethanechol chloride. 86125 ...... Quinidine sulfate. 86128 ...... Chlorpromazine. 86131 ...... Acetazolamide. 86207 ...... Hydrocortisone acetate. 86211 ...... Phendimetrazine tartrate. 86253 ...... Trihexyphenidyl hydrochloride. 86254 ...... Chlorothiazide. 86279 ...... Hydrochlorothiazide. 86286 ...... Butalbital; aspirin; phenacetin; caffeine. 86288 ...... Amitriptyline hydrochloride. 86316 ...... Orphenadrine citrate. 86317 ...... Diphenoxylate hydrochloride; atropine sulfate. 86318 ...... Hydrochlorothiazide. 86319 ...... Hydrochlorothiazide. 86320 ...... Methocarbamol. 86321 ...... Methocarbamol. 86322 ...... Prednisone. 86324 ...... Prednisone. 86326 ...... Butalbital; aspirin; phenacetin; caffeine. 86327 ...... Trifluoperazine hydrochloride. 86334 ...... Hydrocortisone.

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TABLE 1—ABBREVIATED NEW DRUG APPLICATION (ANDA) NUMBERS WITH PRODUCT NAMES—Continued

ANDA No. Product name

86343 ...... Thioridazine hydrochloride. 86345 ...... Thioridazine hydrochloride. 86354 ...... Thioridazine hydrochloride. 86377 ...... Hydrochlorothiazide. 86400 ...... Hydrocortisone acetate. 86401 ...... Hydrocortisone acetate. 86404 ...... Phendimetrazine tartrate. 86407 ...... Phendimetrazine tartrate. 86411 ...... Dimenhydrinate. 86412 ...... Dicyclomine hydrochloride. 86430 ...... Phendimetrazine;adipic acid. 86431 ...... Phendimetrazine. 86436 ...... Homatropine methylbromide. 86437 ...... Homatropine hydrobromide. 86438 ...... Trifluoperazine hydrochloride. 86443 ...... Trifluoperazine hydrochloride. 86447 ...... Trifluoperazine hydrochloride. 86476 ...... Diazepam. 86510 ...... Phentermine hydrochloride. 86515 ...... Phentermine hydrochloride. 86529 ...... Dicyclomine hydrochloride; phenobarbital. 86555 ...... Phendimetrazine tartrate. 86563 ...... Dicyclomine hydrochloride; phenobarbital. 86564 ...... Phenobarbital; atropine sulfate; hyoscyamine sulfate; hyscyamine hydrobromide. 86565 ...... Phenobarbital; hyoscyamine sulfate; atropine sulfate; scopolamine hydrobromide. 86566 ...... Dicyclomine hydrochloride; phenobarbital. 86581 ...... Chlordiazepoxide hydrochloride; clidinium bromide. 86591 ...... Phenobarbital; hyoscyamine sulfate; atropine sulfate; scopolamine hydrobromide. 86625 ...... Dicyclomine hydrochloride. 86627 ...... Meprobamate; tridihexethyl chloride. 86629 ...... Meprobamate; tridihexethyl chloride. 86630 ...... Piperidolate hydrochloride; phenobarbital. 86634 ...... Chlordiazepoxide hydrochloride; clidinium bromide. 86644 ...... Piperidolate hydrochloride. 86647 ...... Chlordiazepoxide hydrochloride; clidinium bromide. 86650 ...... Anisotropine methylbromide; phenobarbital. 86654 ...... Meprobamate; tridihexethyl chloride. 86655 ...... Atropine sulfate; hyoscyamine sulfate; phenobarbital; scopolamine hydrobromide. 86657 ...... Phenobarbital; atropine sulfate; hyoscyamine sulfate; scopolamine hydrobromide. 86658 ...... Meprobamate; tridihexethyl chloride. 86665 ...... Phenobarbital; atropine sulfate; hyoscyamine sulfate; scopolamine hydrobromide. 86667 ...... Chlordiazepoxide hydrochloride; clidinium bromide. 86668 ...... Phenobarbital; belladonna alkaloid malates, l-. 86669 ...... Dicyclomine hydrochloride. 86670 ...... Atropine sulfate; hyoscyamine sulfate; phenobarbital; scopolamine hydrobromide. 86671 ...... Phenobarbital; hyoscyamine sulfate. 86674 ...... Meprobamate; tridihexethyl chloride. 86675 ...... Butabarbital sodium; simethicone; atropine sulfate; hyoscyamine sulfate; scopoamine. 86685 ...... Chlordiazepoxide hydrochloride; clidinium bromide. 86687 ...... Phenobarbital; belladonna extract. 86692 ...... Amobarbital; belladonna. 86694 ...... Oxyphencyclimine hydrochloride; phenobarbital. 86696 ...... Phenobarbital; hyoscyamine sulfate; atropine sulfate; scopolamine hydrobromide. 86701 ...... Atropine sulfate; phenobarbital. 86703 ...... Phenobarbital; hyoscyamine sulfate; atropine sulfate; scopolamine hydrobromide. 86704 ...... Phenobarbital; hyoscyamine sulfate; atropine sulfate; scopolamine hydrobromide. 86706 ...... Meprobamate; tridihexethyl chloride. 86708 ...... Cyproheptadine hydrochloride. 86709 ...... Meprobamate; tridihexethyl chloride. 86721 ...... Procainamide hydrochloride. 86770 ...... Nitroglycerin. 86773 ...... Triamcinolone diacetate. 86774 ...... Erythrityl tetranitrate. 86775 ...... Isosorbide dinitrate. 86776 ...... Pentaerythritol tetranitrate. 86777 ...... Nitroglycerin. 86779 ...... Nitroglycerin. 86782 ...... Nitroglycerin. 86783 ...... Isosorbide dinitrate. 86784 ...... Pentaerythritol tetranitrate. 86785 ...... Pentaerythritol tetranitrate. 86786 ...... Isosorbide dinitrate.

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TABLE 1—ABBREVIATED NEW DRUG APPLICATION (ANDA) NUMBERS WITH PRODUCT NAMES—Continued

ANDA No. Product name

86789 ...... Estradiol valerate. 86794 ...... Dipyridamole. 86799 ...... Atropine sulfate; phenobarbital. 86838 ...... Pentaerythritol tetranitrate. 86839 ...... Isosorbide dinitrate. 86868 ...... Chlorpromazine hydrochloride. 86882 ...... Hydrocortisone. 86897 ...... Phenobarbital; hyoscyamine hydrobromide; atropine sulfate; scopolamine hydrobromide. 86921 ...... Chlordiazepoxide hydrochloride; clidinum bromide. 86970 ...... Aminophylline. 86976 ...... Doxylamine succinate; pyridoxine hydrochloride. 86991 ...... Probenecid. 86999 ...... Butalbital; aspirin; phenacetin; caffeine. 87000 ...... Hydralazine hydrochloride. 87041 ...... Phendimetrazine tartrate. 87064 ...... Piperazine citrate. 87069 ...... Sulfisoxazole acetyl. 87096 ...... Phentermine hydrochloride. 87097 ...... Phentermine hydrochloride. 87098 ...... Phentermine hydrochloride. 87099 ...... Phentermine hydrochloride. 87106 ...... Ergotamine tartrate; caffeine. 87112 ...... Spironolactone. 87116 ...... Reserpine; chlorothiazide. 87123 ...... Benzthiazide. 87124 ...... Benzthiazide. 87125 ...... Diphenhydramine hydrochloride. 87134 ...... Promethazine hydrochloride. 87166 ...... Phentolamine hydrochloride. 87172 ...... Theophylline. 87198 ...... Belladonna alkaloid malates, l-; phenobarbital. 87379 ...... Quinidine gluconate. 87443 ...... Homatropine methylbromide; phenobarbital.

Dated: June 8, 2012. Authority: Section 1111 of the Public the SACHDNC Web site at http:// Leslie Kux, Health Service (PHS) Act, 42 U.S.C. 300b–10, www.hrsa.gov/advisorycommittees/ as amended. The SACHDNC also is governed Assistant Commissioner for Policy. mchbadvisory/heritabledisorders/. by the provisions of Public Law 92–463, as [FR Doc. 2012–14476 Filed 6–13–12; 8:45 am] amended (5 U.S.C. App. 2), and 41 CFR part SUPPLEMENTARY INFORMATION: The BILLING CODE 4160–01–P 102–3, which sets forth standards for the SACHDNC is directed to review and formation and use of advisory committees. report regularly on newborn and DATES: The agency must receive written childhood screening practices for DEPARTMENT OF HEALTH AND applications from nominees (including a heritable disorders and recommend HUMAN SERVICES letter of support from an appropriate improvements in the national newborn official of the organization with which and childhood heritable screening Health Resources and Services programs. Administration affiliated) or the nominee’s organization, on or before August 1, 2012. The SACHDNC provides the Secretary with recommendations, advice, and Secretary’s Advisory Committee on ADDRESSES: Submit written applications technical information regarding the Heritable Disorders in Newborns and to Sara Copeland, M.D., Designated application of technologies, policies, Children Federal Official (DFO), SACHDNC; and, guidelines, and standards for: (a) Chief, Genetic Services Branch, Effectively reducing morbidity and AGENCY: Health Resources and Services Maternal and Child Health Bureau, mortality in newborns and children Administration (HRSA), Department of Health Resources and Services having, or at risk for, heritable Health and Human Services (HHS). Administration, Room 18A–19, disorders; and (b) enhancing the ability Parklawn Building, 5600 Fishers Lane, ACTION: Notice of Request for of the State and local health agencies to Nominations of Non-Voting Secretary’s Rockville, Maryland 20857. provide for newborn and child Advisory Committee on Heritable Applications may also be sent to screening, counseling, and health care Disorders in Newborns and Children [email protected]. services for newborns and children (SACHDNC) members to serve as FOR FURTHER INFORMATION CONTACT: Debi having, or at risk for, heritable representatives of organizations or Sarkar, M.P.H., Genetic Services Branch, disorders. interest groups. Maternal and Child Health Bureau, Specifically, HRSA is requesting HRSA, at [email protected] or applications for three (3) non-voting SUMMARY: HRSA is requesting (301) 443–1080. A copy of the organizational representatives to serve applications to fill three (3) vacancies SACHDNC Charter and list of the on the SACHDNC: Two (2) at large for non-voting organizational current membership may be obtained by representatives of a public health representatives on the SACHDNC. contacting Ms. Sarkar or by accessing constituency, medical professional

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society or national advocacy • Organization’s commitment to DEPARTMENT OF HEALTH AND organization and one (1) representative ensure active contribution to and HUMAN SERVICES of a public health professional dissemination of SACHDNC activities organization. Non-voting representatives and recommendations to its Indian Health Service provide a perspective unique to the representative constituencies; SACHDNC based on their organizations’ Proposed Information Collection; • Statement affirming that the or interest groups’ subject area of Request for Public Comment: organization: (a) Wishes to serve as a expertise, and each nominee selection is Addendum to Declaration for Federal based on the organization’s/interest representative to the SACHDNC, and (b) Employment, Child Care and Indian group’s mission and relevancy to the has no conflict of interest that would Child Care Worker Positions preclude informing the SACHDNC in a SACHDNC’s purpose (e.g., primary care, AGENCY: Indian Health Service, HHS. pediatrics, newborn screening, genetics fair and balanced manner; ACTION: Notice. and other relevant specialty expertise). • Organization’s description clearly Eligible organizations should represent identifying how the organizational SUMMARY: In compliance with Section broad constituencies affected or perspective and expertise would serve 3506(c)(2)(A) of the Paperwork impacted by the work of the SACHDNC, to increase the knowledge base of the Reduction Act of 1995, which requires as noted in the SACHDNC Charter. SACHDNC; and 60 days for public comment on Applicants eligible for consideration • SACHDNC’s professional impact on proposed information collection include representatives of the following the organization and its stakeholders. projects, the Indian Health Service (IHS) organizations: (a) Medical, technical, is publishing for comment a summary of public health, or scientific organizations Please submit written nominations no a proposed information collection to be with special expertise in the field of later than August 1, 2012. The two (2) submitted to the Office of Management heritable disorders or (b) organizations at large organizational representatives and Budget (OMB) for review. that provide screening, counseling, will be invited to contribute to the Proposed Collection: Title: testing, or specialty services for SACHDNC for terms of not more than 2 Addendum to Declaration for Federal newborns and children at risk for years with an opportunity to re-apply to Employment, Child Care and Indian heritable disorders. Organizations will serve after the 2-year term has expired. Child Care Worker Positions (OMB No. also be chosen based on perspectives The public health professional 0917–0028). Type of Information and expertise not currently represented, organization will be invited to have a Collection Request: Extension, without or with expiring terms, that serve to representative contribute to the revision, of currently approved increase the knowledge base of the SACHDNC for terms of not more than 4 information collection, 0917–0028, SACHDNC. years with an opportunity to re-apply to ‘‘Addendum to Declaration for Federal Applicants are requested to submit a serve after the 4-year term has expired. Employment, Child Care and Indian written application to the DFO. Selected organizations will have their Child Care Worker Positions.’’ Although Applications must contain the there was a change on the form following: representatives begin serving their term in January 2013. ‘‘Addendum to Declaration for Federal • Letter of nomination stating the Employment, Child care and Indian organization’s: Whenever possible, organizational Child care Worker Positions’’ (OMB No. Æ Name and mission statement; representatives to the SACHDNC shall 0917–0028), where the item number 15a Æ Outline of the perspective and have expertise in dealing with heritable was changed to 16 to reflect a change in expertise provided by the nominated disorders and genetic diseases affecting the same item number on the organization and why this perspective racially, ethnically, and geographically ‘‘Declaration for Federal Employment’’ and expertise would benefit the diverse populations of newborns served form (OPM OF 306; OMB No. 3206– SACHDNC; and by State newborn screening programs. 0182), there are no program changes or Æ Description of how the SACHDNC’s HHS will ensure that SACHDNC adjustments in burden hours. Form work affects and/or impacts the members equitably reflect geographical Number: OMB No. 0917–0028. Forms: nominated organization and its location and gender distribution, Addendum to Declaration for Federal constituency. provided that Committee effectiveness Employment, Child Care and Indian • Contact information: Point of would not be impaired. Appointments Child Care Worker Positions. Need and contact name, address, telephone shall be made without regard to age, Use of Information Collection: This is a number, and Web site of the ethnicity, gender, or sexual orientation, request for approval of the collection of organization; information as required by Section 408 • and cultural, religious, or Portfolio of organizational projects, socioeconomic status. of the Indian Child Protection and programs and products that are of Family Violence Prevention Act, Public importance to the SACHDNC’s work; Dated: June 7, 2012. Law (Pub. L.) 101–630, 104 Stat. 4544, • Organization’s commitment to Reva Harris, and 25 United States Code (U.S.C.) provide expert input into the decision- Acting Director, Division of Policy and §§ 3201–3211. The IHS is required to making process of the SACHDNC; Information Coordination. compile a list of all authorized positions • Organization’s detailed information [FR Doc. 2012–14499 Filed 6–13–12; 8:45 am] within the IHS where the duties and concerning any possible conflicts of BILLING CODE 4165–15–P responsibilities involve regular contact interest relative to both the organization with, or control over, Indian children; and the proposed organizational and to conduct an investigation of the representative (e.g., current or character of each individual who is anticipated employment, consultancies, employed, or is being considered for research grants, or contracts); employment in a position having • Organization’s commitment to regular contact with, or control over, support a representative to attend all Indian children. 25 U.S.C. § 3207 SACHDNC meetings; requires regulations prescribing the

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minimum standards of character to by the Federal Government (or operated through contract with) the Federal ensure that none of the individuals under contract with the Federal Government, in positions involved with appointed to positions involving regular Government), that hires (or contracts for the provision of child care services to contact with, or control over, Indian hire) individuals involved with the children under the age of 18, to contain children have been found guilty of, or provision of child care services to a question asking whether the entered a plea of nolo contendere or children under the age of 18 to assure individual has ever been arrested for or guilty to any felonious offense, or any of that all existing and newly hired charged with a crime involving a child. two or more misdemeanor offenses employees undergo a criminal history Affected Public: Individuals and under Federal, State, or Tribal law background check. The background households. Type of Respondents: involving crimes of violence; sexual investigation is to be initiated through Individuals. assault, molestation, exploitation, the personnel program of the applicable The table below provides: Types of contact or prostitution; crimes against Federal agency. This section requires data collection instruments, Estimated persons; or offenses committed against employment applications for number of respondents, Number of children. In addition, 42 U.S.C. § 13041 individuals who are seeking work for an responses per respondent, Average requires each agency of the Federal agency of the Federal Government, or burden hour per response, and Total Government, and every facility operated for a facility or program operated by (or annual burden hour(s).

ESTIMATED ANNUAL BURDEN HOURS

Average Estimated Responses burden hour Total annual Data collection instrument number of per per burden hours respondents respondent response

Addendum to Declaration for Federal Employment (OMB 0917–0028) ...... 3,000 1 12/60 600

Total ...... 3,000 ...... 600

There are no Capital Costs, Operating received within 60 days of the date of ADDRESSES: Written comments and Costs, and/or Maintenance Costs to this publication. questions about this Information report. Dated: June 5, 2012. Collection Request should be forwarded Requests for Comments: Your written Yvette Roubideaux, to DHS/NPPD/IP/IICD, 245 Murray Lane, SW., Mailstop 0602, Arlington, comments and/or suggestions are Director, Indian Health Service. invited on one or more of the following VA 20598–0602. Email requests should [FR Doc. 2012–14500 Filed 6–13–12; 8:45 am] points: (a) Whether the information go to Vickie Bovell, collection activity is necessary to carry BILLING CODE 4165–16–P [email protected]. Written out an agency function; (b) whether the comments should reach the contact agency processes the information person listed no later than August 13, collected in a useful and timely fashion; DEPARTMENT OF HOMELAND 2012. Comments must be identified by (c) the accuracy of the public burden SECURITY ‘‘DHS–2012–0003’’ and may be estimate (the estimated amount of time submitted by one of the following needed for individual respondents to [Docket No. DHS–2012–0003] methods: provide the requested information); (d) • Federal eRulemaking Portal: http:// Protected Critical Infrastructure whether the methodology and www.regulations.gov. Information (PCII) Program Survey assumptions used to determine the • Email: Include the docket number estimates are logical; (e) ways to AGENCY: National Protection and in the subject line of the message. enhance the quality, utility, and clarity Programs Directorate, DHS. Instructions: All submissions received must include the words ‘‘Department of of the information being collected; and ACTION: 60-day notice and request for Homeland Security’’ and the docket (f) ways to minimize the public burden comments; Reinstatement, with change, number for this action. Comments through the use of automated, of a previously approved collection: received will be posted without electronic, mechanical, or other 1670–0012. technological collection techniques or alteration at http://www.regulations.gov, other forms of information technology. SUMMARY: The Department of Homeland including any personal information Send your written comments, requests Security (DHS), National Protection and provided. for more information on the proposed Programs Directorate (NPPD), Office of SUPPLEMENTARY INFORMATION: The collection, or requests to obtain a copy Infrastructure Protection (IP), Protected Critical Infrastructure of the data collection instrument(s) and Infrastructure Information Collection Information (PCII) Program was created instructions to: Tamara Clay, Reports Division (IICD), will submit the according to the Critical Infrastructure Clearance Officer, 801 Thompson following Information Collection Information (CII) Act of 2002 for DHS to Avenue, TMP, Suite 450, Rockville, MD Request to the Office of Management encourage voluntary information 20852, call non-toll free (301) 443–4750, and Budget (OMB) for review and sharing by owners and operators of send via facsimile to (301) 443–2316, or clearance in accordance with the critical infrastructure and protected send your email requests, comments, Paperwork Reduction Act of 1995 (Pub. systems. The PCII Program provides and return address to: L. 104–13, 44 U.S.C. chapter 35). standardized training for stakeholders to [email protected]. DATES: Comments are encouraged and become PCII Authorized Users and PCII Comment Due Date: Your comments will be accepted until August 13, 2012. Officer/PCII Program Manager regarding this information collection are This process is conducted in accordance Designees. To further its mission, the best assured of having full effect if with 5 CFR 1320.1. PCII Program requires supporting

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information from these stakeholders DEPARTMENT OF HOMELAND (4) Fax: (a) To DMF, 202–493–2251. regarding its training programs. The SECURITY (b) To OIRA at 202–395–6566. To information collected by this survey ensure your comments are received in a serves this purpose. The survey data Coast Guard timely manner, mark the fax, attention collected is for internal PCII Program, Desk Officer for the Coast Guard. [USCG–2012–0082] IICD, and NPPD/IP use only.OMB is The DMF maintains the public docket particularly interested in comments Collection of Information Under for this Notice. Comments and material that: Review by Office of Management and received from the public, as well as 1. Evaluate whether the proposed Budget documents mentioned in this Notice as collection of information is necessary being available in the docket, will for the proper performance of the AGENCY: Coast Guard, DHS. become part of the docket and will be functions of the agency, including ACTION: Thirty-day notice requesting available for inspection or copying at whether the information will have comments. room W12–140 on the West Building practical utility; Ground Floor, 1200 New Jersey Avenue SUMMARY: In compliance with the 2. Evaluate the accuracy of the SE., Washington, DC, between 9 a.m. Paperwork Reduction Act of 1995 the and 5 p.m., Monday through Friday, agency’s estimate of the burden of the U.S. Coast Guard is forwarding proposed collection of information, except Federal holidays. You may also Information Collection Requests (ICRs), find the docket on the Internet at including the validity of the abstracted below, to the Office of methodology and assumptions used; http://www.regulations.gov. Management and Budget (OMB), Office Copies of the ICRs are available 3. Enhance the quality, utility, and of Information and Regulatory Affairs through the docket on the Internet at clarity of the information to be (OIRA), requesting approval of a http://www.regulations.gov. collected; and revision to the following collections of Additionally, copies are available from: 4. Minimize the burden of the information: 1625–0012, Certificate of COMMANDANT (CG–611), ATTN: collection of information on those who Discharge to Merchant Mariner and PAPERWORK REDUCTION ACT are to respond, including through the 1625–0040, Application for Merchant MANAGER, U.S. COAST GUARD, 2100 use of appropriate automated, Mariner Credential (MMC), Merchant 2ND ST. SW., STOP 7101, electronic, mechanical, or other Mariner Medical Certificate Evaluation WASHINGTON DC 20593–7101. technological collection techniques or Report, Small Vessel Sea Service Form, FOR FURTHER INFORMATION CONTACT: other forms of information technology, DOT/USCG Periodic Drug Testing Form, Contact Ms. Kenlinishia Tyler, Office of e.g., permitting electronic submissions and Merchant Mariner Evaluation of Information Management, telephone of responses. Fitness for Entry Level Ratings, 202–475–3652 or fax 202–475–3929, for Merchant Mariner Credential, Merchant Analysis questions on these documents. Contact Mariner Medical Certificate, Ms. Renee V. Wright, Program Manager, Agency: Department of Homeland Recognition of Foreign Certificate. Docket Operations, 202–366–9826, for Security, National Protection and Our ICRs describe the information we questions on the docket. Programs Directorate, Office of seek to collect from the public. Review SUPPLEMENTARY INFORMATION: Infrastructure Protection, Infrastructure and comments by OIRA ensure we only Information Collection Division, impose paperwork burdens Public Participation and Request for Protected Critical Infrastructure commensurate with our performance of Comments Information Program. duties. This Notice relies on the authority of Title: Protected Critical Infrastructure DATES: Comments must reach the Coast the Paperwork Reduction Act of 1995; Information (PCII) Program Survey. Guard and OIRA on or before July 16, 44 U.S.C. chapter 35, as amended. An OMB Number: 1670–0012. 2012. ICR is an application to OIRA seeking Frequency: Annually. ADDRESSES: You may submit comments the approval, extension, or renewal of a Affected Public: Federal, state, and identified by Coast Guard docket Coast Guard collection of information local entities, and stakeholders or number [USCG–2012–0082] to the (Collection). The ICR contains private sector. Docket Management Facility (DMF) at information describing the Collection’s the U.S. Department of Transportation purpose, the Collection’s likely burden Number of Respondents: 3,060 (DOT) and/or to OIRA. To avoid on the affected public, an explanation of respondents (estimate). duplicate submissions, please use only the necessity of the Collection, and Estimated Time per Respondent: 10 one of the following means: other important information describing minutes. (1) Online: (a) To Coast Guard docket the Collections. There is one ICR for Total Burden Hours: 408 annual at http://www.regulations.gov. (b) To each Collection. burden hours. OIRA by email via: OIRA- The Coast Guard invites comments on Total Burden Cost (capital/startup): [email protected]. whether these ICRs should be granted $0. (2) Mail: (a) DMF (M–30), DOT, West based on the Collections being Total Recordkeeping Burden: $0. Building Ground Floor, Room W12–140, necessary for the proper performance of 1200 New Jersey Avenue SE., Departmental functions. In particular, Total Burden Cost (operating/ Washington, DC 20590–0001. (b) To the Coast Guard would appreciate maintaining): $15,224.00. OIRA, 725 17th Street NW., comments addressing: (1) The practical Dated: May 31, 2012. Washington, DC 20503, attention Desk utility of the Collections; (2) the Richard Driggers, Officer for the Coast Guard. accuracy of the estimated burden of the Acting Chief Information Officer, National (3) Hand Delivery: To DMF address Collections; (3) ways to enhance the Protection and Programs Directorate, above, between 9 a.m. and 5 p.m., quality, utility, and clarity of Department of Homeland Security. Monday through Friday, except Federal information subject to the Collections; [FR Doc. 2012–14584 Filed 6–13–12; 8:45 am] holidays. The telephone number is 202– and (4) ways to minimize the burden of BILLING CODE 9110–9P–P 366–9329. the Collections on respondents,

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including the use of automated Viewing Comments and Documents Burden Estimate The estimated collection techniques or other forms of To view comments, as well as burden has decreased from 2,443 hours information technology. These documents mentioned in this Notice as to 1,478 hours. comments will help OIRA determine being available in the docket, go to 2. Title: Application for Merchant whether to approve the ICRs referred to http://www.regulations.gov, click on the Mariner Credential (MMC), Merchant in this Notice. ‘‘read comments’’ box, which will then Mariner Medical Certificate Evaluation We encourage you to respond to this become highlighted in blue. In the Report, Small Vessel Sea Service Form, request by submitting comments and ‘‘Keyword’’ box insert ‘‘USCG–2012– DOT/USCG Periodic Drug Testing Form, related materials. Comments to Coast 0082’’ and click ‘‘Search.’’ Click the Merchant Mariner Evaluation of Fitness Guard or OIRA must contain the OMB ‘‘Open Docket Folder’’ in the ‘‘Actions’’ for Entry Level Ratings, Merchant Control Number of the ICR. They must column. You may also visit the DMF in Mariner Credential, Merchant Mariner also contain the docket number of this Room W12–140 on the ground floor of Medical Certificate, Recognition of the DOT West Building, 1200 New request, [USCG 2012–0082], and must Foreign Certificate. be received by July 16, 2012. We will Jersey Avenue SE., Washington, DC post all comments received, without 20590, between 9 a.m. and 5 p.m., OMB Control Number: 1625–0040. change, to http://www.regulations.gov. Monday through Friday, except Federal Type of Request Revision of a They will include any personal holidays. currently approved collection OIRA posts its decisions on ICRs information you provide. We have an Respondents: Applicants for agreement with DOT to use their DMF. online at http://www.reginfo.gov/public/ do/PRAMain after the comment period Merchant Mariner Credentials (MMC), Please see the ‘‘Privacy Act’’ paragraph whether original, renewal, duplicate, below. for each ICR. An OMB Notice of Action on each ICR will become available via raise of grade, or a new endorsement on Submitting Comments a hyperlink in the OMB Control a previously issued MMC. Applicants Numbers: 1625–0012 and 1625–0040. for Medical Certificates to include If you submit a comment, please Standards of Training, Certification and include the docket number [USCG– Privacy Act Watchkeeping for Seafarers (STCW) 2012–0082], indicate the specific Anyone can search the electronic endorsed credentialed mariners, and section of the document to which each form of comments received in dockets first-class pilots as defined in the comment applies, providing a reason for by the name of the individual proposed rules, Implementation of the each comment. You may submit your submitting the comment (or signing the Amendments to the International comments and material online (via comment, if submitted on behalf of an Convention on STCW for Seafarers, http://www.regulations.gov), by fax, association, business, labor union, etc.). 1978, and Changes to Domestic mail, or hand delivery, but please use You may review a Privacy Act statement Endorsements (Docket No. USCG–2004– only one of these means. If you submit regarding Coast Guard public dockets in 17914). a comment online via the January 17, 2008, issue of the www.regulations.gov, it will be Federal Register (73 FR 3316). Abstract: The Application for considered received by the Coast Guard Merchant Mariner Credential (MMC), when you successfully transmit the Previous Request for Comments Merchant Mariner Medical Certificate comment. If you fax, hand deliver, or This request provides a 30-day Evaluation Report, Small Vessel Sea mail your comment, it will be comment period required by OIRA. The Service Form, DOT/USCG Periodic Drug considered as having been received by Coast Guard published the 60-day Testing Form, and Merchant Mariner the Coast Guard when it is received at notice (77 FR 17081, March 23, 2012) Evaluation of Fitness for Entry Level the DMF. We recommend you include required by 44 U.S.C. 3506(c)(2). That Ratings, contains the following your name, mailing address, an email Notice elicited no comments. information: signature of applicant and address, or other contact information in Information Collection Requests supplementary material required to the body of your document so that we show that the mariner meets the 1. Title: Certificate of Discharge to can contact you if we have questions mandatory requirements for the regarding your submission. Merchant Mariner. OMB Control Number: 1625–0012. credential or medical certificate sought; You may submit comments and Type of Request: Revision of a proof of applicant passing all applicable material by electronic means, mail, fax, currently approved collection. vision, hearing, medical, and/or or delivery to the DMF at the address Respondents: Shipping companies, physical exams; negative chemical test under ADDRESSES, but please submit masters or individuals in charge of a for dangerous drugs; discharges or other them by only one means. To submit vessel. documentary evidence of sea service your comment online, go to http:// Abstract: Title 46, United States Code, indicating the name, tonnage, and www.regulations.gov, and type ‘‘USCG– 10311 requires each master or propulsion power of the vessels, dates 2012–0082’’ in the ‘‘Keyword’’ box. If individual in charge of a vessel, for each of service, capacity in which the you submit your comments by mail or merchant mariner being discharged applicant served, and on what waters. hand delivery, submit them in an from the vessel to prepare a Certificate unbound format, no larger than 8c by 11 of Discharge to Merchant Mariners and Forms: CG–719B, CG–719K, CG–719S, inches, suitable for copying and two copies. These documents are used CG–719P, CG–719K/E, CG–4610, CG– electronic filing. If you submit to establish evidence of sea service 4610A, and CG–4610B. comments by mail and would like to aboard U.S. flagged merchant vessels for Burden Estimate: The estimated know that they reached the Facility, merchant mariners to upgrade their burden has increased from 54,416 hours please enclose a stamped, self-addressed credentials, establish proof of eligibility to 57,083 hours a year. postcard or envelope. We will consider for union and other benefits, and in Authority: The Paperwork Reduction Act all comments and material received litigation where vessel service is an of 1995; 44 U.S.C. chapter 35, as amended. during the comment period and will issue. address them accordingly. Forms: CG–718A.

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Dated: June 6, 2012. (4) Fax: (a) To DMF, 202–493–2251. including the use of automated R.E. Day, (b) To OIRA at 202–395–6566. To collection techniques or other forms of Rear Admiral, U.S. Coast Guard, Assistant ensure your comments are received in a information technology. These Commandant for Command, Control, timely manner, mark the fax, attention comments will help OIRA determine Communications, Computers and Desk Officer for the Coast Guard. whether to approve the ICR referred to Information Technology. The DMF maintains the public docket in this Notice. [FR Doc. 2012–14540 Filed 6–13–12; 8:45 am] for this Notice. Comments and material We encourage you to respond to this BILLING CODE 9110–04–P received from the public, as well as request by submitting comments and documents mentioned in this Notice as related materials. Comments to Coast being available in the docket, will Guard or OIRA must contain the OMB DEPARTMENT OF HOMELAND become part of the docket and will be SECURITY Control Number of the ICR. They must available for inspection or copying at also contain the docket number of this Room W12–140 on the West Building request, [USCG 2012–0173], and must Coast Guard Ground Floor, 1200 New Jersey Avenue be received by July 16, 2012. We will SE., Washington, DC, between 9 a.m. [USCG–2012–0173] post all comments received, without and 5 p.m., Monday through Friday, change, to http://www.regulations.gov. except Federal holidays. You may also Collection of Information Under They will include any personal find the docket on the Internet at http:// Review by Office of Management and information you provide. We have an www.regulations.gov. Budget agreement with DOT to use their DMF. A copy of the ICR is available through Please see the ‘‘Privacy Act’’ paragraph AGENCY: Coast Guard, DHS. the docket on the Internet at http:// below. ACTION: Thirty-day notice requesting www.regulations.gov. Additionally, comments. copies are available from: Submitting Comments COMMANDANT (CG–611), ATTN: SUMMARY: In compliance with the PAPERWORK REDUCTION ACT If you submit a comment, please Paperwork Reduction Act of 1995 the MANAGER, U.S. COAST GUARD, 2100 include the docket number [USCG– U.S. Coast Guard is forwarding an 2ND ST. SW., STOP 7101, 2012–0173], indicate the specific Information Collection Request (ICR), WASHINGTON, DC 20593–7101. section of the document to which each abstracted below, to the Office of FOR FURTHER INFORMATION CONTACT: Ms. comment applies, providing a reason for Management and Budget (OMB), Office Kenlinishia Tyler, Office of Information each comment. You may submit your of Information and Regulatory Affairs Management, telephone 202–475–3652 comments and material online (via (OIRA), requesting an extension of its or fax 202–475–3929, for questions on http://www.regulations.gov), by fax, approval for the following collection of these documents. Contact Ms. Renee V. mail, or hand delivery, but please use information: 1625–0048, Vessel Wright, Program Manager, Docket only one of these means. If you submit Reporting Requirements. Our ICR Operations, 202–366–9826, for a comment online via describes the information we seek to questions on the docket. www.regulations.gov, it will be collect from the public. Review and considered received by the Coast Guard SUPPLEMENTARY INFORMATION: comments by OIRA ensure we only when you successfully transmit the impose paperwork burdens Public Participation and Request for comment. If you fax, hand deliver, or commensurate with our performance of Comments mail your comment, it will be duties. This Notice relies on the authority of considered as having been received by DATES: Comments must reach the Coast the Paperwork Reduction Act of 1995; the Coast Guard when it is received at Guard and OIRA on or before July 16, 44 U.S.C. Chapter 35, as amended. An the DMF. We recommend you include 2012. ICR is an application to OIRA seeking your name, mailing address, an email ADDRESSES: You may submit comments the approval, extension, or renewal of a address, or other contact information in identified by Coast Guard docket Coast Guard collection of information the body of your document so that we number [USCG–2012–0173] to the (Collection). The ICR contains can contact you if we have questions Docket Management Facility (DMF) at information describing the Collection’s regarding your submission. the U.S. Department of Transportation purpose, the Collection’s likely burden You may submit comments and (DOT) and/or to OIRA. To avoid on the affected public, an explanation of material by electronic means, mail, fax, duplicate submissions, please use only the necessity of the Collection, and or delivery to the DMF at the address one of the following means: other important information describing under ADDRESSES, but please submit (1) Online: (a) To Coast Guard docket the Collection. There is one ICR for each them by only one means. To submit at http://www.regulations.gov. (b) To Collection. your comment online, go to http:// OIRA by email via: OIRA- The Coast Guard invites comments on www.regulations.gov, and type ‘‘USCG– [email protected]. whether this ICR should be granted 2012–0173’’ in the ‘‘Keyword’’ box. If (2) Mail: (a) DMF (M–30), DOT, West based on the Collection being necessary you submit your comments by mail or Building Ground Floor, Room W12–140, for the proper performance of hand delivery, submit them in an 1200 New Jersey Avenue SE., Departmental functions. In particular, unbound format, no larger than 8c by 11 Washington, DC 20590–0001. (b) To the Coast Guard would appreciate inches, suitable for copying and OIRA, 725 17th Street NW., comments addressing: (1) The practical electronic filing. If you submit Washington, DC 20503, attention Desk utility of the Collection; (2) the accuracy comments by mail and would like to Officer for the Coast Guard. of the estimated burden of the know that they reached the Facility, (3) Hand Delivery: To DMF address Collection; (3) ways to enhance the please enclose a stamped, self-addressed above, between 9 a.m. and 5 p.m., quality, utility, and clarity of postcard or envelope. We will consider Monday through Friday, except Federal information subject to the Collection; all comments and material received holidays. The telephone number is 202– and (4) ways to minimize the burden of during the comment period and will 366–9329. the Collection on respondents, address them accordingly.

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Viewing Comments and Documents Dated: June 7, 2012. (4) Minimize the burden of the R.E. Day, collection of information on those who To view comments, as well as Rear Admiral, U.S. Coast Guard, Assistant are to respond, including through the documents mentioned in this Notice as Commandant for Command, Control, use of appropriate automated, being available in the docket, go to Communications, Computers and electronic, mechanical, or other http://www.regulations.gov, click on the Information Technology. technological collection techniques or ‘‘read comments’’ box, which will then [FR Doc. 2012–14548 Filed 6–13–12; 8:45 am] other forms of information technology, become highlighted in blue. In the BILLING CODE 9110–04–P ‘‘Keyword’’ box insert ‘‘USCG–2012– e.g., permitting electronic submission of 0173’’ and click ‘‘Search.’’ Click the responses. ‘‘Open Docket Folder’’ in the ‘‘Actions’’ DEPARTMENT OF HOMELAND Overview of This Information column. You may also visit the DMF in SECURITY Collection Room W12–140 on the ground floor of the DOT West Building, 1200 New United States Immigration and (1) Type of Information Collection: Jersey Avenue SE., Washington, DC Customs Enforcement Extension, without change, of a 20590, between 9 a.m. and 5 p.m., currently approved collection. Agency Information Collection Monday through Friday, except Federal (2) Title of the Form/Collection: holidays. Activities: Extension, Without Change, of a Currently Approved Collection; Designation of Attorney In Fact. OIRA posts its decisions on ICRs Comment Request (3) Agency form number, if any, and online at http://www.reginfo.gov/public/ the applicable component of the do/PRAMain after the comment period ACTION: 60–Day Notice of Information Department of Homeland Security for each ICR. An OMB Notice of Action Collection; Form I–312, Designation of on each ICR will become available via sponsoring the collection: Form I–312, Attorney In Fact; OMB Control No. U.S. Immigration and Customs a hyperlink in the OMB Control 1653–0041. Number: 1625–0048. Enforcement. Affected public who will be asked or Privacy Act The Department of Homeland Security, U.S. Immigration and Customs required to respond, as well as a brief Anyone can search the electronic Enforcement (ICE), will submit the abstract: Primary: Individual or form of comments received in dockets following information collection request households; The I–312 is the instrument by the name of the individual for review and clearance in accordance the U.S. Immigration and Customs submitting the comment (or signing the with the Paperwork Reduction Act of Enforcement uses to provide comment, if submitted on behalf of an 1995. The information collection is immigration bond holders a means to association, business, labor union, etc.). published to obtain comments from the designate and attorney to accept on the You may review a Privacy Act statement public and affected agencies. Comments Obligor’s behalf, the return of cash or regarding Coast Guard public dockets in are encouraged and will be accepted for United States bonds or notes deposited the January 17, 2008, issue of the sixty days until August 13, 2012. to secure an immigration bond upon the Federal Register (73 FR 3316). Written comments and suggestions cancellation of the bond or the regarding items contained in this notice, performance of the Obligor. Previous Request for Comments and especially with regard to the (5) An estimate of the total number of This request provides a 30-day estimated public burden and associated respondents and the amount of time comment period required by OIRA. The response time should be directed to the estimated for an average respondent to Coast Guard published the 60-day Department of Homeland Security respond: 12,500 responses at 30 minutes notice (77 FR 18253, March 27, 2012) (DHS), John Ramsay, Program (Forms) required by 44 U.S.C. 3506(c)(2). That Manager, U.S. Immigration and Customs (.5 hours) per response. Notice elicited no comments. Enforcement, 500 12th Street SW., Stop (6) An estimate of the total public 5705, Washington, DC 20536; (202) 732– burden (in hours) associated with the Information Collection Requests 4367. collection: 6,250 annual burden hours Comments are encouraged and will be Title: Vessel Reporting Requirements. Comments and/or questions; requests accepted for sixty days until August 13, OMB Control Number: 1625–0048. 2012. Written comments and for a copy of the proposed information Type of Request: Extension of a suggestions from the public and affected collection instrument, with instructions; currently approved collection. agencies concerning the proposed or inquiries for additional information should be directed to: Rich Mattison, Respondents: Businesses or other for collection of information should address Chief, Records Branch, U.S. Immigration profit organizations. one or more of the following four points: (1) Evaluate whether the proposed and Customs Enforcement, 500 12th Abstract: Owners, Charterers, collection of information is necessary Street SW., Stop 5705, Washington, DC Managing Operators, or Agents of U.S. for the proper performance of the 20536; (202) 732–4356. vessels must immediately notify the functions of the agency, including Coast Guard if they believe the vessel Dated: June 8, 2012. whether the information will have may be lost or in danger. The Coast Rich Mattison, practical utility; Guard uses this information to Chief, Records Management Branch, U.S. (2) Evaluate the accuracy of the investigate the situation and, when Immigration and Customs Enforcement, agencies estimate of the burden of the necessary, plan appropriate search and Department of Homeland Security. proposed collection of information, rescue operations. [FR Doc. 2012–14522 Filed 6–13–12; 8:45 am] including the validity of the Forms: None. methodology and assumptions used; BILLING CODE 9111–28–P Burden Estimate: The estimated (3) Enhance the quality, utility, and annual burden remains 137 hours per clarity of the information to be year. collected; and

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DEPARTMENT OF HOUSING AND the proposal by name and/or OMB the functions of the agency, including URBAN DEVELOPMENT approval Number (2502–0416) and whether the information will have should be sent to: HUD Desk Officer, practical utility; (2) Evaluate the [Docket No. FR–5603–N–45] Office of Management and Budget, New accuracy of the agency’s estimate of the Notice of Submission of Proposed Executive Office Building, Washington, burden of the proposed collection of Information Collection to OMB Request DC 20503; fax: 202–395–5806. Email: information; (3) Enhance the quality, _ for Termination of Multifamily OIRA [email protected] fax: utility, and clarity of the information to Mortgage Insurance 202–395–5806. be collected; and (4) Minimize the FOR FURTHER INFORMATION CONTACT: burden of the collection of information AGENCY: Office of the Chief Information Colette Pollard., Reports Management on those who are to respond; including Officer, HUD. Officer, QDAM, Department of Housing through the use of appropriate ACTION: Notice. and Urban Development, 451 Seventh automated collection techniques or Street SW., Washington, DC 20410; other forms of information technology, SUMMARY: The proposed information email Colette Pollard at e.g., permitting electronic submission of collection requirement described below [email protected]. or telephone responses. has been submitted to the Office of (202) 402–3400. This is not a toll-free Management and Budget (OMB) for This notice also lists the following number. Copies of available documents review, as required by the Paperwork information: submitted to OMB may be obtained Title of Proposal: Request for Reduction Act. The Department is from Ms. Pollard. soliciting public comments on the Termination of Multifamily Mortgage SUPPLEMENTARY INFORMATION: subject proposal. This Insurance. notice informs the public that the The information collection is used to OMB Approval Number: 2502–0416. notify HUD that the mortgagor and Department of Housing and Urban Form Numbers: HUD–9807. mortgagee mutually agree to terminate Development has submitted to OMB a the HUD multifamily mortgage request for approval of the Information Description of the Need for the insurance. collection described below. This notice Information and Its Propose is soliciting comments from members of DATES: Comments Due Date: July 16, the public and affecting agencies The information collection is used to 2012. concerning the proposed collection of notify HUD that the mortgagor and ADDRESSES: Interested persons are information to: (1) Evaluate whether the mortgagee mutually agree to terminate invited to submit comments regarding proposed collection of information is the HUD multifamily mortgage this proposal. Comments should refer to necessary for the proper performance of insurance.

Number of Annual × Hours per respondents responses response = Burden hours

Reporting Burden ...... 400 5 0.176 368

Total Estimated Burden Hours: 368. Management and Budget (OMB) for to be maintained by the housing Status: Extension without change of a review, as required by the Paperwork provider and maintained as confidential currently approved collection. Reduction Act. The Department is information. Authority: Section 3507 of the Paperwork soliciting public comments on the DATES: Comments Due Date: July 16, Reduction Act of 1995, 44 U.S.C. 35, as subject proposal. 2012. amended. Section 644 of the Housing and ADDRESSES: Interested persons are Dated: June 7, 2012. Community Development Act of 1992 invited to submit comments regarding Colette Pollard, (42 U.S.C. 13604) imposed on HUD the this proposal. Comments should refer to Department Reports Management Officer, obligation to require housing providers the proposal by name and/or OMB Office of the Chief Information Officer. participating in HUD’s assisted housing approval Number (2502–0581) and [FR Doc. 2012–14504 Filed 6–13–12; 8:45 am] programs to provide any individual or should be sent to: HUD Desk Officer, BILLING CODE 4210–67–P family applying for occupancy in HUD Office of Management and Budget, New assisted housing with the option to Executive Office Building, Washington, include in the application for DC 20503; fax: 202–395–5806. Email: DEPARTMENT OF HOUSING AND occupancy the name, address, telephone [email protected] fax: URBAN DEVELOPMENT number, and other relevant information 202–395–5806. of a family member, friend, or person [Docket No. FR–5603–N–39] associated with a social, health, FOR FURTHER INFORMATION CONTACT: advocacy, or similar organization. The Colette Pollard., Reports Management Notice of Submission of Proposed Officer, QDAM, Department of Housing Information Collection to OMB; objective of providing such information, if this information is provided, and if and Urban Development, 451 Seventh Supplement to Application for Street SW., Washington, DC 20410; Federally Assisted Housing the applicant becomes a tenant, is to facilitate contact by the housing email Colette Pollard at AGENCY: Office of the Chief Information provider with the person or organization [email protected]. or telephone Officer, HUD. identified by the tenant, to assist in (202) 402–3400. This is not a toll-free number. Copies of available documents ACTION: Notice. providing any delivery of services or special care to the tenant and assist with submitted to OMB may be obtained SUMMARY: The proposed information resolving any tenancy issues arising from Ms. Pollard. collection requirement described below during the tenancy of such tenant. This SUPPLEMENTARY INFORMATION: This has been submitted to the Office of supplemental application information is notice informs the public that the

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Department of Housing and Urban automated collection techniques or assisted housing with the option to Development has submitted to OMB a other forms of information technology, include in the application for request for approval of the Information e.g., permitting electronic submission of occupancy the name, address, telephone collection described below. This notice responses. number, and other relevant information is soliciting comments from members of This notice also lists the following of a family member, friend, or person the public and affecting agencies information: associated with a social, health, concerning the proposed collection of Title of Proposal: Supplement to advocacy, or similar organization. The information to: (1) Evaluate whether the Application for Federally Assisted objective of providing such information, proposed collection of information is Housing. if this information is provided, and if necessary for the proper performance of OMB Approval Number: 2502–0581. the applicant becomes a tenant, is to the functions of the agency, including Form Numbers: HUD–92006. facilitate contact by the housing whether the information will have provider with the person or organization practical utility; (2) Evaluate the Description of the Need for the identified by the tenant, to assist in accuracy of the agency’s estimate of the Information and Its Proposed providing any delivery of services or burden of the proposed collection of Section 644 of the Housing and special care to the tenant and assist with information; (3) Enhance the quality, Community Development Act of 1992 resolving any tenancy issues arising utility, and clarity of the information to (42 U.S.C.13604) imposed on HUD the during the tenancy of such tenant. This be collected; and (4) Minimize the obligation to require housing providers supplemental application information is burden of the collection of information participating in HUD’s assisted housing to be maintained by the housing on those who are to respond; including programs to provide any individual or provider and maintained as confidential through the use of appropriate family applying for occupancy in HUD information.

Number of Annual × Hours per respondents responses response = Burden hours

Reporting Burden ...... 364,782 1 0.250 91,196

Total Estimated Burden Hours: Provides proof of tenant endorsement the public and affecting agencies 91,196. of entity proposing to purchase concerning the proposed collection of Status: Extension without change of a restructured property and obtain information to: (1) Evaluate whether the currently approved collection. modification, assignment, or forgiveness proposed collection of information is Authority: Section 3507 of the Paperwork of second mortgage debt. necessary for the proper performance of Reduction Act of 1995, 44 U.S.C. 35, as DATES: Comments Due Date: July 16, the functions of the agency, including amended. 2012. whether the information will have practical utility; (2) Evaluate the Dated: June 7, 2012. ADDRESSES: Interested persons are accuracy of the agency’s estimate of the Colette Pollard, invited to submit comments regarding burden of the proposed collection of Department Reports Management Officer, this proposal. Comments should refer to information; (3) Enhance the quality, Office of the Chief Information Officer. the proposal by name and/or OMB utility, and clarity of the information to [FR Doc. 2012–14527 Filed 6–13–12; 8:45 am] approval Number (2502–0563) and be collected; and (4) Minimize the BILLING CODE 4210–67–P should be sent to: HUD Desk Officer, burden of the collection of information Office of Management and Budget, New on those who are to respond; including Executive Office Building, Washington, through the use of appropriate DEPARTMENT OF HOUSING AND DC 20503; fax: 202–395–5806. Email: automated collection techniques or URBAN DEVELOPMENT [email protected] fax: other forms of information technology, 202–395–5806. [Docket No. FR–5603–N–37] e.g., permitting electronic submission of FOR FURTHER INFORMATION CONTACT: responses. Notice of Submission of Proposed Colette Pollard., Reports Management This notice also lists the following Information Collection to OMB; Mark- Officer, QDAM, Department of Housing information: to-Market Program; Requirements for and Urban Development, 451 Seventh Community-Based Non-Profit Street, SW., Washington, DC 20410; Title of Proposal: Mark-to-Market Organizations and Public Agencies email Colette Pollard at Program; Requirements for Community- [email protected]. or telephone Based Non-Profit Organizations and AGENCY: Office of the Chief Information Public Agencies. Officer, HUD. (202) 402–3400. This is not a toll-free number. Copies of available documents OMB Approval Number: 2502–0563. ACTION: Notice. submitted to OMB may be obtained Form Numbers: None. SUMMARY: from Ms. Pollard. The proposed information Description of the Need for the SUPPLEMENTARY INFORMATION: collection requirement described below This Information and Its Proposed Us has been submitted to the Office of notice informs the public that the Management and Budget (OMB) for Department of Housing and Urban Provides proof of tenant endorsement review, as required by the Paperwork Development has submitted to OMB a of entity proposing to purchase Reduction Act. The Department is request for approval of the Information restructured property and obtain soliciting public comments on the collection described below. This notice modification, assignment, or forgiveness subject proposal. is soliciting comments from members of of second mortgage debt.

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Number of Annual × Hour per respondents responses response = Burden hours

Reporting Burden ...... 368 1 10 3,680

Total Estimated Burden Hours: 3,680. abandoned properties. Avoidance of the functions of the agency, including Status: Extension without change of a foreclosure and the resultant costs also whether the information will have currently approved collection. serve to further stabilize the mortgage practical utility; (2) Evaluate the Authority: Section 3507 of the Paperwork insurance premiums charged by FHA accuracy of the agency’s estimate of the Reduction Act of 1995, 44 U.S.C. 35, as and the Federal budget receipts burden of the proposed collection of amended generated from those premiums. This information; (3) Enhance the quality, Dated: June 7, 2012. information collection request for OMB utility, and clarity of the information to Colette Pollard, review is an extension of a currently be collected; and (4) Minimize the approved collection. burden of the collection of information Department Reports Management Officer, Office of the Chief Information Officer. DATES: Comments Due Date: July 16, on those who are to respond; including through the use of appropriate [FR Doc. 2012–14517 Filed 6–13–12; 8:45 am] 2012. automated collection techniques or BILLING CODE 4210–67–P ADDRESSES: Interested persons are other forms of information technology, invited to submit comments regarding e.g., permitting electronic submission of this proposal. Comments should refer to responses. DEPARTMENT OF HOUSING AND the proposal by name and/or OMB URBAN DEVELOPMENT approval Number (2502–0583) and This notice also lists the following information: [Docket No. FR–5603–N–41] should be sent to: HUD Desk Officer, Office of Management and Budget, New Title of Proposal: FHA–Insured Notice of Submission of Proposed Executive Office Building, Washington, Mortgage Loan Servicing for Performing Information Collection to OMB; FHA– DC 20503; fax: 202–395–5806. Email: Loans; MIP Processing, Escrow Insured Mortgage Loan Servicing for [email protected] fax: Administration, Customer Service, Performing Loans; MIP Processing, 202–395–5806. Servicing Fees and 235 Loans Escrow Administration, Customer FOR FURTHER INFORMATION CONTACT: OMB Approval Number: 2502–0583. Service, Servicing Fees and 235 Loans Colette Pollard., Reports Management Form Numbers: HUD–300, HUD– Officer, QDAM, Department of Housing 93100, HUD–93114, HUD–93101a, AGENCY: Office of the Chief Information and Urban Development, 451 Seventh HUD–93102, HUD–93101. Officer, HUD. Street SW., Washington, DC 20410; ACTION: Description of the Need for the Notice. email Colette Pollard at Information and Its Proposed SUMMARY: The proposed information [email protected] or telephone collection requirement described below (202) 402–3400. This is not a toll-free FHA insurance is an important source has been submitted to the Office of number. Copies of available documents of mortgage credit for low and moderate Management and Budget (OMB) for submitted to OMB may be obtained income borrowers and neighborhoods. review, as required by the Paperwork from Ms. Pollard. Providing assistance, as needed, to Reduction Act. The Department is SUPPLEMENTARY INFORMATION: This enable families to cure their soliciting public comments on the notice informs the public that the delinquencies and retain their homes subject proposal. Department of Housing and Urban stabilizes neighborhoods that might FHA insurance is an important source Development has submitted to OMB a otherwise suffer from deterioration and of mortgage credit for low and moderate request for approval of the Information problems associated with vacant and income borrowers and neighborhoods. collection described below. This notice abandoned properties. Avoidance of Providing assistance, as needed, to is soliciting comments from members of foreclosure and the resultant costs also enable families to cure their the public and affecting agencies serve to further stabilize the mortgage delinquencies and retain their homes concerning the proposed collection of insurance premiums charged by FHA stabilizes neighborhoods that might information to: (1) Evaluate whether the and the Federal budget receipts otherwise suffer from deterioration and proposed collection of information is generated from those premiums. This problems associated with vacant and necessary for the proper performance of information co

Number of Annual × Hours per respondents responses response = Burden hours

Reporting Burden ...... 11,940 6258.53 0.0353 2,644,446

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Total Estimated Burden Hours: provide information collected on form necessary for the proper performance of 2,644,446. HUD 92904. HUD uses the information the functions of the agency, including Status: Revision of a currently provided to determine the applicants’ whether the information will have approved collection. eligibility to be placed on the HECM practical utility; (2) Evaluate the Authority: Section 3507 of the Paperwork counselor roster. To remain on the accuracy of the agency’s estimate of the Reduction Act of 1995, 44 U.S.C. 35, as HECM counselor roster, a counselor burden of the proposed collection of amended. must complete continuing education on information; (3) Enhance the quality, Dated: June 7, 2012. a HECM related topic every two years utility, and clarity of the information to Colette Pollard, and pass the HECM exam every three be collected; and (4) Minimize the years. burden of the collection of information Department Reports Management Officer, Office of the Chief Information Officer. DATES: Comments Due Date: July 16, on those who are to respond; including 2012. through the use of appropriate [FR Doc. 2012–14510 Filed 6–13–12; 8:45 am] automated collection techniques or BILLING CODE 4210–67–P ADDRESSES: Interested persons are other forms of information technology, invited to submit comments regarding e.g., permitting electronic submission of this proposal. Comments should refer to responses. DEPARTMENT OF HOUSING AND the proposal by name and/or OMB URBAN DEVELOPMENT approval Number (2502–0586) and This notice also lists the following information: [Docket No. FR–5603–N–42] should be sent to: HUD Desk Officer, Office of Management and Budget, New Title of Proposal: Home Equity Notice of Submission of Proposed Executive Office Building, Washington, Conversion Mortgage (HECM) Information Collection to OMB; Home DC 20503; fax: 202–395–5806. Email: Counseling Standardization and Roster. Equity Conversion Mortgage (HECM) [email protected] fax: OMB Approval Number: 2502–0586. Counseling Standardization and 202–395–5806. Form Numbers: HUD 92904. Roster FOR FURTHER INFORMATION CONTACT: Description of the Need for the Colette Pollard., Reports Management AGENCY: Office of the Chief Information Information and Its Propose Officer, HUD. Officer, QDAM, Department of Housing and Urban Development, 451 Seventh This PRA package provides reporting ACTION: Notice. Street SW., Washington, DC 20410; burden for individuals to apply to be SUMMARY: The proposed information email Colette Pollard at placed on the HECM counselor roster collection requirement described below [email protected] or telephone and to maintain their name on the has been submitted to the Office of (202) 402–3400. This is not a toll-free HECM counseling roster. For initial Management and Budget (OMB) for number. Copies of available documents application, individuals are required to review, as required by the Paperwork submitted to OMB may be obtained successfully pass a standardized HECM Reduction Act. The Department is from Ms. Pollard. exam, have received HECM-related soliciting public comments on the SUPPLEMENTARY INFORMATION: This education within the past two years and subject proposal. notice informs the public that the provide information collected on form This PRA package provides reporting Department of Housing and Urban HUD 92904. HUD uses the information burden for individuals to apply to be Development has submitted to OMB a provided to determine the applicants’ placed on the HECM counselor roster request for approval of the Information eligibility to be placed on the HECM and to maintain their name on the collection described below. This notice counselor roster. To remain on the HECM counseling roster. For initial is soliciting comments from members of HECM counselor roster, a counselor application, individuals are required to the public and affecting agencies must complete continuing education on successfully pass a standardized HECM concerning the proposed collection of a HECM related topic every two years exam, have received HECM-related information to: (1) Evaluate whether the and pass the HECM exam every three education within the past two years and proposed collection of information is years.

Number of Annual × Hours per respondents responses response = Burden hours

Reporting Burden ...... 205 2.951 1.406 851

Total Estimated Burden Hours: 851. DEPARTMENT OF HOUSING AND Management and Budget (OMB) for Status: Extension without change of a URBAN DEVELOPMENT review, as required by the Paperwork Reduction Act. The Department is currently approved collection. [Docket No. FR–5603–N–43] soliciting public comments on the Authority: Section 3507 of the Paperwork Notice of Submission of Proposed subject proposal. Reduction Act of 1995, 44 U.S.C. 35, as amended. Information Collection to OMB; This is a revision of a current Builder’s Certification of Plans, collection and reflects recent statutory Dated: June 7, 2012. Specifications, and Site and policy changes but does not Colette Pollard, AGENCY: Office of the Chief Information increase the paperwork burden Department Reports Management Officer, Officer, HUD. previously approved. HUD requires the Office of the Chief Information Officer. builder to complete the certification ACTION: Notice. [FR Doc. 2012–14509 Filed 6–13–12; 8:45 am] (form HUD–92541) noting adverse site/ BILLING CODE 4210–67–P SUMMARY: The proposed information location factor(s) of the property, collection requirement described below including Floodplains. This certification has been submitted to the Office of is necessary so that HUD does not

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insure a mortgage on property that poses submitted to OMB may be obtained other forms of information technology, a risk to health or safety of the occupant. from Ms. Pollard. e.g., permitting electronic submission of SUPPLEMENTARY INFORMATION: This responses. DATES: Comments Due Date: July 16, 2012. notice informs the public that the This notice also lists the following Department of Housing and Urban information: ADDRESSES: Interested persons are Development has submitted to OMB a Title of Proposal: Builder’s invited to submit comments regarding request for approval of the Information Certification of Plans, Specifications, this proposal. Comments should refer to collection described below. This notice and Site. is soliciting comments from members of the proposal by name and/or OMB OMB Approval Number: 2502–0496. approval Number (2502–0496) and the public and affecting agencies Form Numbers: HUD–92541. should be sent to: HUD Desk Officer, concerning the proposed collection of Office of Management and Budget, New information to: (1) Evaluate whether the Description of the Need for the Executive Office Building, Washington, proposed collection of information is Information and Its Propose DC 20503; fax: 202–395–5806. Email: necessary for the proper performance of [email protected] fax: the functions of the agency, including This is a revision of a current 202–395–5806. whether the information will have collection and reflects recent statutory practical utility; (2) Evaluate the and policy changes but does not FOR FURTHER INFORMATION CONTACT: accuracy of the agency’s estimate of the increase the paperwork burden Colette Pollard., Reports Management burden of the proposed collection of previously approved. HUD requires the Officer, QDAM, Department of Housing information; (3) Enhance the quality, builder to complete the certification and Urban Development, 451 Seventh utility, and clarity of the information to (form HUD–92541) noting adverse site/ Street SW., Washington, DC 20410; be collected; and (4) Minimize the location factor(s) of the property, email Colette Pollard at burden of the collection of information including Floodplains. This certification [email protected] or telephone on those who are to respond; including is necessary so that HUD does not (202) 402–3400. This is not a toll-free through the use of appropriate insure a mortgage on property that poses number. Copies of available documents automated collection techniques or a risk to health or safety of the occupant.

Number of Annual × respondents responses Hours per = Burden hours

Reporting Burden ...... 30,035 1.997 0.075 4,500

Total Estimated Burden Hours: 4,500. The information collection is legally request for approval of the Information Status: Revision of a currently required to collect information to collection described below. This notice approved collection. evaluate the character, ability, and is soliciting comments from members of Authority: Section 3507 of the Paperwork capital or the sponsor, mortgagor, and the public and affecting agencies Reduction Act of 1995, 44 U.S.C. 35, as general contractor for mortgage concerning the proposed collection of amended insurance. information to: (1) Evaluate whether the proposed collection of information is Dated: June 7, 2012. DATES: Comments Due Date: July 16, necessary for the proper performance of Colette Pollard, 2012. the functions of the agency, including Department Reports Management Officer, ADDRESSES: Interested persons are whether the information will have Office of the Chief Information Officer. invited to submit comments regarding practical utility; (2) Evaluate the [FR Doc. 2012–14507 Filed 6–13–12; 8:45 am] this proposal. Comments should refer to accuracy of the agency’s estimate of the BILLING CODE 4210–67–P the proposal by name and/or OMB burden of the proposed collection of approval Number (2502–0001) and information; (3) Enhance the quality, should be sent to: HUD Desk Officer, utility, and clarity of the information to DEPARTMENT OF HOUSING AND Office of Management and Budget, New be collected; and (4) Minimize the URBAN DEVELOPMENT Executive Office Building, Washington, burden of the collection of information [Docket No. FR–5603–N–44] DC 20503; fax: 202–395–5806. Email: on those who are to respond; including [email protected] fax: through the use of appropriate Notice of Submission of Proposed 202–395–5806. automated collection techniques or Information Collection to OMB; FOR FURTHER INFORMATION CONTACT: other forms of information technology, Personal Financial and Credit Colette Pollard., Reports Management e.g., permitting electronic submission of Statement Officer, QDAM, Department of Housing responses. and Urban Development, 451 Seventh This notice also lists the following AGENCY: Office of the Chief Information information: Officer, HUD. Street SW., Washington, DC 20410; email Colette Pollard at Title of Proposal: Personal Financial ACTION: Notice. [email protected] or telephone and Credit Statement. OMB Approval Number: 2502–0001. SUMMARY: The proposed information (202) 402–3400. This is not a toll-free Form Numbers: HUD–92417. collection requirement described below number. Copies of available documents has been submitted to the Office of submitted to OMB may be obtained Description of the Need for the Management and Budget (OMB) for from Ms. Pollard. Information and Its Propose review, as required by the Paperwork SUPPLEMENTARY INFORMATION: This The information collection is legally Reduction Act. The Department is notice informs the public that the required to collect information to soliciting public comments on the Department of Housing and Urban evaluate the character, ability, and subject proposal. Development has submitted to OMB a capital or the sponsor, mortgagor, and

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general contractor for mortgage insurance.

Number of Annual × Hours per respondents responses response = Burden hours

Reporting Burden ...... 2,000 1 8 16,000

Total Estimated Burden Hours: ADDRESSES: Interested persons are Family Application for Insurance 16,000. invited to submit comments regarding Benefits, HUD–50002, Request to Status: Extension without change of a this proposal. Comments should refer to Exceed Cost Limits for Preservation and currently approved collection. the proposal by name and/or OMB Protection, HUD–50012, Mortgagees Authority: Section 3507 of the Paperwork approval Number (2502–0429) and Request for Extension of Time Reduction Act of 1995, 44 U.S.C. 35, as should be sent to: HUD Desk Officer, Requirements, HUD–91022, Mortgagee amended Office of Management and Budget, New Notice of Foreclosure Sale. Executive Office Building, Washington, Dated: June 7, 2012. DC 20503; fax: 202–395–5806. Email: Description of the Need for the Colette Pollard, [email protected] fax: Information and Its Proposed Department Reports Management Officer, 202–395–5806. Office of the Chief Information Officer. FHA insurance is an important source FOR FURTHER INFORMATION CONTACT: [FR Doc. 2012–14505 Filed 6–13–12; 8:45 am] Colette Pollard., Reports Management of mortgage credit for low and BILLING CODE 4210–67–P Officer, QDAM, Department of Housing moderate-income borrowers and their and Urban Development, 451 Seventh neighborhoods. It is essential that FHA Street SW., Washington, DC 20410; maintain a healthy mortgage insurance DEPARTMENT OF HOUSING AND email Colette Pollard at fund through premiums charged the URBAN DEVELOPMENT [email protected] or telephone borrower by FHA along with Federal (202) 402–3400. This is not a toll-free budget receipts generated from those [Docket No. FR–5603–N–40] number. Copies of available documents premiums to support HUD’s goals. submitted to OMB may be obtained Providing policy and guidance to the Notice of Submission of Proposed from Ms. Pollard. single family housing mortgage industry Information Collection to OMB; FHA– SUPPLEMENTARY INFORMATION: This regarding changes in FHA’s program is Insured Mortgage Loan Servicing notice informs the public that the essential to protect the fund. This Involving the Claims and Conveyance Department of Housing and Urban information collection request for OMB Process, Property Inspection/ Development has submitted to OMB a Preservation review seeks to combine the request for approval of the Information requirements of another existing OMB AGENCY: Office of the Chief Information collection described below. This notice collection under one collection; it is Officer, HUD. is soliciting comments from members of OMB collection 2502–0349. the public and affecting agencies ACTION: Notice. concerning the proposed collection of Estimation of the total numbers of hours needed to prepare the information SUMMARY: information to: (1) Evaluate whether the The proposed information collection including number of collection requirement described below proposed collection of information is respondents, frequency of response, and has been submitted to the Office of necessary for the proper performance of hours of response: The number of Management and Budget (OMB) for the functions of the agency, including review, as required by the Paperwork whether the information will have burden hours is 1,347,549, the number Reduction Act. The Department is practical utility; (2) Evaluate the of respondents is 324, the number of soliciting public comments on the accuracy of the agency’s estimate of the responses is 1,087,913, the frequency of subject proposal. burden of the proposed collection of response is on occasion, and the burden FHA insurance is an important source information; (3) Enhance the quality, hour per response is from less than a of mortgage credit for low and utility, and clarity of the information to minute to 4 hours depending upon the moderate-income borrowers and their be collected; and (4) Minimize the activity. burden of the collection of information neighborhoods. It is essential that FHA Status: This is an extension of a on those who are to respond; including maintain a healthy mortgage insurance currently approved collection OMB fund through premiums charged the through the use of appropriate automated collection techniques or 2502–0429 that will be extended for borrower by FHA along with Federal another three years. budget receipts generated from those other forms of information technology, premiums to support HUD’s goals. e.g., permitting electronic submission of Authority: Section 3507 of the Paperwork Providing policy and guidance to the responses. Reduction Act of 1995, 44 U.S.C. 35, as This notice also lists the following single family housing mortgage industry amended. information: regarding changes in FHA’s program is Title of Proposal: FHA–Insured Dated: June 7, 2012. essential to protect the fund. This Mortgage Loan Servicing Involving the Colette Pollard, information collection request for OMB Claims and Conveyance Process, Department Reports Management Officer, review seeks to combine the Property Inspection/Preservation. Office of the Chief Information Officer. requirements of another existing OMB OMB Approval Number: 2502–0429. [FR Doc. 2012–14524 Filed 6–13–12; 8:45 am] collection under one collection; it is Form Numbers: HUD–9519–A, BILLING CODE 4210–67–P OMB collection 2502–0349. Property Inspection Report, HUD–9539, DATES: Comments Due Date: July 16, Request for Occupied Conveyance, 2012. HUD–27011, Parts A, B, C, D, E, Single

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DEPARTMENT OF HOUSING AND the proposal by name and/or OMB whether the information will have URBAN DEVELOPMENT approval Number (2502–0582) and practical utility; (2) Evaluate the should be sent to: HUD Desk Officer, accuracy of the agency’s estimate of the [Docket No. FR–5603–N–38] Office of Management and Budget, New burden of the proposed collection of Notice of Submission of Proposed Executive Office Building, Washington, information; (3) Enhance the quality, Information Collection to OMB; DC 20503; fax: 202–395–5806. Email: utility, and clarity of the information to _ Multifamily Housing Procedures for OIRA [email protected] fax: be collected; and (4) Minimize the Projects Affected by Presidentially- 202–395–5806. burden of the collection of information Declared Disasters FOR FURTHER INFORMATION CONTACT: on those who are to respond; including Colette Pollard., Reports Management through the use of appropriate AGENCY: Office of the Chief Information automated collection techniques or Officer, HUD. Officer, QDAM, Department of Housing and Urban Development, 451 Seventh other forms of information technology, ACTION: Notice. Street SW., Washington, DC 20410; e.g., permitting electronic submission of responses. SUMMARY: The proposed information email Colette Pollard at collection requirement described below [email protected] or telephone This notice also lists the following has been submitted to the Office of (202) 402–3400. This is not a toll-free information: Management and Budget (OMB) for number. Copies of available documents Title of Proposal: Multifamily review, as required by the Paperwork submitted to OMB may be obtained Housing Procedures for Projects Reduction Act. The Department is from Ms. Pollard. Affected by Presidentially-Declared Disasters. soliciting public comments on the SUPPLEMENTARY INFORMATION: This subject proposal. notice informs the public that the OMB Approval Number: 2502–0582. The purpose of this information Department of Housing and Urban Form Numbers: None. collection is to ensure that owners Development has submitted to OMB a follow HUD procedures, as laid out in Description of the Need for the request for approval of the Information Information and Its Proposed HUD Housing Handbook 4350.1, collection described below. This notice chapter 38, regarding recovery efforts is soliciting comments from members of The purpose of this information after a Presidentially declared disaster. the public and affecting agencies collection is to ensure that owners DATES: Comments Due Date: July 16, concerning the proposed collection of follow HUD 2012. information to: (1) Evaluate whether the procedures, as laid out in HUD ADDRESSES: Interested persons are proposed collection of information is Housing Handbook 4350.1, chapter 38, invited to submit comments regarding necessary for the proper performance of regarding recovery efforts after a this proposal. Comments should refer to the functions of the agency, including Presidentially declared disaster.

Number of Annual × Hours per respondents responses response Burden hours

Reporting Burden ...... 577 0.136 13.506 1,067

Total Estimated Burden Hours: 1,067. SUMMARY: This notice announces HUD’s making, HUD solicits comment through Status: Revision of a currently intention to launch the Strong Cities, this notice on the proposed structure of approved collection. Strong Communities National Resource the SC2 National Resource Network Authority: Section 3507 of the Paperwork Network pilot program with its 19 pilot program, and the criteria by which Reduction Act of 1995, 44 U.S.C. 35, as federal agency and subagency partners HUD and its interagency partners will amended of the White House Council on Strong select an intermediary for the pilot Dated: June 7, 2012. Cities, Strong Communities (SC2). program. Feedback received in response to this notice will aid HUD and its Colette Pollard, Through the SC2 National Resource Network, HUD and its partners will partners in better understanding how Department Reports Management Officer, this pilot program may help local Office of the Chief Information Officer. offer a central portal to connect America’s most economically distressed communities respond to the strains of [FR Doc. 2012–14528 Filed 6–13–12; 8:45 am] the current economic crisis. HUD is BILLING CODE 4210–67–P local communities to national and local experts with wide-ranging experience seeking input from local governments, and skills. The focus of the SC2 philanthropic organizations, private companies, community development DEPARTMENT OF HOUSING AND Network will be to strengthen the entities, and a broad range of other URBAN DEVELOPMENT foundation for economic growth and stakeholders on how the program resiliency in these communities— should be structured in order to have namely, local capacity, comprehensive [Docket No. FR–5512–N–01] the most meaningful impact in planning, and regional collaboration. rebuilding and growing local Strong Cities, Strong Communities HUD will offer funding competitively National Resource Network Pilot government capacity for good through a Notice of Funding governance and economic growth. Program Advance Notice and Request Availability (NOFA) for an intermediary for Comment to assist HUD with establishing and DATES: Comment Due Date: July 16, 2012. AGENCY: Office of the Assistant administering the program. As part of Secretary for Policy Development and the Administration’s efforts to increase ADDRESSES: Interested persons are Research, HUD. transparency in government operations invited to submit comments regarding and to expand opportunities for this notice to the Regulations Division, ACTION: Notice. stakeholders to engage in decision- Office of General Counsel, Department

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of Housing and Urban Development, address: [email protected]. Persons strengthen and leverage the tremendous 451 7th Street SW., Room 10276, with hearing or speech impairments physical, commercial, and social assets Washington, DC 20410–0500. may access this number through TTY by that they possess. SC2 provides a Communications must refer to the above calling the toll-free Federal Relay number of local capacity-building tools docket number and title. There are two Service at 800–877–8339. More to test various models of place-based methods for submitting public information on Strong Cities, Strong technical assistance to help cities and comments. All submissions must refer Communities and updates are also regions maximize the benefits from the to the above docket number and title. available at http://www.huduser.org/ federal funds they already receive and 1. Submission of Comments by Mail. portal/sc2/newsletter.html. build resilient communities. Comments may be submitted by mail to SUPPLEMENTARY INFORMATION: • Encourage regional collaboration: the Regulations Division, Office of SC2 helps build regional relationships I. SC2 Network Pilot Program Overview General Counsel, Department of and foster new connections in order to Housing and Urban Development, 451 In July of 2011, the Obama strengthen regional economies to 7th Street SW., Room 10276, Administration launched Strong Cities, compete in an increasingly globalized Washington, DC 20410–0500. Strong Communities (SC2), a new and world. 2. Electronic Submission of customized pilot initiative to strengthen On March 15, 2012, President Obama Comments. Interested persons may local capacity and spark economic signed an Executive Order establishing submit comments electronically through growth in distressed local communities a White House Council on Strong Cities, the Federal eRulemaking Portal at while ensuring taxpayer dollars are used Strong Communities composed of the www.regulations.gov. HUD strongly wisely and efficiently. SC2 evolved from heads of 19 agencies and sub-agencies encourages commenters to submit ongoing conversations with mayors, along with 11 White House offices. comments electronically. Electronic foundations, nonprofits, and Members Among other functions, the Council submission of comments allows the of Congress working in economically will: commenter maximum time to prepare distressed communities,who • Coordinate agency efforts to ensure and submit a comment, ensures timely consistently highlight strains on local communities have access to receipt by HUD, and enables HUD to governments, the way disjointed comprehensive, localized technical make them immediately available to the programs do not work well for them, assistance and planning resources to public. Comments submitted and a strong and clear desire for a develop and execute their economic coordinated, ongoing relationship with electronically through the vision and strategies (including, where the federal government. SC2 focuses on www.regulations.gov Web site can be appropriate, efforts of existing viewed by other commenters and five goals to change this: • Improve the relationship between committees or task forces related to interested members of the public. providing technical assistance to local Commenters should follow the local and federal government: SC2 seeks to break down traditional local and governments and improving their instructions provided on that site to capacity to address economic issues); submit comments electronically. federal government silos, allowing the • federal government to partner more Provide recommendations to the Note: To receive consideration as public effectively with localities that have President, through the Co Chairs on: comments, comments must be submitted (i) Policies for building local expertise through one of the two methods specified faced significant long-term challenges. • Provide coordination and support: in strengthening local economies; above. Again, all submissions must refer to (ii) Changes to Federal policies and the docket number and title of the notice. No SC2 provides on-the-ground technical assistance and planning resources programs to address issues of special Facsimile Comments. Facsimile (FAX) importance to cities and local comments are not acceptable. tailored to a city’s needs, while also assisting them to use federal funds more governments that pertain to local Public Inspection of Public efficiently and effectively. SC2 provides capacity and economic growth; Comments. All properly submitted the necessary technical expertise to help (iii) Implementing best practices from comments and communications cities focus efforts around populations the SC2 initiative Government-wide to submitted to HUD will be available for served by both federal and local better support cities and local public inspection and copying between programs. governments; and 8 a.m. and 5 p.m. weekdays at the above • Partner for economic growth: SC2 (iv) Opportunities to increase the address. Due to security measures at the assists cities in developing critical flexible utilization of existing Federal HUD Headquarters building, an advance partnerships that focus on job creation, program resources across agencies to appointment to review the public workforce improvement and economic enable more performance and outcome- comments must be scheduled by calling development with key local and based funding; • the Regulations Division at 202–708– regional stakeholders that include Encourage the development of 3055 (this is not a toll-free number). municipal and state governments, the technical assistance, planning, and Individuals with speech or hearing business community, non-profits, faith- financing tools and implementation impairments may access this number based institutions, and other public, strategies that can be coordinated or via TTY by calling the Federal Relay private, and philanthropic leaders. SC2 aligned across agencies to assist Service at 800–877–8339. Copies of all provides a customized approach to communities in building local capacity comments submitted are available for supporting communities on the ground to address economic issues, engaging in inspection and downloading at in their efforts to create jobs and comprehensive planning, and advancing www.regulations.gov. revitalize their economies. regional collaboration; and • FOR FURTHER INFORMATION CONTACT: • Enhance local capacity: Every Facilitate the exchange of ideas and Brittany Gibbs, Office of Policy community is unique, with its own set strategies to help communities address Development and Research, Department of challenges and opportunities. The economic challenges and create of Housing and Urban Development, key to winning the future is sustained economic opportunity. 451 7th Street SW., Washington, DC empowering communities to frame their There are four complementary 20410; telephone number 202–402–2826 own economic vision and then components of the Strong Cities, Strong (this is not a toll-free number); email partnering with them to identify, Communities initiative:

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1. SC2 Community Solutions Teams: in the administration of the needed to help move from plans to Community Solutions Teams comprised competition. implementation, described further of federal employees from several 4. SC2 National Resource Network under Section IV. different agencies are working directly (SC2 Network): The SC2 Network will SC2 Network assistance is not with cities to support mayors in Chester, take the model of Strong Cities, Strong intended to replace any technical PA; Detroit, MI; Fresno, CA; Memphis, Communities to a wider assortment of assistance already provided by the TN; New Orleans, LA; and the Northeast local governments, offering a single federal government or another party, but Ohio region, including Cleveland and portal to a wide range of technical aims to build general local capacity to Youngstown, OH. Community Solutions experts for shorter-term engagements. effectively access these programs. Teams assist cities with issues mayors This resource will be available to Through a comprehensive lens that have identified as vital to their governments who apply, prioritized by crosses city departments and topics, the economic strategies, including efforts to distress and readiness to act on the Network can help cities identify and build on local assets, strengthen recommendations the SC2 Network coordinate simulataneous help from regional economies, develop provides to implement changes more specific programs such as DOJ’s transportation infrastructure, improve required. The extent of each engagement Diagnostic Center for public safety job-training programs and support will be scaled to ensure a measurable issuese or HUD’s OneCPD program to community revitalization. impact, both for the community’s deal with Community Development 2. SC2 Fellowship Program will select, growth and resilience and the efficiency Block Grant (CDBG), HOME, Investment train, and place early- to mid-career of public funds, particularly the federal Partnerships (HOME), and homelessness professionals in local government funding streams they already receive. programs, and address the city’s positions within the same six cities/ To maximize the resources flowing to underlying fiscal or operational capacity regions to serve two-year terms and local governments, an intermediary will needs to make the best use of both. An build additional ‘‘bench-strength’’ be competitively selected to run the SC2 SC2 Network engagement might also capacity. The German Marshall Fund Network’s daily operations. Using an help a city government solve and move outside platform can leverage the was selected in December 2011 to run beyond internal fiscal problems so it can federal government’s investment with the fellowship program and will begin engaging with its neighbors in considerable private and philanthropic competitively select Fellows for a regional growth and planning efforts to resources and pro bono services— planned deployment in the fall of 2012. eventually join the Sustainable similar efforts have annually leveraged The Program is funded by the Communities Initiative of HUD, more than six times their base Rockefeller Foundation, which donated Department of Transportation (DOT), investment. It also taps existing $2.5 million in initial funding to HUD. and Environmental Protection Agency philanthropic and non-profit expertise (EPA). Community Solutions teams and the to engage with and help improve federal Fellowship program are operating in the programs. HUD will retain oversight II. Background same six SC2 pilot cities/regions, which through a cooperative agreement. Rising costs and declining revenues were selected on the basis of economic The SC2 model reflects the idea that bring local governments closer to need, strong local leadership and local issues do not stop at federal bankruptcy and further from solutions collaboration, potential for economic agency boundaries, and that effective to the ever more complex challenges growth, geographic diversity, and the technical assistance must also target their communities face. Almost all state ability to test the SC2 model across a issues that cross federal funding and local governments are required to range of environments. Federal sources. HUD was chosen to host the balance their budgets, leaving no buffer assessment teams spent time on the SC2 Network, but the Network can help during these very tough economic times. ground working directly with mayors cities find expertise across the range of Local governments have many and other local officials to determine SC2 agencies and outside partners, and partners to help, but a major needs, opportunities and gather input efforts will be coordinated with the impediment to supporting and for the pilot initiative. three other components of SC2 and developing the capacity of places with 3. SC2 Economic Visioning Challenge: numerous other federal programs as chronic challenges is the limited In addition to the six pilot locations, appropriate. As an example, HUD, the number of organizations with expertise later this year SC2 will launch an Department of Justice (DOJ), the city in turning whole regions and cities Economic Visioning Challenge designed government, and local philanthropy are around. The field is rich with to help additional cities develop working jointly in Youngstown, OH. organizations and intermediaries with economic blueprints. This national Coordination and technical assistance experience in neighborhood grant competition will enable cities to through SC2/HUD helped the city development and revitalization, but adopt and implement innovative partner with philanthropy to assess very thin in organizations that take a economic development strategies to opportunities for effiency in the city’s holistic approach to urban and regional support comprehensive city and operations. SC2 then linked economic development. Much of this regional planning efforts. Six additional Youngstown to the DOJ’s Diagnostic expertise is spread across a variety of cities will be competitively selected to Center, which helps mayors, organizations that play niche roles— receive a grant of approximately $1 policymakers, and other local leaders public management, fiscal reform, land million that they will use to administer identify their public safety needs and use development, business attraction an ‘‘X-prize style’’ competition, whereby implement evidence-based strategies. and retention, workforce development, they will challenge multi-disciplinary Similarly, HUD and the EDA are etc. teams of experts to develop leveraging mutual investments in SC2. There are a number of federal comprehensive economic and land use EDA plans to offer $6 million to fund programs dedicated to improving urban proposals for their city. The Challenge creation of economic blueprints for economic conditions, in some cases will be administered by the Economic cities through the SC2 Economic through a capacity-building strategy. Development Administration (EDA) Visioning Challenge, and the SC2 Most of these efforts are not responsive through a Federal Funding Notice (FFO) Network will provide each city with to local needs and conditions. They later this year, and EDA will assist cities assessments and technical assistance require an extended time frame, and it

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can be difficult for local governments to service that they cannot replicate, ensuring consistency in projects across determine which agency and program to including investing in an initial participating jurisdictions. approach for aid when their challenges alignment effort for communities with To be able to respond to the varying cut across agency topics. The SC2 potential private and philanthropic needs of different localities, the SC2 Network will coordinate these separate resources to sustain local capacity Network will leverage the expertise of pools of deep expertise with the needs building over a longer term; multiple federal agencies, the of each community, deploying the tool • Align with other federal, state, and, philanthropic community, the business that is actually needed and making the local programs to enhance coordination community, anchor institutions, and overall investment more effective and and avoid duplicating efforts—for lessons learned by other local efficient. HUD will serve this example, regional planning through governments. A primary focus of the coordinating role, building on its direct DOT/EPA/HUD Sustainable Network’s direct assistance will be basic relationships with communities and Communities Initiative, the operational issues such revenue/service founding mandate in the 1965 Neighborhood Revitalization Initiative analysis and performance management. Department of Housing and Urban of HUD, Department of Education (ED), Building capacity in these areas without Development Act to ‘‘Exercise DOJ, Department of Health and Human necessarily focusing on a specific leadership at the direction of the Services (HHS), EDA’s Regional federal program is not targeted by any President in coordinating activities Innovation Clusters, DOJ’s Diagnostic other federal technical assistance (TA) affecting housing and urban Center, Federal Emergency Management program, and since SC2 specifically development; provide technical Agency (FEMA) preparedness technical targets low-capacity governments, HUD assistance and information, including a assistance, or HUD’s OneCPD technical expects budget shortfalls and clearinghouse service to aid State, assistance; operational/program efficiency issues to • county, town, village, or other local Identify for the SC2 Council how be common across most, if not all, cities governments in developing solutions to federal policy changes could help local assisted. This also provides a solid base community and metropolitan governments better achieve their from which the Network can clearly development problems.’’ 1 economic development visions, and identify other TA needs. It will also other policies, systems, and practices assist across a wide range of basic III. SC2 Network Pilot Program that support holistic and sustainable capacity issues as local needs dictate, Objectives economic development; and connecting to existing programs • To achieve the goals of the program, Generate a sustainable model that whenever possible, such as: Economic HUD intends to select an intermediary could, under appropriate conditions, be Development (economic visioning, job through a competitive process. This spun off into an independent entity. market analysis, cluster analysis and intermediary must: IV. General SC2 Network Pilot Program engagement); Workforce Development • Build and manage a team of expert Parameters (job training strategies, industry needs technical service providers, potentially analysis, cradle-to-career education including consulting firms, Final funding levels are not yet reform); Public Safety (juvenile justice, practitioners, academics, intermediaries, established, but HUD currently plans to corrections restructuring, policing and peer localities that represent the launch the National Resource Network strategies); and Sustainable Land Use breadth of relevant expertise. Capacities (SC2 Network) using approximately (brownfield redevelopment, corridor should include, but are not limited to: $5,000,000 from its fiscal year 2012 planning, consolidated transportation & Public budgeting, governance reform, appropriation for the Transformation housing plans). system and process management, grants Initiative and will publish a Notice of As an example, a city might come to management, human capital policies Funding Availability (NOFA) later this the SC2 Network for help with a and procedures, finance, economic year to select an intermediary who will structural budget deficit. The Network development and redevelopment, staff administer the program. HUD’s fiscal would tap its contracted or private capacity assessment, relationship year 2013 budget also requests partner experts in public management assessment, and federal funding additional funds to serve more who would work with city leadership to regulations; communities, subject to appropriations. develop sustainable revenue and • Effectively leverage philanthropic HUD intends to select a single grantee spending plans. These plans might resources, both through building upon to administer the SC2 Network (‘‘SC2 suggest a redevelopment of vacant existing connections between Network Administrator’’) and will fund industrial areas into technology parks, foundations, issue area experts, and the successful SC2 Network grantee open space, or housing, requiring local governments and through forging under a cooperative agreement. The revisions to land use and zoning. The new linkages and partnerships; comments received from this notice will SC2 Network would identify whether • Enlist the support of both paid and inform the NOFA HUD publishes later HUD, EPA, or Commerce, for example, pro bono technical service providers, this year, which will detail the program might be available to advise the city. If maximizing the program’s reach; and application requirements for not and this was a crucial step for the • Carefully document and evaluate potential intermediary organizations. city to reach its goals, the SC2 Network interventions to build a series of best HUD anticipates having substantial could directly engage a land use expert practice strategies that can benefit involvement in the work being to assist with the physical layout, while places with similar challenges, and conducted under this forthcoming ensuring coordination with its public develop forums for sharing this award to ensure that the purposes of the management experts. knowledge; SC2 Network are being carried out and V. Eligible Applicants To Be SC2 • Create and support a peer-to-peer that technical service providers and Network Administrator network to share lessons learned; units of local government are following • Increase the capacity of through on their commitments to local HUD plans that eligible applicants for participating governments in the area of and regional development. HUD’s the SC2 Network Administrator will intervention, not just provide a one-time involvement includes monitoring that include: Nonprofit organizations, progress is being made in meeting foundations, educational institutions, 1 42 U.S.C. 44 3532(b). established performance metrics and for-profit companies, or consortia of

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these entities with demonstrated ability (3) Manage requests for assistance (9) Build a reasonable technical to raise philanthropic support. The based on the priorities outlined in the assistance plan to achieve those results; Administrator must have a applicant’s proposal and agreed upon (10) Provide funds to the appropriate demonstrated ability to engage and with HUD, working with the applicant technical assistance providers sufficient maintain relationships with a diverse to fully understand and document the to administer the services set out in the group of technical service providers scope of their proposed challenges, technical assistance plan; across a broad range of disciplines and determining whether SC2 Network (11) Facilitate the deployment of partner with philanthropies and units of assistance is appropriate, and permanent or part-time staff temporarily general local government to advance the documenting recommendations; to the locality (fellows, volunteers, etc.), objectives of the SC2 Network program. (4) Identify and maintain a catalog of if available; The Administrator must also have a other technical assistance programs (12) Document the request, proposed demonstrated ability to obtain other eligible to local governments, regularly scope of work, and expected result via community, private sector, and federal communicate with staff of major a technical assistance plan; and resources that can be combined with programs on potentially alignment with HUD’s program resources to achieve the SC2 Network, and refer applying (13) Assist the local government in program objectives. governments to them as applicable; identifying other federal, state, local, In addition, under the NOFA process, (5) Document and evaluate the and privately-funded programs and applicants to become the Administrator effectiveness of the individual services that could be appropriate to will be required to meet all threshold interventions and the SC2 Network as a support follow-on work. requirements contained in HUD’s Fiscal whole; Within Category 2, the SC2 Network Year 2012 NOFA General Section, (6) Maintain an easily accessible must include assessments for all six including requirements addressing civil online resource bank of all materials cities receiving grants from EDA rights and other cross-cutting generated that could have utility for through the Economic Visioning requirements applicable to federal other governments and practitioners and Challenge. The Network will determine funding.2 create a strong peer-to-peer network so where outside expertise can best help information and experiences can be VI. Eligible Activities these six cities act on their new routinely transmitted and shared; and economic blueprints, and will also The SC2 Network will carry out three (7) Regularly report to HUD and its advise and help connect cities to interagency partners on potential categories of activities. The first technical assistance programs they regulatory barriers to be addressed and involves establishing the organization, could engage. These assessments should other potential improvements to federal its procedures, and operationalizing comprise no more than 50 percent of programs identified through SC2 further activities. The second involves resources used for Category 2 activities. limited-length engagements with Network projects. individual local communities—the core The peer-to-peer network is a Category 3: Local Resource Networks of the SC2 Network’s work. The third particularly important part of this In a limited number of cities or category targets a limited number of category for the goals of SC2. HUD regions, the SC2 Network may also cities or counties where an alignment of envisions it would utilize three create and support Local Resource organizations can sustain local capacity mediums—meetings, webinars and an Networks. HUD recognizes that some building over a longer term through online forum—to aggregate and places have community or local Local Resource Networks. Applicants to distribute information and resources. foundations and engaged private be the SC2 Network Administrator will Cities will have the opportunity to industries able to provide resources not be limited to the activities described participate in various meetings and that, if properly aligned, might replicate below and may suggest additions within webinars, as well as have access to an the objectives of the SC2 National these categories. online forum that will house relevant Resource Network on a local level. information and resources on the SC2 Category 1: Establishing the SC2 These scaled versions of the SC2 Initiative. In addition, these mediums Network Network would sustainably support will facilitate peer exchanges that help local government capacity, and might As a pilot, SC2 Network must to promote knowledge sharing among free the SC2 Network and other federal establish its operating procedures to cities and stakeholders that are working resources to serve other economically- truly be a place-based single portal for to devise solutions to address their distressed communities. As described in technical assistance. HUD expects this economic challenges. category will form no more than 30 Soundness of Approach section below, percent of the SC2 Network’s activities Category 2: Individual Local the SC2 Network must insure these in this first pilot phase, but would drop Government Engagements places meet certain requirements. The to no more than 15 percent after the first Individual engagements with local SC2 Network may elect to use a small year of funding. communities are the core of the SC2 portion of its resources in this category, (1) Identify technical experts that can Network’s work. While Category 1 will with no more than $500,000 provided to fulfill anticipated needs of applicants be emphasized in the first pilot phase an individual city or region for the for SC2 Network services. Determine starting in 2012, the SC2 Network must following activities. structures necessary to obtain, support also use a minimum of 50 percent of its (14) Identify cities or regions where and nurture a roster of both paid and funds to perform the following Category LRNs may be viable and recruit pro-bono experts. 2 activities in local communities during potential local lead organizations; (2) Advertise the SC2 Network’s the pilot. Category 2 is envisioned to (15) Provide funds to a local lead availability to eligible local become the bulk of the SC2 Network’s organization to create a business plan communities; activities after the first pilot year. for the Local Resource Network, support (8) Work with the technical assistance assembling a leadership team from the 2 See http://portal.hud.gov/hudportal/HUD?src=/ program_offices/administration/grants/fundsavail/ providers to help an applicant public, private, and non-profit sectors, nofa12/gensec and http://portal.hud.gov/hudportal/ government articulate what it is trying and recruit private or non-profit documents/huddoc?id=2012gensecNOFA.pdf. to achieve from its request; partners to dedicate pro bono teams;

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VII. Selection Criteria for SC2 supporting local governments on as that includes specific, measurable, and Administrator minimal an investment as possible. time-phased objectives for each activity. Rating factors for selecting the SC2 HUD is not proposing a fixed model Administrator will therefore focus on Process To Develop and Maintain a for the SC2 Network, but will seek the following criteria: Network of Expert Technical Service proposals for its structure from Providers applicants. The SC2 Network Capacity and Relevant Organizational The SC2 Network Administrator will Administrator will be selected through Experience require in-house expertise and a process a competition that prioritizes prior HUD will carefully evaluate for obtaining the services of other experience in assisting economically- descriptions of the organizational qualified experts with the requisite distressed cities across a wide range of structure of Administrator applicants for knowledge, skills, and abilities as places and issues, and delivering results a demonstration that it can successfully needed. The ability to work on a wide to these communities on a specific implement the proposed activities in a range of issues will be important, as timetable. The successful Administrator timely manner. Applicants will need to well as the ability to work in a wide should be: describe their capacity to perform the range of locations. In particular, the 1. Place-based. The selected activities of the SC2 Network and applicant should demonstrate an ability organization, buoyed by support of relevant experience within the last 3 to collaborate and coordinate with other agencies and the philanthropic years. organizations, experts, and sectors in community, will already have HUD is particularly interested in the delivering assistance to local experience working in many distressed Administrator’s experience in communities through the SC2 Network. cities, and will be able to match these leveraging philanthropic support, Also important is the leverage of pro cities to relevant technical experts contracting with technical service bono services from the private or non- quickly and efficiently. providers, understanding available profit sectors to serve these functions, 2. Resource-maximizing. The selected federal government resources, and but the plan must balance these with organization will have a national scope working with local governments. The paid consultants from the non-profit and will be well-accustomed to the SC2 Network should create a balance of and private sectors when local needs challenge of distributing scarce engaging paid experts when necessary require them. The Administrator must resources across cities with distinct while maximizing contributions of pro develop plans for evaluating their team needs. The ability to effectively evaluate bono services to maximize the services of experts, including measures that will requests for service will be paramount the SC2 Network can provide. be taken if an individual’s work proves to using the SC2 Network’s resources to The Administrator will need to unsatisfactory. their greatest potential. Maximizing demonstrate they either have sufficient Strategy for Evaluating Requests for resources means successfully obtaining personnel or the ability to procure Service philanthropic resources and pro bono qualified experts or professionals with services, balanced with paid consultants the requisite knowledge, skills, and HUD expects that more local as needed. abilities in preparing and coordinating governments will request the services of 3. Nimble, responsive, and service- the development of the SC2 Network. the SC2 Network than the SC2 Network oriented for cities. The SC2 Network The Administrator should be prepared is able to engage, particularly in the first will be designed to provide very timely to initiate eligible activities according to year. SC2 Network Administrator assistance that can thoroughly a specific timetable they propose and applicants must propose a prioritization understand and adapt to needs on the negotiate with HUD. system in their applications that could ground. Its deep team of technical Need/Extent of the Problem include: • The community’s ranking on a experts will allow for subject area The SC2 Network Administrator must experts to be assigned quickly and, relative distress scale (using data have an understanding of the problems provided by HUD and other SC2 when necessary, for partnerships necessitating assistance from the SC2 between experts on issues that require agencies and from other sources as Network based on thorough, credible, appropriate); multiple skill sets and excellent and appropriate data and information. • customer service skills. Scope/cost of request; HUD will evaluate applicants on their • Letters of commitment for support/ 4. Objective. In some cases, documented description of significant staff time from directors of offices; procedures or regulations may be a obstacles to capacity building at the • Willingness of the government to barrier to local capacity-building action. local government level. Applicants will commit to attaining certain performance The SC2 Network’s external operation be evaluated on their understanding of standards; will grant a layer of objectivity to existing models of technical assistance • Demonstration of partnerships/ facilitate local partnering and honest provision and capacity building for collaboration between local government feedback to HUD and the other SC2 local governments that might inform the offices; agencies for relieving burdens on local SC2 Network, along with the limitations • Referral from another SC2 agency governments, while retaining of these models. technical assistance program that is accountability for results. assisting the local government but 5. Sustainable. The intermediary Soundness of Approach recommends broader assistance beyond selected will have the nonprofit The structure for the SC2 Network its allowed scope; management expertise required to make proposed by Administrator applicants • Evidence that the government has the SC2 Network financially will be a major factor in HUD’s made/is making efforts to address the sustainable, and as an outside entity, selection. Applicants must propose how issue; and this organization can attract they will structure the SC2 Network and • Other criteria the applicant deems philanthropic funding and potentially how the activities they will pursue important to creating the greatest impact multiply HUD’s investment several address the problems identified in local in improved local capacity and use of times over. This structure intentionally government capacity. The Administrator funds, with a justification of its allows the SC2 Network to continue will be required to develop a work plan importance.

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The criteria proposed should allow efforts of the SC2 Network. In evaluating growth. The discussion below outlines the SC2 Network to provide assistance this factor, HUD will consider the extent in general terms the key questions HUD to as many governments as possible to which the Administrator applicant is considering in preparing the final while providing a meaningful has established working partnerships NOFA for the program and identifies intervention according to the program’s with other entities to get additional some specific issues for comment. objectives. Administrator applicants’ resources or commitments that increase descriptions of criteria should relate to the effectiveness of the proposed A. Eligible Activities the existing models of technical program activities. Resources may be a. Given the limited resources assistance provision and capacity provided by governmental entities, available and potentially large demand building they describe under Need/ public or private organizations, or other for services from cities, are there certain Extent of the Problem. Applicants entities. activities the SC2 Network should focus should describe why each criterion will on or prioritize, either by topic or by the Achieving Results and Program succeed in targeting and overcoming the four types of activities described: (1) Evaluation capacity problems they have Operational/program/fiscal assessments, documented. Because the SC2 Network seeks (2) connection/clearinghouse for federal Administrator applicants also must support to develop and implement long- TA, (3) direct TA provision when propose criteria for engaging in Category range capacity improvements for local necessary, and (4) Local Resource 3 activities to establish Local Resource governments, not all outcomes will be Networks? Networks. At a minimum, these must realized during the duration of the grant b. Are there specific activities or include: period. Rather, Administrator applicants criteria for funding Local Resource • Demonstration of sufficient private will be evaluated on their ability to Networks that would increase the sector or non-profit partners with identify the outcomes they seek to success of these efforts, and why? appropriate pro bono technical services achieve and the specificity of the c. Given limited funding for an initial to contribute; benchmarks that they establish to pilot, what is a minimum funding • Demonstration of matching funds measure progress toward a completed amount necessary to make the Local from a local non-profit or private source; product that guides all of the necessary Resource Network activities described and work. viable for this stage of the program? • Demonstration of support from the The White House SC2 Council is d. Are there currently efforts local government. working to track the outcomes of its underway or proposed in individual work on all components of SC2, and the Leverage cities or regions that would meet the SC2 Network Administrator will be criteria for Local Resource Networks, HUD has reoriented a part of its required to coordinate with these efforts and if so, in which places? technical assistance funds to create the and track comparable outputs and single comprehensive clearinghouse, outcomes in its work. These might B. Selection Criteria and other agencies on the White House include the number of Network a. What are the top capacity SC2 Council have identified linked recommendations implemented and challenges governments in distressed technical assistance support. HUD and how quickly, the pace of expenditure of communities face, and on what issues the SC2 Council cannot, and are not federal funds, the number of successful do they most require technical intending to, provide the full technical applications for federal funds, and the assistance? assistance resources necessary given the extent of collaborative stakeholder b. What is an appropriate minimum scope of local needs. This is intentional network supporting implementation of level of assistance to make a meaningful to make the investment go further the city’s comprehensive economic impact for a given local government? through private leverage and make the strategy. The Network Administrator Given the proposed funding levels, what SC2 Network less dependent on a single will be expected to develop and track is an appropriate maximum level of stream of funds. Moreover, leveraging specific measures for its works, assistance, or how many governments outside investments builds in including progress on budget deficits might be assisted given the $5,000,000 engagement of the expertise that already and municipal bond ratings. For every total funding HUD has proposed? exists in the philanthropic, non-profit, engagement, the Network Administrator c. What are current successful and private sectors for this work, and must create a clear logic model organizational models similar to the SC2 creates a relationship between these describing issues targeted, what it seeks Network that might serve as guides for efforts and government programs to to achieve, the benchmarks that show its structure? Which aspects of these encourage mutual improvement rather success, and the steps the Network will models contribute most to their success than working around each other and take to reach success. (e.g., leveraging philanthropic support, duplicating efforts. Applicants will be engaging pro bono services, working in scored on firm commitments from other VIII. Solicitation of Comments on diverse communities, working on community, private sector, and federal Proposed Program Structure diverse topics)? resources that can be combined with As noted above, HUD and its SC2 d. What are current successful HUD’s program resources to achieve agency partners are soliciting comments technical assistance and/or capacity program objectives, and that are through this Advance Notice on how the building models for local government contingent only on the applicant’s SC2 Network pilot program should be and specific city case studies that the selection as the SC2 Network structured, what funding categories and SC2 Network might use as best Administrator. Greater collaboration activities are most appropriate to practices? between government and other sectors support, which entities should be e. What are feasible 6-month, 1-year, is an SC2 Network goal, so resources eligible for SC2 Network Administrator, 2-year, 5-year, and 10-year outcomes for must include in-kind pro bono and how best to evaluate proposed SC2 local communities assisted by the SC2 contributions of services allocated to the Network structures in order to have the Network? Are any of these outcomes proposed program and may also include most meaningful impact in rebuilding universal for all sizes and places, or will cash. Financial resources must be and growing local government capacity they vary by the individual shown to be dedicated solely to the for good governance and economic circumstances of each government?

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What type of shorter-term benchmarks hours (8:45 a.m. to 5:15 p.m.) in the presiding ALJ issued an ID (Order No. are most appropriate for evaluating Office of the Secretary, U.S. 21) granting the motion. success? International Trade Commission, 500 E On May 8, 2012, complainants Trek f. Which of the criteria listed for Street SW., Washington, DC 20436, filed an uncontested motion to prioritizing requests from local telephone (202) 205–2000. General withdraw the complaint and terminate governments are most important, and information concerning the Commission the investigation as to the remaining what are additional criteria that should may also be obtained by accessing its respondents Kingston and Imation. be included? Internet server at http://www.usitc.gov. Respondents Kingston and Imation did g. What type of information will the The public record for this investigation not oppose the motion. The Staff filed Network need from cities to understand may be viewed on the Commission’s a response in support of the motion. On need and readiness, and to determine electronic docket (EDIS) at http:// May 10, 2012, the ALJ issued an ID the proper extent of engagement with edis.usitc.gov. Hearing-impaired (Order No. 22) granting the motion. No the Network? persons are advised that information on party petitioned for review of either While these are issues of particular this matter can be obtained by Order No. 21 or Order No. 22. The interest, HUD encourages meaningful contacting the Commission’s TDD Commission has determined not to input on the proposed SC2 Network terminal on (202) 205–1810. review the IDs. The investigation is program more generally as well. If SUPPLEMENTARY INFORMATION: The hereby terminated. providing comments and addressing the Commission instituted this investigation The authority for the Commission’s comments for which HUD specificially under section 337 of the Tariff Act of determination is contained in section solicits feedback, HUD requests that 1930, as amended, 19 U.S.C. § 1337, on 337 of the Tariff Act of 1930, as commenters please respond to the July 19, 2011, based on a complaint amended, 19 U.S.C. § 1337, and in specified questions first in addition to filed on behalf of Trek 2000 section 210.42(h) of the Commission’s other comments you would like to International Ltd. of Loyang Industrial Rules of Practice and Procedure, 19 CFR provide. HUD has provided the avenues Estate, Singapore; Trek Technology 210.42(h). for input in the ADDRESSES section of (Singapore) Pte. Ltd. of Genting Centre, By Order of the Commission. this notice. Singapore; and S–Corn System (S) Pte. Issued: June 8, 2012. Dated: June 7, 2012. Ltd. of Genting Centre, Singapore Lisa R. Barton, Erika C. Poethig, (collectively, ‘‘Trek’’), alleging a Acting Secretary to the Commission. Acting Assistant Secretary for Policy violation of section 337 in the [FR Doc. 2012–14529 Filed 6–13–12; 8:45 am] Development and Research. importation, sale for importation, and BILLING CODE 7020–02–P [FR Doc. 2012–14503 Filed 6–13–12; 8:45 am] sale within the United States after BILLING CODE 4210–67–P importation of certain universal serial bus (‘‘USB’’) portable storage devices, including USB flash drives and DEPARTMENT OF JUSTICE INTERNATIONAL TRADE components thereof that infringe certain COMMISSION claims of U.S. Patent Nos. 6,880,054; Drug Enforcement Administration 7,039,759; D463,426; and 7,549,161. 76 [Investigation No. 337–TA–788] FR 42730 (July 19, 2011). The notice of Importer of Controlled Substances investigation named as respondents Notice of Application Certain Universal Serial Bus (‘‘USB’’) Imation Corporation of Oakdale, Portable Storage Devices, Including Correction Minnesota; IronKey, Inc. of Sunnyvale, USB Flash Drives and Components California; Kingston Technology In notice document 2012–14161, Thereof Determination Not To Review Company, Inc. of Fountain Valley, appearing on pages 35020–35021 in the Two Initial Determinations Terminating California; Patriot Memory, LLC of issue of Tuesday, June 12, 2012, make the Investigation as to All Remaining Fremont, California (‘‘Patriot’’); RITEK the following correction: Respondents; Termination of the Corporation of Hsinchu, Taiwan and On page 35020, in the third column, Investigation Advanced Media, Inc./RITEK USA of in the fourth full paragraph, in the AGENCY: U.S. International Trade Diamond Bar, California (collectively, eighth and ninth lines, ‘‘[insert date 30 Commission. ‘‘RITEK’’); and Verbatim Corporation, days from date of publication]’’ should ACTION: Notice. Inc. of Charlotte, North Carolina and read ‘‘July 12, 2012’’. Verbatim Americas, LLC of Charlotte, [FR Doc. C1–2012–14161 Filed 6–13–12; 8:45 am] SUMMARY: Notice is hereby given that North Carolina (collectively, BILLING CODE 1505–01–D the U.S. International Trade ‘‘Verbatim’’). Subsequently, respondents Commission has determined not to RITEK, Verbatim, and Patriot were review two initial determinations terminated from the investigation. (‘‘IDs’’) (Order Nos. 21 and 22) of the On May 4, 2012, complainants Trek LEGAL SERVICES CORPORATION presiding administrative law judge moved to terminate the investigation in (‘‘ALJ’’) terminating the investigation as LSC Strategic Plan 2012–2016; part and withdraw the allegations in the Request for Comments to all remaining respondents. complaint of infringement of the ’054, FOR FURTHER INFORMATION CONTACT: the ’759, and the ’426 patents by AGENCY: Legal Services Corporation. Michael Liberman, Esq., Office of the accused products of respondent ACTION: Request for comments. General Counsel, U.S. International IronKey, namely the S200 and D200 Trade Commission, 500 E Street SW., products and Trusted Access. SUMMARY: The Legal Services Washington, DC 20436, telephone (202) Respondents Imation, IronKey, and Corporation (‘‘LSC’’ or ‘‘Corporation’’) 205–3106. Copies of non-confidential Kingston did not oppose the motion. Board of Directors (‘‘Board’’) is documents filed in connection with this The Commission investigative staff soliciting public comment on the LSC investigation are or will be available for (‘‘Staff’’) filed a response in support of Board’s draft strategic plan for 2012– inspection during official business the motion. On May 8, 2012, the 2016.

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DATES: Written comments must be ACTION: Notice of meeting. 5532, TTY–TDD 202/682–5429, at least received by close of business July 11, seven (7) days prior to the meeting. 2012. SUMMARY: Pursuant to section 10(a)(2) of the Federal Advisory Committee Act Dated: June 8, 2012. ADDRESSES: Written comments may be (Pub. L. 92–463), as amended, notice is Kathy Plowitz-Worden, submitted by mail, fax, or email to hereby given that a meeting of the Panel Coordinator, Office of Guidelines and Richard L. Sloane, Chief of Staff and National Council on the Arts will be Panel Operations. Special Assistant to the President, Legal held at the Nancy Hanks Center, 1100 [FR Doc. 2012–14501 Filed 6–13–12; 8:45 am] Services Corporation, 3333 K Street Pennsylvania Avenue NW., Washington, BILLING CODE 7537–01–P NW., Washington, DC 20007; (202) 295– DC 20506. 7264 (fax), or [email protected]. Comments may also be submitted online DATES: June 28, 2012 from 1:00 p.m. to 2:15 p.m. in Room 527. This portion of at http://www.lsc.gov/about/matters- SECURITIES AND EXCHANGE the meeting will be closed for National comment/comment-submission-form- COMMISSION lsc-board-directors-draft-strategic-plan- Medal of Arts review and 2012-2016. recommendations. June 29, 2012 from 9:00 a.m. to 11:30 a.m. (ending times are [Release No. 34–67165; File No. SR–BATS– FOR FURTHER INFORMATION CONTACT: 2012–021] Richard L. Sloane, Chief of Staff and approximate). This portion of the Special Assistant to the President, Legal meeting will be open. Self-Regulatory Organizations; BATS Services Corporation, 3333 K Street FOR FURTHER INFORMATION CONTACT: Exchange, Inc.; Notice of Filing and NW., Washington, DC 20007, (202) 295– Office of Communications, National Immediate Effectiveness of Proposed 1616 (phone), (202) 337–7264 (fax), or Endowment for the Arts, Washington, Rule Change To Adopt Rules Related [email protected]. DC 20506, at 202/682–5570. to Risk Management Functionality for SUPPLEMENTARY INFORMATION: The Board SUPPLEMENTARY INFORMATION: The BATS Options is developing a strategic plan for LSC for meeting on Friday, June 29th will be open to the public on a space available June 8, 2012. the years 2012–2016. The public is Pursuant to Section 19(b)(1) of the hereby formally invited to comment on basis. The meeting will begin with Securities Exchange Act of 1934 (the the draft strategic plan, which is opening remarks, swearing in of new ‘‘Act’’),1 and Rule 19b–4 thereunder,2 available at http://www.lsc.gov/sites/ Council members, and voting on notice is hereby given that on June 1, default/files/LSC/pdfs/ recommendations for funding and 2012, BATS Exchange, Inc. (the LSCStrategicPlan- rejection and guidelines, followed by ‘‘Exchange’’ or ‘‘BATS’’) filed with the DRAFTForFedRegComments updates by the Chairman. There will Securities and Exchange Commission June2012.PDF. Comments may be also be the following presentations: (‘‘Commission’’) the proposed rule submitted via mail, fax, or email to From 9:45 a.m. to 10:30 a.m.—Citizens’ change as described in Items I and II Richard L. Sloane, Chief of Staff and Institute on Rural Design; from 10:30 below, which Items have been prepared Special Assistant to the President, Legal a.m. to 11:00 a.m.—Association of Services Corporation, 3333 K Street Children’s Museum; from 11:00 a.m. to by the Exchange. The Exchange has NW., Washington, DC 20007, (202) 295– 11:30 a.m.—NEA National Heritage designated this proposal as a ‘‘non- 1616 (phone), (202) 337–7264 (fax), or Fellowships. The meeting will adjourn controversial’’ proposed rule change [email protected]. Comments may also be at 11:30 a.m. pursuant to Section 19(b)(3)(A) of the For information about possible Act 3 and Rule 19b–4(f)(6)(iii) submitted online at http://www.lsc.gov/ 4 about/matters-comment/comment- webcasting of the open session of this thereunder, which renders it effective submission-form-lsc-board-directors- meeting, go to the Podcasts, Webcasts, & upon filing with the Commission. The draft-strategic-plan-2012-2016. Webinars tab at www.arts.gov. Commission is publishing this notice to Comments will be accepted until the If, in the course of the open session solicit comments on the proposed rule close of business on July 11, 2012. discussion, it becomes necessary for the change from interested persons. Notice: All comments received will be Council to discuss non-public I. Self-Regulatory Organization’s posted and available at www.lsc.gov. commercial or financial information of Statement of the Terms of Substance of Such comments are also subject to intrinsic value, the Council will go into the Proposed Rule Change disclosure under FOIA. Personally closed session pursuant to subsection identifiable information, such as phone (c)(4) of the Government in the The Exchange proposes to adopt Rule numbers and addresses, may be Sunshine Act, 5 U.S.C. 552b, and in 21.16, entitled ‘‘Risk Monitor redacted upon request. accordance with the February 15, 2012 Mechanism’’, to codify the risk determination of the Chairman. monitoring functionality offered to all Dated: June 8, 2012. Users 5 of the BATS equity options Victor M. Fortuno, Additionally, discussion concerning purely personal information about trading platform (‘‘BATS Options’’). Vice President & General Counsel. individuals, such as personal The text of the proposed rule change [FR Doc. 2012–14497 Filed 6–13–12; 8:45 am] biographical and salary data or medical is available at the Exchange’s Web site BILLING CODE 7050–01–P information, may be conducted by the at http://www.batstrading.com, at the Council in closed session in accordance principal office of the Exchange, and at with subsection (c)(6) of 5 U.S.C. 552b. the Commission’s Public Reference NATIONAL FOUNDATION ON THE Any interested persons may attend, as Room. ARTS AND THE HUMANITIES observers, Council discussions and reviews that are open to the public. If 1 15 U.S.C. 78s(b)(1). National Council on the Arts 176th 2 you need special accommodations due 17 CFR 240.19b–4. Meeting 3 to a disability, please contact the Office 15 U.S.C. 78s(b)(3)(A). 4 17 CFR 240.19b–4(f)(6)(iii). AGENCY: National Endowment for the of AccessAbility, National Endowment 5 As defined in Exchange Rule 16.1(a)(63), a User Arts, National Foundation on the Arts for the Arts, 1100 Pennsylvania Avenue is any Exchange member or sponsored participant and Humanities. NW., Washington, DC 20506, 202/682– authorized to obtain access to the Exchange.

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II. Self-Regulatory Organization’s Mechanism. The Exchange believes that orders from a User until the counting Statement of the Purpose of, and the Risk Monitor Mechanism should program has been reset in accordance Statutory Basis for, the Proposed Rule help liquidity providers generally, with paragraph (d) of new Rule 21.16. Change market makers and other participants The Risk Monitor Mechanism will also In its filing with the Commission, the alike, in managing risk and providing attempt to cancel any orders that have Exchange included statements deep and liquid markets to investors. been routed away to other options Pursuant to new Rule 21.16, the Risk concerning the purpose of and basis for exchanges on behalf of the User. Monitor Mechanism operates by the the proposed rule change and discussed As provided in proposed System maintaining a counting program any comments it received on the subparagraph (b)(ii), each User can, for each User. As proposed, a single proposed rule change. The text of these optionally, establish Specified User may configure a single counting statements may be examined at the Engagement Triggers in each Options program or multiple counting programs places specified in Item IV below. The Category, per option, or in the Firm to govern its trading activity (i.e., on a Exchange has prepared summaries, set Category. Specified Engagement per port basis). The counting program forth in Sections A, B, and C below, of Triggers can be set as follows: (A) A will count executions of contracts contract volume trigger, measured the most significant parts of such traded by each User and in specific statements. against the number of contracts Option Categories (as defined below) by executed (the ‘‘volume trigger’’); (B) A each User. The counting program counts (A) Self-Regulatory Organization’s notional value trigger, measured against executions, contract volume and Statement of the Purpose of, and the notional value of executions 6 notional value, within a specified time Statutory Basis for, the Proposed Rule (‘‘notional trigger’’); and (C) An period established by each User (the Change execution count trigger, measured ‘‘specified time period’’) and on an against the number of executions 1. Purpose absolute basis for the trading day (‘‘count trigger’’). Each of these triggers The purpose of the proposed rule (‘‘absolute limits’’). The specified time can be established in isolation (e.g., a change is to reflect in the Exchange’s period will commence for an option User may choose only to implement a rules that Users are able to establish when a transaction occurs in any series volume trigger) or a User can establish certain risk control parameters. in such option. The counting program multiple separate triggers with different Specifically, the Exchange proposes to will count executions in the following parameters. Also, as described above, adopt new Rule 21.16, Risk Monitor ‘‘Options Categories’’: front-month puts, the triggers can be implemented either Mechanism, which is similar to front-month calls, back-month puts, and as absolute limits or over a specified NASDAQ Options Market (‘‘NOM’’) back-month calls (each an ‘‘Option period of time. Chapter VI, Section 19 and the rules of Category’’). The counting program will other options exchanges (as explained also count a User’s executions, contract For example, assume a User is quoting in detail below). The Risk Monitor volume and notional value across all orders in several series of a particular Mechanism provides protection from options which a User trades (‘‘Firm option issue, and sets Specified the risk of multiple executions across Category’’). For the purposes of new Engagement Triggers in an Options multiple series of an option or across Rule 21.16, a front-month put or call is Category as follows: (i) A volume trigger multiple options. The risk to Users is an option that expires within the next at 500 contracts per second, (ii) a count not limited to a single series in an two calendar months, including trigger at 100 executions per minute, option or even to all series of an option; weeklies and other non-standard and (iii) an absolute notional value Users that quote in multiple series of expirations, and a back-month put or trigger of $30,000. In this example, there multiple options have significant call is an option that expires in any are three Specified Engagement Triggers exposure, requiring them to offset or month more than two calendar months for the option issue, any one of which, hedge their overall positions. away from the current month. if reached, would result in cancellations In particular, the Risk Monitor The System will engage the Risk of any additional orders of the User in Mechanism will be useful for market Monitor Mechanism in a particular the specified option issue, rejection of makers on BATS Options (‘‘Market option when the counting program has additional orders by the User in that Makers’’), who are required to determined that a User’s trading has issue and attempted cancellation of any continuously quote in assigned options. reached a Specified Engagement Trigger orders in the option issue already routed Quoting across many series in an option (as defined below) established by such to an away options exchange on behalf creates the possibility of ‘‘rapid fire’’ User during the specified time period or of the User. The following examples executions that can create large, on an absolute basis. When a Specified illustrate the operation of each of the unintended principal positions that Engagement Trigger is reached in an User’s Specified Engagement Triggers: expose the Market Maker to unnecessary Options Category, the Risk Monitor Volume Specified Engagement Trigger market risk. The Risk Monitor Mechanism will automatically remove in an Options Category Mechanism is intended to assist such such User’s orders in all series of the Users in managing their market risk. particular option and reject any If within one second, executions Though the Risk Monitor Mechanism additional orders from a User in such against the User’s quotations in any will be most useful to Market Makers, option until the counting program has series of front-month calls of the option the Exchange proposes to offer the been reset in accordance with paragraph issue equaled or exceeded 500 contracts, functionality to all participant types. (d) of new Rule 21.16. Similarly, when the Risk Monitor Mechanism would be There are other firms that trade on a a Specified Engagement Trigger is engaged. To illustrate this example, proprietary basis and provide liquidity reached in the Firm Category, the Risk assume the following quotations and to the Exchange; these firms could Monitor Mechanism will automatically executions within the current second in potentially benefit, similarly to Market remove such User’s orders in all series front-month calls of the specified option Makers, from the Risk Monitor of all options and reject any additional issue:

6 Notional value is calculated as the sum of all executed. For example, an option executed with a premium of $3.00 for 5 contracts would count as premiums paid times the number of contracts $15.00 notional value.

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Number of Number of Series 1 quoted Series 2 quoted contracts contracts Price level size size executed executed Series 1 Series 2

Level 1 ...... 100 50 100 50 Level 2 ...... 100 50 100 50 Level 3 ...... 150 50 150 0 Level 4 ...... 150 200 0 0 Level 5 ...... 150 200 0 0

Total ...... 650 600 350 100

At this moment in time, the User has of the option issue would be 500. The Execution Count Specified Engagement executed 450 contracts within the Risk Monitor would be engaged, and the Trigger in an Options Category applicable second (350 contracts of User’s remaining orders in all series of If within one minute, executions Series 1 and 100 contracts of Series 2), the option issue would be cancelled, against the User’s quotations in any which is less than the User’s limit of additional orders by the User in that series of front-month puts of the option 500 contracts per second. As such, the issue would be rejected, and the issue equaled or exceeded 100 User’s established volume trigger in an Exchange would attempt to cancel any executions per minute, the Risk Monitor Options Category has not yet been orders in the option issue that had Mechanism would be engaged. To reached. If, however, prior to the already been routed to an away options illustrate this example, assume the completion of the applicable second, an exchange on behalf of the User. following quotations and executions order executed against the User’s Level within the current minute in front- 3 quotation in Series 2, the number of month puts of the specified option contracts executed in front-month calls issue:

Number of Number of Price level executions executions Series 1 Series 2

Level 1 ...... 40 20 Level 2 ...... 20 15 Level 3 ...... 0 0

Total ...... 60 35

At this moment in time, the User has Monitor would be engaged, and the quotations in any series of front-month received 95 total executions within the User’s remaining orders in all series of calls of the option issue equaled or applicable minute (60 executions in the option issue would be cancelled, exceeded a notional value of $30,000, Series 1 options and 35 executions in additional orders by the User in that the Risk Monitor Mechanism would be Series 2 options), which is less than the issue would be rejected, and the engaged. To illustrate this example, User’s limit of 100 executions per Exchange would attempt to cancel any assume the current notional value of all minute. As such, the User’s established orders in the option issue that had front-month calls in the option issue count trigger in an Options Category has already been routed to an away options was $29,900 as of 1:30 p.m. Eastern not yet been reached. If, however, prior exchange on behalf of the User. Time and the following executions to the completion of the applicable Notional Value Specified Engagement occurred: minute, the User executed 5 more orders Trigger in an Options Category in either series, the number of executions in front-month puts of the If, as of any time during the trading option issue would be 100. The Risk day, executions against the User’s

Number of Execution number Price contracts Series Notional value

1 ...... $5.00 5 Series 1 $25.00 2 ...... 3.00 15 Series 2 45.00 3 ...... 5.00 6 Series 1 30.00

Total ...... 100.00

At this moment in time, execution option issue would be cancelled, already been routed to an away options number 3 has raised the total notional additional orders by the User in that exchange on behalf of the User. value of all front-month calls to $30,000 issue would be rejected, and the As noted above, in addition to for the trading day. The Risk Monitor Exchange would attempt to cancel any counting programs established across would be engaged, and the User’s orders in the option issue that had Options Categories, any of the available remaining orders in all series of the Specified Engagement Triggers are

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configurable on a Firm Category level as obligations of a broker-dealer pursuant used to circumvent a User’s firm quote well (either as absolute limits or over a to Rule 602 of Regulation NMS. obligation. specified time period). When a Firm Specifically, proposed paragraph (c) If a User is quoting in two series of a Category risk limit is triggered, then all provides that any marketable orders or particular option, at several price levels quotes that are executable against a options orders of a User are cancelled, in each, and sets an Options Category additional orders by the User are User’s quotation that are received prior volume trigger at 400 contracts, one rejected and the Exchange will attempt to the time the Risk Monitor Mechanism contra side order can result in to cancel any orders already routed to is engaged will be automatically an away options exchange on behalf of executed at the price up to the User’s executions in excess of the Specified the User. size, regardless of whether such an Engagement Trigger. Specifically, if a While the Risk Monitor Mechanism is execution results in executions in market order to sell 500 contracts is a useful feature that serves an important excess of the User’s Specified received in Series 1, the order will risk management purpose, it operates Engagement Trigger. Accordingly, the execute against the first four levels that consistent with the firm quote Risk Monitor Mechanism cannot be the User is quoting, as follows:

Number of Number of contracts contracts Price level Series 1 size Series 2 size executed executed Series 1 Series 2

Level 1 ...... 100 50 100 0 Level 2 ...... 100 50 100 0 Level 3 ...... 150 100 150 0 Level 4 ...... 150 200 150 0 Level 5 ...... 150 200 0 0

Total ...... 650 600 500 0

Although the User set a volume front-month call contracts executing functionality is offered by NOM and trigger at 400 contracts, the contra side within the current minute, thus other options exchanges.9 order executes in its entirety and the triggering the volume trigger of 20,000 (B) Self-Regulatory Organization’s Risk Protection Mechanism is engaged contracts per minute. If the User reset Statement on Burden on Competition after the resulting executions have the risk limit threshold, all values, surpassed the Specified Engagement including the absolute notional The Exchange does not believe that Trigger. The remaining quoted contracts calculation for the trading day, would the proposed rule change imposes any in Series 1 and all quoted contracts in be reset to zero. burden on competition. Series 2 would then be cancelled. (C) Self-Regulatory Organization’s Proposed Rule 21.16(d) further 2. Statutory Basis Statement on Comments on the provides that the system will reset the The rule change proposed in this Proposed Rule Change Received From counting period for absolute limits submission is consistent with the Members, Participants or Others when a User refreshes its risk limit requirements of the Act and the rules thresholds. In addition, proposed Rule and regulations thereunder that are The Exchange has neither solicited 21.16(d) provides that the System will applicable to a national securities nor received written comments on the reset the counting program and exchange, and, in particular, with the proposed rule change. 7 commence a new specified time period requirements of Section 6(b) of the Act. III. Date of Effectiveness of the when: (i) A previous counting period Specifically, the proposed change is Proposed Rule Changes and Timing for has expired and a transaction occurs in consistent with Section 6(b)(5) of the Commission Action any series in such option; or (ii) A User Act,8 because it is designed to prevent refreshes its risk limit thresholds prior fraudulent and manipulative acts and Because the foregoing proposed rule to the expiration of the specified time practices, to promote just and equitable change does not: (i) Significantly affect period. For example, assume that a User principles of trade, to foster cooperation the protection of investors or the public has set Options Category limits for a and coordination with persons engaged interest; (ii) impose any significant particular option as follows: Volume in facilitating transactions in securities, burden on competition; and (iii) become triggers at 500 contracts per second and and to remove impediments to, and operative for 30 days from the date on 20,000 contracts per minute, a count perfect the mechanism of, a free and which it was filed, or such shorter time trigger at 20 executions per second, and open market and a national market as the Commission may designate, it has an absolute notional value trigger of system. The Exchange believes that the become effective pursuant to Section 10 $30,000. Assume that at a particular proposal is appropriate and reasonable, 19(b)(3)(A) of the Act and Rule 19b– 11 point in time, 400 front-month calls because it offers functionality for Users 4(f)(6)(iii) thereunder. In addition, the have executed in the current second, to manage their risk. Offering of a Risk Exchange provided the Commission 19,000 front-month calls have executed Monitor Mechanism will allow Market with written notice of its intent to file in the current minute, 10 executions of Makers and other Users to quote the proposed rule change, along with a front-month calls have occurred in the aggressively which removes brief description and text of the current second and a total of $25,000 impediments to a free and open market notional has been executed in front- and benefits all Users of BATS Options. 9 See NOM Chapter VI, Section 19; see also NASDAQ OMX PHLX Rule 1093; CBOE Rule 8.18; month calls over the course of the The Exchange notes that a similar NYSE AMEX Options Rule 928; NYSE ARCA trading day. Next, an incoming order Options Rule 6.40. from another User of BATS Options is 7 15 U.S.C. 78f(b). 10 15 U.S.C. 78s(b)(3)(A). received that results in another 1,000 8 15 U.S.C. 78f(b)(5). 11 17 CFR 240.19b–4(f)(6)(iii).

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proposed rule change, at least five office of the Exchange. All comments and basis for, the proposed rule change business days prior to the date of filing, received will be posted without change; and discussed any comments it received or such shorter time as designated by the Commission does not edit personal on the proposed rule change. The text the Commission.12 identifying information from of these statements may be examined at At any time within 60 days of the submissions. You should submit only the places specified in Item IV below. filing of the proposed rule change, the information that you wish to make The self-regulatory organization has Commission summarily may available publicly. All submissions prepared summaries, set forth in temporarily suspend such rule change if should refer to File No. SR–BATS– sections A, B and C below, of the most it appears to the Commission that such 2012–021 and should be submitted on significant aspects of such statements. action is necessary or appropriate in the or before July 5, 2012. A. Self-Regulatory Organization’s public interest, for the protection of For the Commission, by the Division of investors, or otherwise in furtherance of Statement of the Purpose of, and Trading and Markets, pursuant to delegated Statutory Basis for, the Proposed Rule the purposes of the Act. 13 authority. Change IV. Solicitation of Comments Kevin M. O’Neill, 1. Purpose Interested persons are invited to Deputy Secretary. submit written data, views and [FR Doc. 2012–14530 Filed 6–13–12; 8:45 am] The purpose of this proposed rule arguments concerning the foregoing, BILLING CODE 8011–01–P change is to eliminate three fees from including whether the proposal is the Exchange’s Schedule of Fees. First, consistent with the Act. Comments may the Exchange currently has a fee of SECURITIES AND EXCHANGE be submitted by any of the following $0.25 per contract applicable to COMMISSION methods: customers that transact in complex [Release No. 34–67168; File No. SR–ISE– orders, i.e., customer complex orders Electronic Comments 2012–46] that interact with complex orders • Use the Commission’s Internet residing on the complex order book comment form (http://www.sec.gov/ Self-Regulatory Organizations; thereby taking liquidity from the rules/sro.shtml); or International Securities Exchange, complex order book (‘‘Complex Order • Send an email to rule- LLC; Notice of Filing and Immediate Taker Fee’’).3 This fee was introduced [email protected]. Please include File Effectiveness of Proposed Rule before the Exchange introduced the No. SR–BATS–2012–021 on the subject Change To Delete Certain Fees Professional Customer category with the line. intent to charge non-broker dealer June 8, 2012. customers that use highly developed Paper Comments Pursuant to Section 19(b)(1) of the trading systems and are quickly able to • Send paper comments in triplicate Securities Exchange Act of 1934 (the hit the bid or lift an offer thereby taking 1 to Elizabeth M. Murphy, Secretary, ‘‘Exchange Act’’), and Rule 19b–4 liquidity, i.e., interacting with complex 2 Securities and Exchange Commission, thereunder, notice is hereby given that orders resident on the complex order 100 F Street NE., Washington, DC on June 1, 2012, the International book. The Exchange adopted this fee to 20549–1090. Securities Exchange, LLC (the put Professional Customers on more All submissions should refer to File No. ‘‘Exchange’’ or the ‘‘ISE’’) filed with the equal footing with broker dealer orders SR–BATS–2012–021. This file number Securities and Exchange Commission that were already subject to this fee. The should be included on the subject line the proposed rule change, as described purpose of this fee was not to charge if email is used. To help the in Items I and II below, which items retail investors, who are now known on Commission process and review your have been prepared by the self- the Exchange as Priority Customers, and comments more efficiently, please use regulatory organization. The therefore the Exchange adopted a waiver only one method. The Commission will Commission is publishing this notice to from this fee for the first 1,000 orders post all comments on the Commission’s solicit comments on the proposed rule that a Member, acting on behalf of one Internet Web site (http://www.sec.gov/ change from interested persons. or more of its customers, transacts in rules/sro.shtml). Copies of the I. Self-Regulatory Organization’s one month that takes liquidity from the submission, all subsequent Statement of the Terms of Substance of complex order book. Now that the amendments, all written statements the Proposed Rule Change Exchange is able to distinguish between with respect to the proposed rule The ISE proposes to eliminate three Priority and non-Priority Customers, the change that are filed with the fees from its Schedule of Fees. The text Exchange believes this fee is no longer Commission, and all written of the proposed rule change is available necessary and proposes to eliminate it. In 2010, the Exchange began assessing communications relating to the on the Exchange’s Web site (http:// per contract transaction fees and rebates proposed rule changes between the www.ise.com), at the principal office of to market participants that add or Commission and any person, other than the Exchange, and at the Commission’s remove liquidity from the Exchange those that may be withheld from the Public Reference Room. public in accordance with the (‘‘maker/taker fees and rebates’’) 4 in a provisions of 5 U.S.C. 552, will be II. Self-Regulatory Organization’s number of options classes (the ‘‘Select available for Web site viewing and Statement of the Purpose of, and printing in the Commission’s Public Statutory Basis for, the Proposed Rule 3 See Exchange Act Release Nos. 34–54751 Reference Room, 100 F Street NE., Change (November 14, 2006), 71 FR 67667 (November 22, 2006) (SR–ISE–2006–56); 55247 (February 6, 2007), Washington, DC 20549, on official In its filing with the Commission, the 72 FR 7099 (February 14, 2007) (SR–ISE–2007–03); business days between the hours of self-regulatory organization included 59576 (March 13, 2009), 74 FR 11982 (March 20, 10:00 a.m. and 3:00 p.m. Copies of such statements concerning the purpose of, 2009) (SR–ISE–2009–07); and 60778 (October 2, filing will also be available for 2009), 74 FR 51896 (October 8, 2009) (SR–ISE– 2009–72). inspection and copying at the principal 13 17 CFR 200.30–3(a)(12). 4 See Exchange Act Release No. 61869 (April 7, 1 15 U.S.C. 78s(b)(1). 2010), 75 FR 19449 (April 14, 2010) (SR–ISE–2010– 12 Id. 2 17 CFR 240.19b–4. 25).

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Symbols’’).5 The Exchange’s maker/ adopted a distinction between small Fees, Priority Customer orders will no taker fees and rebates are applicable to size Priority Customer orders, i.e., longer be subject to this fee. regular and complex orders executed in Priority Customer orders of less than The Exchange believes that this the Select Symbols. The Exchange 100 contracts, and large size Priority proposed rule change which seeks to subsequently adopted maker/taker fees Customer orders, i.e., Priority Customer amend the text of the Schedule of Fees and rebates for complex orders in orders of 100 or more contracts.8 The to clarify the applicability of certain fees symbols that are in the Penny Pilot purpose for this distinction was to allow is also both reasonable and equitable program but are not a Select Symbol the Exchange to charge small size because Members would benefit from (Non-Select Penny Pilot Symbols) 6 and Priority Customer orders and large size clear guidance in the rule text then adopted maker/taker fees and Priority Customer orders different rates. describing the manner in which the rebates for complex orders in all And for a period of time, the Exchange Exchange would assess fees. The symbols that are not in the Penny Pilot charged a higher fee for large size Exchange further believes the proposed Program (‘‘Non-Penny Pilot Symbols’’).7 Priority Customer orders.9 However, in rule change is reasonable because Now that the Exchange has adopted January 2011, the Exchange removing these fees from the Schedule maker/taker fees and rebates, which are standardized the fee for Priority of Fees will provide clarity and greater designed to attract complex orders to Customer orders 10 and no longer transparency regarding the Exchange’s the Exchange, and has a specific taker charges different rates for these orders. fees. The Exchange notes that the fee for Customer (Professional) complex The Exchange now proposes to proposed rule change is also equitably orders, the Complex Order Taker Fee eliminate this distinction from its allocated and not unfairly has become a disincentive for Members Schedule of Fees and will continue to discriminatory in that it treats similarly to execute Priority Customer complex apply the same level of fees to Priority situated market participants in the same orders to take advantage of rebates Customer orders, regardless of size. manner, i.e. the removal of the three fees offered by the Exchange because once will impact all market participants Priority Customers orders reach the 2. Basis equally on the Exchange. 1,000 order threshold, those orders The Exchange believes that its B. Self-Regulatory Organization’s become subject to the Complex Order proposal to amend its Schedule of Fees Statement on Burden on Competition Taker Fee. As noted above, the is consistent with Section 6(b) of the Exchange did not intend to charge Securities and Exchange Act of 1934 The proposed rule change does not Priority Customer orders the Complex (the ‘‘Exchange Act’’) 11 in general, and impose any burden on competition that Order Taker Fee and this proposed rule furthers the objectives of Section 6(b)(4) is not necessary or appropriate in change will fully accomplish that goal. of the Exchange Act 12 in particular, in furtherance of the purposes of the Therefore, the Exchange proposes to that it is an equitable allocation of Exchange Act. eliminate this fee and remove it from its reasonable dues, fees and other charges C. Self-Regulatory Organization’s Schedule of Fees. among Exchange members and other Statement on Comments on the Second, the Exchange currently has a persons using its facilities. The Proposed Rule Change Received From fee pursuant to which Exchange Primary Exchange believes it is reasonable to Members, Participants or Others Market Makers (PMMs) are subject to a remove the three fees that are the minimum fee of $50,000 per options subject of this proposed rule change The Exchange has not solicited, and group (‘‘Minimum PMM Fee’’). To the from the Exchange’s Schedule of Fees does not intend to solicit, comments on extent that aggregate execution fees in a because they are either no longer this proposed rule change. The group or bin of options do not total at applicable, in the case of the Minimum Exchange has not received any least $50,000 per month, the PMM for PMM fee and the fee for Priority unsolicited written comments from that bin must pay a fee representing the Customer orders, or are a disincentive members or other interested parties. difference between $50,000 and the for order flow, as in the case of the III. Date of Effectiveness of the aggregate actual execution fees. The Complex Order Taker Fee. The Complex Proposed Rule Change and Timing for Exchange adopted this fee during its Order Taker Fee, since its adoption, was Commission Action early years in order to encourage PMMs intended for Professional Customer The foregoing rule change has become to ramp up their operations as quickly orders, as evidenced by the waiver the effective pursuant to Section as possible and to avoid a potential Exchange adopted that waived this fee 19(b)(3)(A)(ii) of the Exchange Act.13 At revenue shortfall. ISE’s PMMs have for the first 1,000 orders from customers any time within 60 days of the filing of been fully operating all of their PMM that take liquidity from the complex such proposed rule change, the trading rights for a number of years and order book. The presumption was that Commission summarily may generate revenue greater than the Priority Customer orders would not temporarily suspend such rule change if Minimum PMM Fee. The Exchange does exceed this threshold and thus would it appears to the Commission that such not believe there is a need for this fee not be subject to the fee. This proposed action is necessary or appropriate in the any more. Therefore, the Exchange rule change accomplishes that goal public interest, for the protection of proposes to eliminate this fee and because Professional Customer complex investors, or otherwise in furtherance of remove it from its Schedule of Fees. orders that take liquidity are now the purposes of the Exchange Act. If the Finally, when the Exchange adopted charged a fee under the Exchange’s Commission takes such action, the its maker/taker fees and rebates, it also maker/taker fees and by removing this Commission shall institute proceedings fee from the Exchange’s Schedule of 5 The Select Symbols are identified by their ticker to determine whether the proposed rule symbol on the Exchange’s Schedule of Fees. should be approved or disapproved. 8 6 See Exchange Act Release No. 65724 (November See supra note 4 [sic]. 10, 2011), 76 FR 71413 (November 17, 2011) (SR– 9 See supra note 4 [sic]. IV. Solicitation of Comments 10 ISE–2011–72). See Exchange Act Release No. 63664 (January Interested persons are invited to 7 See Exchange Act Release Nos. 66084 (January 6, 2011), 76 FR 2170 (January 12, 2011) (SR–ISE– 3, 2012), 77 FR 1103 (January 9, 2012) (SR–ISE– 2010–120). submit written data, views, and 2011–84); and 66392 (February 14, 2012), 77 FR 11 15 U.S.C. 78f(b). 10016 (February 21, 2012) (SR–ISE–2012–06). 12 15 U.S.C. 78f(b)(4). 13 15 U.S.C. 78s(b)(3)(A)(ii).

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arguments concerning the foregoing, For the Commission, by the Division of arising from their use of electronic including whether the proposed rule Trading and Markets, pursuant to delegated orders to trade on the Exchange. 14 change is consistent with the Exchange authority. First, the Exchange proposed to Act. Comments may be submitted by Kevin M. O’Neill, amend Exchange Rule 1014, any of the following methods: Deputy Secretary. Commentary .13, which provides that [FR Doc. 2012–14533 Filed 6–13–12; 8:45 am] within each quarter an ROT must Electronic Comments BILLING CODE 8011–01–P execute in person, and not through the • use of orders, a specified number of Use the Commission’s Internet contracts, with such number to be comment form http://www.sec.gov/ SECURITIES AND EXCHANGE determined from time to time by the rules/sro.shtml); or COMMISSION Exchange. Pursuant to Commentary .13, • Send an Email to rule- Options Floor Procedure Advice B–3 [Release No. 34–67169; File No. SR–Phlx– [email protected]. Please include File 2012–40] requires that an ROT (other than an No. SR–ISE–2012–46 on the subject RSQT or a Remote Specialist) trade in line. Self-Regulatory Organizations; person, and not through the use of NASDAQ OMX PHLX LLC; Order orders, the greater of 1000 contracts or Paper Comments Approving Proposed Rule Change, as 50% of its contract volume on the Exchange each quarter. The Exchange • Send paper comments in triplicate Modified by Amendment No. 1, Relating to Quarterly Trading proposed to amend both Commentary to Elizabeth M. Murphy, Secretary, .13 and Options Floor Procedure Advice Securities and Exchange Commission, Requirements Applicable to Registered Options Traders B–3 to permit non-SQT ROTs to meet 100 F Street NE., Washington, DC the in-person trading requirements set 20549–1090. June 8, 2012. forth in those sections using orders entered in person, for the same reasons All submissions should refer to File I. Introduction Number SR–ISE–2012–46. This file that the Exchange recently modified the On March 26, 2012, NASDAQ OMX number should be included on the 80% in-person test set forth in PHLX LLC (‘‘Exchange’’) filed with the 6 subject line if email is used. To help the Commentary .01 to Rule 1014. Securities and Exchange Commission The Exchange also proposed to amend Commission process and review your (‘‘Commission’’), pursuant to Section Exchange Rule 1014(b)(ii)(E) to comments more efficiently, please use 19(b)(1) of the Securities Exchange Act eliminate the requirement that non-SQT only one method. The Commission will of 1934 (‘‘Act’’) 1 and Rule 19b-4 ROTs who transact more than 20% of post all comments on the Commission’s thereunder,2 a proposed rule change to their contract volume in an option Internet Web site (http://www.sec.gov/ change trading requirements applicable electronically during any calendar rules/sro.shtml). Copies of the to certain Registered Options Traders quarter submit two-sided electronic submission, all subsequent trading electronically. The proposed quotations (also known as ‘‘streaming amendments, all written statements rule change was published for comment quotes’’) in a designated percentage of with respect to the proposed rule in the Federal Register on April 13, series within options in which such change that are filed with the 2012.3 The Commission received no non-SQT ROT is assigned (the ‘‘20% Commission, and all written comments on the proposal. On June 6, test’’). The Exchange stated that communications relating to the the Exchange filed Amendment No. 1 to streaming quotes is burdensome to non- proposed rule change between the the proposal.4 This order approves the SQT ROTs, who are generally not Commission and any person, other than proposal, as modified by Amendment equipped to undertake this form of those that may be withheld from the No. 1. trading, and could result in a significant public in accordance with the II. Description and (ii). An SQT is defined as an ROT who has provisions of 5 U.S.C. 552, will be received permission from the Exchange to generate available for Web site viewing and The Exchange proposed to amend the trading requirements imposed on and submit option quotations electronically in printing in the Commission’s Public options to which such SQT is assigned. See certain Exchange market makers 5 Reference Room, 100 F Street NE., Exchange Rule 1014 (b)(ii)(A). 6 Prior to being amended, Commentary .01 Washington, DC 20549, on official 14 17 CFR 200.30–3(a)(12). required that in order for an ROT (other than an business days between the hours of 1 15 U.S.C. 78s(b)(1). RSQT or a Remote Specialist) to receive specialist 10:00 a.m. and 3:00 p.m. Copies of the 2 17 CFR 240.19b–4. margin treatment for off-floor orders in any calendar quarter, the ROT was required, among other things, 3 See Securities Exchange Act Release No. 66767 filing also will be available for to execute the greater of 1,000 contracts or 80% of (April 6, 2012), 77 FR 22365. The Exchange inspection and copying at the principal his total contracts that quarter in person and not subsequently extended the date for Commission through the use of orders (the ‘‘80% in-person office of the Exchange. All comments action to June 4, 2012, and then to June 8, 2012. test’’). The only way to participate in trades other 4 received will be posted without change; The amendment is technical in nature, and is than through the use of orders is by quoting. In the Commission does not edit personal thus not subject to notice and comment. amending this provision, the Exchange explained identifying information from 5 The general term ‘‘market makers’’ on the that the limitation on the use of orders to satisfy the Exchange includes specialists and registered submissions. You should submit only 80% in-person test with respect to non-SQT ROTs options traders (‘‘ROTs’’). An ROT is a regular was obsolete as, given the movement toward more information that you wish to make member of the Exchange located on the trading electronic trading in options, it had become available publicly. All submissions floor who has received permission from the difficult for such ROTs to comply with the trading should refer to File Number SR–ISE– Exchange to trade in options for his own account. requirement without using orders. The Exchange See Exchange Rule 1014 (b)(i) and (ii). ROTs can be observed that non-SQT ROTs could only meet the 2012–46 and should be submitted on or Streaming Quote Traders (‘‘SQTs’’), Remote 80% in person test by participating in crowd trades before July 5, 2012. Streaming Quote Traders (‘‘RSQTs’’), or non- which they cannot control in terms of frequency, Streaming Quote Trader ROTs (‘‘non-SQT ROTs’’) and proposed that the 80% in-person test be which by definition are neither SQTs nor RSQTs. amended to permit non-SQT ROTs to count orders An ROT is a regular member of the Exchange entered in person to meet the requirement. See located on the trading floor who has received Securities Exchange Act Release No. 65644 (October permission from the Exchange to trade in options 27, 2011), 76 FR 67786 (November 2, 2011) (SR– for his own account. See Exchange Rule 1014 (b)(i) Phlx–2011–123).

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increase in fixed costs to these non-SQT III. Discussion and Commission accordingly to enable such non-SQT ROTs. The Exchange stated that Findings ROTs to continue making markets in continuing to require non-SQT ROTs After careful review, the Commission open outcry, to the benefit of investors. that execute more than 20% of their finds that the proposed rule change is In making this finding, the Commission contract volume electronically to stream consistent with the requirements of the notes that this proposal would affect a quotes would likely result in those Act and the rules and regulations relatively small number of non-SQT ROTs leaving the trading floor in that thereunder applicable to a national ROTs, and that this change should not option. The Exchange stated that price securities exchange 8 and, in particular, detract from the current electronic improvement, quality of execution, and the requirements of Section 6(b)(5) of trading environment. Moreover, to the extent that this rule change imposes a especially price discovery would suffer the Act.9 Specifically, the Commission continuous open outcry quoting if these non-SQT ROTs were forced out finds that the proposed rule change is designed to promote just and equitable obligation on all non-SQT ROTs, of open outcry market making. The regardless of electronic transaction Exchange therefore proposed to principles of trade, to remove impediments to and perfect the volume, the Commission notes that this eliminate the 20% test and its proposal may potentially contribute to a associated requirements as a vestige of mechanism of a free and open market and a national market system, and, in more robust trading crowd in a given the early days of electronic trading.7 option.11 Instead, all non-SQT ROTs, regardless of general, to protect investors and the public interest. Given that the Exchange is their volume of electronic transactions, The proposal eliminates the eliminating the continuous electronic would be subject to the continuous open potentially burdensome requirements quoting obligations for non-SQT ROTs, outcry quoting obligation that is that are triggered when a non-SQT ROT the Commission finds that it is currently only applicable to those non- executes more than 20% of its volume consistent with the Act for the Exchange SQT ROTs that trade less than 20% of electronically, eliminates restrictions on to eliminate a corresponding reference their contract volume electronically. non-SQT ROTs’ use of orders to meet to this requirement in Rule 1093(a). The Commission finds that the The Exchange represented that this various in-person trading requirements, changes to Rule 1014, Commentary .13, proposal would affect a relatively small and makes clarifying and conforming and to the Options Floor Procedure number of non-SQT ROTs. The changes to previously amended rule Advice B–3 to permit non-SQT ROTs to Exchange also represented that this text. use orders to meet in-person trading change would not detract from the With respect to the elimination of the requirements are also consistent with current electronic trading environment. requirement that non-SQT ROTs stream the Act. Those changes are consistent quotes electronically if they transact The Exchange also proposed with the recent changes to Commentary more than 20% of their contract volume conforming changes to Exchange Rule .01 to Rule 1014, which were approved electronically, the Commission notes 1014(b)(ii)(E)(1) to conform that by the Commission, to permit the use of that the Exchange recently amended its provision to the recent amendment by orders entered in person to count rules to require ROTs (other than RSQTs the Exchange of Rule 1014, Commentary towards the 80% in-person requirement and Remote Specialists) to execute a .01. Specifically, the Exchange proposed of that Commentary.12 As the Exchange minimum of 1,000 contracts and 300 to delete Exchange Rule noted in that rule change, non-SQT transactions on the Exchange each 1014(b)(ii)(E)(1)(c), which provides that 10 ROTs could have difficulty meeting the quarter. Given that a non-SQT ROT non-SQT ROT in-person trading any volume transacted electronically cannot control the size or frequency of will not count towards a non-SQT requirements without counting orders crowd trades, the non-SQT ROT may entered electronically, given that non- ROT’s 80% in-person test contained in have to use more electronic orders to Commentary .01 to Rule 1014. As SQT ROTs’ ability to trade other than by meet this transaction requirement, the use of orders has substantially described above, recently amended making it more likely that such non- Commentary .01 eliminated this diminished over the years with the SQT ROT would trigger the 20% increasing prominence of electronic restriction and the Exchange stated that threshold for streaming quotes Exchange Rule 1014(b)(ii)(E)(1)(c) was trading. The Commission finds that electronically. To the extent that a non- rationale equally applicable here. no longer necessary. SQT ROT that meets this threshold may Similarly, the deletion of Rule Finally, the Exchange proposed to be unable or unwilling to invest the 1014(b)(ii)(E)(1)(c) is also consistent eliminate a reference from Rule 1093(a), resources necessary for streaming with those changes to Commentary .01 the Phlx XL Risk Monitor Mechanism, quotes, and may exit open-outcry to Rule 1014. which refers to non-SQT ROTs that are market making in that option rather For the foregoing reasons, the required to stream two-sided quotes than stream quotes, this may impact Commission believes that the proposed electronically pursuant to Rule price improvement, quality of rule change is consistent with the Act. execution, and price discovery on the 1014(b)(ii)(E). As described above, the IV. Conclusion Exchange proposes to remove the Exchange. The Commission believes it requirement from Rule 1014(b)(ii)(E) is reasonable to revise the quoting It is therefore ordered, pursuant to 13 that non-SQT ROTs stream quotes requirements for non-SQT ROTs Section 19(b)(2) of the Act, that the electronically, and is making this 8 In approving this proposed rule change, the 11 Currently, non-SQT ROTs that are under the conforming change to Rule 1093(a). Commission has considered the proposed rule’s 20% threshold quote in open outcry, while non- impact on efficiency, competition, and capital SQT ROTs that exceed the 20% threshold stream 7 In addition to deleting Exchange Rule formation. See 15 U.S.C. 78c(f). quotes electronically (or exit open-outcry market 1014(b)(ii)(E)(2), the Exchange proposed to delete 9 15 U.S.C. 78f(b)(5). making in that option). This proposed change introductory language from the beginning of 10 See Securities Exchange Act Release No. 65644 would impose the continuous open outcry Exchange Rule 1014(b)(ii)(E) that would no longer (October 27, 2011), 76 FR 67786 (November 2, 2011) obligation on all non-SQT ROTs. be necessary. The substantive provisions of (SR–Phlx–2011–123). Transactions executed in the 12 See Securities Exchange Act Release No. 65644 Exchange Rule 1014(b)(ii)(E)(1) governing non-SQT trading crowd where the contra-side is an ROT, (October 27, 2011), 76 FR 67786 (November 2, 2011) ROT obligations, as proposed to be renumbered and however, do not count towards this requirement. (SR–Phlx–2011–123). amended, would continue to apply. See Rule 1014, Commentary .01. 13 15 U.S.C. 78s(b)(2).

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proposed rule change (SR–Phlx–2012– prepared summaries, set forth in Customer (Professional),8 Non-ISE 40), as modified by Amendment No.1, sections A, B and C below, of the most Market Maker,9 and Priority Customer.10 be, and it hereby is, approved. significant aspects of such statements. The Exchange is proposing to increase For the Commission, by the Division certain rebate amounts for complex A. Self-Regulatory Organization’s of Trading and Markets, pursuant to orders in options on the Select Symbols, Statement of the Purpose of, and delegated authority.14 the Non-Select Penny Pilot Symbols, the Statutory Basis for, the Proposed Rule Non-Penny Pilot Symbols and in Kevin M. O’Neill, Change options on one Select Symbol—SPY— Deputy Secretary. 1. Purpose which has a distinct rebate amount. [FR Doc. 2012–14534 Filed 6–13–12; 8:45 am] Specifically, the Exchange now BILLING CODE 8011–01–P The Exchange currently assesses per contract transaction fees and provides proposes to increase certain rebates rebates to market participants that add associated with complex order volume or remove liquidity from the Exchange tiers. In the Select Symbols, the SECURITIES AND EXCHANGE Exchange currently provides a base COMMISSION (‘‘maker/taker fees and rebates’’) in a number of options classes (the ‘‘Select rebate of $0.32 per contract, per leg, for [Release No. 34–67166; File No. SR–ISE– Symbols’’).3 The Exchange’s maker/ Priority Customer complex orders when 2012–48] taker fees and rebates are applicable to these orders trade with non-Priority regular and complex orders executed in Customer complex orders in the Self-Regulatory Organizations; complex order book. Additionally, International Securities Exchange, the Select Symbols. The Exchange also currently assesses maker/taker fees and Members can earn a higher rebate LLC; Notice of Filing and Immediate amount by achieving certain average Effectiveness of Proposed Rule rebates for complex orders in symbols that are in the Penny Pilot program but daily volume (ADV) thresholds on a Change Regarding Rebates for Certain month-to-month basis, as follows: If a Complex Orders are not a Select Symbol (‘‘Non-Select Penny Pilot Symbols’’) 4 and for Member achieves an ADV of 75,000 June 8, 2012. complex orders in all symbols that are Priority Customer complex order Pursuant to Section 19(b)(1) of the not in the Penny Pilot Program (‘‘Non- contracts, the rebate amount for such Securities Exchange Act of 1934 (the Penny Pilot Symbols’’).5 Maker/taker option contracts is $0.33 per contract ‘‘Exchange Act’’) 1 and Rule 19b–4 fees and rebates for complex orders are per leg; if a Member achieves an ADV thereunder,2 notice is hereby given that assessed on the following order-type of 125,000 Priority Customer complex on June 1, 2012, the International categories: ISE Market Maker,6 Market order contracts, the rebate amount for Securities Exchange, LLC (the Maker Plus,7 Firm Proprietary, such option contracts is $0.34 per ‘‘Exchange’’ or the ‘‘ISE’’) filed with the contract per leg. The Exchange now Securities and Exchange Commission 3 Options classes subject to maker/taker fees and proposes to adopt a new tier for Priority (‘‘Commission’’) the proposed rule rebates are identified by their ticker symbol on the Customer complex order contracts in change as described in Items I and II Exchange’s Schedule of Fees. the Select Symbols of 250,000 contracts 4 See Exchange Act Release No. 65724 (November below, which Items have been prepared such that if a Member achieves an ADV 10, 2011), 76 FR 71413 (November 17, 2011) (SR– of 250,000 Priority Customer complex by the Exchange. The Commission is ISE–2011–72). publishing this notice to solicit 5 See Exchange Act Release Nos. 66084 (January order contracts, the rebate amount for comments on the proposed rule change 3, 2012), 77 FR 1103 (January 9, 2012) (SR–ISE– such option contracts shall be $0.345 from interested persons. 2011–84); 66392 (February 14, 2012), 77 FR 10016 per contract per leg. The highest rebate (February 21, 2012) (SR–ISE–2012–06); and 66961 amount achieved by a Member for the I. Self-Regulatory Organization’s (May 10, 2012), 77 FR 28914 (May 16, 2012) (SR– ISE–2012–38). current calendar month shall apply Statement of the Terms of Substance of 6 The term ‘‘Market Makers’’ refers to retroactively to all Priority Customer the Proposed Rule Change ‘‘Competitive Market Makers’’ and ‘‘Primary Market complex order contracts that trade with The ISE is proposing to make a Makers’’ collectively. See ISE Rule 100(a)(25). non-Priority Customer complex orders 7 A Market Maker Plus is an ISE Market Maker in the complex order book executed by change to its schedule of fees. The text who is on the National Best Bid or National Best of the proposed rule change is available Offer 80% of the time for series trading between a Member during such calendar month. on the Exchange’s Web site (http:// $0.03 and $5.00 (for options whose underlying In the Non-Select Penny Pilot www.ise.com), at the principal office of stock’s previous trading day’s last sale price was Symbols, the Exchange currently less than or equal to $100) and between $0.10 and provides a base rebate of $0.28 per the Exchange, and at the Commission’s $5.00 (for options whose underlying stock’s Public Reference Room. previous trading day’s last sale price was greater contract, per leg, for Priority Customer than $100) in premium in each of the front two complex orders when these orders trade II. Self-Regulatory Organization’s expiration months and 80% of the time for series with non-Priority Customer complex Statement of the Purpose of, and trading between $0.03 and $5.00 (for options whose orders in the complex order book. Statutory Basis for, the Proposed Rule underlying stock’s previous trading day’s last sale price was less than or equal to $100) and between Change $0.10 and $5.00 (for options whose underlying a daily basis with quoting statistics so that Market In its filing with the Commission, the stock’s previous trading day’s last sale price was Makers can determine whether or not they are greater than $100) in premium across all expiration meeting the Exchange’s stated criteria. self-regulatory organization included 8 months in order to receive the rebate. The Exchange A Customer (Professional) is a person who is not statements concerning the purpose of, determines whether a Market Maker qualifies as a a broker/dealer and is not a Priority Customer. and basis for, the proposed rule change Market Maker Plus at the end of each month by 9 A Non-ISE Market Maker, or Far Away Market and discussed any comments it received looking back at each Market Maker’s quoting Maker (‘‘FARMM’’), is a market maker as defined statistics during that month. A Market Maker’s in Section 3(a)(38) of the Securities Exchange Act on the proposed rule change. The text single best and single worst overall quoting days of 1934, as amended (‘‘Exchange Act’’), registered of these statements may be examined at each month, on a per symbol basis, are excluded in the same options class on another options the places specified in Item IV below. in calculating whether a Market Maker qualifies for exchange. The self-regulatory organization has this rebate, if doing so qualifies a Market Maker for 10 A Priority Customer is defined in ISE Rule the rebate. If at the end of the month, a Market 100(a)(37A) as a person or entity that is not a Maker meets the Exchange’s stated criteria, the broker/dealer in securities, and does not place more 14 17 CFR 200.30–3(a)(12). Exchange rebates $0.10 per contract for transactions than 390 orders in listed options per day on average 1 15 U.S.C. 78s(b)(1). executed by that Market Maker during that month. during a calendar month for its own beneficial 2 17 CFR 240.19b–4. The Exchange provides Market Makers a report on account(s).

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Additionally, Members can earn a higher rebate amount on a month-to- equitably allocated to those members higher rebate amount on a month-to- month basis, as follows: If a Member that direct orders to the Exchange rather month basis, as follows: If a Member achieves an ADV of 75,000 Priority than to a competing exchange. achieves an ADV of 75,000 Priority Customer complex order contracts, the The complex order pricing employed Customer complex order contracts, the rebate amount for such option contracts by the Exchange has proven to be an rebate amount for such option contracts is $0.34 per contract per leg; if the effective pricing mechanism and is $0.30 per contract per leg; if the Member achieves an ADV of 125,000 attractive to Exchange participants and Member achieves an ADV of 125,000 Priority Customer complex order their customers. The Exchange believes Priority Customer complex order contracts, the rebate amount for such that increasing its complex order rebates contracts, the rebate amount for such option contracts is $0.35 per contract will attract additional complex order option contracts is $0.32 per contract per leg. The Exchange now proposes to business. per leg. The Exchange now proposes to adopt a new tier for Priority Customer The Exchange further believes that the adopt a new tier for Priority Customer complex order contracts in SPY of Exchange’s maker/taker fees and rebates complex order contracts in the Non- 250,000 contracts such that if a Member are not unfairly discriminatory because Select Penny Pilot Symbols of 250,000 achieves an ADV of 250,000 Priority those structures are consistent with fee contracts such that if a Member achieves Customer complex order contracts, the structures that exist today at other an ADV of 250,000 Priority Customer rebate amount for such option contracts options exchanges. Additionally, the complex order contracts, the rebate shall be $0.355 per contract per leg. The Exchange believes that the proposed amount for such option contracts shall highest rebate amount achieved by a rebates are fair, equitable and not be $0.325 per contract per leg. The Member for the current calendar month unfairly discriminatory because the highest rebate amount achieved by a shall apply retroactively to all Priority proposed rebates are consistent with Member for the current calendar month Customer complex order contracts that price differentiation that exists today at shall apply retroactively to all Priority trade with non-Priority Customer other option exchanges. The Exchange Customer complex order contracts that complex orders in the complex order operates in a highly competitive market trade with non-Priority Customer book executed by a Member during such in which market participants can complex orders in the complex order calendar month. readily direct order flow to another book executed by a Member during such The Exchange is not proposing any exchange if they deem rebate levels at calendar month. other changes in this filing. a particular exchange to be low. With In the Non-Penny Pilot Symbols, the 2. Statutory Basis this proposed rebate change, the Exchange currently provides a base Exchange believes it remains an rebate of $0.57 per contract, per leg, for The Exchange believes that its attractive venue for market participants Priority Customer complex orders when proposal to amend its Schedule of Fees to trade complex orders. these orders trade with non-Priority is consistent with Section 6(b) of the Customer complex orders in the Exchange Act 11 in general, and furthers B. Self-Regulatory Organization’s complex order book. Additionally, the objectives of Section 6(b)(4) of the Statement on Burden on Competition Members can earn a higher rebate Exchange Act 12 in particular, in that it The proposed rule change does not amount on a month-to-month basis, as is an equitable allocation of reasonable impose any burden on competition that follows: If a Member achieves an ADV dues, fees and other charges among is not necessary or appropriate in of 75,000 Priority Customer complex Exchange members and other persons furtherance of the purposes of the order contracts, the rebate amount for using its facilities. The impact of the Exchange Act. such option contracts is $0.59 per proposal upon the net fees paid by a contract per leg; if the Member achieves particular market participant will C. Self-Regulatory Organization’s an ADV of 125,000 Priority Customer depend on a number of variables, most Statement on Comments on the complex order contracts, the rebate important of which will be its Proposed Rule Change Received From amount for such option contracts is propensity to interact with and respond Members, Participants, or Others $0.61 per contract per leg. The Exchange to certain types of orders. The Exchange has not solicited, and now proposes to adopt a new tier for The Exchange believes that it is does not intend to solicit, comments on Priority Customer complex order reasonable and equitable to provide this proposed rule change. The contracts in the Non-Penny Pilot rebates for Priority Customer complex Exchange has not received any Symbols of 250,000 contracts such that orders when these orders trade with unsolicited written comments from if a Member achieves an ADV of 250,000 Non-Priority Customer complex orders members or other interested parties. Priority Customer complex order in the complex order book because III. Date of Effectiveness of the contracts, the rebate amount for such paying a rebate would continue to Proposed Rule Change and Timing for option contracts shall be $0.615 per attract additional order flow to the Commission Action contract per leg. The highest rebate Exchange and create liquidity in the amount achieved by a Member for the symbols that are subject to the rebate, The foregoing rule change has become current calendar month shall apply which the Exchange believes ultimately effective pursuant to Section retroactively to all Priority Customer will benefit all market participants who 19(b)(3)(A)(ii) of the Exchange Act.13 At complex order contracts that trade with trade on ISE. The Exchange has already any time within 60 days of the filing of non-Priority Customer complex orders established a volume-based incentive such proposed rule change, the in the complex order book executed by program, and is now merely proposing Commission summarily may a Member during such calendar month. to adopt an additional tier to that temporarily suspend such rule change if Finally, for SPY, the Exchange program. The Exchange believes that the it appears to the Commission that such currently provides a base rebate of $0.33 proposed rebates are competitive with action is necessary or appropriate in the per contract, per leg, for Priority rebates provided by other exchanges public interest, for the protection of Customer complex orders when these and are therefore reasonable and investors, or otherwise in furtherance of orders trade with non-Priority Customer the purposes of the Exchange Act. If the complex orders in the complex order 11 15 U.S.C. 78f(b). book. Additionally, Members can earn a 12 15 U.S.C. 78f(b)(4). 13 15 U.S.C. 78s(b)(3)(A)(ii).

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Commission takes such action, the 2012–48 and should be submitted on or prepared summaries, set forth in Commission shall institute proceedings before July 5, 2012. sections A, B and C below, of the most to determine whether the proposed rule For the Commission, by the Division of significant aspects of such statements. should be approved or disapproved. Trading and Markets, pursuant to delegated A. Self-Regulatory Organization’s authority.14 IV. Solicitation of Comments Statement of the Purpose of, and Kevin M. O’Neill, Statutory Basis for, the Proposed Rule Interested persons are invited to Deputy Secretary. Change submit written data, views, and [FR Doc. 2012–14531 Filed 6–13–12; 8:45 am] 1. Purpose arguments concerning the foregoing, BILLING CODE 8011–01–P including whether the proposed rule In 2010, the Exchange began assessing change is consistent with the Exchange per contract transaction fees and rebates Act. Comments may be submitted by SECURITIES AND EXCHANGE to market participants that add or any of the following methods: COMMISSION remove liquidity from the Exchange (‘‘maker/taker fees and rebates’’) 3 in a Electronic Comments [Release No. 34–67167; File No. SR–ISE– 2012–47] number of options classes (the ‘‘Select Symbols’’).4 The Exchange’s maker/ • Use the Commission’s Internet Self-Regulatory Organizations; taker fees and rebates are applicable to comment form (http://www.sec.gov/ International Securities Exchange, regular and complex orders executed in rules/sro.shtml); or LLC; Notice of Filing and Immediate the Select Symbols. The Exchange • Send an email to rule- Effectiveness of Proposed Rule subsequently adopted maker/taker fees [email protected]. Please include File Change Regarding Fees and rebates for complex orders in Number SR–ISE–2012–48 on the subject symbols that are in the Penny Pilot line. June 8, 2012. program but are not a Select Symbol Pursuant to Section 19(b)(1) of the 5 Paper Comments (‘‘Non-Select Penny Pilot Symbols’’) Securities Exchange Act of 1934 (the and then adopted maker/taker fees and ‘‘Exchange Act’’) 1 and Rule 19b–4 • Send paper comments in triplicate rebates for complex orders in all thereunder,2 notice is hereby given that to Elizabeth M. Murphy, Secretary, symbols that are not in the Penny Pilot on June 1, 2012, the International Securities and Exchange Commission, Program (‘‘Non-Penny Pilot Symbols’’).6 Securities Exchange, LLC (the 100 F Street NE., Washington, DC Pursuant to Commission approval, the ‘‘Exchange’’ or the ‘‘ISE’’) filed with the 20549–1090. Exchange will soon introduce a new Securities and Exchange Commission order type called ‘‘Add Liquidity Order’’ All submissions should refer to File (‘‘Commission’’) the proposed rule or ‘‘ALO.’’ 7 ALOs are limit orders that Number SR–ISE–2012–48. This file change as described in Items I and II will only be executed as a ‘‘maker’’ on number should be included on the below, which Items have been prepared the Exchange. An ALO allows market subject line if email is used. To help the by the Exchange. The Commission is participants to specify that they only Commission process and review your publishing this notice to solicit seek to provide liquidity, thus avoiding comments more efficiently, please use comments on the proposed rule change taker fees. Currently, when a only one method. The Commission will from interested persons. Facilitation or Solicitation order post all comments on the Commission’s I. Self-Regulatory Organization’s interacts with pre-existing orders and Internet Web site (http://www.sec.gov/ Statement of the Terms of Substance of quotes, the pre-existing order or quote is rules/sro.shtml). Copies of the the Proposed Rule Change treated as taker of liquidity and the submission, all subsequent Facilitation or Solicitation order that The ISE is proposing to change the amendments, all written statements interacts with the pre-existing order or treatment of certain orders executed in with respect to the proposed rule quote is provided with a rebate.8 The the Exchange’s Facilitation and change that are filed with the Exchange believes that all pre-existing Solicited Order Mechanisms. The text of Commission, and all written orders and quotes in the Select Symbols, the proposed rule change is available on communications relating to the the Non-Select Penny Pilot Symbols and the Exchange’s Web site (http:// proposed rule change between the the Non-Penny Pilot Symbols should be Commission and any person, other than www.ise.com), at the principal office of the Exchange, and at the Commission’s those that may be withheld from the 3 See Exchange Act Release No. 61869 (April 7, public in accordance with the Public Reference Room. 2010), 75 FR 19449 (April 14, 2010) (SR–ISE–2010– provisions of 5 U.S.C. 552, will be II. Self-Regulatory Organization’s 25). 4 The Select Symbols are identified by their ticker available for Web site viewing and Statement of the Purpose of, and symbol on the Exchange’s Schedule of Fees. printing in the Commission’s Public Statutory Basis for, the Proposed Rule 5 See Exchange Act Release No. 65724 (November Reference Room, 100 F Street NE., Change 10, 2011), 76 FR 71413 (November 17, 2011) (SR– Washington, DC 20549, on official ISE–2011–72). In its filing with the Commission, the business days between the hours of 6 See Exchange Act Release Nos. 66084 (January self-regulatory organization included 10:00 a.m. and 3:00 p.m. Copies of the 3, 2012), 77 FR 1103 (January 9, 2012) (SR–ISE– statements concerning the purpose of, 2011–84); and 66392 (February 14, 2012), 77 FR filing also will be available for and basis for, the proposed rule change 10016 (February 21, 2012) (SR–ISE–2012–06). inspection and copying at the principal 7 and discussed any comments it received See Exchange Act Release No. 66617 (March 19, office of the Exchange. All comments 2012), 77 FR 17102 (March 23, 2012) (SR–ISE– on the proposed rule change. The text received will be posted without change; 2012–20). The Exchange expects to launch ALO on of these statements may be examined at June 4, 2012. the Commission does not edit personal the places specified in Item IV below. 8 Currently, the Exchange provides a rebate of identifying information from The self-regulatory organization has $0.15 to contracts that do not trade with the contra submissions. You should submit only order in the Facilitation Mechanism and Solicited information that you wish to make Order Mechanism. This rebate currently applies to 14 17 CFR 200.30–3(a)(12). the Select Symbols and to Non-Select Penny Pilot available publicly. All submissions 1 15 U.S.C. 78s(b)(1). Symbols and does not apply to Non-Penny Pilot should refer to File Number SR–ISE– 2 17 CFR 240.19b–4. Symbols.

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treated as ‘‘maker,’’ not ‘‘taker,’’ and this overlying the Select Symbols, the Non- B. Self-Regulatory Organization’s distinction becomes more pertinent Select Penny Pilot Symbols and the Statement on Burden on Competition when the Exchange introduces ALO. As Non-Penny Pilot Symbols remain The proposed rule change does not proposed, Facilitation and Solicitation competitive with fees charged by other impose any burden on competition that orders that previously received a exchanges and therefore continue to be is not necessary or appropriate in ‘‘break-up’’ rebate when they interacted reasonable and equitably allocated to furtherance of the purposes of the with pre-existing orders and quotes that those members that opt to direct orders Exchange Act. were being treated as ‘‘taker’’ will no to the Exchange rather than to a longer receive such a rebate. The competing exchange. The Exchange C. Self-Regulatory Organization’s Exchange believes it is appropriate, and further notes that market participants Statement on Comments on the generally expected by market generally expect pre-existing orders and Proposed Rule Change Received From participants, to treat pre-existing orders quotes in the Exchange’s Facilitation Members, Participants, or Others and quotes as maker, rather than taker. Mechanism and Solicited Order The Exchange has not solicited, and The Exchange proposes to adopt rule Mechanism to be treated as maker not does not intend to solicit, comments on text in its Schedule of Fees to make taker. The Exchange believes this this proposed rule change. The clear that incoming Facilitation and distinction is even more pertinent in the Exchange has not received any Solicitation orders that interact with context of the Exchange’s planned unsolicited written comments from pre-existing orders and quotes on the launch of the ALO order type. Market members or other interested parties. Exchange’s orderbooks will not receive participants who choose to utilize ALO III. Date of Effectiveness of the the ‘‘break-up’’ rebate for contracts they will fully expect the Exchange to treat don’t interact with. With this proposed Proposed Rule Change and Timing for their orders as providers of liquidity; to Commission Action rule change, pre-existing orders and treat these orders differently will be quotes, when interacting with contrary to the intent of the ALO order The foregoing rule change has become Facilitation and Solicitation orders in type and the expectation of these market effective pursuant to Section the Select Symbols, the Non-Select 11 participants. 19(b)(3)(A)(ii) of the Exchange Act. At Penny Pilot Symbols and the Non- any time within 60 days of the filing of Penny Pilot Symbols will be subject to The Exchange believes that treating a such proposed rule change, the the Exchange’s maker fee, as noted in Facilitation or Solicitation order that Commission summarily may the Exchange’s Schedule of Fees. Orders interacts with pre-existing orders and temporarily suspend such rule change if and quotes which arrive at the exchange quotes as takers of liquidity (as opposed it appears to the Commission that such after the commencement of a to makers of liquidity which is how action is necessary or appropriate in the Facilitation or Solicitation order will these orders are currently treated), thus public interest, for the protection of continue to be charged taker fees. charging these orders a taker fee furthers investors, or otherwise in furtherance of Further, the ‘‘break-up’’ rebate noted the objectives of Section 6(b)(5) of the the purposes of the Exchange Act. If the in footnote 2 on page 19 of the Exchange Act, in that it is designed to Commission takes such action, the Exchange’s Schedule of Fees relates to make the Exchange’s fee structure for Commission shall institute proceedings orders executed on the Exchange’s ALO orders consistent with its overall to determine whether the proposed rule Facilitation Mechanism, Solicited Order maker/taker fee structure, thereby should be approved or disapproved. Mechanism and Price Improvement removing impediments to and Mechanism and does not apply to perfecting the mechanism of a free and IV. Solicitation of Comments complex orders executed on the open market and a national market Interested persons are invited to Exchange. Therefore, the Exchange system. submit written data, views, and proposes to remove the reference to The Exchange believes it is reasonable arguments concerning the foregoing, footnote 2 from all the complex order and equitable to remove footnote 2 from including whether the proposed rule fee columns on page 19 of the the complex order fee columns on the change is consistent with the Exchange Exchange’s Schedule of Fees. Exchange’s Schedule of Fees because Act. Comments may be submitted by 2. Statutory Basis doing so will clarify that footnote 2 is any of the following methods: The Exchange believes that its not applicable to complex orders Electronic Comments executed on the Exchange and therefore, proposal to amend its Schedule of Fees • Use the Commission’s Internet Members would benefit from clear is consistent with Section 6(b) of the comment form (http://www.sec.gov/ guidance in the rule text describing the Securities and Exchange Act of 1934 rules/sro.shtml); or (the ‘‘Exchange Act’’) 9 in general, and manner in which Exchange fees and • Send an email to rule- furthers the objectives of Section 6(b)(4) rebates are assessed. The Exchange [email protected]. Please include File of the Exchange Act 10 in particular, in further believes the proposed rule Number SR–ISE–2012–47 on the subject that it is an equitable allocation of change is reasonable because removing line. reasonable dues, fees and other charges footnote 2 from the complex order fee among Exchange members and other columns on the Schedule of Fees will Paper Comments persons using its facilities. The provide clarity and greater transparency • Send paper comments in triplicate Exchange believes it is reasonable and regarding the Exchange’s fees and to Elizabeth M. Murphy, Secretary, equitable and not unfairly rebates. The Exchange notes that the Securities and Exchange Commission, discriminatory to treat pre-existing proposed rule change is also equitably 100 F Street NE., Washington, DC orders and quotes as maker, rather than allocated and not unfairly 20549–1090. taker, and thus charge the appropriate discriminatory in that it treats similarly All submissions should refer to File maker fees. The Exchange believes that situated market participants in the same Number SR–ISE–2012–47. This file the proposed fees it charges for options manner, i.e., the removal of footnote 2 number should be included on the from the complex order fee column will subject line if email is used. To help the 9 15 U.S.C. 78f(b). impact all market participants equally 10 15 U.S.C. 78f(b)(4). on the Exchange. 11 15 U.S.C. 78s(b)(3)(A)(ii).

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Commission process and review your ‘‘Commission’’) the proposed rule 2. Statutory Basis comments more efficiently, please use change as described in Items I, II, and The Exchange believes the proposed only one method. The Commission will III below, which Items have been rule change is consistent with the Act post all comments on the Commission’s prepared by the Exchange. The and the rules and regulations Internet Web site (http://www.sec.gov/ Commission is publishing this notice to thereunder applicable to the Exchange rules/sro.shtml). Copies of the solicit comments on the proposed rule and, in particular, the requirements of submission, all subsequent change from interested persons. Section 6(b) of the Act.4 Specifically, amendments, all written statements I. Self-Regulatory Organization’s the Exchange believes the proposed rule with respect to the proposed rule change is consistent with the Section change that are filed with the Statement of the Terms of Substance of the Proposed Rule Change 6(b)(5) 5 requirements that the rules of Commission, and all written an exchange be designed to promote just communications relating to the The Exchange proposes to amend the and equitable principles of trade, to proposed rule change between the Fees Schedule. The text of the proposed prevent fraudulent and manipulative Commission and any person, other than rule change is available on the acts, to remove impediments to and to those that may be withheld from the Exchange’s Web site (http:// perfect the mechanism for a free and public in accordance with the www.cboe.com/Legal/), at the open market and a national market provisions of 5 U.S.C. 552, will be Exchange’s Office of the Secretary, and system, and, in general, to protect available for Web site viewing and at the Commission’s Public Reference investors and the public interest. The printing in the Commission’s Public Room. removal of the language in the Reference Room, 100 F Street NE., Amendment removes impediments to Washington, DC 20549, on official II. Self-Regulatory Organization’s and perfects the mechanism for a free business days between the hours of Statement of the Purpose of, and and open market by eliminating 10:00 a.m. and 3:00 p.m. Copies of the Statutory Basis for, the Proposed Rule potential issues that would otherwise filing also will be available for Change inspection and copying at the principal prevent the effective institution of the In its filing with the Commission, the Amendment. office of the Exchange. All comments Exchange included statements received will be posted without change; concerning the purpose of and basis for B. Self-Regulatory Organization’s the Commission does not edit personal the proposed rule change and discussed Statement on Burden on Competition identifying information from any comments it received on the CBOE does not believe that the submissions. You should submit only proposed rule change. The text of these proposed rule change will impose any information that you wish to make statements may be examined at the burden on competition that is not available publicly. All submissions places specified in Item IV below. The necessary or appropriate in furtherance should refer to File Number SR–ISE– Exchange has prepared summaries, set of the purposes of the Act. 2012–47 and should be submitted on or forth in sections A, B, and C below, of before July 5, 2012. the most significant aspects of such C. Self-Regulatory Organization’s For the Commission, by the Division of statements. Statement on Comments on the Trading and Markets, pursuant to delegated Proposed Rule Change Received From authority.12 A. Self-Regulatory Organization’s Members, Participants, or Others Kevin M. O’Neill, Statement of the Purpose of, and the The Exchange neither solicited nor Deputy Secretary. Statutory Basis for, the Proposed Rule received comments on the proposed Change [FR Doc. 2012–14532 Filed 6–13–12; 8:45 am] rule change. BILLING CODE 8011–01–P 1. Purpose III. Date of Effectiveness of the The Exchange recently amended the Proposed Rule Change and Timing for SECURITIES AND EXCHANGE Customer Large Trade Discount in its Commission Action COMMISSION Fees Schedule to state that for any The foregoing rule change has become Trading Permit Holder that executes effective pursuant to Section [Release No. 34–67173; File No. SR–CBOE– 750,000 or more customer VIX options 6 2012–054] 19(b)(3)(A) of the Act and paragraph (f) contracts in a month, regular customer of Rule 19b–4 7 thereunder. At any time Self-Regulatory Organizations; transaction fees will only be charged up within 60 days of the filing of the Chicago Board Options Exchange, to the first 7,500 VIX options contracts proposed rule change, the Commission Incorporated; Notice of Filing and per order in that month (the summarily may temporarily suspend 3 Immediate Effectiveness of a Proposed ‘‘Amendment’’). The Amendment was such rule change if it appears to the Rule Change To Amend the Fees to take effect on June 1, 2012. However, Commission that such action is Schedule since submitting the Amendment, the necessary or appropriate in the public Exchange has learned that a number of interest, for the protection of investors, June 8, 2012. technical and billing issues would or otherwise in furtherance of the Pursuant to Section 19(b)(1) of the prevent the effective institution of the purposes of the Act. Securities Exchange Act of 1934 (the Amendment. As such, the Exchange ‘‘Act’’),1 and Rule 19b–4 thereunder,2 hereby proposes to remove from the IV. Solicitation of Comments notice is hereby given that on June 1, Fees Schedule the language added by Interested persons are invited to 2012, Chicago Board Options Exchange, the Amendment. The Exchange may, at submit written data, views, and Incorporated (the ‘‘Exchange’’ or some point in the future, re-add such arguments concerning the foregoing, ‘‘CBOE’’) filed with the Securities and language (or similar language) when including whether the proposed rule Exchange Commission (the such issues have been resolved. 4 15 U.S.C. 78f(b). 12 17 CFR 200.30–3(a)(12). 3 See Securities Exchange Act Release No. 67065 5 15 U.S.C. 78f(b)(5). 1 15 U.S.C. 78s(b)(1). (May 25, 2012), 77 FR 32707 (June 1, 2012) (SR– 6 15 U.S.C. 78s(b)(3)(A). 2 17 CFR 240.19b–4. CBOE–2012–047). 7 17 CFR 240.19b–4(f).

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change is consistent with the Act. the Commission does not edit personal Market (‘‘NOM’’), NASDAQ’s facility for Comments may be submitted by any of identifying information from executing and routing standardized the following methods: submissions. You should submit only equity and index options. Specifically, information that you wish to make NASDAQ proposes to amend Chapter Electronic Comments available publicly. All submissions XV, Section 2 entitled ‘‘NASDAQ • Use the Commission’s Internet should refer to File Number SR–CBOE– Options Market—Fees and Rebates’’ to comment form (http://www.sec.gov/ 2012–054, and should be submitted on adopt rebates and fees relating to rules/sro.shtml); or or before July 5, 2012. options on the Nasdaq 100 Index traded • Send an email to rule- For the Commission, by the Division of under the symbol NDX (‘‘NDX’’). [email protected]. Please include File Trading and Markets, pursuant to delegated While the changes proposed herein Number SR–CBOE–2012–054 on the authority.8 are effective upon filing, the Exchange subject line. Kevin M. O’Neill, has designated these changes to be Paper Comments Deputy Secretary. operative on June 1, 2012. • Send paper comments in triplicate [FR Doc. 2012–14574 Filed 6–13–12; 8:45 am] The text of the proposed rule change to Elizabeth M. Murphy, Secretary, BILLING CODE 8011–01–P is available on the Exchange’s Web site Securities and Exchange Commission, at http:// 100 F Street NE., Washington, DC www.nasdaq.cchwallstreet.com, at the 20549–1090. SECURITIES AND EXCHANGE principal office of the Exchange, and at COMMISSION the Commission’s Public Reference All submissions should refer to File Room. Number SR–CBOE–2012–054. This file [Release No. 34–67171; File No. SR– number should be included on the NASDAQ–2012–068] II. Self-Regulatory Organization’s subject line if email is used. To help the Statement of the Purpose of, and Commission process and review your Self-Regulatory Organizations; The Statutory Basis for, the Proposed Rule comments more efficiently, please use NASDAQ Stock Market LLC; Notice of Change only one method. The Commission will Filing and Immediate Effectiveness of post all comments on the Commission’s Proposed Rule Change Relating to In its filing with the Commission, the Internet Web site (http://www.sec.gov/ NDX Pricing Exchange included statements rules/sro.shtml). Copies of the concerning the purpose of and basis for June 8, 2012. the proposed rule change. The text of submission, all subsequent Pursuant to Section 19(b)(1) of the amendments, all written statements these statements may be examined at Securities Exchange Act of 1934 the places specified in Item IV below. with respect to the proposed rule (‘‘Act’’),1 and Rule 19b–4 thereunder,2 change that are filed with the The Exchange has prepared summaries, notice is hereby given that on May 30, set forth in sections A, B, and C below, Commission, and all written 2012, The NASDAQ Stock Market LLC communications relating to the of the most significant aspects of such (‘‘NASDAQ’’ or ‘‘Exchange’’) filed with statements. proposed rule change between the the Securities and Exchange Commission and any person, other than Commission (‘‘Commission’’) the A. Self-Regulatory Organization’s those that may be withheld from the proposed rule change as described in Statement of the Purpose of, and public in accordance with the Items I, II, and III below, which Items Statutory Basis for, the Proposed Rule provisions of 5 U.S.C. 552, will be have been prepared by NASDAQ. The Change available for Web site viewing and Commission is publishing this notice to 1. Purpose printing in the Commission’s Public solicit comments on the proposed rule Reference Room, 100 F Street NE., change from interested persons. NASDAQ proposes to amend Chapter Washington, DC 20549, on official XV, Section 2 to adopt rebates and fees business days between the hours of I. Self-Regulatory Organization’s relating to NDX options. NASDAQ 10:00 a.m. and 3:00 p.m. Copies of such Statement of the Terms of Substance of currently assesses the same rebates and filing also will be available for the Proposed Rule Change fees for NDX and options on the one- inspection and copying at the principal The NASDAQ Stock Market LLC tenth value of the Nasdaq 100 Index offices of the Exchange. All comments proposes to modify pricing for NASDAQ traded under the symbol MNX (‘‘MNX’’) received will be posted without change; members using the NASDAQ Options as follows:

Non-NOM NOM market Customer Professional Firm market maker maker

NDX and MNX: Rebate to Add Liquidity ...... $0.10 $0.10 $0.10 $0.10 $0.20 Fee for Removing Liquidity ...... 0.50 0.50 0.50 0.50 0.40

The Exchange proposes to assess the Liquidity and Fees for Removing following Rebate to Remove Liquidity, Liquidity 4 for transactions in NDX: Rebates to Add Liquidity,3 Fees to Add

8 17 CFR 200.30–3(a)(12). 2 17 CFR 240.19b–4. 4 An order that removes liquidity is one that is 1 15 U.S.C. 78s(b)(1). 3 An order that adds liquidity is one that is entered into NOM and that executes against an entered into NOM and rests on the NOM book. order resting on the NOM book.

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Non-NOM NOM market Customer Professional Firm market maker maker

NDX: Rebate to Remove Liquidity ...... $0.40 $0.00 $0.00 $0.00 $0.00 Rebate to Add Liquidity ...... 1 0.00 0.00 0.00 1 Fee to Add Liquidity ...... 1 0.70 0.70 0.70 1 Fee for Removing Liquidity ...... 0.00 0.70 0.70 0.70 0.70 1 A Customer and NOM Market Maker will either receive a Rebate to Add Liquidity of $0.20 per contract when trading against a Professional, Firm, NOM Market Maker or Non-NOM Market Maker or will pay a Fee to Add Liquidity of $0.65 per contract when trading against a Customer.

A Customer or a NOM Market Maker 5 The Exchange believes that its liquidity on NOM. While the Customer would therefore be entitled to receive a proposal to adopt separate fees and and NOM Market Maker are unaware at Rebate to Add Liquidity or would pay rebates for transactions in NDX is the time they enter a transaction a Fee to Add Liquidity depending on equitable and not unfairly whether they would earn a rebate or pay the contra-party to the transaction. The discriminatory because Customers will a lower fee, the Exchange believes that Exchange also proposes to amend receive a $0.40 per contract Rebate to the possibility of earning a $0.20 per Chapter XV, Section 2 to remove the Remove Liquidity, which in turn will contract Rebate to Add Liquidity when term ‘‘NDX and’’ in NDX and MNX title attract Customer order flow to the trading against a non-Customer of the rebates and fees currently in the Exchange to the benefit of all market (Professional, Firm, NOM Market Maker Rule. participants through increased liquidity. or Non-NOM Market Maker) or the Further, the Exchange also believes it is opportunity to pay a lower fee, as 2. Statutory Basis reasonable, equitable and not unfairly compared to other market NASDAQ believes that the proposed discriminatory to only offer rebates for participants,11 when trading against a rule changes are consistent with the removing liquidity to Customers and not Customer should incentivize both provisions of Section 6 of the Act,6 in other market participants as an Customers and Market Makers to add general, and with Section 6(b)(4) of the incentive to attract Customer order flow liquidity. Increased liquidity benefits all Act,7 in particular, in that they provide in NDX to the Exchange. It is an market participants. for the equitable allocation of reasonable important Exchange function to provide The Exchange’s proposal to pay a dues, fees and other charges among an opportunity to all market $0.20 per contract Rebate to Add members and issuers and other persons participants to trade against Customer Liquidity to Customers and NOM using any facility or system which orders. Market Makers when trading against a NASDAQ operates or controls. The Exchange’s proposal to pay a Professional, Firm, NOM Market Maker The Exchange believes that its $0.20 per contract Rebate to Add or Non-NOM Market Maker, and assess proposal to adopt separate fees and Liquidity to Customers and NOM a Fee to Add Liquidity of $0.65 per rebates for transactions in NDX is Market Makers when trading against a contract when trading against a reasonable because the Exchange has Professional, Firm, NOM Market Maker Customer is equitable and not unfairly 10 previously distinguished other index or Non-NOM Market Maker, and discriminatory because Customers and products.8 The Exchange is proposing to assess a Fee to Add Liquidity of $0.65 NOM Market Makers differ from other assess certain participants higher Fees per contract when trading against a market participants. Customer order to Add and Remove Liquidity for NDX Customer is reasonable because the flow benefits all market participants by and pay a higher Customer Rebate to Exchange believes that providing improving liquidity, the quality of order Remove Liquidity ($0.40 per contract). Customers and Market Makers with the interaction and executions at the The Exchange believes that its success opportunity to either earn a rebate or Exchange. NOM Market Makers have at attracting Customer order flow pay a lower fee should incentivize these obligations to the market and regulatory benefits all market participants by critical market participants to post requirements,12 which normally do not improving the quality of order apply to other market participants. A interaction and executions at the Index option (‘‘NDX’’) and the Russell 2000 Index option (‘‘RUT’’). Specifically, ISE charges ISE NOM Market Maker has the obligation Exchange. Additionally, these proposed market maker orders, firm proprietary orders and to make continuous markets, engage in fees and rebates for NDX are also similar Customer (Professional Orders) $0.25 per contract course of dealings reasonably calculated to complex order fees currently in place for providing liquidity on the complex order book in NDX and RUT and $0.70 per contract for taking to contribute to the maintenance of a at the International Securities Exchange, liquidity from the complex order book in NDX and fair and orderly market, and not make 9 LLC (‘‘ISE’’). RUT. Non-ISE Market Makers are charged $0.25 per bids or offers or enter into transactions contract for providing liquidity and $0.75 per 5 contract for taking liquidity from the complex order NOM Market Makers must be registered as such 11 Professionals, Firms and Non-NOM Market pursuant to Chapter VII, Section 2 of the Nasdaq book in NDX and RUT. Priority Customer orders are not charged a fee for trading in the complex order Makers are assessed a $0.70 per contract Fee to Add Options Rules, and must also remain in good Liquidity. standing pursuant to Chapter VII, Section 4. book in NDX and RUT and receive a rebate of $0.50 12 Pursuant to Chapter VII (Market Participants), 6 per contract when those orders trade with non- 15 U.S.C. 78f. Section 5 (Obligations of Market Makers), in 7 Priority Customer orders in the complex order book 15 U.S.C. 78f(b)(4). in NDX and RUT. In comparison, NOM has registering as a market maker, an Options 8 See Chapter XV, Section 2(1) fees. The Exchange proposed to adopt a similar fee structure, although Participant commits himself to various obligations. currently assesses different fees and rebates for not related to complex orders as is the case at ISE, Transactions of a Market Maker in its market other indexes such as HGX, SOX and OSX. Also, with respect to paying a rebate and assessing a fee making capacity must constitute a course of the Exchange assesses different fees for Penny Pilot depending on the contra-party to the transaction dealings reasonably calculated to contribute to the transactions and non-Penny Pilot transactions. In and whether the participant is adding or removing maintenance of a fair and orderly market, and addition, some market participants, such as market liquidity. In addition, the proposed NOM Fees for Market Makers should not make bids or offers or makers, have obligations pursuant to Exchange Removing Liquidity are similar to those adopted by enter into transactions that are inconsistent with rules which the Exchange recognizes in its pricing. ISE. such course of dealings. Further, all Market Makers 9 See ISE’s Fee Schedule. ISE recently adopted 10 Non-NOM Market Makers are registered market are designated as specialists on NOM for all fees for complex orders in two of the most actively- makers on another options market that append the purposes under the Act or rules thereunder. See traded index option products, the NASDAQ 100 market maker designation to orders routed to NOM. Chapter VII, Section 5.

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that are inconsistent with course of other market participants (Professionals, and rebates present on the Exchange dealings. The proposed differentiation Firms, and Non-NOM Market Makers), today and substantially influences the as between Customers and NOM Market other than Customers and NOM Market proposal set forth above. Makers and other market participants Makers which are distinguished above, B. Self-Regulatory Organization’s recognizes the differing contributions would be assessed the same Fee to Add Statement on Burden on Competition made to the liquidity and trading Liquidity. Also, the Exchange believes it environment on the Exchange by is reasonable, equitable and not unfairly NASDAQ does not believe that the Customers and NOM Market Makers, as discriminatory to not offer a Rebate to proposed rule change will result in any well as the differing mix of orders Add Liquidity to Professionals, Firms burden on competition that is not entered. Further, as noted herein, the and Non-NOM Market Makers because necessary or appropriate in furtherance Customer and NOM Market Maker are these participants do not bring the of the purposes of the Act, as amended. unaware at the time the order is entered unique benefits that Customer order To the contrary, NASDAQ has designed whether they would receive the $0.20 flow provides the market nor do these its fees and rebates to compete per contract Rebate to Add Liquidity or participants have the obligations that effectively for the execution and routing pay the $0.65 per contract Fee to Add were described herein for NOM Market of options contracts and to reduce the Liquidity because they are aware of the Makers. overall cost to investors of options identity of the contra-party, which The Exchange’s proposal to assess all trading. The Exchange believes that the would determine whether they receive a market participants except Customers a proposed fee/rebate pricing structure rebate or pay a fee. The Exchange $0.70 per contract Fee for Removing would attract liquidity to and benefit believes that the Customer and NOM Liquidity is equitable and not unfairly order interaction at the Exchange to the Market Maker rebate or fee pricing discriminatory because Professionals, benefit of all market participants.17 structure is equitable and not unfairly Firms, NOM Market Makers and Non- C. Self-Regulatory Organization’s discriminatory because the Rebate to NOM Market Makers would be assessed Statement on Comments on the Add Liquidity, which is only being the same Fee for Removing Liquidity. Proposed Rule Change Received From offered to Customers and NOM Market Also, the Exchange believes the $0.70 Members, Participants, or Others Makers, would reward these per contract Fees for Removing participants for posting liquidity that Liquidity are reasonable because the No written comments were either 15 interacts with a non-Customer order Exchange currently pays a license fee solicited or received. (Professionals, Firms, NOM Market to list NDX on NOM and is seeking to III. Date of Effectiveness of the Makers and Non-NOM Market Makers). recoup that fee and to pay the proposed Proposed Rule Change and Timing for Also, the Customer and NOM Market $0.20 per contract Rebate to Add Commission Action Maker Fees to Add Liquidity ($0.65 per Liquidity to Customers and NOM contract), when trading with a Market Makers in NDX. In addition, the The foregoing rule change has become Customer, are equitable and not unfairly Exchange believes that these remove effective pursuant to Section discriminatory because the fees are fees are within the range of fees for 19(b)(3)(A)(ii) of the Act.18 At any time removing liquidity assessed by other within 60 days of the filing of the lower as compared to other market 16 participants.13 The $0.65 per contract exchanges. proposed rule change, the Commission The Exchange operates in a highly Customer and NOM Market Maker Fee summarily may temporarily suspend competitive market comprised of nine to Add Liquidity seeks to recoup the such rule change if it appears to the U.S. options exchanges in which $0.22 license fee 14 and fund the $0.40 Commission that such action is sophisticated and knowledgeable necessary or appropriate in the public Customer Rebate to Remove Liquidity, market participants can and do send interest, for the protection of investors, which attracts liquidity to the Exchange order flow to competing exchanges if or otherwise in furtherance of the and benefits all participants. The they deem fee levels at a particular purposes of the Act. Exchange believes the combination of exchange to be excessive. The Exchange fees and rebates for Customers and believes that the proposed fee and IV. Solicitation of Comments NOM Market Makers to add liquidity rebate scheme is competitive and Interested persons are invited to will incentivize these participants to similar to other fees and rebates in place add liquidity in NDX and will also serve on other exchanges. The Exchange submit written data, views, and to fund the $0.22 license fee. believes that this competitive arguments concerning the foregoing, The Exchange’s proposal to assess marketplace materially impacts the fees including whether the proposed rule Professionals, Firms, and Non-NOM change is consistent with the Act. Market Makers a $0.70 per contract Fee 15 Id. Comments may be submitted by any of to Add Liquidity is reasonable because 16 See BATS Exchange, Inc.’s Fee Schedule. the following methods: the higher fees would enable the Professional, Firm and Market Maker orders are Electronic Comments Exchange to reward Customers that assessed a fee of $0.80 per contract to remove liquidity from the BATS Options order book. • Use the Commission’s Internet remove liquidity with rebates. The Customer orders are assessed a fee of $0.75 per advantage of increased Customer order contract to remove liquidity from the BATS Options comment form (http://www.sec.gov/ flow benefits all market participants. order book. BATS also offers liquidity rebates for rules/sro.shtml); or The Exchange’s proposal to assess all other securities of $0.70 per contract for a • Send an email to rule- Professional, Firm or Market Maker order that adds Professionals, Firms, and Non-NOM liquidity to the BATS Options order book and $0.75 [email protected]. Please include File Market Makers a $0.70 per contract Fee per contract for a Customer order that adds liquidity Number SR–NASDAQ–2012–068 on the to Add Liquidity is equitable and not to the BATS Options order book. The Exchange is subject line. unfairly discriminatory because all proposing to assess Professional, Firms and Non- NOM Market Makers $0.70 per contract fees to add and remove liquidity, but no rebates and assess 17 See June 7, 2012 Email from Jonathan Cayne, 13 Professionals, Firms and Non-NOM Market Customers and NOM Market Makers $0.65 per Associate General Counsel, The Nasdaq OMX Makers are assessed a $0.70 per Contract Fee to Add contact when trading against a Customer or a $0.20 Group, Inc. to Stephanie Mumford, Special Liquidity. per contract rebate when trading against a Counsel, Division of Trading and Markets, 14 NOM is assessed a license fee of $0.22 per Professional, Firm, NOM Market Maker or Non- Securities and Exchange Commission. contract to list NDX. NOM Market Maker. 18 15 U.S.C. 78s(b)(3)(A)(ii).

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Paper Comments SECURITIES AND EXCHANGE any comments it received on the proposed rule change. The text of these • COMMISSION Send paper comments in triplicate statements may be examined at the to Elizabeth M. Murphy, Secretary, [Release No. 34–67172; File No. SR–BATS– places specified in Item IV below. The Securities and Exchange Commission, 2012–020] Exchange has prepared summaries, set 100 F Street NE., Washington, DC Self-Regulatory Organizations; BATS forth in sections A, B, and C below, of 20549–1090. Exchange, Inc.; Notice of Filing and the most significant parts of such All submissions should refer to File Immediate Effectiveness of Proposed statements. Number SR–NASDAQ–2012–068. This Rule Change Related to Fees for Use A. Self-Regulatory Organization’s file number should be included on the of BATS Exchange, Inc. Statement of the Purpose of, and subject line if email is used. To help the June 8, 2012. Statutory Basis for, the Proposed Rule Commission process and review your Pursuant to Section 19(b)(1) of the Change comments more efficiently, please use Securities Exchange Act of 1934 only one method. The Commission will 1. Purpose (‘‘Act’’),1 and Rule 19b–4 thereunder,2 post all comments on the Commission’s notice is hereby given that on May 31, The Exchange proposes to modify the Internet Web site (http://www.sec.gov/ 2012, BATS Exchange, Inc. (the ‘‘Options Pricing’’ section of its fee rules/sro.shtml). Copies of the ‘‘Exchange’’ or ‘‘BATS’’) filed with the schedule to: (i) modify the rebates submission, all subsequent Securities and Exchange Commission provided by the Exchange for amendments, all written statements (‘‘Commission’’) the proposed rule Customer 6 orders that add liquidity to with respect to the proposed rule change as described in Items I, II, and Exchange’s options platform (‘‘BATS change that are filed with the III below, which Items have been Options’’) in options classes subject to Commission, and all written prepared by the Exchange. The the penny pilot program as described communications relating to the Exchange has designated the proposed below (‘‘Penny Pilot Securities’’),7 and proposed rule change between the rule change as one establishing or (ii) modify the BATS Options NBBO Commission and any person, other than changing a member due, fee, or other Setter Program 8 by adopting enhanced those that may be withheld from the charge imposed by the Exchange under rebates for liquidity resulting from public in accordance with the Section 19(b)(3)(A)(ii) of the Act 3 and orders with a significant level of provisions of 5 U.S.C. 552, will be Rule 19b–4(f)(2) thereunder,4 which displayed size. The Exchange also available for Web site viewing and renders the proposed rule change proposes minor structural changes to printing in the Commission’s Public effective upon filing with the the Options Pricing section of the Reference Room, 100 F Street NE., Commission. The Commission is Exchange’s fee schedule, including Washington, DC 20549, on official publishing this notice to solicit movement and re-numbering of certain business days between the hours of comments on the proposed rule change footnotes. from interested persons. 10:00 a.m. and 3:00 p.m. Copies of the (i) Customer Rebates for Adding filing also will be available for I. Self-Regulatory Organization’s Liquidity inspection and copying at the principal Statement of the Terms of Substance of office of the Exchange. All comments the Proposed Rule Change The Exchange currently provides rebates for Customer orders that add received will be posted without change; The Exchange proposes to amend the liquidity to the BATS Options order the Commission does not edit personal fee schedule applicable to Members 5 book in Penny Pilot Securities pursuant identifying information from and non-members of the Exchange to a tiered pricing structure, as submissions. You should submit only pursuant to BATS Rules 15.1(a) and (c). described below. The Exchange information that you wish to make While changes to the fee schedule proposes to modify this tiered pricing available publicly. All submissions pursuant to this proposal will be structure, which will result in the should refer to File Number SR– effective upon filing, the changes will potential for Customer orders to receive NASDAQ–2012–068 and should be become operative on June 1, 2012. submitted on or before July 5, 2012. The text of the proposed rule change larger rebates per contract. For the Commission, by the Division is available at the Exchange’s Web site The Exchange currently provides a of Trading and Markets, pursuant to at http://www.batstrading.com, at the rebate of $0.30 per contract for delegated authority.19 principal office of the Exchange, and at Customer orders that add liquidity to the Commission’s Public Reference the BATS Options order book to the Kevin M. O’Neill, Room. extent a Member of BATS Options does not qualify for a higher rebate based on Deputy Secretary. II. Self-Regulatory Organization’s [FR Doc. 2012–14573 Filed 6–13–12; 8:45 am] Statement of the Purpose of, and 6 As defined on the Exchange’s fee schedule, a BILLING CODE 8011–01–P Statutory Basis for, the Proposed Rule ‘‘Customer’’ order is any transaction identified by Change a Member for clearing in the Customer range at the Options Clearing Corporation (‘‘OCC’’), except for In its filing with the Commission, the those designated as ‘‘Professional’’. Exchange included statements 7 The Exchange currently charges different fees concerning the purpose of and basis for and provides different rebates depending on the proposed rule change and discussed whether an options class is an options class that qualifies as a Penny Pilot Security pursuant to Exchange Rule 21.5, Interpretation and Policy .01 1 15 U.S.C. 78s(b)(1). or is a non-penny options class. 2 17 CFR 240.19b–4. 8 The NBBO Setter Program is a program that 3 15 U.S.C. 78s(b)(3)(A)(ii). provides additional rebates for executions resulting 4 17 CFR 240.19b–4(f)(2). from orders that add liquidity that set either the 5 A Member is any registered broker or dealer that national best bid (‘‘NBB’’) or national best offer 19 17 CFR 200.30–3(a)(12). has been admitted to membership in the Exchange. (‘‘NBO’’).

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their average daily volume (‘‘ADV’’).9 Customer orders that add liquidity to (the ‘‘NBBO Setter Rebate’’),14 subject to The Exchange also currently provides the BATS Options order book in Penny certain volume requirements. The Members with an ADV equal to or Pilot Securities, as described below. Exchange currently provides an greater than 0.30% of average total The Exchange proposes to increase its additional $0.06 per contract rebate for 10 consolidated volume (‘‘TCV’’) with a rebate for a Member that does not executions of Professional, Firm and rebate of $0.42 per contract for qualify for the lower tier applicable to Market Maker orders that qualify for the Customer orders that add liquidity to Members with an ADV equal to or NBBO Setter Rebate by Members with the BATS Options order book in Penny greater than 0.30% of average TCV but an ADV equal to or greater than 0.30% Pilot Securities and a rebate of $0.44 per of average TCV but less than 1% of achieves at least a 5 basis point increase contract for Customer orders that add average TCV and an additional $0.10 over its previous High Water Mark from liquidity to the BATS Options order per contract for qualifying executions of a rebate of $0.36 per contract to a rebate book in Penny Pilot Securities for Professional, Firm and Market Maker of $0.38 per contract for Customer Members with an ADV equal to or orders by Members with an ADV equal orders that add liquidity to BATS greater than 1% of average TCV. Finally, to or greater than 1% of TCV. The Options in Penny Pilot Securities. the Exchange currently offers its Grow Exchange also applies its Grow with Us Similarly, the Exchange proposes to with Us pricing program to Customer pricing program to the NBBO Setter increase its rebate for a Member that orders that add liquidity by providing a Rebate. Accordingly, a Member that qualifies for the lower tier applicable to Member with enhanced rebates (and does not qualify for NBBO Setter lower execution fees) to the extent such Members with an ADV equal to or Rebates applicable to Members with an Member shows a minimum of 5 basis greater than 0.30% of average TCV but ADV equal to or greater than 0.30% of points TCV improvement over the not the 1% of average TCV tier that average TCV but achieves at least a 5 Member’s previous highest monthly achieves at least a 5 basis point increase basis point increase over its previous TCV on BATS Options, or ‘‘High Water over its previous High Water Mark from High Water Mark receives NBBO Setter Mark.’’ The Exchange has defined High a rebate of $0.43 per contract to a rebate Rebates of $0.03 per contract for Water Mark as the greater of a Member’s of $0.45 per contract for Customer qualifying executions. Similarly, a fourth quarter 2011 TCV or a Member’s orders that add liquidity to BATS Member that qualifies for the lower tier best monthly TCV on BATS Options Options in Penny Pilot Securities. applicable to Members with an ADV thereafter.11 Under the current pricing Finally, the Exchange proposes to adopt equal to or greater than 0.30% of structure, a Member that does not a new Grow with Us rebate for Members average TCV but not the 1% of average qualify for the lower tier applicable to that have an ADV greater than 1% of TCV tier that achieves at least a 5 basis Members with an ADV equal to or average TCV by providing a rebate to point increase over its previous High greater than 0.30% of average TCV but those Members that meet this tier but Water Mark is provided a NBBO Setter achieves at least a 5 basis point increase are also increasing their participation on Rebate of $0.08 per contract for over its previous High Water Mark is BATS Options as demonstrated by qualifying executions. provided a rebate of $0.36 per contract achievement of at least a 5 basis point In order to further incentivize for Customer orders that add liquidity to increase over its previous High Water aggressive liquidity by incenting the BATS Options order book in Penny Mark. The Exchange proposes to displayed size of contracts, the Pilot Securities. A Member that qualifies provide such Members with a rebate of Exchange proposes to provide twice the for the lower tier applicable to Members $0.46 per contract for Customer orders rebate for executions that qualify for an with an ADV equal to or greater than that add liquidity to BATS Options in NBBO Setter Rebate and result from an 0.30% of average TCV but not the 1% Penny Pilot Securities. order with a displayed size that equals of average TCV tier that achieves at least The Exchange is not proposing any or exceeds 25 contracts. Accordingly, a 5 basis point increase over its previous changes to the tiered rebate structure for rather than NBBO Setter Rebates of High Water Mark is provided a rebate of Customer orders entered by Members $0.03, $0.06, $0.08 and $0.10 per $0.43 per contract for Customer orders that do not qualify for Grow with Us contract, as described above, the that add liquidity to the BATS Options pricing nor is the Exchange proposing to Exchange proposes to provide enhanced order book in Penny Pilot Securities. modify the rebates provided for NBBO Setter Rebates of $0.06, $0.12, The Exchange proposes to increase Professional,12 Firm and Market $0.16 and $0.20, respectively, for the current Grow with Us rebates and to Maker 13 orders. executions that meet the size threshold. adopt a new Grow with Us rebate for The Exchange proposes to limit the (ii) Enhanced NBBO Setter Rebate for enhanced rebate to executions up to 200 9 As defined on the Exchange’s fee schedule, ADV Orders Meeting Size Requirements contracts. For any executions above 200 is average daily volume calculated as the number of contracts added or removed, combined, per day The Exchange’s NBBO Setter Program contracts, the Exchange will provide the on a monthly basis. The fee schedule also provides is a program intended to incentivize enhanced rebate based on order size for that routed contracts are not included in ADV aggressive quoting on BATS Options by the first 200 contracts executed, and the calculation. standard NBBO Setter Rebate for all 10 As defined on the Exchange’s fee schedule, providing an additional rebate upon TCV is total consolidated volume calculated as the execution for all orders that add remaining contracts executed on that volume reported by all exchanges to the liquidity that set either the NBB or NBO order. consolidated transaction reporting plan for the month for which the fees apply. 2. Statutory Basis 11 For example, assume that for the fourth quarter 12 As defined in Rule 16.1, the term The Exchange believes that the ‘‘Professional’’ means any person or entity that (i) of 2011, a Member has an ADV of 0.10% of average proposed rule change is consistent with TCV. Such Member would not qualify for volume is not a broker or dealer in securities, and (ii) places tier pricing applicable to Members with an ADV of more than 390 orders in listed options per day on 0.30% of average TCV. However, if, in June of 2012, average during a calendar month for its own 14 An order that is entered at the most aggressive such Member achieves an average TCV of 0.15% on beneficial account(s). price both on the BATS Options book and BATS Options, such Member will receive one-half 13 As set forth on the Exchange’s fee schedule, according to then current OPRA data will be of the economic benefit such Member would and consistent with the definition of a Customer determined to have set the NBB or NBO for receive if the Member had reached the 0.30% TCV order, classification as a ‘‘Firm’’ or ‘‘Market Maker’’ purposes of the NBBO Setter Rebate without regard volume tier and the Member’s new High Water order depends on the identification by a Member to whether a more aggressive order is entered prior Mark will now be 0.15%. of the applicable clearing range at the OCC. to the original order being executed.

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the requirements of the Act and the deepening the BATS Options liquidity that it does not currently operate any rules and regulations thereunder that pool, offering additional flexibility for auctions through which orders are held are applicable to a national securities all investors to enjoy cost savings, and broadcast to its membership, nor exchange, and, in particular, with the supporting the quality of price does the Exchange engage in any requirements of Section 6 of the Act.15 discovery, promoting market payment for order flow practices. Specifically, the Exchange believes that transparency and improving investor Rather, the Exchange is proposing to the proposed rule change is consistent protection. The Grow with Us program enhance its transparent market structure with Section 6(b)(4) of the Act,16 in that is also fair and equitable and not with an easy to understand and it provides for the equitable allocation unreasonably discriminatory in that it is transparent pricing structure by adding of reasonable dues, fees and other available to all Members, even for incentives for aggressive quoting with charges among members and other Members that do not meet the size. The Exchange also believes that the persons using any facility or system Exchange’s volume based tiers. rebates as proposed are reasonable in which the Exchange operates or More specifically, the increase to that they significantly incentivize controls. The Exchange notes that it Grow with Us rebates for Customer aggressive quoting with respect to both operates in a highly competitive market orders in Penny Pilot Securities is price and size. in which market participants can reasonable as it is a small increase that readily direct order flow to competing encourages growth by Members, which B. Self-Regulatory Organization’s venues if they deem fee levels at a will, in turn, benefit all participants on Statement on Burden on Competition particular venue to be excessive. BATS Options. The proposed rebates The Exchange does not believe that Volume-based rebates such as the are fair and equitable and not the proposed rule change imposes any ones maintained by the Exchange have unreasonably discriminatory due to the burden on competition. been widely adopted in the cash fact that Grow with Us pricing is equities markets and are increasingly in available to all Members, even those C. Self-Regulatory Organization’s use by the options exchanges, and are that do not qualify for the Exchange’s Statement on Comments on the equitable because they are open to all lowest volume tier. The Exchange notes Proposed Rule Change Received From Members on an equal basis and provide that, as proposed, BATS Options will be Members, Participants, or Others discounts that are reasonably related to providing a rebate to Members that No written comments were solicited the value to an exchange’s market qualify for the lower tier and Grow with or received. quality associated with higher levels of Us pricing (such Members will receive market activity, such as higher levels of a $0.45 per contract rebate for Customer III. Date of Effectiveness of the liquidity provision and/or growth orders) that is higher than the rebate Proposed Rule Change and Timing for patterns, and introduction of higher provided to Members that qualify for the Commission Action volumes of orders into the price and higher tier (1% or more) but do not Pursuant to Section 19(b)(3)(A)(ii) of volume discovery processes. qualify for Grow with Us pricing (such the Act 17 and Rule 19b–4(f)(2) Accordingly, the Exchange believes that Members will receive a $0.44 per thereunder,18 the Exchange has the continued offering of volume-based contract rebate for Customer orders). designated this proposal as establishing rebates for Customer orders in Penny The Exchange believes that this pricing or changing a due, fee, or other charge Pilot Securities is not unfairly structure is reasonable and not applicable to the Exchange’s Members discriminatory because it is consistent unreasonably discriminatory because and non-members, which renders the with the overall goals of enhancing the Exchange is incentivizing Members proposed rule change effective upon market quality. Similarly, the Exchange to increase their activity on BATS filing. believes that continuing to base its Options, to the benefit of other BATS At any time within 60 days of the tiered fee structure based on overall Options participants. Also, consistent filing of the proposed rule change, the TCV, rather than a static number of with this objective, the Exchange has Commission summarily may contracts irrespective of overall volume adopted a new Grow with Us category temporarily suspend such rule change if in the options industry, is a fair and for Members that qualify for the higher it appears to the Commission that such equitable approach to pricing. tier and also qualify for Grow with Us action is necessary or appropriate in the The Exchange believes that pricing (such Members will receive a public interest, for the protection of continuing to provide additional $0.46 per contract rebate for Customer investors, or otherwise in furtherance of financial incentives to Members that orders). the purposes of the Act. demonstrate a 5 basis point increase The enhanced NBBO Setter program over their previous High Water Mark that focuses on the size of contracts has IV. Solicitation of Comments offers an additional, flexible way to the potential of increasing the available Interested persons are invited to achieve financial incentives from the liquidity at the Exchange. Accordingly, submit written data, views, and Exchange and encourages Members to the proposed adoption of a program to arguments concerning the foregoing, add increasing amounts of liquidity to provide enhanced NBBO Setter Rebates including whether the proposed rule BATS Options each month. The Grow for executions from orders that qualify change is consistent with the Act. with Us pricing program, therefore, is based on their size is fair and equitable Comments may be submitted by any of reasonable in that it rewards a Member’s and not unreasonably discriminatory the following methods: growth patterns. Such increased volume because such a program is consistent increases potential revenue to the with the overall goals of enhancing Electronic Comments Exchange, and will allow the Exchange market quality and will benefit all • Use the Commission’s Internet to continue to provide and potentially investors by deepening the BATS comment form (http://www.sec.gov/ expand the incentive programs operated Options liquidity pool, offering rules/sro.shtml); or by the Exchange. The increased additional flexibility for all investors to • Send an email to rule- liquidity also benefits all investors by enjoy cost savings, supporting the [email protected]. Please include File quality of price discovery, promoting 15 15 U.S.C. 78f. market transparency and improving 17 15 U.S.C. 78s(b)(3)(A)(ii). 16 15 U.S.C. 78f(b)(4). investor protection. The Exchange notes 18 17 CFR 240.19b–4(f)(2).

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Number SR–BATS–2012–020 on the SECURITIES AND EXCHANGE a. USDBRL, USDCLP, USDCNY, subject line. COMMISSION USDCOP, USDIDR, USDINR, USDKRW, USDMYR, USDPEN, USDPHP, Paper Comments [Release No. 34–67170; File No. SR–CME– 2012–20] USDRUB, USDTWD Non-Deliverable • Send paper comments in triplicate Forwards to Elizabeth M. Murphy, Secretary, Self-Regulatory Organizations; b. USDCZK, USDHUF, USDHKD, Securities and Exchange Commission, Chicago Mercantile Exchange, Inc.; USDILS, USDMXN, USDPLN, USDSGD, USDTHB, USDTRY, USDZAR Cash- 100 F Street NE., Washington, DC Notice of Filing and Immediate Settled Forwards 20549–1090. Effectiveness of Proposed Rule Change Regarding Extension of Fee 2. CME Cleared OTC FX—Majors All submissions should refer to File Waiver Program Relating to Its a. AUDJPY, AUDUSD, CADJPY, Number SR–BATS–2012–020. This file Cleared-only OTC FX Clearing Offering EURAUD, EURCHF, EURGBP, EURJPY, number should be included on the EURUSD, GBPUSD, NZDUSD, subject line if email is used. To help the June 8, 2012. USDCAD, USDCHF, USDDKK, USDJPY, Commission process and review your Pursuant to Section 19(b)(1) of the USDNOK, USDSEK Cash-Settled Securities Exchange Act of 1934 comments more efficiently, please use Forwards. (‘‘Act’’),1 and Rule 19b–4 thereunder,2 only one method. The Commission will notice is hereby given that on June 5, Eligible Participants post all comments on the Commission’s 2012, Chicago Mercantile Exchange, Inc. Internet Web site (http://www.sec.gov/ The temporary reduction in fees will (‘‘CME’’) filed with the Securities and be open to all market participants and rules/sro.shtml). Copies of the Exchange Commission (‘‘Commission’’) will automatically be applied to any submission, all subsequent the proposed rule change described in transaction in the Products submitted to amendments, all written statements Items I, II and III below, which items the Clearing House for clearing. with respect to the proposed rule have been prepared primarily by CME. change that are filed with the CME filed the proposed rule change Program Term Commission, and all written pursuant to Section 19(b)(3)(A)(ii) 3 of Start date is February 1, 2012. End communications relating to the the Act and Rule 19b–4(f)(2) 4 date is [June 30] December 31, 2012. proposed rule change between the thereunder, so that the proposed rule Hours Commission and any person, other than change was effective upon filing with those that may be withheld from the the Commission. The Commission is The Program will be applicable public in accordance with the publishing this notice to solicit regardless of the transaction time. provisions of 5 U.S.C. 552, will be comments on the proposed rule change Program Incentives available for Web site viewing and from interested parties. Fee Waivers. All market participants printing in the Commission’s Public I. Self-Regulatory Organization’s Reference Room, 100 F Street NE., that clear the Products will have their Statement of Terms of Substance of the clearing fees waived. Washington, DC 20549, on official Proposed Rule Change business days between the hours of CME is proposing to make certain II. Self-Regulatory Organization’s 10:00 a.m. and 3:00 p.m. Copies of the changes to an existing fee waiver Statement of Purpose of, and Statutory filing also will be available for program that currently applies to its Basis for, the Proposed Rule Change inspection and copying at the principal cleared-only OTC foreign exchange In its filing with the Commission, office of the Exchange. All comments (‘‘FX’’) swap clearing offering.5 The text CME included statements concerning received will be posted without change; of the proposed changes is as follows the purpose and basis for the proposed the Commission does not edit personal with additions italicized and deletions rule change and discussed any identifying information from in brackets. comments it received on the proposed submissions. You should submit only * * * * * rule change. The text of these statements information that you wish to make may be examined at the places specified available publicly. All submissions Program Purpose in Item IV below. CME has prepared should refer to File Number SR–BATS– The purpose of this Program is to summaries, set forth in sections A, B, 2012–020 and should be submitted on incentivize market participants to and C below, of the most significant or before July 5, 2012. submit transaction in the OTC FX aspects of such statements.6 products listed below to the Clearing For the Commission, by the Division of A. Self-Regulatory Organization’s House for clearing. The resulting Trading and Markets, pursuant to delegated Statement of Purpose of, and Statutory increase in volume benefits all authority.19 Basis for, the Proposed Rule Change participant segments in the market. Kevin M. O’Neill, CME currently offers clearing for Deputy Secretary. Product Scope certain cleared-only OTC FX swap [FR Doc. 2012–14536 Filed 6–13–12; 8:45 am] The following cleared only OTC FX products. The filing proposes to extend BILLING CODE 8011–01–P products (‘‘Products’’): a current fee waiver program that will 1. CME Cleared OTC FX—Emerging apply to the following cleared-only OTC Markets FX products (‘‘Products’’): 1. CME Cleared OTC FX—Emerging 1 15 U.S.C. 78s(b)(1). Markets 2 17 CFR 240.19b–4. a. USDBRL, USDCLP, USDCNY, 3 15 U.S.C. 78s(b)(3)(A)(ii). USDCOP, USDIDR, USDINR, USDKRW, 4 17 CFR 240.19b–4(f)(2). 5 CME previously amended the fee program in USDMYR, USDPEN, USDPHP, another rule filing. See Exchange Act Release No. 34–66261 (January 26, 2012), 77 FR 5283 (February 6 The Commission has modified the text of the 19 17 CFR 200.30–3(a)(12). 2, 2012) [CME–2012–02]. summaries prepared by CME.

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USDRUB, USDTWD Non-Deliverable III. Date of Effectiveness of the 10:00 a.m. and 3:00 p.m. Copies of such Forwards Proposed Rule Change and Timing for filing also will be available for b. USDCZK, USDHUF, USDHKD, Commission Action inspection and copying at the principal USDILS, USDMXN, USDPLN, USDSGD, The foregoing rule change was filed office of CME. All comments received USDTHB, USDTRY, USDZAR Cash- pursuant to Section 19(b)(3)(A)(ii) 8 of will be posted without change; the Settled Forwards the Act and Rule 19b–4(f)(2) 9 Commission does not edit personal identifying information from 2. CME Cleared OTC FX—Majors thereunder and thus became effective upon filing because it establishes or submissions. You should submit only a. AUDJPY, AUDUSD, CADJPY, changes a due, fee, or other charge information that you wish to make EURAUD, EURCHF, EURGBP, EURJPY, applicable to a member. At any time available publicly. EURUSD, GBPUSD, NZDUSD, within sixty days of the filing of such All submissions should refer to File USDCAD, USDCHF, USDDKK, USDJPY, rule change, the Commission summarily Number SR–CME–2012–20 and should USDNOK, USDSEK Cash-Settled may temporarily suspend such rule be submitted on or before July 5, 2012. Forwards. change if it appears to the Commission For the Commission by the Division of The fee waiver is open to all market that such action is necessary or Trading and Markets, pursuant to delegated 10 participants and will continue to be so appropriate in the public interest, for authority. during the extension period. The fee the protection of investors, or otherwise Kevin M. O’Neill, waiver will automatically be applied to in furtherance of the purposes of the Deputy Secretary. any transaction in the products Act. [FR Doc. 2012–14535 Filed 6–13–12; 8:45 am] submitted to CME’s clearinghouse for IV. Solicitation of Comments BILLING CODE 8011–01–P clearing. Interested persons are invited to Pursuant to Commodity Futures submit written data, views and Trading Commission (‘‘CFTC’’) arguments concerning the foregoing, SOCIAL SECURITY ADMINISTRATION regulations, the rule changes are subject including whether the proposed rule Agency Information Collection to CFTC Regulation 40.6(d), requiring a change is consistent with the Act. Activities: Comment Request self-certification filing to the CFTC, Comments may be submitted by any of although no change to text of the CME the following methods: The Social Security Administration rulebook is required. CME notes that it • Electronic comments may be (SSA) publishes a list of information has already certified the proposed submitted by using the Commission’s collection packages requiring clearance changes that are the subject of this filing Internet comment form (http:// by the Office of Management and to the CFTC. www.sec.gov/rules/sro.shtml), or send Budget (OMB) in compliance with an email to [email protected]. The proposed changes establish or Public Law 104–13, the Paperwork Please include File No. SR–CME–2012– change a member due, fee or other Reduction Act of 1995, effective October 20 on the subject line. charge imposed by CME under Section 1, 1995. This notice includes revisions • Paper comments should be sent in and extensions of OMB-approved 19(b)(3)(A)(ii) of the Act and Rule 19b– triplicate to Elizabeth M. Murphy, 4(f)(2) thereunder. CME believes that the information collections. Secretary, Securities and Exchange SSA is soliciting comments on the proposed changes are consistent with Commission, 100 F Street NE., accuracy of the agency’s burden the requirements of the Act and the Washington, DC, 20549–1090. estimate; the need for the information; rules and regulations thereunder and, in All submissions should refer to File its practical utility; ways to enhance its particular, to Section 17A(b)(3)(D) 7 in Number SR–CME–2012–20. This file quality, utility, and clarity; and ways to that it provides for the equitable number should be included on the minimize burden on respondents, allocation of reasonable dues, fees and subject line if email is used. To help the including the use of automated other charges among participants. CME Commission process and review your collection techniques or other forms of notes that it operates in a highly comments more efficiently, please use information technology. Mail, email, or competitive market in which market only one method. The Commission will fax your comments and participants can readily direct business post all comments on the Commission’s recommendations on the information to competing venues. Internet Web site (http://www.sec.gov/ collection(s) to the OMB Desk Officer rules/sro.shtml). Copies of the B. Self-Regulatory Organization’s and SSA Reports Clearance Officer at submission, all subsequent Statement on Burden on Competition the following addresses or fax numbers. amendments, all written statements (OMB), Office of Management and with respect to the proposed rule CME does not believe that the Budget, Attn: Desk Officer for SSA, change that are filed with the proposed rule change will have any Fax: 202–395–6974, Email address: Commission, and all written impact, or impose any burden, on [email protected]. competition. communications relating to the proposed rule change between the (SSA), Social Security Administration, C. Self-Regulatory Organization’s Commission and any person, other than DCRDP, Attn: Reports Clearance Statement on Comments on the those that may be withheld from the Director, 107 Altmeyer Building, 6401 Proposed Rule Change Received From public in accordance with the Security Blvd., Baltimore, MD 21235, Members, Participants, or Others provisions of 5 U.S.C. 552, will be Fax: 410–966–2830, Email address: available for Web site viewing and [email protected]. CME has not solicited, and does not printing in the Commission’s Public SSA submitted the information intend to solicit, comments regarding Reference Room, 100 F Street NE., collections below to OMB for clearance. this proposed rule change. CME has not Washington, DC 20549 on official Your comments regarding the received any unsolicited written business days between the hours of information collections would be most comments from interested parties. useful if OMB and SSA receive them 30 8 15 U.S.C, 78s(b)(3)(A)(ii). 7 15 U.S.C. 78q–1(b)(3)(D). 9 17 CFR 240.19b–4(f)(2). 10 17 CFR 200.30–3(a)(12).

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days from the date of this publication. 416.1414, 416.1416(b)(5)—0960–0534. request for disability payments based To be sure we consider your comments, Claimants for Social Security disability solely on the evidence of record. The we must receive them no later than July payments or their representatives can respondents are claimants for disability 16, 2012. Individuals can obtain copies use Form SSA–773 to officially waive payments under title II and title XVI of of the OMB clearance packages by their right to appear at a disability the Social Security Act (Act), or their writing to [email protected]. hearing. The disability hearing officer representatives, who wish to waive their 1. Waiver of Right to Appear— uses the signed form as a basis for not right to appear at a disability hearing. Disability Hearing—20 CFR 404.913– holding a hearing, and for preparing a Type of Request: Revision of an OMB- 404.914, 404.916(b)(5), 416.1413– written decision on the claimant’s approved information collection.

Average Number of Frequency of burden per Estimated total Collection instrument respondents response response annual burden (minutes) (hours)

SSA–773 ...... 200 1 3 10

2. Youth Transition Process empirical evidence on the effects of the random assignment; (2) follow-up Demonstration Evaluation Data waivers and project services including interviews at 12 months after random Collection—0960–0687. (1) educational attainment, (2) assignment; (3) interviews and employment, (3) earnings, (4) receipt of Background roundtable discussions with local benefits by youth with disabilities, and program administrators, program The purpose of the Youth Transition (5) Social Security Trust Fund and supervisors, and service delivery staff; Demonstration (YTD) project is to help Federal income tax revenues. Sections and (4) focus groups of youths, their young people with disabilities make the 1110 and 234 of the Act authorize this parents, and service providers. We are transition from school to work. While project. currently collecting follow-up participating in the project, youth can interviews at 36 months after random continue to work or continue their Project Description assignment. We began collecting education because SSA waives certain Given the importance of estimating disability program rules and offers YTD effects as accurately as possible, information for YTD in 2007, and we services to youth who are receiving we are evaluating the project using will conclude data collection for the disability benefits or have a high rigorous analytic methods based on project in 2013. The respondents are probability of receiving them. We are randomly assigning youth to a treatment youths with disabilities enrolled in the currently implementing YTD projects in or control group. We conducted several project; their parents or guardians; three sites across the country. Three data collections. These included: (1) program staff; and service providers. other sites completed service delivery Baseline interviews with youth and Type of Request: Extension of an and closed. The evaluation will produce their parents or guardians prior to OMB-approved information collection.

FY 2012 DATA

Average Number of Responses burden per Total response Data collection year Collection respondents per response burden respondent (hours) (hours)

2012 ...... 36 Month Follow-up ...... 364 1 0.83 302

Total ...... 302

COMBINED DATA FROM 2007—2013

Responses Average burden Total response Data collection year Collection Number of per per response burden respondents respondent (hours) (hours)

All Years ...... Baseline ...... 5,651 1 0 .55 3,108 Informed Consent ...... 5,651 1 .083 469 12 Month Follow-up ...... 4,752 1 .83 3,944 In-depth Interviews ...... 240 1 .42 101 Focus Group ...... 440 1 1 .5 660 Program Staff/Service Provider ...... 192 1 1 192 36 Month Follow-up ...... 3,962 1 .83 3,288

Grand Total ...... 11,762

3. Identifying Information for Possible representatives on Form SSA–1695 to establish a link between each claim for Direct Payment of Authorized Fees— (1) process and facilitate direct payment benefits and the data we collect on the 0960–0730. SSA collects information of authorized fees; (2) issue a Form SSA–1699 for our appointed from claimants’ appointed 1099–MISC, if applicable; and (3) representative database. The

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respondents are attorneys and other Type of Request: Revision of an OMB individuals who represent claimants for approved information collection. benefits before SSA.

Average Number of Frequency of burden per Estimated total Collection instrument respondents response response annual burden (minutes) (hours)

SSA–1695 ...... 10,000 40 10 66,667

4. Electronic Records Express—0960– Both medical providers and other third disability claimants or recipients and 0753. Electronic Records Express (ERE) parties with connections to disability are ERE users. is a web-based SSA program allowing applicants or recipients can use this Type of Request: Extension of an medical providers to electronically system. The respondents are medical OMB-approved information collection. submit disability claimant data to SSA. providers who evaluate or treat

Average Number of Frequency of burden per Estimated total Collection instrument respondents response response annual burden (minutes) (hours)

ERE ...... 3,552,176 1 10 592,029

5. Request to Pay Civil Monetary agreement. For SSA to negotiate a respondents are recipients of Social Penalty by Installment Agreement—20 monthly payment amount fair to both Security benefits and non-entitled CFR 498—0960–0776. When SSA the individual and the agency, SSA individuals who must repay a CMP to imposes a civil monetary penalty (CMP) needs financial information from the the agency and want to do so using an for various fraudulent conduct related to individual. The agency uses Form SSA– installment plan. SSA-administrated programs on 640 to obtain the information necessary Type of Request: Revision of an OMB- individuals, those individuals may ask to determine a repayment rate for to pay the CMP through an installment individuals owing a CMP. The approved information collection.

Average Number of Frequency of burden per Estimated total Collection instrument responses response response annual burden (minutes) (hours)

SSA–640 ...... 400 1 120 800

Dated: June 11, 2012. Horns at Public Highway-Rail Grade apply to all shared highway-rail grade Faye Lipsky, Crossings; Part 229, Locomotive Safety crossings on SRTD’s Blue and Gold Reports Clearance Director, Office of Standards; and Part 234, Grade Crossing Lines. SRTD confirmed that 49 CFR part Regulations and Reports Clearance, Social Signal System Safety and State Action 222 would still apply to the 17 shared Security Administration. Plans. FRA assigned the petition Docket highway-rail grade crossings. SRTD [FR Doc. 2012–14550 Filed 6–13–12; 8:45 am] Number FRA–2006–24216. explained that their request is consistent BILLING CODE 4191–02–P In a letter dated September 3, 2003, with the waiver process for shared use. FRA granted SRTD conditional relief (See Statement of Agency Policy from 49 CFR Sections 229.125 and Concerning Jurisdiction Over the Safety DEPARTMENT OF TRANSPORTATION 234.105(c)(3) on SRTD’s Blue and Gold of Railroad Passenger Operations and Lines. In a letter dated July 28, 2006, Waivers Related to Shared Use of the Federal Railroad Administration FRA granted SRTD conditional relief Tracks of the General Railroad System from 49 CFR Part 222 at 17 shared by Light Rail and Conventional [Docket Number FRA–2006–24216] highway-rail grade crossings. In a letter Equipment, 65 FR 42529 (July 10, 2000); dated June 22, 2011, FRA extended the see also Joint Statement of Agency Petition for Waiver of Compliance existing terms and conditions of SRTD’s Policy Concerning Shared Use of the In accordance with Part 211 of Title waivers for an 18-month period. FRA Tracks of the General Railroad System 49 Code of Federal Regulations (CFR), could not conclude that granting relief by Conventional Railroads and Light this document provides the public for a 5-year period was justified because Rail Transit Systems, 65 FR 42626 (July notice that by a document dated May FRA’s field investigation revealed SRTD 10, 2000)). 11, 2012, the Sacramento Regional failed to comply with other applicable In the petition, SRTD acknowledged Transit District (SRTD) has petitioned rail safety regulations. noncompliance with 49 CFR part 225, the Federal Railroad Administration In a petition dated May 11, 2012, Railroad Accidents/Incidents: Reports (FRA) for a waiver of compliance from SRTD stated they are not proposing any Classification, and Investigations; and certain provisions of the Federal change of scope in their request for an 49 CFR part 228, Hours of Service of railroad safety regulations contained at extension. SRTD affirmed that 49 CFR Railroad Employees; Recordkeeping and 49 CFR part 222, Use Of Locomotive 229.125 and 234.105(c)(3) would still Reporting; Sleeping Quarters. SRTD

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stated they have been working diligently and 5 p.m., Monday through Friday, Type of Request: Extension of to address deficiencies and are fully except Federal Holidays. currently approved information compliant. SRTD also stated they Communications received by July 30, collection. believe granting this waiver extension is 2012 will be considered by FRA before OMB Control Number: 2133–0006. in the public interest and consistent final action is taken. Comments received Form Numbers: MA–29, MA–29A, with railroad safety. after that date will be considered as far and MA–29B. SRTD operates 37.5 miles of light rail as practicable. Expiration Date of Approval: Three (including 48 light rail stops or stations) Anyone is able to search the years from date of approval by the 365 days a year using 76 light rail electronic form of any written Office of Management and Budget. vehicles. Light rail trains begin communications and comments Summary of Collection of operation at 4 a.m. with 14 trains received into any of our dockets by the Information: This collection provides running every 15 minutes during the name of the individual submitting the information necessary for MARAD to day and 7 trains running every 30 comment (or signing the comment, if approve the sale, transfer, charter, lease, minutes in the evening and on submitted on behalf of an association, or mortgage of U.S. documented vessels weekends. Blue Line and Gold Line business, labor union, etc.). You may to non-citizens; or the transfer of such trains operate until 10:30 p.m., and the review DOT’s complete Privacy Act vessels to foreign registry and flag; or Gold Line to Folsom, CA, operates until Statement in the Federal Register the transfer of foreign flag vessels by 7 p.m. SRTD operates three- and four- published on April 11, 2000 (Volume their owners as required by various car trains during the peak periods and 65, Number 70; Pages 19477–78), or contractual requirements. two-car trains during the off-peak hours. online at http://www.dot.gov/ Need and Use of the Information: The Single-car trains provide late evening privacy.html. information will enable MARAD to and Sunday service. The end-to-end Issued in Washington, DC, on June 5, 2012. determine whether the vessel proposed running time on the light rail Blue Line Ron Hynes, for transfer will initially require between Meadowview and Watt/ Acting Deputy Associate Administrator for retention under the U.S.-flag statutory Interstate 80 is 48 minutes. The running Regulatory and Legislative Operations. regulations. time for the Gold Line between [FR Doc. 2012–14549 Filed 6–13–12; 8:45 am] Description of Respondents: Sacramento Valley Station and Folsom Respondents are vessel owners who BILLING CODE 4910–06–P is 55 minutes. Weekday light rail have applied for foreign transfer of U.S.- ridership averages about 55,000. flag vessels. A copy of the petition, as well as any DEPARTMENT OF TRANSPORTATION Annual Responses: 85 responses. written communications concerning the Annual Burden: 170 hours. petition, is available for review online at Maritime Administration Comments: Comments should refer to www.regulations.gov and in person at the docket number that appears at the the U.S. Department of Transportation’s [Docket No. MARAD 2012 0069] top of this document. Written comments (DOT) Docket Operations Facility, 1200 may be submitted to the Docket Clerk, New Jersey Avenue SE., W12–140, Information Collection Available for U.S. DOT Dockets, Room W12–140, Washington, DC 20590. The Docket Public Comments and 1200 New Jersey Avenue SE., Operations Facility is open from 9 a.m. Recommendations Washington, DC 20590. Comments also to 5 p.m., Monday through Friday, may be submitted by electronic means ACTION: Notice of intention to request except Federal Holidays. via the Internet at http:// extension of OMB approval and request Interested parties are invited to www.regulations.gov/search/index.jsp. for comments. participate in these proceedings by Specifically address whether this submitting written views, data, or SUMMARY: In accordance with the information collection is necessary for comments. FRA does not anticipate Paperwork Reduction Act of 1995, this proper performance of the functions of scheduling a public hearing in notice announces the Maritime the agency and will have practical connection with these proceedings since Administration’s (MARAD’s) intention utility, accuracy of the burden the facts do not appear to warrant a to request extension of approval (with estimates, ways to minimize this hearing. If any interested party desires modifications) for three years of a burden, and ways to enhance the an opportunity for oral comment, they currently approved information quality, utility, and clarity of the should notify FRA, in writing, before collection. information to be collected. All the end of the comment period and comments received will be available for specify the basis for their request. DATES: Comments should be submitted examination at the above address All communications concerning these on or before August 13, 2012. between 10 a.m. and 5 p.m. EDT (or proceedings should identify the FOR FURTHER INFORMATION CONTACT: EST), Monday through Friday, except appropriate docket number and may be Jerome Davis, Maritime Administration, Federal Holidays. An electronic version submitted by any of the following 1200 New Jersey Avenue SE., of this document is available on the methods: Washington, DC 20590. Telephone: World Wide Web at http:// • Web site: http:// 202–366–0688; or EMAIL: www.regulations.gov. www.regulations.gov. Follow the online [email protected]. Copies of this Privacy Act: Anyone is able to search instructions for submitting comments. collection also can be obtained from that the electronic form of all comments • Fax: 202–493–2251. office. received into any of our dockets by the • Mail: Docket Operations Facility, SUPPLEMENTARY INFORMATION: Maritime name of the individual submitting the U.S. Department of Transportation, 1200 Administration (MARAD). comment (or signing the comment, if New Jersey Avenue SE., W12–140, Title of Collection: ‘‘Request for submitted on behalf of an association, Washington, DC 20590. Transfer of Ownership, Registry, and business, labor union, etc.). You may • Hand Delivery: 1200 New Jersey Flag, or Charter, Lease, or Mortgage of review DOT’s complete Privacy Act Avenue SE., Room W12–140, U.S. Citizen Owned Documented Statement in the Federal Register Washington, DC 20590, between 9 a.m. Vessels.’’ published on April 11, 2000 (Volume

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65, Number 70; Pages 19477–78) or you SUPPLEMENTARY INFORMATION: As SUMMARY: As authorized by 46 U.S.C. may visit http://www.regulations.gov. described by the applicant the intended 12121, the Secretary of Transportation, Authority: 49 CFR 1.66. service of the vessel S/V as represented by the Maritime SHENANIGANS is: Administration (MARAD), is authorized By order of the Maritime Administrator. Intended Commercial Use of Vessel: to grant waivers of the U.S.-build Dated: June 8, 2012. ‘‘Pleasure charter within the harbor and requirement of the coastwise laws under Julie P. Agarwal, near coastal waters of Charleston, SC certain circumstances. A request for Secretary, Maritime Administration. with occasional short-term extents to such a waiver has been received by [FR Doc. 2012–14508 Filed 6–13–12; 8:45 am] Georgia and Florida waters.’’ MARAD. The vessel, and a brief BILLING CODE 4910–81–P Geographic Region: ‘‘South Carolina, description of the proposed service, is Georgia, Florida.’’ listed below. The complete application is given in DATES: Submit comments on or before DEPARTMENT OF TRANSPORTATION DOT docket MARAD–2012–0066 at July 16, 2012. http://www.regulations.gov. Interested ADDRESSES: Comments should refer to Maritime Administration parties may comment on the effect this docket number MARAD–2012–0067. action may have on U.S. vessel builders Written comments may be submitted by [Docket No. MARAD–2012 0066] or businesses in the U.S. that use U.S.- hand or by mail to the Docket Clerk, flag vessels. If MARAD determines, in U.S. Department of Transportation, Requested Administrative Waiver of accordance with 46 U.S.C. 12121 and Docket Operations, M–30, West the Coastwise Trade Laws: Vessel S/V MARAD’s regulations at 46 CFR Part Building Ground Floor, Room W12–140, SHENANIGANS; Invitation for Public 388, that the issuance of the waiver will 1200 New Jersey Avenue SE., Comments have an unduly adverse effect on a U.S.- Washington, DC 20590. You may also AGENCY: Maritime Administration, vessel builder or a business that uses send comments electronically via the Department of Transportation. U.S.-flag vessels in that business, a Internet at http://www.regulations.gov. waiver will not be granted. Comments All comments will become part of this ACTION: Notice. should refer to the docket number of docket and will be available for SUMMARY: As authorized by 46 U.S.C. this notice and the vessel name in order inspection and copying at the above 12121, the Secretary of Transportation, for MARAD to properly consider the address between 10 a.m. and 5 p.m., as represented by the Maritime comments. Comments should also state E.T., Monday through Friday, except Administration (MARAD), is authorized the commenter’s interest in the waiver federal holidays. An electronic version to grant waivers of the U.S.-build application, and address the waiver of this document and all documents requirement of the coastwise laws under criteria given in § 388.4 of MARAD’s entered into this docket is available on certain circumstances. A request for regulations at 46 CFR part 388. the World Wide Web at http:// www.regulations.gov. such a waiver has been received by Privacy Act MARAD. The vessel, and a brief FOR FURTHER INFORMATION CONTACT: Anyone is able to search the description of the proposed service, is Joann Spittle, U.S. Department of electronic form of all comments listed below. Transportation, Maritime received into any of our dockets by the Administration, 1200 New Jersey DATES: Submit comments on or before name of the individual submitting the July 16, 2012. Avenue SE., Room W21–203, comment (or signing the comment, if Washington, DC 20590. Telephone 202– ADDRESSES: Comments should refer to submitted on behalf of an association, 366–5979, Email [email protected]. docket number MARAD–2012–0066. business, labor union, etc.). You may SUPPLEMENTARY INFORMATION: As Written comments may be submitted by review DOT’s complete Privacy Act described by the applicant the intended hand or by mail to the Docket Clerk, Statement in the Federal Register service of the vessel SECOND CHANCE U.S. Department of Transportation, published on April 11, 2000 (Volume is: Docket Operations, M–30, West 65, Number 70; Pages 19477–78). Intended Commercial Use of Vessel: Building Ground Floor, Room W12–140, By Order of the Maritime Administrator. 1200 New Jersey Avenue SE., ‘‘Small group charters.’’ Dated: June 7, 2012. Geographic Region: ‘‘Hawaii.’’ Washington, DC 20590. You may also The complete application is given in send comments electronically via the Julie P. Agarwal, Secretary, Maritime Administration. DOT docket MARAD–2012–0067 at Internet at http://www.regulations.gov. http://www.regulations.gov. Interested [FR Doc. 2012–14488 Filed 6–13–12; 8:45 am] All comments will become part of this parties may comment on the effect this BILLING CODE 4910–81–P docket and will be available for action may have on U.S. vessel builders inspection and copying at the above or businesses in the U.S. that use U.S.- address between 10 a.m. and 5 p.m., DEPARTMENT OF TRANSPORTATION flag vessels. If MARAD determines, in E.T., Monday through Friday, except accordance with 46 U.S.C. 12121 and federal holidays. An electronic version Maritime Administration MARAD’s regulations at 46 CFR part of this document and all documents 388, that the issuance of the waiver will entered into this docket is available on [Docket No. MARAD 2012 0067] have an unduly adverse effect on a U.S.- the World Wide Web at http:// vessel builder or a business that uses www.regulations.gov. Requested Administrative Waiver of U.S.-flag vessels in that business, a FOR FURTHER INFORMATION CONTACT: the Coastwise Trade Laws: Vessel waiver will not be granted. Comments Joann Spittle, U.S. Department of SECOND CHANCE; Invitation for should refer to the docket number of Transportation, Maritime Public Comments this notice and the vessel name in order Administration, 1200 New Jersey AGENCY: Maritime Administration, for MARAD to properly consider the Avenue SE., Room W21–203, Department of Transportation. comments. Comments should also state Washington, DC 20590. Telephone 202– the commenter’s interest in the waiver ACTION: Notice. 366–5979, Email [email protected]. application, and address the waiver

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criteria given in § 388.4 of MARAD’s entered into this docket is available on DEPARTMENT OF TRANSPORTATION regulations at 46 CFR part 388. the World Wide Web at http:// www.regulations.gov. Maritime Administration Privacy Act FOR FURTHER INFORMATION CONTACT: [Docket No. MARAD 2012 0064] Anyone is able to search the Joann Spittle, U.S. Department of electronic form of all comments Transportation, Maritime Requested Administrative Waiver of received into any of our dockets by the Administration, 1200 New Jersey the Coastwise Trade Laws: Vessel name of the individual submitting the Avenue SE., Room W21–203, REEL NAUTI; Invitation for Public comment (or signing the comment, if Washington, DC 20590. Telephone Comments submitted on behalf of an association, 202–366–5979, Email business, labor union, etc.). You may AGENCY: Maritime Administration, [email protected]. review DOT’s complete Privacy Act Department of Transportation. Statement in the Federal Register SUPPLEMENTARY INFORMATION: As ACTION: Notice. published on April 11, 2000 (Volume described by the applicant the intended 65, Number 70; Pages 19477–78). service of the vessel ORIENTAL SUMMARY: As authorized by 46 U.S.C. MYSTIQUE is: 12121, the Secretary of Transportation, By Order of the Maritime Administrator. Intended Commercial Use of Vessel: as represented by the Maritime Dated: June 7, 2012. ‘‘The intended commercial use of the Administration (MARAD), is authorized Julie P. Agarwal, vessel will be to run crewed rentals and to grant waivers of the U.S.-build Secretary, Maritime Administration. short day cruises on the stretch of the requirement of the coastwise laws under [FR Doc. 2012–14489 Filed 6–13–12; 8:45 am] Willamette River between Portland, certain circumstances. A request for BILLING CODE 4910–81–P Oregon and Oregon, City. The theme of such a waiver has been received by these cruises will be on Chinese culture MARAD. The vessel, and a brief and nautical exploration and invention description of the proposed service, is DEPARTMENT OF TRANSPORTATION as well as enabling passenger to enjoy listed below. the natural beauty of the area.’’ DATES: Submit comments on or before Maritime Administration Geographic Region: ‘‘Oregon.’’ July 16, 2012. [Docket No. MARAD–2012 0065] The complete application is given in ADDRESSES: Comments should refer to DOT docket MARAD–2012–0065 at docket number MARAD–2012–0064. Requested Administrative Waiver of http://www.regulations.gov. Interested Written comments may be submitted by the Coastwise Trade Laws: Vessel parties may comment on the effect this hand or by mail to the Docket Clerk, ORIENTAL MYSTIQUE; Invitation for action may have on U.S. vessel builders U.S. Department of Transportation, Public Comments or businesses in the U.S. that use U.S.- Docket Operations, M–30, West flag vessels. If MARAD determines, in AGENCY: Maritime Administration, Building Ground Floor, Room W12–140, accordance with 46 U.S.C. 12121 and Department of Transportation. 1200 New Jersey Avenue SE., MARAD’s regulations at 46 CFR part ACTION: Notice. Washington, DC 20590. You may also 388, that the issuance of the waiver will send comments electronically via the SUMMARY: As authorized by 46 U.S.C. have an unduly adverse effect on a Internet at http://www.regulations.gov. 12121, the Secretary of Transportation, U.S.-vessel builder or a business that All comments will become part of this as represented by the Maritime uses U.S.-flag vessels in that business, a docket and will be available for Administration (MARAD), is authorized waiver will not be granted. Comments inspection and copying at the above to grant waivers of the U.S.-build should refer to the docket number of address between 10 a.m. and 5 p.m., requirement of the coastwise laws under this notice and the vessel name in order E.T., Monday through Friday, except certain circumstances. A request for for MARAD to properly consider the federal holidays. An electronic version such a waiver has been received by comments. Comments should also state of this document and all documents MARAD. The vessel, and a brief the commenter’s interest in the waiver entered into this docket is available on description of the proposed service, is application, and address the waiver the World Wide Web at http:// listed below. criteria given in § 388.4 of MARAD’s www.regulations.gov. regulations at 46 CFR Part 388. DATES: Submit comments on or before FOR FURTHER INFORMATION CONTACT: July 16, 2012. Privacy Act Joann Spittle, U.S. Department of ADDRESSES: Comments should refer to Anyone is able to search the Transportation, Maritime docket number MARAD–2012–0065. electronic form of all comments Administration, 1200 New Jersey Written comments may be submitted by received into any of our dockets by the Avenue SE., Room W21–203, hand or by mail to the Docket Clerk, name of the individual submitting the Washington, DC 20590. Telephone 202– U.S. Department of Transportation, comment (or signing the comment, if 366–5979, Email [email protected]. Docket Operations, M–30, West submitted on behalf of an association, SUPPLEMENTARY INFORMATION: As Building Ground Floor, Room W12–140, business, labor union, etc.). You may described by the applicant the intended 1200 New Jersey Avenue SE., review DOT’s complete Privacy Act service of the vessel REEL NAUTI is: Washington, DC 20590. You may also Statement in the Federal Register Intended Commercial Use of Vessel: send comments electronically via the published on April 11, 2000 (Volume ‘‘Charter boat.’’ Internet at http://www.regulations.gov. 65, Number 70; Pages 19477–78). Geographic Region: ‘‘Virginia and All comments will become part of this North Carolina.’’ By Order of the Maritime Administrator. docket and will be available for The complete application is given in inspection and copying at the above Dated: June 7, 2012. DOT docket MARAD–2012–0064 at address between 10 a.m. and 5 p.m., Julie P. Agarwal, http://www.regulations.gov. Interested E.T., Monday through Friday, except Secretary, Maritime Administration. parties may comment on the effect this federal holidays. An electronic version [FR Doc. 2012–14506 Filed 6–13–12; 8:45 am] action may have on U.S. vessel builders of this document and all documents BILLING CODE 4910–81–P or businesses in the U.S. that use U.S.-

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flag vessels. If MARAD determines, in U.S. Department of Transportation, Statement in the Federal Register accordance with 46 U.S.C. 12121 and Docket Operations, M–30, West published on April 11, 2000 (Volume MARAD’s regulations at 46 CFR part Building Ground Floor, Room W12–140, 65, Number 70; Pages 19477–78). 388, that the issuance of the waiver will 1200 New Jersey Avenue SE., By Order of the Maritime Administrator. have an unduly adverse effect on a U.S.- Washington, DC 20590. You may also Dated: June 7, 2012. vessel builder or a business that uses send comments electronically via the Julie P. Agarwal, U.S.-flag vessels in that business, a Internet at http://www.regulations.gov. waiver will not be granted. Comments All comments will become part of this Secretary, Maritime Administration. should refer to the docket number of docket and will be available for [FR Doc. 2012–14495 Filed 6–13–12; 8:45 am] this notice and the vessel name in order inspection and copying at the above BILLING CODE 4910–81–P for MARAD to properly consider the address between 10 a.m. and 5 p.m., comments. Comments should also state E.T., Monday through Friday, except DEPARTMENT OF TRANSPORTATION the commenter’s interest in the waiver federal holidays. An electronic version application, and address the waiver of this document and all documents National Highway Traffic Safety criteria given in § 388.4 of MARAD’s entered into this docket is available on Administration regulations at 46 CFR part 388. the World Wide Web at http:// www.regulations.gov. [Docket No. NHTSA–2012–0062] Privacy Act FOR FURTHER INFORMATION CONTACT: Anyone is able to search the Highway Safety Programs; Conforming Joann Spittle, U.S. Department of electronic form of all comments Products List of Screening Devices To Transportation, Maritime received into any of our dockets by the Measure Alcohol in Bodily Fluids Administration, 1200 New Jersey name of the individual submitting the Avenue SE., Room W21–203, AGENCY: National Highway Traffic comment (or signing the comment, if Washington, DC 20590. Telephone 202– Safety Administration, Department of submitted on behalf of an association, 366–5979, Email [email protected]. Transportation. business, labor union, etc.). You may ACTION: Notice. review DOT’s complete Privacy Act SUPPLEMENTARY INFORMATION: As Statement in the Federal Register described by the applicant the intended SUMMARY: This notice updates the published on April 11, 2000 (Volume service of the vessel SMOKE AND Conforming Products List (CPL) 65, Number 70; Pages 19477–78). ROSES is: published in the Federal Register on INTENDED COMMERCIAL USE OF December 15, 2009 (74 FR 66398) for By Order of the Maritime Administrator. VESSEL: ‘‘We intend to carry up to 10 Dated: June 7, 2012. instruments that conform to the Model passengers for hire for sunset and Specifications for Screening Devices to Julie P. Agarwal, wildlife sightseeing tours. Also, Measure Alcohol in Bodily Fluids Secretary, Maritime Administration. overnight and week long tours for up to dated, March 31, 2008 (73 FR 16956). 6 passengers touring the southwest coast [FR Doc. 2012–14492 Filed 6–13–12; 8:45 am] DATES: Effective Date: June 14, 2012. BILLING CODE 4910–81–P of Florida.’’ GEOGRAPHIC REGION: ‘‘Florida.’’ FOR FURTHER INFORMATION CONTACT: For The complete application is given in technical issues: Ms. De Carlo Ciccel, DEPARTMENT OF TRANSPORTATION DOT docket MARAD–2012–0068 at Behavioral Research Division, NTI–131, http://www.regulations.gov. Interested National Highway Traffic Safety Maritime Administration parties may comment on the effect this Administration, 1200 New Jersey Avenue SE., Washington, DC 20590; [Docket No. MARAD 2012 0068] action may have on U.S. vessel builders or businesses in the U.S. that use U.S.- Telephone: (202) 366–1694. For legal Requested Administrative Waiver of flag vessels. If MARAD determines, in issues: Ms. Jin Kim, Office of Chief the Coastwise Trade Laws: Vessel accordance with 46 U.S.C. 12121 and Counsel, NCC–113, National Highway SMOKE AND ROSES; Invitation for MARAD’s regulations at 46 CFR Part Traffic Safety Administration, 1200 New Public Comments 388, that the issuance of the waiver will Jersey Avenue SE., Washington, DC have an unduly adverse effect on a U.S.- 20590; Telephone: (202) 366–1834. AGENCY: Maritime Administration, vessel builder or a business that uses SUPPLEMENTARY INFORMATION: On August Department of Transportation. U.S.-flag vessels in that business, a 2, 1994, the National Highway Traffic ACTION: Notice. waiver will not be granted. Comments Safety Administration (NHTSA) should refer to the docket number of published Model Specifications for SUMMARY: As authorized by 46 U.S.C. this notice and the vessel name in order Screening Devices to Measure Alcohol 12121, the Secretary of Transportation, for MARAD to properly consider the in Bodily Fluids (59 FR 39382). These as represented by the Maritime comments. Comments should also state specifications established performance Administration (MARAD), is authorized the commenter’s interest in the waiver criteria and methods for testing alcohol to grant waivers of the U.S.-build application, and address the waiver screening devices to measure alcohol requirement of the coastwise laws under criteria given in § 388.4 of MARAD’s content. The specifications support certain circumstances. A request for regulations at 46 CFR Part 388. State laws that target youthful offenders such a waiver has been received by (e.g., ‘‘zero tolerance’’ laws) and the MARAD. The vessel, and a brief Privacy Act Department of Transportation’s description of the proposed service, is Anyone is able to search the workplace alcohol testing program. listed below. electronic form of all comments NHTSA published its first Conforming DATES: Submit comments on or before received into any of our dockets by the Products List (CPL) for screening July 16, 2012. name of the individual submitting the devices on December 2, 1994 (59 FR ADDRESSES: Comments should refer to comment (or signing the comment, if 61923), with corrections on December docket number MARAD–2012–0068. submitted on behalf of an association, 16, 1994 (59 FR 65128), identifying the Written comments may be submitted by business, labor union, etc.). You may devices that meet NHTSA’s Model hand or by mail to the Docket Clerk, review DOT’s complete Privacy Act Specifications for Screening Devices to

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Measure Alcohol in Bodily Fluids. Five that have been evaluated and found to screening device. This is a handheld, devices appeared on that first list. conform to the Model Specifications for battery powered device with a fuel cell Thereafter, NHTSA updated the CPL on Screening Devices to Measure Alcohol sensor. August 15, 1995 (60 FR 42214), May 4, in Bodily Fluids. One device is (5) Q3 Innovations, Inc. submitted the 2001 (66 FR 22639), September 19, 2005 distributed by two different companies, CA2010 screening device. This is a (70 FR 54972), with corrections on so it has been listed twice, for a total of handheld, battery powered device with December 5, 2005 (70 FR 72502), and ten (10) new entries on this CPL. a semiconductor sensor. January 31, 2007 (72 FR 4559). (1) AK Solutions USA, LLC, (6) Skyfine Inc. Ltd. submitted 3 On March 31, 2008, NHTSA submitted the AlcoMate SafeGuard devices (AT577, AT578, and AT579). published revised Model Specifications (Model AL–2500, aka: AlcoScan AL– All three devices are handheld, battery for Screening Devices to Measure 2500) alcohol screening device. This is powered, and use fuel cell sensors. The Alcohol in Bodily Fluids (73 FR 16956). a handheld, battery powered device AT578 is also distributed by Express These specifications removed testing of with a semiconductor sensor. Diagnostics Int’l, Blue Earth, Minnesota interpretive screening devices (ISDs) (2) Alcohol Countermeasure Systems under the trade name of AlcoCheck because ISDs did not provide an Corp., submitted the DRIVESAFE FC90, so it has been listed twice on the unambiguous test result. These alcohol screening device. This is a CPL, once under each of its distributors/ specifications also removed from use handheld, battery powered device with manufacturers. the Breath Alcohol Sample Simulator as a fuel cell sensor. it is not necessary for testing breath (3) KHN Solutions, LLC, submitted 2 All of the above devices meet the alcohol screening devices. All other screening devices for testing. Their trade NHTSA Model Specifications for performance criteria and test methods names are: BACTRACK Element and the Screening Devices to Measure Alcohol were maintained. NHTSA last published BACTRACK S75 Pro. Both devices are in Bodily Fluids. an update to the CPL on December 15, handheld, battery powered with fuel Consistent with the above, NHTSA 2009 (74 FR 66398). It listed 39 devices. cell sensors. updates the Conforming Products List of Today, NHTSA adds nine (9) (4) PAS Systems International, Inc. Screening Devices to Measure Alcohol additional alcohol screening devices submitted the Alcovisor MARS in Bodily Fluids to read as follows:

CONFORMING PRODUCTS LIST OF ALCOHOL SCREENING DEVICES

Distributors/manufacturers Devices

AK Solutions, USA, LLC., Palisades Park, New Jersey 1 ...... • AlcoScan AL–2500. • SafeMate.2 • SafeDrive. • AlcoMate.3 (aka: AlcoHAWK Pro by Q3 Innovations). • AlcoMate Accu Cell AL–9000. • AlcoMate Pro.3 • AlcoMate Core.4 • AlcoMate Premium AL–7000, with replaceable Premium Sensor Modules (SM–7000).45 • AlcoMate Prestige AL–6000, with replaceable Prestige Sensor Mod- ules (SM–6000).46 • AlcoMate SafeGuard (Model AL–2500, aka: AlcoScan AL–2500). Alco Check International, Hudsonville, Michigan ...... Alco Check 3000 D.O.T.7 Alco Check 9000.7 Akers Biosciences, Inc., Thorofare, New Jersey ...... Breath Alcohol ✓ .02 Detection System.8 Alcohol Countermeasure Systems Corp., Toronto, Ontario, Canada ...... DRIVESAFE. BAC Solutions, Inc., Birmingham, Michigan ...... BACmaster. B.E.S.T. Labs., Boardman, Ohio ...... PB 9000e. Chematics, Inc., North Webster, Indiana ...... ALCO–SCREEN 02 TM9. CMI, Inc., Owensboro, Kentucky ...... Intoxilyzer 500 (aka: Alcometer 500—Lion Laboratories). Express Diagnostics Int’l, Inc., Blue Earth, Minnesota ...... AlcoCheck FC90 (aka: AT578 by Skyfine). First Innovative Technology Group, Ltd., Hong Kong ...... AAT198—Pro. Guth Laboratories, Inc., Harrisburg, Pennsylvania ...... • Alco Tector Mark X. • Mark X Alcohol Checker. • Alcotector WAT89EC–1. • Alcotector WAT90. Han International Co., Ltd.,2 Seoul, Korea ...... A.B.I. (Alcohol Breath Indicator) (aka: AlcoHAWK ABI by Q3 Innova- tions). KHN Solutions, LLC, San Francisco, California ...... • BACTRACK Select S50.10 • BACTRACK Select S80.10 • BACTRACK Element. • BACTRACK S 75 Pro. Lion Laboratories, Ltd., Wales, United Kingdom ...... Alcometer 500 (aka: Intoxilyzer 500—CMI, Inc.). OraSure Technologies, Inc., Bethlehem, Pennsylvania ...... Q.E.D. A150 Saliva Alcohol Test. PAS Systems International, Inc., Fredericksburg, Virginia ...... • PAS Vr. • Alcovisor MARS. Q3 Innovations, Inc., Independence, Iowa ...... • AlcoHAWK Precision. • AlcoHAWK Slim. • AlcoHAWK Slim 2. • AlcoHAWK Elite. • AlcoHAWK ABI (aka: A.B.I. (Alcohol Breath Indicator) by Han Intl.). • AlcoHAWK Micro. • AlcoHAWK PRO (aka: AlcoMate by AK Solutions).

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CONFORMING PRODUCTS LIST OF ALCOHOL SCREENING DEVICES—Continued

Distributors/manufacturers Devices

• AlcoHAWK PT 500. • CA2010. Repco Marketing, Inc., Raleigh, North Carolina ...... Alco Tec III. Seju Engineering Co., Taejeon, Korea ...... Safe-Slim. Skyfine Inc., Ltd., Kwai Chung, NT, Hong Kong ...... • AT577. • AT578 (aka: AlcoCheck FC90). • AT579. Sound Off, Inc., Hudsonville, Michigan ...... Digitox D.O.T.7 Varian, Inc., Lake Forest, California ...... On-Site Alcohol.10 1 The AlcoMate was manufactured by Han International of Seoul, Korea, but marketed and sold in the U.S. by AK Solutions. 2 Manufactured by Seju Engineering, Korea. 3 Han International does not market or sell devices directly in the U.S. market. Other devices manufactured by Han International are listed under AK Solutions, Inc. and Q3 Innovations, Inc. 4 Manufactured by Sentech Korea Corp. 5 These devices utilize replaceable semiconductor detectors. Instead of re-calibrating the device, a new calibrated detector can be installed. The device comes with 4 detectors including the one that was already installed. 6 These devices utilize replaceable semiconductor detectors. Instead of re-calibrating the device, a new calibrated detector can be installed. This device comes with 5 detectors including the one that was already installed. 7 While these devices are still being sold, they are no longer manufactured or supported. 8 The Breath Alcohol ✓ .02 Detection System consists of a single-use disposable breath tube used in conjunction with an electronic analyzer that determines the test result. The electronic analyzer and the disposable breath tubes are lot specific and manufactured to remain calibrated throughout the shelf-life of the device. This screening device cannot be used after the expiration date. 9 While the ALCO–SCREEN 02TM saliva-alcohol screening device manufactured by Chematics, Inc. passed the requirements of the Model Specifications when tested at 40 °C (104 °F), the manufacturer has indicated that the device cannot exceed storage temperatures of 27 °C (80 °F). Instructions to this effect are stated on all packaging accompanying the device. Accordingly, the device should not be stored at temperatures above 27 °C (80 °F). If the device is stored at or below 27 °C (80 °F) and used at higher temperatures (i.e., within a minute), the device meets the Model Specifications and the results persist for 10–15 minutes. If the device is stored at or below 27 °C (80 °F) and equilibrated at 40 °C (104 °F) for an hour prior to sample application, the device fails to meet the Model Specifications. Storage at temperatures above 27 °C (80 °F), for even brief periods of time, may result in false negative readings. 10 While this device passed all of the requirements of the Model Specifications, readings should be taken only after the time specified by the manufacturer. For valid readings, the user should follow the manufacturer’s instructions. Readings should be taken one (1) minute after a sample is introduced at or above 30 °C (86 °F); readings should be taken after two (2) minutes at 18 °C–29 °C (64.4 °F–84.2 °F); and readings should be taken after five (5) minutes when testing at temperatures at or below 17 °C (62.6 °F). If the reading is taken before five (5) minutes has elapsed under the cold conditions, the user is likely to obtain a reading that underestimates the actual saliva-alcohol level.

Authority: 23 U.S.C. 403; 49 CFR 1.50; 49 DATES: Effective Date: June 14, 2012. On September 17, 1993, NHTSA CFR part 501. FOR FURTHER INFORMATION CONTACT: For published a notice to amend the Model Issued on: June 11, 2012. technical issues: Ms. De Carlo Ciccel, Specifications (58 FR 48705) and to Jeff Michael, Behavioral Research Division, NTI–131, update the CPL. That notice changed the Associate Administrator, Research and National Highway Traffic Safety alcohol concentration levels at which Program Development, National Highway Administration, 1200 New Jersey instruments are evaluated, from 0.000, Traffic Safety Administration. Avenue SE., Washington, DC 20590; 0.050, 0.101, and 0.151 BAC, to 0.000, [FR Doc. 2012–14582 Filed 6–13–12; 8:45 am] Telephone; (202) 366–1694. For legal 0.020, 0.040, 0.080, and 0.160 BAC, BILLING CODE 4910–59–P issues: Ms. Jin Kim, Office of Chief respectively. It also included a test for Counsel, NCC–113, National Highway the presence of acetone and an Traffic Safety Administration, 1200 New expanded definition of alcohol to DEPARTMENT OF TRANSPORTATION Jersey Avenue SE., Washington, DC include other low molecular weight 20590; Telephone: (202) 366–1834. alcohols, e.g., methyl or isopropyl. National Highway Traffic Safety SUPPLEMENTARY INFORMATION: On Since that time, the CPL has been Administration November 5, 1973, the National annotated to indicate which instruments have been determined to meet the [Docket No. NHTSA–2012–0061] Highway Traffic Safety Administration (NHTSA) published the Standards for Model Specifications published in 1984, Highway Safety Programs; Conforming Devices to Measure Breath Alcohol and which have been determined to Products List of Evidential Breath (38 FR 30459). A Qualified Products List meet the Model Specifications, as Alcohol Measurement Devices of Evidential Breath Measurement revised and published in 1993. Devices comprised of instruments that Thereafter, NHTSA has periodically AGENCY: National Highway Traffic met this standard was first issued on updated the CPL with those breath Safety Administration, Department of November 21, 1974 (39 FR 41399). instruments found to conform to the Transportation. On December 14, 1984 (49 FR 48854), Model Specifications. The most recent ACTION: Notice. NHTSA converted this standard to update to the CPL was published March Model Specifications for Evidential 11, 2010 (75 FR 11624). SUMMARY: This notice updates the Breath Testing Devices (Model The CPL published today adds nine Conforming Products List (CPL) Specifications), and published a (9) new instruments that have been published in the Federal Register on Conforming Products List (CPL) of evaluated and found to conform to the March 11, 2010 (75 FR 11624) for instruments that were found to conform Model Specifications, as amended on instruments that conform to the Model to the Model Specifications as September 17, 1993 for mobile and non- Specifications for Evidential Breath Appendix D to that notice. Those mobile use. One instrument is Alcohol Measurement Devices dated, instruments are identified on the CPL distributed by two different companies, September 17, 1993 (58 FR 48705). with an asterisk. so it has been listed twice, for a total of

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ten (10) new entries on this CPL. In a fuel cell sensor and is powered by (7) The ‘‘Alcovisor Jupiter’’ and the alphabetical order by company, they internal batteries. ‘‘Alcovisor Mercury’’ manufactured by are: (4) The ‘‘Alco-Sensor V XL’’ PAS International, Fredericksburg, (1) The ‘‘SAF’IR Evolution’’ manufactured by Intoximeters, Inc., St. Virginia. These are hand-held manufactured by Alcohol Louis, Missouri. This is a hand-held instruments intended for use in Countermeasure Systems Corp. Toronto, instrument intended for use in stationary or mobile operations. Both Ontario, Canada. This is a hand-held stationary or mobile operations. It uses instruments use a fuel cell sensor and instrument intended for use in a fuel cell sensor and is powered by are powered by internal batteries. stationary or mobile operations. It uses internal batteries. This update also removes four (4) instruments no longer supported by the an infrared sensor and powered by (5) The ‘‘LifeGuard Pro’’ internal batteries. manufacturer and makes one minor manufactured by Lifeloc Technologies, change. (2) The ‘‘Intoxilyzer 600’’ Inc., Wheat Ridge, Colorado. This is a The following instruments (PBA 3000 manufactured by CMI, Inc., Owensboro, hand-held instrument intended for use B, PBA 3000–P, PBA 3000 C and Kentucky. This is a hand-held in stationary or mobile operations. It Alcohol Data Sensor), manufactured by instrument intended for use in uses a fuel cell sensor and is powered Lifeloc Technologies, Inc., Wheat Ridge, stationary or mobile operations. It uses by internal batteries. Colorado, are being removed from the a fuel cell sensor and powered by an (6) The ‘‘DataMaster DMT with fuel CPL because these instruments were internal battery. The Intoxilyzer 600 is cell option series number (SN) 555555’’ determined to be obsolete. These also distributed as the Alcolmeter 600 and the ‘‘DataMaster DMT with fuel cell instruments are no longer by Lion Laboratories outside the U.S., so option series number (SN) 100630’’ manufactured, in use or being it has been listed twice on the CPL, once manufactured by National Patent maintained by the manufacturer. under each of its distributors/ Analytical Systems, Inc., Mansfield, The minor change includes a change manufacturers. Ohio. These instruments can be used in of address for Alcohol Countermeasure (3) The ‘‘Guth 38’’ manufactured by stationary and mobile operations. These Systems Corp., from Mississauga, Guth Laboratories, Inc., Harrisburg, instruments use both infrared and fuel Ontario, Canada to Toronto, Ontario, Pennsylvania. This is a hand-held cell sensors. These instruments can be Canada. instrument intended for use in powered by either 110 volts alternate In accordance with the foregoing, the stationary or mobile operations. It uses current or 12 volts direct current. CPL is updated, as set forth below.

CONFORMING PRODUCTS LIST OF EVIDENTIAL BREATH MEASUREMENT DEVICES

Manufacturer/distributor and model Mobile Nonmobile

Alcohol Countermeasure Systems Corp., Toronto, Ontario, Canada: Alert J3AD * ...... X X Alert J4X.ec ...... X X PBA3000C ...... X X SAF’IR Evolution ...... X X BAC Systems, Inc., Ontario, Canada: Breath Analysis Computer * ...... X X CAMEC Ltd., North Shields, Tyne and Ware, England: IR Breath Analyzer * ...... X X CMI, Inc., Owensboro, Kentucky: Intoxilyzer Model: 200 ...... X X 200D ...... X X 240 (aka: Lion Alcolmeter 400+ outside the U.S.) ...... X X 300 ...... X X 400 ...... X X 400PA ...... X X 600 (aka: Lion Alcolmeter 600 outside the U.S.) ...... X X 1400 ...... X X 4011 * ...... X X 4011A * ...... X X 4011AS * ...... X X 4011AS–A * ...... X X 4011AS–AQ * ...... X X 4011 AW * ...... X X 4011A27–10100 * ...... X X 4011A27–10100 with filter * ...... X X 5000 ...... X X 5000 (w/Cal. Vapor Re-Circ.) ...... X X 5000 (w/3⁄8″ ID Hose option) ...... X X 5000CD ...... X X 5000CD/FG5 ...... X X 5000EN ...... X X 5000 (CAL DOJ) ...... X X 5000VA ...... X X 8000 ...... X X PAC 1200 * ...... X X S–D2 ...... X X S–D5 (aka: Lion Alcolmeter SD–5 outside the U.S.) ...... X X

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CONFORMING PRODUCTS LIST OF EVIDENTIAL BREATH MEASUREMENT DEVICES—Continued

Manufacturer/distributor and model Mobile Nonmobile

Draeger Safety, Inc. (aka: National Draeger) Irving, Texas: Alcotest Model: 6510 ...... X X 6810 ...... X X 7010 * ...... X X 7110 * ...... X X 7110 MKIII ...... X X 7110 MKIII–C ...... X X 7410 ...... X X 7410 Plus ...... X X 7510 ...... X X 9510 ...... X X Breathalyzer Model: 900 ...... X X 900A * ...... X X 900BG * ...... X X 7410 ...... X X 7410–II ...... X X EnviteC by Honeywell GmbH, Fond du Lac, Wisconsin: AlcoQuant 6020 ...... X X Gall’s Inc., Lexington, Kentucky: Alcohol Detection System—A.D.S. 500 ...... X X Guth Laboratories, Inc., Harrisburg, Pennsylvania: Alcotector BAC–100 ...... X X Alcotector C2H5OH ...... X X Guth 38 ...... X X Intoximeters, Inc., St. Louis, Missouri: Photo Electric Intoximeter * ...... X GC Intoximeter MK II * ...... X X GC Intoximeter MK IV * ...... X X Auto Intoximeter * ...... X X Intoximeter Model: 3000 ...... X X 3000 (rev B1) * ...... X X 3000 (rev B2) * ...... X X 3000 (rev B2A) * ...... X X 3000 (rev B2A) w/FM option * ...... X X 3000 (Fuel Cell) * ...... X X 3000 D * ...... X X 3000 DFC * ...... X X Alcomonitor ...... X Alcomonitor CC ...... X X Alco-Sensor III ...... X X Alco-Sensor III (Enhanced with Serial Numbers above 1,200,000) ...... X X Alco-Sensor IV ...... X X Alco-Sensor IV XL ...... X X Alco-Sensor V ...... X X Alco-Sensor V XL ...... X X Alco-Sensor AZ ...... X X Alco-Sensor FST ...... X X Intox EC/IR ...... X X Intox EC/IR II ...... X X Intox EC/IR II (Enhanced with serial number 10,000 or higher) ...... X Portable Intox EC/IR ...... X X RBT–AZ ...... X X RBT–III ...... X X RBT III–A ...... X X RBT IV ...... X X RBT IV with CEM (cell enhancement module) ...... X X Komyo Kitagawa, Kogyo, K.K., Japan: Alcolyzer DPA–2 * ...... X X Breath Alcohol Meter PAM 101B * ...... X X Lifeloc Technologies, Inc., (formerly Lifeloc, Inc.), Wheat Ridge, Colorado: LifeGuard Pro ...... X X Phoenix ...... X X Phoenix 6.0 ...... X X EV 30 ...... X X FC 10 ...... X X FC 20 ...... X X Lion Laboratories, Ltd., Cardiff, Wales, United Kingdom: Alcolmeter Model: 300 ...... X X

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CONFORMING PRODUCTS LIST OF EVIDENTIAL BREATH MEASUREMENT DEVICES—Continued

Manufacturer/distributor and model Mobile Nonmobile

400 ...... X X 400+ (aka: Intoxilyzer 240 in the U.S.) ...... X X 600 (aka: Intoxilyzer 600 in the U.S.) ...... X X SD–2 * ...... X X SD–5 (aka: S–D5 in the U.S.) ...... X X EBA * ...... X X Intoxilyzer Model: 200 ...... X X 200D ...... X X 1400 ...... X X 5000 CD/FG5 ...... X X 5000 EN ...... X X Luckey Laboratories, San Bernardino, California:.

Alco-Analyzer Model:. 1000 * ...... X 2000 * ...... X Nanopuls AB, Uppsala, Sweden: Evidenzer ...... X X National Patent Analytical Systems, Inc., Mansfield, Ohio: BAC DataMaster (with or without the Delta-1 accessory) ...... X X BAC Verifier DataMaster (w/ or without the Delta-1 accessory) ...... X X DataMaster cdm (w/ or without the Delta-1 accessory) ...... X X DataMaster DMT ...... X X DataMaster DMT w/ Fuel Cell option SN: 555555 ...... X X DataMaster DMT w/ Fuel Cell option SN: 100630 ...... X X Omicron Systems, Palo Alto, California: Intoxilyzer Model: 4011 * ...... X X 4011AW * ...... X X PAS International, Fredericksburg, Virginia: Mark V Alcovisor ...... X X Alcovisor Jupiter ...... X X Alcovisor Mercury ...... X X Plus 4 Engineering, Minturn, Colorado: 5000 Plus 4 * ...... X X Seres, Paris, France: Alco Master ...... X X Alcopro ...... X X Siemans-Allis, Cherry Hill, New Jersey: Alcomat * ...... X X Alcomat F * ...... X X Smith and Wesson Electronics, Springfield, Massachusetts: Breathalyzer Model: 900 * ...... X X 900A * ...... X X 1000 * ...... X X 2000 * ...... X X 2000 (non-Humidity Sensor) * ...... X X Sound-Off, Inc., Hudsonville, Michigan: AlcoData ...... X X Seres Alco Master ...... X X Seres Alcopro ...... X X Stephenson Corp.: Breathalyzer 900 * ...... X X Tokai-Denshi Inc., Tokyo, Japan: ALC–PRO II (U.S.) ...... X X U.S. Alcohol Testing, Inc./Protection Devices, Inc., Rancho Cucamonga, California: Alco-Analyzer 1000 ...... X Alco-Analyzer 2000 ...... X Alco-Analyzer 2100 ...... X X Verax Systems, Inc., Fairport, New York: BAC Verifier * ...... X X BAC Verifier Datamaster ...... X X BAC Verifier Datamaster II * ...... X X *Instruments marked with an asterisk (*) meet the Model Specifications detailed in 49 FR 48854 (December 14, 1984) (i.e., instruments tested at 0.000, 0.050, 0.101, and 0.151 BAC). Instruments not marked with an asterisk meet the Model Specifications detailed in 58 FR 48705 (Sep- tember 17, 1993), and were tested at BACs = 0.000, 0.020, 0.040, 0.080, and 0.160. All instruments that meet the Model Specifications currently in effect (dated September 17, 1993) also meet the Model Specifications for Screening Devices to Measure Alcohol in Bodily Fluids.

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Authority: 23 U.S.C. 403; 49 CFR 1.50; 49 not involve environmental issues,1 Decided: June 11, 2012. CFR part 501. formal expressions of intent to file an By the Board. Issued on: June 11, 2012. OFA under 49 CFR 1152.27(c)(2),2 and Rachel D. Campbell, Jeff Michael, trail use/rail banking requests under 49 Director, Office of Proceedings. Associate Administrator, Research and CFR 1152.29 must be filed by June 25, Derrick A. Gardner, Program Development, National Highway 2012. Petitions to reopen or requests for Clearance Clerk. public use conditions under 49 CFR Traffic Safety Administration. [FR Doc. 2012–14575 Filed 6–13–12; 8:45 am] 1152.28 must be filed by July 5, 2012, [FR Doc. 2012–14581 Filed 6–13–12; 8:45 am] BILLING CODE 4915–01–P BILLING CODE 4910–59–P with the Surface Transportation Board, 395 E Street SW., Washington, DC 20423–0001. DEPARTMENT OF TRANSPORTATION DEPARTMENT OF TRANSPORTATION A copy of any petition filed with the Board should be sent to WCL’s Surface Transportation Board Surface Transportation Board representative: Jeremy M. Berman, Fletcher & Sippel LLC, 29 North Wacker [Docket No. MCF 21043] [Docket No. AB 303 (Sub-No. 39X)] Drive, Suite 920, Chicago, IL 60606– Academy Express, L.L.C.—Acquisition Wisconsin Central Ltd.—Abandonment 2832. of the Properties of Entertainment If the verified notice contains false or Exemption—in Manitowoc County, WI Tours, Inc. misleading information, the exemption Wisconsin Central Ltd. (WCL) has is void ab initio. AGENCY: Surface Transportation Board, filed a verified notice of exemption WCL has filed a combined DOT. under 49 CFR part 1152 subpart F— environmental and historic report that ACTION: Notice Tentatively Approving Exempt Abandonments to abandon 6.8 addresses the effects, if any, of the and Authorizing Finance Transaction. miles of rail line extending from abandonment on the environment and SUMMARY: Academy Express, L.L.C., a milepost 69.0 in Newton to milepost historic resources. OEA will issue an motor carrier of passengers (Academy), 62.2 in Cleveland in Manitowoc County, environmental assessment (EA) by June has filed an application under 49 U.S.C. WI. The line traverses United States 19, 2012. Interested persons may obtain 14303 for its acquisition of the Postal Service Zip Codes 53015 and a copy of the EA by writing to OEA properties of Entertainment Tours, Inc., 53063, and there are no stations on the (Room 1100, Surface Transportation also a motor carrier of passengers line. Board, Washington, DC 20423–0001) or (Entertainment).1 The Board is WCL has certified that: (1) No local by calling OEA at (202) 245–0305. tentatively approving and authorizing traffic has moved over the line for at Assistance for the hearing impaired is the transaction, and, if no opposing least two years; (2) any overhead traffic available through the Federal comments are timely filed, this notice previously handled on the line could be Information Relay Service (FIRS) at 1– will be the final Board action. Persons rerouted over other lines; (3) no formal 800–877–8339. Comments on wishing to oppose the application must complaint filed by a user of rail service environmental and historic preservation follow the rules under 49 CFR 1182.5 on the line (or by a state or local matters must be filed within 15 days and 1182.8. government entity acting on behalf of after the EA becomes available to the such user) regarding cessation of service public. DATES: Comments must be filed by July over the line either is pending with the Environmental, historic preservation, 27, 2012. Academy may file a reply by Surface Transportation Board (Board) or public use, or trail use/rail banking August 13, 2012. If no comments are with any U.S. District Court or has been conditions will be imposed, where filed by July 27, 2012, this notice shall decided in favor of complainant within appropriate, in a subsequent decision. be effective on that date. the 2-year period; and (4) the Pursuant to the provisions of 49 CFR ADDRESSES: Send an original and 10 requirements at 49 CFR 1105.7(c) 1152.29(e)(2), WCL shall file a notice of copies of any comments referring to (environmental report), 49 CFR 1105.11 consummation with the Board to signify Docket No. MCF 21043 to: Surface (transmittal letter), 49 CFR 1105.12 that it has exercised the authority Transportation Board, 395 E Street SW., (newspaper publication), and 49 CFR granted and fully abandoned the line. If Washington, DC 20423–0001. In 1152.50(d)(1) (notice to governmental consummation has not been effected by addition, send one copy of comments to agencies) have been met. WCL’s filing of a notice of Academy’s representative: Fritz R. As a condition to this exemption, any consummation by June 14, 2013, and Kahn, Fritz R. Kahn, P.C., 1919 M Street employee adversely affected by the there are no legal or regulatory barriers NW., 7th Floor, Washington, DC 20036. abandonment shall be protected under to consummation, the authority to FOR FURTHER INFORMATION CONTACT: Julia Oregon Short Line Railroad— abandon will automatically expire. M. Farr, (202) 245–0359. Federal Board decisions and notices are Abandonment Portion Goshen Branch Information Relay Service (FIRS) for the available on our Web site at Between Firth & Ammon, in Bingham & hearing impaired: 1–800–877–8339. ‘‘www.stb.dot.gov.’’ Bonneville Counties, Idaho, 360 I.C.C. 91 (1979). To address whether this 1 Academy filed its application for acquisition of 1 The Board will grant a stay if an informed the properties of Entertainment on April 5, 2012. condition adequately protects affected decision on environmental issues (whether raised However, the Board determined that the employees, a petition for partial by a party or by the Board’s Office of Environmental information provided was not sufficiently complete revocation under 49 U.S.C. 10502(d) Analysis (OEA) in its independent investigation) to provide the required notice to the Board and to must be filed. cannot be made before the exemption’s effective the public as to the nature of the proposed date. See Exemption of Out-of-Serv. Rail Lines, 5 transaction. In a Board decision served on May 4, Provided no formal expression of I.C.C.2d 377 (1989). Any request for a stay should 2012, Academy was directed to supplement its intent to file an offer of financial be filed as soon as possible so that the Board may application, which it did on May 15, 2012. The assistance (OFA) has been received, this take appropriate action before the exemption’s filing date of an application is deemed to be the exemption will be effective on July 14, effective date. date on which the complete information is filed. 2 Each OFA must be accompanied by the filing See 49 CFR 1182.4(a). Thus, we will treat 2012, unless stayed pending fee, which is currently set at $1,500. See 49 CFR Academy’s application as having been filed on May reconsideration. Petitions to stay that do 1002.2(f)(25). 15, 2012.

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SUPPLEMENTARY INFORMATION: Academy expected to surrender its interstate be obtained from Academy’s is a limited liability company operating authority.2 representative. established under the laws of New Under 49 U.S.C. 14303(b), the Board On the basis of the application, the Jersey. It holds authority from the must approve and authorize a Board finds that the proposed Federal Motor Carrier Safety transaction that it finds consistent with acquisition of control is consistent with Administration (FMCSA) as a motor the public interest, taking into the public interest and should be carrier providing interstate charter consideration at least: (1) The effect of tentatively approved and authorized. If passenger services to the public (MC– the proposed transaction on the any opposing comments are timely 413682). Academy is indirectly adequacy of transportation to the public; filed, this finding will be deemed controlled by the Tedesco Family ESB (2) the total fixed charges that result; vacated, and, unless a final decision can Trust, which directly controls the and (3) the interest of affected carrier be made on the record as developed, a following noncarriers: Academy Bus, employees. Academy has submitted procedural schedule will be adopted to L.L.C.; Franmar Leasing, Inc.; Franmar information, as required by 49 CFR reconsider the application. See 49 CFR Logistics, Inc.; Academy Services, Inc.; 1182.2, including the information to 1182.6(c). If no opposing comments are and Log Re, Inc. The Tedesco Family demonstrate that the proposed filed by the expiration of the comment ESB Trust also indirectly controls transaction is consistent with the public period, this notice will take effect Academy Lines, L.L.C., a motor carrier interest under 49 U.S.C. 14303(b), and a automatically and will be the final of passengers principally rendering statement that the 12-month aggregate Board action. commuter operations, and No. 22 gross operating revenues of Academy The party’s application and Board Hillside, L.L.C., a motor carrier of and Entertainment exceeded $2 million. decisions and notices are available on passengers rendering a variety of With respect to the effect of the our Web site at ‘‘www.stb.dot.gov.’’ services. Entertainment, a corporation transaction on the adequacy of This decision will not significantly established under Massachusetts law, transportation to the public, Academy affect either the quality of the human also holds a FMCSA license (MC– states that the proposed acquisition environment or the conservation of 262973) and owns Coach NE., L.L.C., a would greatly benefit Entertainment’s energy resources. noncarrier. patrons. According to Academy, It is ordered: Academy is largely focused on passengers would be able to travel in 1. The proposed finance transaction is providing charter bus and contract newer, cleaner buses, and would have a approved and authorized, subject to the carrier services. It offers university far greater selection of tours and special filing of opposing comments. transportation shuttles and transports operations than was previously afforded 2. If opposing comments are timely sports teams as a contract bus carrier, to them. Academy further states that the filed, the findings made in this notice and transports groups for churches, proposed transaction would have no will be deemed as having been vacated. clubs, small third-party groups, and effect on total fixed charges. Further, 3. This notice will be effective July 27, other organizations as a charter bus Academy states that the transaction 2012, unless opposing comments are operator. Academy operates mostly in would have no adverse effect upon timely filed. 4. A copy of this decision will be interstate commerce and to a lesser Entertainment’s employees, as these served on: (1) U.S. Department of extent in intrastate commerce in the employees would be offered Transportation, Federal Motor Carrier District of Columbia, Virginia, New employment with Academy. Academy Safety Administration, 1200 New Jersey Jersey, New York, Connecticut, Rhode notes that, excluding itself, the Island and Massachusetts. American Bus Association has Avenue SE., Washington, DC 20590; (2) Entertainment essentially is a charter identified 29 charter bus companies the U.S. Department of Justice, Antitrust bus operator, transporting groups for operating in Massachusetts, 10 charter Division, 10th Street & Pennsylvania churches, clubs, and other organizations bus companies operating in Avenue NW., Washington, DC 20530; mostly in intrastate commerce in Connecticut, and eight charter bus and (3) the U.S. Department of Massachusetts and, to a lesser extent, in companies operating in New Transportation, Office of the General Connecticut and New Hampshire. Hampshire. Academy states that, if the Counsel, 1200 New Jersey Avenue SE., Under the proposed transaction, proposed transaction were approved, Washington, DC 20590. Academy seeks permission to acquire there would be little or no reduction of Decided: June 7, 2012. the properties of Entertainment— competitive conditions in the By the Board, Chairman Elliott, Vice namely, its equipment, customer list, aforementioned states, especially Chairman Mulvey, and Commissioner and goodwill, as well as Entertainment’s because Academy would hope to Begeman. authority to render motor carrier succeed to the business previously Derrick A. Gardner, operations in Massachusetts, conducted by Entertainment in those Clearance Clerk. Connecticut, and New Hampshire. states. Additional information, [FR Doc. 2012–14565 Filed 6–13–12; 8:45 am] According to the application, the including a copy of the application, may BILLING CODE 4915–01–P closing occurred on March 30, 2012. Academy states that all of the 2 Our voting trust rules at 49 CFR part 1013 authorized and outstanding stock of contemplate the use of voting trusts to facilitate DEPARTMENT OF TRANSPORTATION tentative stock transfers before a transaction Entertainment was transferred to an involving an acquisition of control is approved. The independent voting trust, pursuant to a transaction here, however, is not an acquisition of Surface Transportation Board Voting Trust Agreement. Academy control, but an acquisition of assets. The use of a submits that, should the Board approve voting trust in this circumstance appears to be Senior Executive Service Performance novel, and the Board was not asked for an informal Review Board the proposed transaction, the trustee opinion on its suitability here prior to the would reconvey the stock to the acquisition. Nonetheless, we will allow this case to AGENCY: Surface Transportation Board, stockholder of Entertainment, which proceed because we encourage parties to seek DOT. then would transfer the purchased appropriate Board authority (even if they should have done so before undertaking a course of action), ACTION: Notice. properties to Academy. According to and the record does not suggest that the applicants Academy, Entertainment would remain here intended to evade our authority or undermine SUMMARY: The Surface Transportation an independent entity, but would be the integrity of our processes. Board (STB) publishes the names of the

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Persons selected to serve on its Senior 1750 Pennsylvania Ave. NW., Suite (2) Treasury PRA Clearance Officer, Executive Service Performance Review 8140, Washington, DC 20220, or on-line 1750 Pennsylvania Ave. NW., Suite Board (PRB). at www.PRAComment.gov. 8140, Washington, DC 20220, or on-line FOR FURTHER INFORMATION CONTACT: FOR FURTHER INFORMATION CONTACT: at www.PRAComment.gov. Paula Chandler, Director of Human Copies of the submission(s) may be FOR FURTHER INFORMATION CONTACT: Resources, (202) 245–0340. obtained by calling (202) 927–5331, Copies of the submission(s) may be SUPPLEMENTARY INFORMATION: Title 5 email at [email protected], or the entire obtained by calling (202) 927–5331, U.S.C. 4314 requires that each agency information collection request maybe email at [email protected], or the entire implement a performance appraisal found at www.reginfo.gov. information collection request may be found at www.reginfo.gov. system making senior executives Internal Revenue Service (IRS) accountable for organizational and Office of the Procurement Executive individual goal accomplishment. As OMB Number: 1545–1528. part of this system, 5 U.S.C. 4314(c) Type of Review: Extension without OMB Number: 1505–0080. Type of Review: Revision of a requires each agency to establish one or change of a currently approved currently approved collection. more PRBs, the function of which is to collection. Title: Revenue Procedure 97–15, Title: Post-Contract Award review and evaluate the initial appraisal Section 103—Remedial Payment Information. of a senior executive’s performance by Closing Agreement Program. Abstract: Information requested of the supervisor and to make Abstract: This information is required contractors is specific to each contract recommendations to the final rating by the Internal Revenue Service to and is required for Treasury to properly authority relative to the performance of verify compliance with sections 57, 103, evaluate the progress made and/or the senior executive. 141, 142, 144, 145, and 147 of the management controls used by The persons named below have been Internal Revenue Code of 1986, as contractors providing supplies or selected to serve on STB’s PRB. applicable (including any corresponding services to the Government, and to Leland L. Gardner, Director, Office of provision, if any, of the Internal determine contractors’ compliance with the Managing Director. Revenue Code of 1954). This the contracts, in order to protect the Rachel D. Campbell, Director, Office of information will be used by the Service Government’s interest. Proceedings. to enter into a closing agreement with Affected Public: Private Sector: Raymond A. Atkins, General Counsel. the issuer of certain state or local bonds businesses or other for-profits. Lucille Marvin, Director, Office of and to establish the closing agreement Estimated Total Annual Burden Public Assistance, Governmental amount. Hours: 221,112. Affairs and Compliance. Affected Public: State, Local, or Tribal OMB Number: 1505–0081. Dated: June 8, 2012. Governments. Type of Review: Revision of a Jeffery Herzig, Estimated Total Burden Hours: 75. currently approved collection. Clearance Clerk. Title: Solicitation of Proposal Dawn D. Wolfgang, Information for Award of Public [FR Doc. 2012–14557 Filed 6–13–12; 8:45 am] Treasury PRA Clearance Officer. Contracts. BILLING CODE 4915–01–P [FR Doc. 2012–14538 Filed 6–13–12; 8:45 am] Abstract: Information requested of BILLING CODE 4830–01–P offerors is specific to each procurement solicitation, and is required for Treasury DEPARTMENT OF THE TREASURY to properly evaluate the capabilities and DEPARTMENT OF THE TREASURY Submission for OMB Review; experience of potential contractors who desire to provide the supplies or Comment Request Submission for OMB Review; services to be acquired. Evaluation will Comment Request June 11, 2012. be used to determine which proposal The Department of the Treasury will June 11, 2012. most benefit the Government. submit the following information The Department of the Treasury will Affected Public: Private Sector: collection request to the Office of submit the following information businesses or other for-profits. Management and Budget (OMB) for collection request to the Office of Estimated Total Annual Burden review and clearance in accordance Management and Budget (OMB) for Hours: 291,105. with the Paperwork Reduction Act of review and clearance in accordance OMB Number: 1505–0107. 1995, Public Law 104–13, on or after the with the Paperwork Reduction Act of Type of Review: Revision of a date of publication of this notice. 1995, Public Law 104–13, on or after the currently approved collection. Title: Regulation Agency Protests. DATES: Comments should be received on date of publication of this notice. Abstract: Information is requested of or before July 16, 2012 to be assured of DATES: Comments should be received on contractors so that the Government will consideration. or before July 16, 2012 to be assured of be able to evaluate protests effectively consideration. ADDRESSES: Send comments regarding and provide prompt resolution of issues the burden estimate, or any other aspect ADDRESSES: Send comments regarding in dispute when contractors file of the information collection, including the burden estimate, or any other aspect protests. suggestion for reducing the burden, to of the information collection, including Affected Public: Private Sector: (1) Office of Information and Regulatory suggestion for reducing the burden, to businesses or other for-profits. Affairs, Office of Management and (1) Office of Information and Regulatory Estimated Total Annual Burden Budget, Attention: Desk Officer for Affairs, Office of Management and Hours: 50. Treasury, New Executive Office Budget, Attention: Desk Officer for Building, Room 10235, Washington, DC Treasury, New Executive Office Dawn D. Wolfgang, 20503, or email at Building, Room 10235, Washington, DC Treasury PRA Clearance Officer. [email protected] and 20503, or email at [FR Doc. 2012–14561 Filed 6–13–12; 8:45 am] (2) Treasury PRA Clearance Officer, [email protected] and BILLING CODE 4810–25–P

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DEPARTMENT OF THE TREASURY SUPPLEMENTARY INFORMATION: Estimated Number of Respondents: Title: New Markets Tax Credit 658. Community Development Financial Allocation Tracking System. Estimated Annual Time per Institutions Fund OMB Number: 1559–0024. Respondent: 18 hours. Abstract: Title I, subtitle C, section Estimated Total Annual Burden Proposed Collection; Comment 121 of the Community Renewal Tax Hours: 11,844 hours. Request Relief Act of 2000 (the Act), as enacted Requests for Comments: Comments submitted in response to this notice will ACTION: Notice and request for by section 1(a)(7) of the Consolidated comments. Appropriations Act, 2001 (Pub. L. 106– be summarized and/or included in the 554, December 21, 2000), amended the request for OMB approval. All SUMMARY: The Department of the Internal Revenue Code (IRC) by adding comments will become a matter of Treasury, as part of its continuing effort IRC § 45D, New Markets Tax Credit. public record. The specific section of to reduce paperwork and respondent Pursuant to IRC § 45D, the Department the allocation agreement for which burden, invites the general public and of the Treasury, through the CDFI Fund, comments are sought is the reporting other Federal agencies to take this administers the NMTC Program, which requirement that allocatees provide opportunity to comment on proposed provides an incentive to investors in the notice to the CDFI Fund, through the and/or continuing information form of tax credits over seven years and CDFI Fund’s Allocation Tracking collections, as required by the stimulates the provision of private System, of the receipt of a Qualified Paperwork Reduction Act of 1995, investment capital that, in turn, Equity Investment. Comments are Public Law 104–13 (44 U.S.C. facilitates economic and community invited on: (a) Whether the collection of 3506(c)(2)(A)). Currently, the development in low-income information is necessary for the proper Community Development Financial communities. In order to qualify for an performance of the functions of the Institutions (CDFI) Fund, Department of allocation of NMTC authority, an entity agency, including whether the the Treasury, is soliciting comments must be certified as a qualified information shall have practical utility; concerning an information collection community development entity and (b) the accuracy of the agency’s estimate required by the allocation agreement submit an allocation application to the of the burden of the collection of that is entered into by the CDFI Fund CDFI Fund. Upon receipt of such information; (c) ways to enhance the and each recipient of tax credit applications, the CDFI Fund conducts a quality, utility, and clarity of the allocations authority through the New competitive review process to evaluate information to be collected; (d) ways to Markets Tax Credit (NMTC) Program. applications for the receipt of NMTC minimize the burden of the collection of The specific information collection allocations. Entities selected to receive information on respondents, including relates to the allocation agreement an NMTC allocation must enter into an through the use of technology; and (e) requirement that allocatees provide allocation agreement with the CDFI estimates of capital or start-up costs and notice to the CDFI Fund of the receipt Fund. The allocation agreement costs of operation, maintenance, and of Qualified Equity Investments, as contains the terms and conditions, purchase of services required to provide defined at 24 CFR part 45D(c). The CDFI including all reporting requirements, information. Fund has published separate notices associated with the receipt of a NMTC seeking public comments regarding Authority: 12 U.S.C. 4701 et seq.; 26 U.S.C. allocation. The CDFI Fund requires each 45D. other information collections contained allocatee to use an electronic data Dated: June 11, 2012. in the allocation agreement (e.g., use of collection and submission system, Dawn D. Wolfgang, Qualified Equity Investment proceeds). known as the Allocation Tracking DATES: Written comments should be System (ATS), to report on the Treasury PRA Clearance Officer. received on or before August 13, 2012 information related to its receipt of a [FR Doc. 2012–14554 Filed 6–13–12; 8:45 am] to be assured of consideration. Qualified Equity Investment. BILLING CODE 4810–70–P ADDRESSES: Direct all comments to The CDFI Fund has developed the Robert Mulderig, Manager for ATS to, among other things: (1) Enhance Certification, Compliance Monitoring the allocatee’s ability to report to the U.S.-CHINA ECONOMIC AND and Evaluation, Community CDFI Fund timely information regarding SECURITY REVIEW COMMISSION Development Financial Institutions the issuance of its Qualified Equity Fund, U.S. Department of the Treasury, Investments; (2) enhance the CDFI Notice of Open Public Hearing 1500 Pennsylvania Avenue NW., Fund’s ability to monitor the issuance of AGENCY: U.S.-China Economic and Washington, DC 20220, by email to Qualified Equity Investments to ensure Security Review Commission. [email protected]. that no allocatee exceeds its allocation ACTION: Notice of open public hearing— FOR FURTHER INFORMATION CONTACT: A authority and to ensure that Qualified June 14, 2012, Washington, DC. draft of the information collection may Equity Investments are issued within be obtained from the CDFI Fund’s Web the timeframes required by the SUMMARY: Notice is hereby given of the site at http://www.cdfifund.gov. allocation agreement and IRC § 45D; and following hearing of the U.S.-China Requests for additional information (3) provide the CDFI Fund with basic Economic and Security Review should be directed to Trefor Henry, investor data which may be aggregated Commission. Associate Program Manager for and analyzed in connection with NMTC Name: Dennis Shea, Chairman of the Certification, Compliance Monitoring evaluation efforts. U.S.-China Economic and Security and Evaluation, Community Current Actions: NMTC Program Review Commission. The Commission Development Financial Institutions allocatees. is mandated by Congress to investigate, Fund, U.S. Department of the Treasury, Type of review: Revision. assess, and report to Congress annually 1500 Pennsylvania Avenue NW., Affected Public: Business or other for- on ‘‘the national security implications of Washington, DC 20220, or by phone to profit institutions, not-for-profit the economic relationship between the (202) 622–4130. Please note this is not institutions, and State, local and Tribal United States and the People’s Republic a toll-free number. entities. of China.’’ Pursuant to this mandate, the

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Commission will hold a public hearing Authority: Congress created the U.S.- Please refer to ‘‘OMB Control No. 2900– in Washington, DC on June 14, 2012, China Economic and Security Review 0003’’ in any correspondence. ‘‘Evolving U.S.-China Trade and Commission in 2000 in the National Defense Authorization Act (Pub. L. 106–398), as FOR FURTHER INFORMATION CONTACT: Investment Relationship.’’ amended by Division P of the Consolidated Denise McLamb, Enterprise Records BACKGROUND: This is the sixth public Appropriations Resolution, 2003 (Pub. L. Service (005R1B), Department of hearing the Commission will hold 108–7), as amended by Pub. L. 109–108 Veterans Affairs, 810 Vermont Avenue during its 2012 report cycle to collect (November 22, 2005). NW., Washington, DC 20420, (202) 632– input from academic, industry, and Dated: June 11, 2012. 7479, FAX (202) 632–7634 or email government experts on national security Kathleen Wilson, [email protected]. Please refer to implications of the U.S. bilateral trade Finance and Operations Director, U.S.-China ‘‘OMB Control No. 2900–0003.’’ and economic relationship with China. Economic and Security Review Commission. SUPPLEMENTARY INFORMATION: The June 14 hearing is aimed at [FR Doc. 2012–14559 Filed 6–13–12; 8:45 am] Title: Application for Burial Benefits sharpening our understanding of BILLING CODE 1137–00–P (Under 38 U.S.C. Chapter 23), VA Form contemporary Chinese trade and 21–530. investment challenges, and will include OMB Control Number: 2900–0003. testimony on the implications of DEPARTMENT OF VETERANS Type of Review: Extension of a employing value added measurements AFFAIRS currently approved collection. of trade; the BIT and the U.S. [OMB Control No. 2900–0003] Abstract: Claimants complete VA investment regime; as well as case Form 21–530 to apply for burial stories of U.S. companies’ China trade Agency Information Collection benefits, including transportation for challenges. The hearing will be co- (Application for Burial Benefits) deceased veterans. VA will use the chaired by Commissioners Hon. William Activities Under OMB Review information collected to determine the A. Reinsch and Daniel M. Slane. Any veteran’s eligibility for burial benefits. interested party may file a written AGENCY: Veterans Benefits An agency may not conduct or statement by June 14, 2012, by mailing Administration, Department of Veterans sponsor, and a person is not required to to the contact below. A portion of each Affairs. respond to a collection of information panel will include a question and ACTION: Notice. unless it displays a currently valid OMB answer period between the control number. The Federal Register Commissioners and the witnesses. SUMMARY: In compliance with the Paperwork Reduction Act (PRA) of 1995 Notice with a 60-day comment period DATES: Location, Date and Time: 562 (44 U.S.C. 3501–3521), this notice soliciting comments on this collection Dirksen Senate Office Building. announces that the Veterans Benefits of information was published on Thursday, June 14, 2012, 8:45 a.m.–2:45 Administration, Department of Veterans December 5, 2008, at pages 74231– p.m. Eastern Time. A detailed agenda Affairs, will submit the collection of 74232. for the hearing will be posted to the information abstracted below to the Affected Public: Individuals or Commission’s Web site at www.uscc.gov Office of Management and Budget households. as soon as available. Please check our (OMB) for review and comment. The Estimated Annual Burden: 110,000 Web site at www.uscc.gov for possible PRA submission describes the nature of hours. changes to the hearing schedule. the information collection and its Estimated Average Burden per Reservations are not required to attend expected cost and burden; it includes Respondent: 22 minutes. the hearing. the actual data collection instrument. Frequency of Response: One time. FOR FURTHER INFORMATION CONTACT: Any DATES: Comments must be submitted on Estimated Number of Respondents: member of the public seeking further or before July 16, 2012. 300,000. information concerning the hearing ADDRESSES: Submit written comments Dated: June 11, 2012. should contact Gavin Williams, 444 on the collection of information through North Capitol Street NW., Suite 602, www.Regulations.gov or to VA’s OMB By direction of the Secretary. Washington DC 20001; phone: 202–624– Desk Officer, OMB Human Resources Denise McLamb, 1492, or via email at and Housing Branch, New Executive Program Analyst, Enterprise Records Service. [email protected]. Reservations are Office Building, Room 10235, [FR Doc. 2012–14563 Filed 6–13–12; 8:45 am] not required to attend the hearing. Washington, DC 20503 (202) 395–7316. BILLING CODE 8320–01–P

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Part II

Department of Education

Final Priorities, Requirements, Definitions, and Selection Criteria—Teacher Incentive Fund (TIF) Program; Notice

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DEPARTMENT OF EDUCATION The Statutory Requirements issues under the title of the item to which they pertain. Generally, we do [Docket ID ED–2012–OESE–0001] The Department’s FY 2012 appropriation provides TIF funds for not address technical and other minor RIN 1810–AB12 competitive grants to eligible entities to changes. In addition, we do not address general comments that raised concerns Final Priorities, Requirements, develop and implement PBCSs for teachers, principals, and other not directly related to the proposed Definitions, and Selection Criteria— priorities, requirements, definitions, or Teacher Incentive Fund (TIF) Program personnel in high-need schools. Eligible entities for these funds are: selection criteria. AGENCY: Office of Elementary and (a) Local educational agencies (LEAs), Major Changes in the Final Priorities, Secondary Education, Department of including charter schools that are LEAs. Requirements, Definitions, and Education. (b) States. Selection Criteria ACTION: Notice. (c) Partnerships of— (1) An LEA, a State, or both; and In addition to minor technical and CFDA Numbers: 84.374A and 84.374B (2) At least one nonprofit editorial changes, there are several substantive differences between the SUMMARY: The Assistant Secretary for organization. priorities, requirements, definitions, and Elementary and Secondary Education Eligible entities must use TIF funds to selection criteria proposed in the NPP announces priorities, requirements, develop and implement, in high-need and the final priorities, requirements, definitions, and selection criteria under schools, a PBCS that— (a) Considers gains in student definitions, and selection criteria that the TIF program. The Assistant we establish in this notice. Those Secretary may use one or more of these academic achievement, as well as substantive changes are summarized in priorities, requirements, definitions, and classroom evaluations conducted this section and discussed in greater selection criteria for competitions in multiple times during each school year, detail in the Analysis of Comments and fiscal year (FY) 2012 and later years. We among other factors; and (b) Provides educators with incentives Changes section that follows. are taking this action so that TIF-funded to take on additional responsibilities performance-based compensation Priorities and leadership roles. systems (PBCSs) will be successful and A grantee (1) must demonstrate that We have made the following changes sustained mechanisms that contribute to its PBCS is developed with the input of to the priorities for this program: continual improvement of instruction, teachers and school leaders in the • We have revised Priority 2—LEA- to increases in teacher and principal schools and LEAs that the grant will Wide Educator Evaluation Systems effectiveness, and, ultimately, to serve, and (2) may use TIF funds to Based, in Significant Part, on Student improvements in student achievement develop or improve systems and tools Growth, to clarify that the LEA-wide in high-need schools. To accomplish that would enhance the quality and evaluation system must use classroom- these goals, we are establishing success of the PBCS, such as high- level growth data to evaluate teachers priorities, requirements, definitions, and quality teacher evaluations and tools (as defined in this notice) with regular selection criteria that are designed to that measure growth in student instructional responsibilities consistent ensure that TIF grantees use high- with paragraph (2)(ii) of the priority. An quality LEA-wide evaluation and achievement. In addition, an applicant must include a plan to sustain applicant must use classroom-level support systems that identify effective growth, rather than school-level or educators in order to improve financially the activities conducted and the systems developed under the grant grade-level growth, in significant part, instruction by informing performance- when evaluating teachers with regular based compensation and other key once the grant period has expired. We published a notice of proposed instructional responsibilities because human capital decisions. priorities, requirements, definitions, and we believe classroom-level student DATES: Effective Date: These priorities, selection criteria for this program in the growth data is the most appropriate for requirements, and definitions are Federal Register on February 29, 2012 evaluating the individual effectiveness effective July 16, 2012. (77 FR 12257) (NPP). The NPP of these teachers. If an applicant wishes FOR FURTHER INFORMATION CONTACT: contained background information and to use school-level or grade-level growth Miriam Lund, U.S. Department of our reasons for proposing the particular to evaluate teachers with regular Education, 400 Maryland Avenue SW., priorities, requirements, definitions, and instructional responsibilities, it may do Room 3E245, Washington, DC 20202– selection criteria. so, but the Department will consider the 6450. Telephone: (202) 401–2871 or by There are differences between the use of those data to be the use of email: [email protected]. NPP and this notice of final priorities, ‘‘additional factors’’ under paragraph If you use a telecommunications requirements, definitions, and selection (2)(iii) of Priority 2. device for the deaf (TDD) or a text criteria (NFP) as discussed in the Major • We have revised paragraph (2) of telephone (TTY), call the Federal Relay Changes in the Final Priorities, Priority 3—Improving Student Service (FRS), toll free, at 1–800–877– Requirements, Definitions, and Achievement in Science, Technology, 8339. Selection Criteria and Analysis of Engineering, and Mathematics (STEM), SUPPLEMENTARY INFORMATION: Comments and Changes sections to better align this priority with the Purpose of Program: The purpose of elsewhere in this notice. language in Selection Criterion (g)— the TIF program is to support the Public Comment: In response to our Comprehensive Approach To Improving development and implementation of invitation in the NPP, 32 parties STEM Instruction. With this change, sustainable PBCSs for teachers, submitted comments on the proposed while applicants will be required to principals, and other personnel in high- priorities, requirements, definitions, and describe how each participating LEA need schools in order to increase selection criteria. We used these will identify and develop the unique educator effectiveness and student comments to revise, improve, and competencies that characterize effective achievement in those schools. clarify the priorities, requirements, STEM teachers, they will not need to Program Authority: The Department of definitions, and selection criteria. describe how those LEAs will evaluate Education Appropriations Act, 2012 We group major issues according to those competencies to meet this (Division F, Title III of Pub. L. 112–74). subject and discuss other substantive priority.

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• We have amended Priority 4—New • We have revised Requirement 6— Analysis of Comments and Changes: or Rural Applicants to the Teacher Use of TIF Funds to Support the PBCS, An analysis of the comments and of any Incentive Fund, (referred to as Priority to clarify that TIF funds may be used to changes in the priorities, requirements, 4—New Applicants to the Teacher support the costs of both salaries and definitions, and selection criteria since Incentive Fund in the NPP) to give salary augmentations for teachers who publication of the NPP follows. priority to projects serving rural LEAs take on additional responsibilities and General Comments (as defined in this notice). An applicant leadership roles (as defined in this can meet this priority if it provides— notice), including career ladder Comment: Several commenters and the Department accepts—an positions (as defined in this notice), up expressed strong support for the TIF assurance that each LEA to be served by to the salary cost of 1 full-time program, as outlined in the NPP, both the project is a rural LEA or an LEA not equivalent position for every 12 teachers for its overall effort to improve served by a current or past TIF grant. who are not in a career ladder position evaluation, to provide educators with • We have revised Priority 5—An in the high-need schools (as defined in support, and to provide additional Educator Salary Structure Based on this notice) identified in response to compensation for effective educators Effectiveness, by removing the language Requirement 3—Documentation of and for specific components of the NPP, requiring applicants to propose a High-Need Schools. Further, we have including the emphasis on STEM under comprehensive revision to each added an exception to the limitation on Priority 3—Improving Student participating LEA’s salary structure. The educator compensation to allow Achievement in Science, Technology, revised priority no longer requires an applicants to compensate educators who Engineering, and Mathematics (STEM). applicant to describe the salary increase attend TIF-supported professional Discussion: The Department that educators (as defined in this notice) development outside of official duty appreciates the support of these with an evaluation rating of effective or hours. commenters for the priorities, requirements, definitions, and selection higher would receive, or how TIF funds Definitions used for salary increases would be used criteria proposed in the NPP. • We have defined ‘‘rural local Changes: None. only to support the additional cost of Comment: Several commenters educational agency’’, to mean an LEA the revised salaries. Instead, the priority recommended designations of absolute, that is eligible under the Small Rural now requires that the applicant propose competitive preference, or invitational School Achievement program or the a timeline for implementing a salary for the proposed priorities. Rural and Low-Income School program structure based on educator Discussion: The Department authorized under Title VI, Part B of the effectiveness, and describe the extent to appreciates these recommendations, and ESEA. which and how each LEA will use has considered them in developing the overall evaluation ratings to determine Selection Criteria notice inviting applications for the fiscal educator salaries as well as how TIF year 2012 TIF competition (NIA). To We have made the following changes funds will support the salary structure preserve future flexibility to adjust based on effectiveness in high-need to the selection criteria for this program: • priority designations as needed to better schools identified in response to We have amended Selection serve the needs of LEAs, the Department Requirement 3—Documentation of Criterion (a)(2)(iii)—A Coherent and is not designating in this notice whether High-Need Schools. While we have Comprehensive Human Capital priorities are absolute, competitive eased the application requirements Management System, to evaluate the preference, or invitational. related to this priority, to implement feasibility of an applicant’s proposed Changes: None. their new salary structures many human capital management system Comment: We received several applicants after award will need to (HCMS) (as defined in this notice) comments regarding the LEA-wide design and implement comprehensive based, in part, on any applicable LEA- provisions, such as Priority 1—An LEA- revisions to their salary structures. level policies that might inhibit or Wide Human Capital Management Further, we have amended the priority facilitate the use of educator System (HCMS) With Educator to require applicants to describe the effectiveness as a factor in human Evaluation Systems at the Center and feasibility of implementing the capital decisions. Priority 2—LEA-Wide Educator proposed salary structure and by • We have amended Selection Evaluation Systems Based, in removing language requiring that Criterion (b)(2)(ii)—Rigorous, Valid, and Significant Part, on Student Growth, implementation begin no later than the Reliable Educator Evaluation Systems to included in the NPP. One commenter third year of the project period. evaluate the quality of each expressed support for Priority 1, and participating LEA’s evaluation system Requirements recommended that we designate it as based, in part, on the evidence provided absolute. According to the commenter, We have made the following changes by an applicant to demonstrate the rigor the priority underscores the importance to the requirements for this program: and comparability of the assessment of comprehensive approaches to human • We have revised Requirement 5— tools used for educator evaluation. capital management and takes Limitations on Multiple Applications, to • We have amended Selection advantage of economies of scale in specify that an LEA may participate in Criterion (c)—Professional Development promoting LEA-wide strategies. no more than one application in any Systems To Support the Needs of However, several commenters fiscal year, an SEA may participate in Teachers and Principals Identified opposed the LEA-wide provisions in no more than one group application for Through the Evaluation Process, to Priority 1 and Priority 2, and requested the General TIF Competition and no evaluate the quality of each that we remove from the notice any more than one group application for the participating LEA’s plan for professional requirement that applicants implement TIF Competition with a Focus on STEM development based, in part, on the LEA-wide human capital management in any fiscal year, and a nonprofit extent to which the plan provides for and educator evaluation systems. One organization may participate in multiple school-based, job-embedded commenter stated that it would be group applications under either one or opportunities for educators to transfer premature to require LEAs to undertake both competitions in any fiscal year. new knowledge into practice. LEA-wide human capital management

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reform while also working to implement the priorities, requirements, and LEAs where unions are not designated a new PBCS. Another commenter definitions included in this notice to as the exclusive representative of argued that LEA-wide requirements may align with the provisions of the educators for the purposes of collective discourage LEAs from attempting new Department’s Elementary and bargaining. reforms. According to this and other Secondary Education Act of 1965, as For these reasons, the Department commenters, pilot efforts are a amended (ESEA) Flexibility initiative. declines to revise the provisions in preferable alternative to requiring LEA- Under that initiative, States that receive Priorities 1 and 2 that require applicants wide reform because pilot efforts flexibility must agree to implement to implement an LEA-wide HCMS and introduce change in manageable steps, LEA-wide educator evaluation systems, educator evaluation systems. and LEAs are often willing to bring and, to date, the Department has Changes: None. reforms to scale after implementing a received 38 requests from States for Comment: One commenter noted that pilot demonstration. flexibility and has granted 11 requests. it may be difficult for charter school Further, one commenter argued Based on our experience with the ESEA consortia to satisfy Priority 1—An LEA- against requiring an LEA-wide Flexibility initiative, we believe that Wide HCMS With Educator Evaluation evaluation system and PBCS, because, requiring LEA-wide implementation Systems at the Center. The commenter according to the commenter, will further, rather than inhibit, LEA expressed concern that, because charter performance-based compensation and reform efforts. schools are LEAs, we would require evaluation reforms work best for high- While we wish to clarify that nothing each charter school to develop its own need schools when they provide in this notice requires applicants to HCMS. opportunities to educators in those implement an LEA-wide PBCS, we Discussion: For charter-school LEAs, schools that are not also available to disagree with the assertion that an LEA- the HCMS described in response to educators in non-high-need schools. wide PBCS and evaluation system Priority 1—An LEA-Wide HCMS With Finally, some commenters expressed would provide fewer benefits to high- Educator Evaluation Systems at the concern that an LEA-wide approach need schools than would a smaller-scale Center must apply to the entire charter may encourage applicants to abandon implementation plan that focuses solely school, but, depending on the rigorous measures of educator buy-in, on high-need schools. To the contrary, organization of the charter consortia or such as teacher votes, in favor of less we believe that an LEA-wide evaluation the involvement of a charter rigorous measures. One commenter system will strengthen the capacity of management organization, the HCMS expressed concern that Priority 1 high-need schools, which are the only may extend to more than one charter promotes a top-down approach to schools that may implement a TIF- school. In the case of a charter-school human capital management reform, funded PBCS, to use performance-based LEA consortium with a single shared when, according to the commenter, compensation to identify and attract HCMS, an applicant could describe how these efforts are most effectively driven educators from other schools in an LEA. the various components of the HCMS by teachers. One commenter predicted Further, for an applicant that proposes apply to each charter-school LEA, and that these provisions would essentially to expand its PBCS to educators in non- would not need to implement a separate eliminate applications from strong high-need schools in the LEA, using HCMS for each individual charter union areas. non-TIF funds, nothing in this notice school. Discussion: As noted in the NPP, we would preclude the applicant from Changes: None. believe that, to be successful and designing its PBCSs to offer educators in Comment: One commenter stated that sustainable, any PBCS must be an high-need schools larger salary there is insufficient evidence that integral part of an HCMS that is well- augmentations than those educators in evaluation systems are ready for large- designed and implemented LEA-wide. non-high-need schools. scale implementation, and no evidence In the absence of sustainable, LEA-wide With regard to educator evaluation that evaluation systems are more educator evaluation systems that focus reform, we believe that evaluation important for school improvement than on educator effectiveness and underlie systems are more likely to receive the other investments. This commenter key parts of the LEA’s HCMS, the TIF- broad LEA commitment that is crucial argued that we can help LEAs to supported PBCS is not likely to be to their success and sustainability if implement educator incentive programs sustainable. For this reason, we believe those systems are used to evaluate every without requiring evaluation systems, it to be both reasonable and educator within the LEA. We designed which, according to the commenter, will advantageous to require LEAs to the priorities, requirements, definitions, be unsustainable without continued undertake, under Priority 1—An LEA- and selection criteria in this notice so Federal assistance. wide Human Capital Management that applications will be evaluated Discussion: The Department rejects System (HCMS) With Educator based on the extent to which the the contention that there is insufficient Evaluation Systems at the Center and proposed project has educator evidence that reformed educator Priority 2—LEA-wide Educator involvement and support. Therefore, evaluation systems can be implemented Evaluation Systems Based, in applicants will be less likely to receive at scale; the current efforts of numerous Significant Part, on Student Growth, funding if they abandon rigorous States and LEAs to reform their LEA-wide human capital management measures of teacher buy-in or use a top- evaluation systems provide ample reforms that support each LEA’s PBCSs. down approach to project development evidence of the viability of this strategy. Further, while we agree that pilot and implementation that does not The Department also does not agree that projects may provide an LEA with the include high-quality teacher and it would be worthwhile to invest in opportunity to explore the benefits of an principal involvement. Furthermore, we educator incentive programs that are not innovative approach, and may create the disagree with the assertion that the LEA- linked to a comprehensive educator possibility for long-term, large-scale wide provisions included in this notice evaluation system that meaningfully implementation, we disagree with the will inhibit unionized LEAs from differentiates educator performance. assertion that the LEA-wide applying. The Department believes that Performance-based compensation implementation requirements in this for those LEAs the process for securing systems (as defined in this notice) that notice will discourage LEAs from widespread, high-quality educator are disconnected from an LEA’s official attempting reform. We have designed support is more straightforward than for evaluation system have proven difficult

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to sustain and require a costly and Comment: Two commenters the evaluation process will give all burdensome duplication of effort. recommended that we amend the educators a clearer understanding of Changes: None. priorities, requirements, definitions, and what the LEA has identified as the key Comment: A few commenters stated selection criteria so as to more strongly competencies needed to be effective that our encouragement of LEA-wide emphasize educator development and educators. Given these linkages between performance systems was laudable, but support as the central purpose of human evaluation, professional development, unrealistic, as TIF provides funding for capital management. One of the and vision of instructional improvement only a portion of an LEA’s schools. commenters suggested that we amend that are provided for in this notice, we Further, one commenter argued that paragraph (3) of Priority 1—An LEA- believe it is unnecessary to modify the implementing LEA-wide educator Wide Human Capital Management priorities, requirements, definitions, and evaluation systems would place a large System (HCMS) With Educator selection criteria to further highlight the financial burden on LEAs during tight Evaluation Systems at the Center, to use of evaluation information for budget times. require applicants to describe human providing educator support. Discussion: TIF funds may be used for capital strategies the LEA uses or will The Department disagrees with the the development or improvement of use to ensure that high-need schools are second commenter’s assertion that systems and tools that would enhance able to support effective teachers. professional development alone is more the quality and success of the PBCS and Further, the commenter recommended effective in improving student outcomes benefit the entire LEA. TIF is, therefore, that we add a new paragraph in Priority than a PBCS that recognizes and a potential source of funding for LEAs 2 to require applicants to describe how rewards educators who have an impact seeking to reform their HCMS and the LEA’s evaluation systems will be on student achievement. Rather, it is the educator evaluation systems in what used to identify and address the Department’s view that student one commenter noted are tight budget professional development needs of outcomes are most likely to improve times. With these and other resources, educators. when an LEA implements a coherent we believe that the development and A second commenter stated that and comprehensive HCMS that is implementation of LEA-wide evidence-based professional aligned to its vision of instructional performance systems is a very attainable development is more effective in improvement and that integrates both goal. improving student outcomes than professional development and a PBCS. Changes: None. performance-based compensation, and, Changes: None. Comment: A few commenters noted therefore, should be the foundation of Comment: Three commenters that the LEA-wide provisions in this proposed HCMSs. According to this provided feedback regarding the notice would favor small districts, commenter, an HCMS should focus on timeline for implementing TIF-funded charter schools, and charter diagnosing areas in need of projects that was included in the NPP. management organizations over large improvement, providing timely and One commenter recommended that we districts because larger districts would targeted professional development to revise the priorities, requirements, face difficulty securing the educator address those areas, and monitoring definitions, and selection criteria so that support and outreach needed for progress to ensure the success of the first year of a TIF-funded project’s implementation. To avoid penalizing educators and students. Further, this implementation would take place in larger LEAs, one commenter commenter noted that punitive HCMS 2013–2014 following an optional recommended that we relax the LEA- that focus on educator dismissal are planning period of one year. The wide provisions of the notice to allow ineffective for promoting educator commenter stated that this shift in the LEAs to participate if a substantial competency or student growth. timeline would be appropriate given number of their schools, to be Discussion: The Department fully that the Department is likely to award determined by the Department, agree to agrees that professional development grants during the most difficult time of participate in the TIF-supported PBCS. must be a key component of any HCMS, year for applicants to begin Discussion: The Department does not and that evaluation systems are critical implementation. A second commenter agree that the LEA-wide provisions in tools that should guide LEA- and encouraged us to allow LEAs to pilot this notice disadvantage large districts. school-level decisions regarding evaluation systems in a sample of Larger LEAs typically have greater instructional supports. In this notice, as schools prior to full implementation, human capital, technology, and other in the NPP, we clarify that a well- rather than require LEAs to fully resources needed to implement the designed HCMS, including the implement the evaluation systems in all systemic reforms promoted by the TIF evaluation system supporting it, must be schools simultaneously. A third program than smaller LEAs have. We aligned with the LEA’s vision of commenter expressed support for the also note that, to address difficulties in instructional improvement (as defined timeline for implementing of the implementation in any type of LEA, we in this notice) that summarizes: (1) The evaluation system, and stated that the permit the LEA-wide educator key competencies and behaviors of requirements provided applicants with evaluation system requirements to be effective teaching needed to produce adequate time to gain competence in phased in over time, with full high levels of student achievement, and building and using the new evaluation implementation required at the (2) how educators acquire or improve system before the LEA uses the beginning of the third project year. We these competencies and behaviors. evaluations to make decisions. decline to accept the commenter’s Accordingly, the Department believes Discussion: Under the proposed recommendation that the Department that LEA-wide evaluation systems priorities, requirements, definitions, and permit an LEA to implement reformed aligned with this vision are an selection criteria, a grantee must begin educator evaluation systems on a non- extremely valuable tool for professional the implementation of its TIF project at LEA-wide basis because this approach development and improvement. When the beginning of the first year of the would not result in the system-wide the evaluation rubrics used in these project period. However, we have change we believe is necessary to systems include the key competencies included provisions in Priority 1—An support the sustainability and success of the LEA has identified in its vision of LEA-Wide HCMS With Educator the TIF-funded PBCS. instructional improvement, the feedback Evaluation Systems at the Center and Changes: None. and professional learning inherent in Priority 2—LEA-Wide Educator

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Evaluation Systems Based, in Criterion (b)(2)—Rigorous, Valid, and neither require nor encourage the use of Significant Part, on Student Growth to Reliable Educator Evaluation Systems, student growth in educator evaluation, allow grantees to delay the based on the extent to which they have and advised that we, at most, allow implementation of certain components provided (1) a clear rationale to support grantees the option of incorporating of their projects. For example, under their approach to differentiating student growth into educator Priority 2, a grantee must implement its performance levels based on the level of evaluation. A few commenters stated proposed evaluation system in at least a student growth (as defined in this that the NPP put a disproportionate subset of an LEA’s schools, as the notice) achieved and (2) evidence, such weight on student growth as compared official system for assigning overall as current research and best practices, with performance measures that the evaluation ratings, by no later than the that supports the LEA’s choice of commenters regarded as more reliable, beginning of the second year of the student growth models and such as classroom observations and project period. Because LEA-wide demonstrates the rigor and student surveys. implementation would not need to comparability of assessment tools. The commenters provided a number begin for another year, we believe that Further, the Department will evaluate of arguments against the use of student the flexibility included in these applicants, under Selection Criterion growth. First, a few commenters priorities already addresses the (b)(3), based on the extent to which they cautioned against the use of value- concerns raised by the commenter have made substantial progress in added measures due to inaccuracy, bias, because it allows for implementation of developing a high-quality plan for instability, and lack of precision, while the LEA-wide evaluation system over a multiple teacher and principal (as others cautioned against the use of long period of time. defined in this notice) observations, student growth, irrespective of the Further, the Department understands including the procedures for ensuring a model used, for any human capital that the implementation of effective and high-degree of inter-rater reliability. decision-making, including for sustained TIF-funded PBCSs requires We do not believe it is necessary to evaluation. Second, commenters argued substantial effort on the part of its require that measures validated for use that the use of student growth for grantees. For this reason, applicants in evaluation be validated further for human capital decisions would make under a TIF competition using the use in other human capital decisions. educators reluctant to teach or enroll priorities, requirements, definitions, and Rather, once measures are used to English learners, students with selection criteria in this notice will be develop an educator’s overall evaluation disabilities, students of color, low- asked to provide additional information rating, we expect that the rating will be income students, and students regarding their capacity for used to inform other human capital connected with either child welfare or implementation (e.g., on the extent to decisions in accordance with the LEA’s released from juvenile detention, or which they have developed their vision of instructional improvement. otherwise encourage educators to push evaluation system rubric, and on the Changes: None. students out of school using formal extent to which they have obtained Comment: We received many disenrollment, discouragement, or the educator support), which will allow comments regarding the use of student excessive and disparate use of reviewers to evaluate the strength of growth measures to inform human discipline. Third, some commenters their applications. Applicants will also capital decisions, such as the stressed that an emphasis on student provide timelines for their projects to requirement, under Priority 2—LEA- growth would encourage educators to satisfy the provisions of Priority 1 and wide Educator Evaluation Systems teach to the test, engage in cheating Priority 2; these timelines will better Based, in Significant Part, on Student behaviors, and narrow the scope of the meet local needs than would a uniform Growth, to use these measures as a curriculum offered to students. planning period for all grantees. For significant factor in educator evaluation Discussion: To meet Priority 2—LEA- these reasons, we decline to allow systems. Three commenters expressed Wide Educator Evaluation Systems applicants an optional planning period support for the use of student growth for Based, in Significant Part, on Student prior to implementation. informing educator evaluation, though Growth, an applicant must describe its Changes: None. one stated that student growth should timeline for implementing its proposed Comment: A few commenters not be used for other types of human LEA-wide educator evaluation systems. encouraged us to require that applicants capital decisions, including decisions Consistent with this priority, an use performance measures that are valid regarding compensation. applicant must implement the and reliable for use in educator One commenter stated that student evaluation system for at least a subset of evaluation, while one commenter growth should be introduced gradually educators or in at least a subset of stressed that performance measures into educator evaluation systems, and schools no later than the beginning of should be validated and found reliable that both the weight given to student the second year of the grant’s project for each type of human capital decision growth and the prevalence of its use period, and must use the evaluation prior to their use for that decision. among educators should increase system to evaluate all educators in the Discussion: The Department believes following the availability of new LEA by no later than the beginning of that the validity and reliability of assessments for evaluating educators the third year of the grant’s project performance measures for the and the availability of professional period. We find this timeline, which determination of educator effectiveness development aligned with the allows for gradual implementation, to be are key for maintaining the credibility of evaluation system. consistent with the recommendation the measures, first, among stakeholders Several other commenters expressed presented by one of the commenters. who will use them to inform their concern that the NPP relied excessively However, from the start of this practice and manage human capital, on indicators of student achievement implementation, each educator’s overall and, second, among the educators and student growth as predictors of evaluation rating must be based, in affected by the outcome of the teacher and principal effectiveness, and significant part, on student growth. We evaluation using the measures and any offered arguments against the use of believe that student growth data is a consequences or rewards that follow. student growth to inform human capital meaningful measure of educator With this in mind, the Department will management. One commenter, in effectiveness and that its use in TIF evaluate applicants, under Selection particular, recommended that we projects is wholly consistent with the

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statutory requirement that TIF-funded principals, and other personnel (as so that they properly account for the full PBCSs consider gains in student defined in this notice) so as to improve range of curriculum, be it math academic achievement. We wish to the capacity of school staff to instruct instruction, health instruction, arts clarify for the commenters that, for the and support various types of students. instruction, or instruction in other purposes of this notice, ‘‘student In response to the commenters’ subjects. It is our belief that the growth’’ means the change in student concerns regarding school pushout and priorities and requirements in this achievement for an individual student excessive or disparate use of discipline, notice will encourage applicants to between two or more points in time, we believe that the priorities, design evaluation systems that use a and, further, that nothing in this notice requirements, definitions, and selection range of performance assessments, both requires an applicant to use value-added criteria in this notice provide applicants in subjects in which assessments are measures to assess student growth. with a unique opportunity to build required and not required under section Furthermore, student growth is just comprehensive and robust evaluation 1111(b)(3) of ESEA, to evaluate educator one of the multiple measures that are systems that may monitor for these effectiveness. Therefore, there is no required under the rigorous, valid, and behaviors and provide the professional reason to assume that the use of student reliable educator evaluation systems development that teachers and growth, as a factor in determining required under Priority 2; this priority principals need to end these practices. overall evaluation ratings, will lead to a also requires two or more observations In particular, we encourage applicants narrowing of student curriculum. during each evaluation period and the to consider how the ‘‘additional factors’’ Changes: None. use of additional factors determined by requirement, under paragraph (2)(iii) of Comment: Four commenters the LEA. While the Department agrees Priority 2, will allow for comprehensive recommended that we invest in research with commenters that student growth assessments. related to the impact of various human should not be used in isolation to make Regarding the comments about the capital management decisions on human capital management decisions, use of standardized tests and potentially educators and students. One commenter we also believe that student growth, as encouraging dishonest behavior among encouraged us to invest in research on a meaningful measure of effectiveness, educators, the Department strongly effective, evaluation-driven professional should be weighed significantly when disagrees with the notion that the development. Another commenter making a number of human capital existence of cheating or ‘‘teaching to the expressed support for the continued decisions, including decisions on test’’ reflects on the merits of evaluation of TIF-funded projects. Two professional development and standardized testing or the use of other commenters requested that we performance-based compensation. The standardized test data for accountability conduct research to determine whether Department further believes that, from purposes. Instead, cheating robs performance-based compensation has the start of the evaluation system’s students of their fair shot at a world- had disparate impact, considering implementation, including student class education, and cheating reflects a graduation rates and disciplinary action, growth as one of multiple measures is willingness to lie at children’s expense on students of color, students from low- important so that human capital to avoid accountability. It is the income communities, English learners, decisions, such as those regarding Department’s belief that standardized or students with disabilities. professional development, are based testing is no more vulnerable to cheating Discussion: The Department upon a range of measures and do not behaviors than other forms of recognizes that there are many aspects consider any one measure in isolation. instructional accountability; rather, of performance-based compensation and We believe the use of multiple under any educational performance human capital management systems in measures, as provided for under Priority assessment designed for either schools LEAs and schools that would benefit 2, ensures that no one measure is relied or educators, we must work to develop from additional research. The upon disproportionately, as some high-quality, rigorous assessment tools Department will continue to look to commenters fear might occur. and work to ensure that performance recommendations from the field, such Further, the use of multiple measures metrics are fair, transparent, and as those made by the commenters, when is essential to evaluate educators based rigorous. determining which research questions on a range of important measures, Lastly, we disagree with the are of the greatest significance. beyond student achievement, so that commenters’ assertion that the use of Changes: None. they may improve instruction for student growth in educator evaluation, Comment: One commenter strongly students with diverse learning needs as provided for in the priorities, opposed the proposed priorities, and provide all students with a well- requirements, definitions, and selection requirements, definitions, and selection rounded, complete education that will criteria included in this notice, may criteria due to a concern that, according prepare them for college and a career. lead to a narrowing of student to the commenter, they would directly Accordingly, the Department will curriculum. To meet Priority 2, an affect issues and provisions that are evaluate applicants, under paragraphs applicant must propose LEA-wide subject to collective bargaining under (5) and (6) of Selection Criterion (b)— educator evaluation systems that State statutes. The commenter stated Rigorous, Valid, and Reliable Educator generate an overall evaluation rating for that the proposed action may encourage Evaluation Systems, based on whether every teacher in the LEA, irrespective of applicants to circumvent the provisions the proposed educator evaluation grade or subject taught and in of collectively bargained agreements, systems evaluate the practice of teachers accordance with applicable State and where they exist, or exclude and principals in meeting the needs of local definitions of ‘‘teacher’’. Because stakeholders from providing ongoing special student populations, such as TIF funds may be used, under input into subjects governed by these students with disabilities and English Requirement 6—Use of TIF Funds to provisions. A second commenter learners. While we find it worthwhile to Support the PBCS, to develop and recommended that we require that the highlight the needs of these two student improve systems and tools, such as elements of the applicant’s proposed subgroups, we would encourage assessments, that support the PBCS and HCMS, including the student growth applicants to consider how their benefit the entire LEA, TIF presents a measures and their use for human evaluation systems might assess the unique opportunity for applicants to capital management, be collectively competencies and behaviors of teachers, modify their existing evaluation systems bargained where unions have been

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designated the exclusive representative compensation. These commenters stated authorized and appropriated funding for of educators for the purposes of that there is a lack of evidence the TIF program specifically to support collective bargaining. demonstrating that additional educator the development and implementation of Discussion: The Department compensation results in improved PBCSs in high-need schools, we frequently issues regulations that may academic outcomes for students. Of encourage applicants to embed impact education-related matters that these commenters, four also objected to evidence-based approaches into their are subject to collective bargaining. funding performance-based plans to evaluate, develop, and reward Further, we disagree with the compensation systems due to concerns educators as they respond to the commenter’s speculation that the TIF that a PBCS might encourage teachers priorities, requirements, definitions, and program may encourage applicants to and principals to push struggling and at- selection criteria in this notice. Under circumvent the provisions of risk youth out of their classrooms and Selection Criterion (b)—Rigorous, Valid, collectively bargained agreements or schools. and Reliable Educator Evaluation exclude stakeholders from providing Discussion: The Department Systems, in particular, we intend to ongoing input into subjects governed by acknowledges the concerns raised by award points to those applicants that these provisions. To the contrary, these commenters, and continues to provide evidence supporting the LEA’s applicants must provide evidence that invest in the research to assess the (or LEAs’) selection of student growth educator involvement in the design of impact of performance-based models and assessments, and to those the PBCS and the educator evaluation compensation systems on student applicants that have made substantial systems has been extensive and will growth and educator behavior. progress in developing procedures for continue to be extensive during the However, in The Department of ensuring a high-degree of inter-rater grant period. To clarify the relationship Education Appropriations Act, 2012 reliability between observers. For these between other Federal, State, and local (Division F, Title III of Public Law 112– reasons, we do not believe any changes laws and the regulations that govern the 74), Congress authorized and are necessary; we believe that that TIF program, we have added a ‘‘Note’’ appropriated funding for the TIF priorities and selection criteria already to Requirement 2—Involvement and program specifically to support the address the concerns raised by the Support of Teachers and Principals to development and use of PBCSs in high- commenters. inform applicants of their need schools. Through the TIF program, Changes: None. responsibilities if they become grantees the Department is implementing the Comment: Two commenters requested under the TIF program. The note states provisions of this law. that the Department further clarify the that it is the responsibility of the grantee Changes: None. local match requirements applicable to to ensure that, in observing the rights, Comment: Two commenters this program. remedies, and procedures afforded recommended that the Department Discussion: Nothing in the NPP or this school or school district employees revise the priorities, requirements, notice requires applicants to provide a under Federal, State, or local laws definitions, and selection criteria to (including applicable regulations or promote evidence-based programs. non-Federal or non-TIF match, local or court orders) or under terms of These commenters stated that, in otherwise, for their TIF projects. That collective bargaining agreements, making these changes, we would said, it is true that we have designed the memoranda of understanding, or other encourage applicants to direct their selection criteria to award points to agreements between those employees scarce resources toward programs that applicants that will leverage non-TIF and their employers, the grantee also are evidence-based, sustainable, and funds to support their projects. We have remains in compliance with the scalable. done this in view of the statutory priorities, requirements, and definitions Discussion: The Department fully requirement that applications for TIF included in this notice. The note goes agrees that applicants should use TIF grants include a plan to sustain on to clarify that in the event that a funds to support evidence-based, financially the activities conducted and grantee is unable to comply with these sustainable, and scalable approaches for systems developed under the grant once priorities, requirements, and definitions, improving educator effectiveness. To the grant period has ended, and because the Department may take appropriate meet Priority 1—An LEA-Wide HCMS we believe that applicants should work enforcement action (e.g., discontinue With Educator Evaluation Systems at to ensure that TIF-funded PBCSs, and support for the project). the Center and Priority 2—LEA–Wide the evaluation systems that support With regard to the request that we Educator Evaluation Systems Based, in them, are themselves sustainable. require that the elements of an Significant Part, on Student Growth, Specifically, under Selection Criterion applicant’s HCMS, including student applicants must implement an LEA- (f)—Sustainability, we will award points growth measures and their use, be wide HCMS, including LEA-wide to applicants that develop a feasible collectively bargained, we decline to evaluation systems, which will support sustainability plan that identifies non- make this change because we believe it the implementation of a PBCS to be TIF resources that will be used to would constitute inappropriate Federal implemented in high-need schools support the PBCS and evaluations involvement in local matters. under the grant. As mentioned systems during and after the grant Changes: We have added a Note to elsewhere in this notice, it is the period. In addition, for applicants Requirement 2 that clarifies the Department’s belief that these LEA-wide applying to the TIF Competition with a relationship between existing Federal, systems will support the sustainability Focus on STEM, under Selection State, and local law and collective and scalability of all TIF-funded PBCSs. Criterion (g)—Comprehensive Approach bargaining agreements and similar Moreover, we also intend, under to Improving STEM Instruction, we will agreements between employees and Selection Criterion (f)—Sustainability, award points to applicants that propose employers, and the priorities, to award points to applicants that to significantly leverage STEM-related requirements, and definitions develop a feasible sustainability plan funds across other Federal, State, and established in this notice. that identifies non-TIF resources that local programs when implementing a Comment: Five commenters opposed would support the PBCS and high-quality and comprehensive STEM the Department using Federal funds to evaluations systems during and after the plan. support performance-based grant period. As Congress has Changes: None.

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Comment: One commenter selection criteria. With this approach, remain within maximum page limits; encouraged us to safeguard the privacy we retain the flexibility to adjust the and (3) whether nonprofit applicants of educators, and the integrity of point allocation in future TIF partnering with more than one charter performance evaluations, by taking a competitions to achieve the appropriate school may, for the purposes of Priority stand against the publishing of balance between capacity for 1—An LEA-Wide HCMS With Educator individual evaluation data. The implementation and quality of project Evaluation Systems at the Center, commenter expressed concern that design in any given year. For the 2012 describe how each charter school’s providing individual evaluation data to competition, the Department has HCMS aligns with a vision of the public injures the professional considered the commenter’s instructional improvement shared relationship needed to conduct recommendations in designating point across the consortium. meaningful evaluations and provide values in the NIA. Discussion: To meet the priorities in substantive feedback to educators. Changes: None. this notice, nonprofit applicants that Further, in cases where evaluation Comment: One commenter requested partner with charter-school LEAs must systems are still under development, the that we broaden the eligibility describe the vision of instructional data may not yet provide an accurate requirements for the TIF program to improvement and HMCS, including the assessment of individual effectiveness. allow more schools and LEAs to evaluation systems and professional Discussion: While the Department participate in TIF-funded projects. development, of each charter school acknowledges the concerns raised by Specifically, the commenter stated that included in a group application. the commenter, we decline to address we should allow schools and LEAs Because the charter-school LEA is not the release of individual educator’s located in economically depressed administered by the LEA within whose evaluation data in this notice. The counties (i.e., counties identified by the boundaries the charter school is located, release of this type of data is governed U.S. Department of Commerce as having an applicant need not, in these cases, by State or local law and policies. We a per-capita personal income below the provide a description of the HCMS (or believe that directing grantees to release national average, below the State other features) of that LEA beyond what or withhold this type of information average, and ranked in the bottom the applicant considers to be useful in would constitute inappropriate Federal twenty-five percent of counties within explaining the project proposal. involvement in State and local matters. the State in per-capita income) to be Regarding the details of application Changes: None. eligible for TIF funding. The commenter submission, which are not addressed in Comment: One commenter stated that, by broadening eligibility in this notice, we encourage interested recommended that, in funding TIF this way, TIF could better assist high- applicants to read the TIF Application applications, we give priority to need areas where Federal aid Package for the 2012 competition. applicant capacity over the quality of participation is low due to the cultural Changes: None. project design or project scope, and stigma associated with public fund those applicants that can assistance. Comment: One commenter suggested demonstrate the capacity to implement Discussion: While we acknowledge that the proposed priorities, high-quality project design or project the concerns raised by the commenter, requirements, definitions, and selection scope above applicants without this we decline to change the definition of criteria include provisions that exceed capacity. high-need school or otherwise change the scope of the TIF authorizing Discussion: While the Department the eligibility requirements. Congress language. Another commenter observed fully agrees that TIF should support has authorized and appropriated that the focus of TIF has moved from applicants that have the capacity to funding for the TIF program specifically performance-based compensation to implement an effective and sustainable to support the development and use of developing human management systems PBCS, we also believe it is important to PBCSs in high-need schools, as opposed based on educator evaluation. encourage applicants to propose high- to schools in high-need regions, and has Discussion: Congress has authorized quality project designs. For example, designated all LEAs that have those and appropriated funding for the TIF under Selection Criterion (a)(2)(iii)—A schools as entities eligible to receive TIF program specifically to support the Coherent and Comprehensive Human funds. development and use of effective and Capital Management System, we will Changes: None. sustainable PBCSs. As we explain in the evaluate applications based on the Comment: Two commenters requested NPP and this notice, the purpose of extent to which the participating LEAs that we clarify the implications of the these priorities, requirements, have experience using evaluation data priorities for nonprofit applicants. definitions, and selection criteria is to to inform human capital decision- Specifically, the commenters asked (1) ensure that TIF-funded PBCSs will be making. Further, under Selection whether, for the purposes of Priority 1— successful and sustained mechanisms Criterion (b)(3)—Rigorous, Valid, and An LEA-Wide HCMS With Educator that contribute to continual Reliable Educator Evaluation Systems, Evaluation Systems at the Center, improvement of instruction, to increases we will award points to those Priority 2—LEA-Wide Educator in teacher and principal effectiveness applications that demonstrate that the Evaluation Systems Based, in and, ultimately, to improvements in participating LEAs have made Significant Part, on Student Growth, student achievement in high-need substantial progress in developing a and Priority 5—An Educator Salary schools. To accomplish these goals, we high-quality plan for completing Structure Based on Effectiveness, have designed the priorities, multiple teacher and principal nonprofit applicants partnering with requirements, definitions, and selection observations. Lastly, we have devoted charter schools that are considered criteria to ensure that TIF grantees use all of Selection Criterion (e)—Project LEAs under State law (charter-school high-quality LEA-wide evaluation and Management to project management, LEAs) are required to describe and support systems that identify effective and will give points to applicants that propose reforms for the LEAs in which educators in order to improve have carefully considered issues such as the charter school partners reside; (2) instruction by informing performance- staff and timeline for implementation. whether nonprofit applicants may based compensation and other key Further, we do not designate in this provide a table or chart to summarize human capital decisions. notice the point values for these each LEA partner’s HCMS in order to Changes: None.

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Comment: One commenter requested meaningful evidence of regular teacher LEAs to carefully consider how school that we allow STEM specialty schools to observations. and classroom discipline will be participate in TIF projects, even if they Discussion: The Department agrees incorporated into evaluation and are located in LEAs that are not engaged that the training of principals may be educator support systems, including in system-wide compensation reforms. one approach for ensuring high-quality, professional development. Discussion: In years when we reliable observations, but declines to Changes: None. designate Priority 1—An LEA-Wide prescribe that this method be used by all HCMS With Educator Evaluation grantees. While some LEAs may select Priority 1—An LEA-Wide Human Systems at the Center and Priority 2— principals to be the observers for teacher Capital Management System (HCMS) LEA-Wide Educator Evaluation Systems observations, it is also likely that other With Educator Evaluation Systems at Based, in Significant Part, on Student LEAs will assign that responsibility to the Center Growth as absolute, all applicants must external observers, or to those peers Comment: One commenter implement LEA-wide HCMSs and LEA- taking on career ladder positions. In recommended that we require wide evaluation systems. If the STEM either case, applicants should carefully applicants to involve the curriculum specialty schools are charter-school consider the implications of their and instructional staff of the LEA in the LEAs, then they may satisfy Priority 1 proposal for observation quality and management, design, and and Priority 2 by implementing school- sustainability; applicants will receive implementation of the PBCS. wide HCMSs and evaluation systems. additional points for their proposed Discussion: The Department agrees However, if the STEM specialty schools project based, under Selection Criterion that these central office staff are are not themselves LEAs, they may not (b)(3)—Rigorous, Valid, and Reliable essential to the development of a well- participate in the TIF project unless the Educator Evaluation Systems, on designed and well-implemented HCMS. LEA of which they are a part whether they have made substantial The knowledge and expertise needed to participates in the project. Because we progress in developing a high-quality design and implement an LEA’s HCMS believe that LEA-wide HCMSs and plan for conducting teacher and will come from many individuals educator evaluation systems are critical principal observations. within the central office, including for the sustainability and success of TIF- Changes: None. those responsible for curriculum and Comment: A few commenters supported PBCSs, we decline to create instruction. However, the Department suggested that we require grantees to an exception for single schools that, believes each LEA should be free to collect and report the discipline whether they are specialty schools or identify the central office staff who will not, are not themselves LEAs so that indicators included in the Department’s Civil Rights Data Collection, and require be best able to design and implement they may participate in TIF projects in whatever HCMS changes may be years we designate either Priority 1 or them to take measures to improve their performance as measured by those necessary. Given the variation in Priority 2 as absolute. organizational structure among LEAs Further, given the commenter’s indicators. Two commenters encouraged throughout the country, we have reference to system-wide compensation the Department to promote equity in determined that individual LEAs—not reform, we wish to clarify that it is not schools by requiring applicants to the Department—should identify the our intent to require applicants to monitor school discipline indicators implement an LEA-wide PBCS. Under and use that data to guide professional appropriate personnel for this task. Requirement 1—Performance Based development. Changes: None. Compensation for Teachers, Principals, Discussion: The Department fully Comment: One commenter and Other Personnel and Requirement agrees that schools should monitor recommended that we require TIF 6—Use of TIF Funds To Support the student outcome data—including projects to have HCMSs that provide a PBCS, applicants must implement a discipline indicators—and use those minimum level of compensation for PBCS, but may only use TIF funds to data to inform improvement efforts. new teachers and paraprofessionals and provide additional compensation to Starting with the 2011–2012 school a minimum rate of increase in educators in high-need schools year, the Department will conduct a compensation based on their years of identified in the application in response Civil Rights Data Collection every two service. to Requirement 3—Documentation of years that includes every school district Discussion: To attract high-quality High-Need Schools. in the Nation where data for any one candidates into teaching and to retain Changes: None. school year are collected and reported effective educators in the profession Comment: One commenter the subsequent year. As the discipline (and, in particular, in high-need recommended that we encourage indicators included in the Civil Rights schools), the Department believes that applicants to propose evaluation Data Collection will be provided to the compensation for educators must be systems that use consistent and public, disaggregated by LEA and by competitive with other professions sustainable observation methods school, we find it unnecessary and requiring a similar level of skill and implemented by school leadership. burdensome to require TIF applicants to educational attainment. Even so, According to the commenter, the formal duplicate their reporting for the compensation at the local level will vary training of principals, including their purposes of this program. While we depending on the cost of living, the certification and testing, is necessary for encourage applicants to monitor school labor market, and other factors unique developing and sustaining an effective discipline indicators and develop to that area. LEAs must consider these teaching force, and will ensure that appropriate human capital strategies to local factors when determining the judgments about the quality of teachers’ address this important area and thereby levels of compensation that will attract practice are valid and reliable for use in promote equity and improve practice in and retain the best and brightest to the various human capital decisions. To their high-need schools, we do not agree teaching profession. Moreover, the embed this approach into TIF projects, that the Department should mandate the Nation does not have a single labor the commenter recommended that we specific additional factors that LEAs market for educators. Not only will encourage applicants to construct include in their educator evaluation there be different geographic labor evaluation systems that measure systems. Thus, we decline to make the markets, but there may be (and arguably principal effectiveness using, in part, suggested changes, but we encourage should be) different labor markets by

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content area, as evidenced by shortages Changes: We have added a Note to provisions regarding professional in particular subjects. Requirement 2 that clarifies the development that are in Priority 1—An Further, we do not believe it is relationship between existing Federal, LEA-Wide Human Capital Management consistent with TIF’s statutorily-defined State, and local law and collective System (HCMS) With Educator purpose—supporting performance- bargaining agreements and similar Evaluation Systems at the Center, and based compensation—to require that agreements between employees and that we require applicants to address applicants provide educators a specified employers, and the priorities, individual professional development, salary or a specified rate of salary requirements, and definitions school or team improvement, and increase based on years of service. established in this notice. program implementation as part of their Congress authorized TIF to assist LEAs Comment: One commenter advised proposed professional development in developing and implementing PBCSs the Department to use the TIF program systems. and, through this final notice, the to make large grant awards to entities Discussion: To meet Priority 1, Department recognizes that TIF- with fully-designed HCMSs. The applicants must propose a timeline for supported PBCSs should align with a commenter stated that fully-designed implementing an HCMS such that broader HCMS if they are to be HCMSs (i.e., those systems that bring applicants use evaluation information to successful and sustainable. We believe the full range of personnel decisions inform the design and delivery of that HCMSs are likely, over time, to into alignment with a vision of performance-based compensation by no offer competitive salaries when they are instructional improvement) are a better later than the third year of the project designed to attract and retain effective investment than are separate smaller period. Further, as professional teachers consistent with Priority 1—An grants focusing on separate, siloed development is one component of an LEA-Wide Human Capital Management components of an HCMS. HCMS, an applicant may choose to System (HCMS) With Educator Discussion: The Department believes describe in its response to Priority 1 Evaluation Systems at the Center. that a well-designed and well- how it will use evaluation information implemented HCMS will be the best Changes: None. to inform professional development, mechanism to support a successful and whether professional development is or Comment: One commenter sustainable PBCS, which is the will be part of its strategy for attracting recommended that we add language to statutorily defined purpose of the TIF and retaining effective teachers, and the NFP to clarify that the rights, program. For this reason, we have how professional development fits into remedies, and procedures, including designed Priority 1 to support State and the LEAs vision of instructional due process rights, afforded school or LEA efforts to strengthen LEAs’ HCMSs. improvement. school district employees under existing Although we believe that every LEA Further, Selection Criterion (c) Federal, State, or local laws supersede already has a system in place for making applies to an LEA’s professional any and all provisions established in hiring and related personnel decisions development plan for educators in the this notice, and that, in instances where (that is, an HCMS), we know that some high-need schools that are part of a TIF- a conflict exists, non-compliance with systems are less coherent or funded PBCS. Under Selection Criterion the TIF final priorities, requirements, comprehensive than others. (c)(1), reviewers will specifically definitions, and selection criteria will LEA needs may vary with respect to evaluate the extent to which the not result in grant termination. aligning the HCMS with the LEA’s proposed plan will use disaggregated Discussion: The Department agrees instructional vision and building into information from the educator that it should clarify the relationship the HCMS human capital decisions that evaluation systems ‘‘to identify the between other Federal, State, and local are based on ratings generated by professional development needs of laws and the priorities, requirements, educators evaluation systems consistent individual educators and schools.’’ definitions, and selection criteria that with Priority 2—LEA-wide Educator Thus, we expect applicants to design govern the TIF program. We have added Evaluation Systems Based, in professional development plans that a ‘‘Note’’ to Requirement 2— Significant Part, on Student Growth. strive for the improvement of individual Involvement and Support of Teachers This being said, the Department wants educators, teams, and the broader and Principals to inform applicants of to support reform-oriented LEAs school community, but we leave the their responsibilities if they were to wherever they may be on the continuum ultimate decision on how to do that to become a grantee under the TIF as they work to align their HCMS with applicants. Reviewers will evaluate and program. The note states that it is the their vision of instructional provide points under Selection Criterion responsibility of the grantee to ensure improvement. Although we do not (c)(1) based on the quality and that, in observing the rights, remedies, require applicants to include the full comprehensiveness of applicant’s and procedures afforded school or range of personnel decisions in their proposals in this area. For this reason, school district employees under proposed HCMS revisions, under we find it unnecessary to change Federal, State, or local laws (including Selection Criterion (a)—A Coherent and Priority 1 because the commenter’s applicable regulations or court orders) Comprehensive Human Capital concern is adequately addressed or under terms of collective bargaining Management System reviewers will through the selection criteria. agreements, memoranda of consider the quality and Changes: None. understanding, or other agreements comprehensiveness of each Comment: None. between those employees and their participating LEA’s HCMS as described Discussion: Upon further review of employers, the grantee also remains in in the application, including the range Priority 1, we have determined that it compliance with the priorities, of human capital decisions for which may be helpful to clarify the restrictions requirements, and definitions included the applicant proposes to factor in on the use TIF funds to support the in this notice. It also states that in the educator effectiveness and the weight components of the HCMS (which event that a grantee is unable to comply given to educator effectiveness when includes the PBCS, professional with these priorities, requirements, and human capital decisions are made. development, and LEA systems and definitions, the Department may take Changes: None. strategies to recruit, retain, and reward appropriate enforcement action (e.g., Comment: One commenter effective educators). In response to discontinue support for the project). recommended that we clarify the Priority 1, an applicant must describe

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each LEA’s HCMS as it exists currently Priority 2—LEA-Wide Educator that those rubrics align with current, and with any planned modifications as Evaluation Systems Based, in evidence-based evaluation models and well as the human capital strategies Significant Part, on Student Growth encourage more meaningful each LEA uses or will use to ensure that Comment: One commenter noted that performance-based differentiation. Discussion: We proposed and are now high-need schools are able to attract and its LEA currently operates two different finalizing the requirement in Priority 2 retain effective educators. Applicants evaluation systems, each of which meets that applicants include a minimum of will be evaluated on the adequacy of the the needs of schools using different three performance levels in their financial and nonfinancial strategies instructional approaches. The evaluation rubrics because we want to and incentives, including the PBCS, in commenter asked that, when align this program with the its HCMS for attracting effective establishing final priorities, requirements of other Department educators to work in high-need schools requirements, and definitions for the initiatives, including the ESEA and retaining them in those schools. TIF program, we take this into Therefore, in providing a description of Flexibility initiative. States that receive consideration. approval for ESEA flexibility will be the HCMS in response to Priority 1, an Discussion: By requiring an LEA-wide developing, piloting, and implementing applicant may describe a range of approach to evaluation reform under educator evaluation systems that systems, strategies, and incentives of Priority 2—LEA-Wide Educator which some may be supported by TIF differentiate performance using at least Evaluation Systems Based, in three levels of performance. The funds while others may not. We have Significant Part, on Student Growth, we added the ‘‘Note’’ following Priority 1 to Department believes that an evaluation seek to prevent situations in which a rubric that uses three performance clarify that TIF funds may not support TIF-funded PBCS relies upon levels provides for adequate all of the systems, strategies, and evaluations that are separate from the differentiation of educator effectiveness incentives that an applicant describes in official educator evaluation systems the and is a significant improvement over response to these and other elements of LEA uses to provide overall evaluation the binary rating system that continues the priorities. Whether a cost can be ratings. With these ancillary to be used by many LEAs. We note that supported with TIF funds is governed evaluations, an LEA might evaluate the nothing in this notice precludes an by the rules set forth in Requirement 6— educators in high-need schools once to applicant from proposing an evaluation Use of TIF Funds To Support the PBCS. determine eligibility for TIF-funded rubric that uses more than three Upon review of the Priority, we also performance-based compensation and performance levels. have determined that paragraph (4) of then again under separate criteria that Changes: None. Priority 1 may not be clear that even if the LEA uses for purposes of the Comment: One commenter an applicant does not need to make educators’ overall performance ratings. recommended that we require TIF- modifications to an existing LEA-wide Consequently, when TIF funding ends, funded evaluation systems to assess HCMS, the applicant will need to the ancillary evaluations that had been educator performance twice annually. describe a timeline for using evaluation supported by a TIF-funded project, and The commenter stated that this would information to inform the design and which are needed to inform the PBCS, provide educators a baseline delivery of professional development an are also likely to end. To avoid this performance rating, identify early on award of performance-based scenario and increase the sustainability areas in need of improvement, and compensation beginning in identified and impact of the TIF-funded PBCS, allow educators greater opportunity to high-need schools no later than the Priority 2 requires applicants to use the demonstrate professional growth. third year of the grant’s project period. evaluation systems described in Discussion: While the Department We have revised the beginning phrase of response to the priority to both inform agrees with the commenter that the paragraph to clarify that all TIF-funded performance-based educators can benefit from regular and applicants must include such a timeline compensation and assign overall frequent feedback on their performance, regardless of whether it has evaluation ratings to every educator in we do not believe it is necessary to modification to make in its LEA-wide an LEA. Further, these overall require summative evaluations twice HCMS to meet other provisions of the evaluation ratings will provide an LEA annually. Rather, we expect that the with a single index—one for teachers Priority. various educator evaluation systems and one for principals—with which to that applicants describe in their TIF Changes: We have added a Note to identify effective educators and, using applications in response to Priority 2 Priority 1 stating that TIF funds can be their TIF-funded PBCS, recruit them to will present many different models for used to support the costs of the systems high-need schools. securing multiple opportunities for and strategies described under Priority Nothing in this notice precludes an performance feedback. For example, 1—An LEA-Wide HCMS With Educator applicant from using its own funds to under paragraph (2)(ii) of Priority 2, Evaluation Systems at the Center, implement an evaluation system in applicants are required to incorporate Priority 3—Improving Student addition to the systems described in two or more observations during each Achievement in Science, Technology, response to Priority 2 if, for example, evaluation period. The observations, Engineering, and Mathematics (STEM), the applicant finds that such an which will occur multiple times each and Priority 5—An Educator Salary additional system would meet the needs year, should generate abundant Structure Based on Effectiveness only to of unique schools or groups of feedback. Moreover, applicants that find the extent allowed under Requirement educators. However, those evaluations it desirable to evaluate educators twice 6—Use of TIF Funds To Support the may not be supported by TIF funds, annually will have the flexibility to PBCS. We also have revised paragraph used to inform the TIF-funded PBCS, or propose to do so. (4) to clarify that all applicants must used to assign overall evaluation ratings. Changes: None. submit the timeline regardless of Changes: None. Comment: A few commenters whether modifications are needed to an Comment: Three commenters urged recommended that we revise Priority existing HCMS to ensure that it us to require applicants to propose, as 2—LEA-Wide Educator Evaluation comports with paragraphs (1), (2), and part of their evaluation rubrics, a Systems Based, in Significant Part, on (3) of the Priority. minimum of four performance levels so Student Growth to require

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comprehensive evaluations that Department believes that it is important are not required under section consider multiple factors without to preserve for applicants the flexibility 1111(b)(3) of the ESEA, aligns with the specifically requiring that the to identify the additional factors that use of the term in other Department evaluations consider student growth in will be included in their educator initiatives, including the recent ESEA significant part. One commenter evaluation systems. Providing Flexibility initiative. It allows recommended that we require applicants this discretion will help applicants to choose a student growth applicants to consider several factors— ensure that the systems they establish model that best meets their needs in teacher portfolios, contributions to the are responsive to local needs, developing rigorous, valid, and reliable school community, parent feedback, and circumstances, and perspectives. For educator evaluation systems. professionalism—to improve the this reason, we decline to change Applications will then be evaluated, in predictive power of their evaluation paragraph (2)(iii) of Priority 2 to part, under Selection Criterion tools and strengthen the utility of prescribe the additional factors which (b)(2)(ii)—Rigorous, Valid, and Reliable performance assessment for identifying applicants must include in their Educator Evaluation Systems on the areas of weakness. A few commenters evaluation systems. Further, we decline evidence they present, including current recommended that the Department to change Priority 2 to indicate the research and best practices, to support require consideration of student and relative weight that observation should the LEA’s choice of student growth parent surveys, and one commenter carry, in relation to other factors such as models. In their response to this cited research concluding that student student growth, in the determination of selection criterion, we expect that surveys, in particular, correlate as educator effectiveness. applicants will provide a full strongly with student learning as Changes: None. justification for their selection, which classroom observation. Two Comment: One commenter may include such considerations as commenters advised the Department to recommended that we revise Priority 2 those described by the commenter (e.g., emphasize the use of observation over to require TIF-funded evaluation how the model will help students student growth for educator evaluation. systems to include monthly achieve proficiency, how it will help One commenter advised the Department observations. teachers to better understand their to require applicants to embed Discussion: While paragraph (2)(ii) of performance) or include other evidence classroom management, conflict Priority 2 requires at least two to support their choice of student prevention and resolution, and cultural observations during each evaluation growth models. For these reasons, we competence into their teacher period, the Department believes that find it unnecessary to further require evaluation rubrics. applicants should retain the discretion applicants to clarify their definition of Discussion: As we have noted to decide whether a greater number of student growth. throughout this notice, Congress has observations should occur. We believe Changes: None. required that any TIF-funded PBCS that a minimum of two observations per Comment: One commenter consider gains in student achievement year would be sufficient if the recommended that we require LEA (i.e., student growth), and this requires observations and resulting feedback are applicants to use widely-accepted that student growth be part of an high-quality: two comprehensive formalized assessments to determine educator evaluation system that would observations by a well-prepared student growth. determine which educators are eligible evaluator may provide a more accurate Discussion: The Department believes for performance-based compensation. picture of teacher performance than five that the definition of student growth in We have stated previously, in cursory classroom visits. For this this notice is adequate to ensure the use announcing priorities, requirements, reason, the Department declines to make of valid and reliable assessments and definitions, and selection criteria for the the change recommended by the other methods that the definition FY 2010 TIF competition (75 FR 28713, commenter. However, we note that includes for measuring student growth. 28718–19), that given the wide range of under Priority 2, applicants have the Under this definition, applicants must possible factors that might be included flexibility to propose additional use, at minimum, the formal in an LEA’s teacher evaluation system observations beyond two per year, if assessments required under section as well as the fact that improving they choose. 1111(b)(3) of the ESEA to measure student achievement is the underlying Changes: None. student growth for certain grades and purpose of the TIF program, we believe Comment: One commenter subjects. For grades and subjects not it is both appropriate and consistent recommended that we require covered by section 1111(b)(3) of the with the statute to ensure that TIF applicants to clarify how they will ESEA, the definition requires that the grantees give student growth significant define student growth for the purpose of alternative measures of student learning weight among the factors included in educator evaluation. This commenter and performance, such as student these systems. recommended that we require results on assessments, be rigorous and As the comments indicate, there are applicants to describe how their comparable across schools. Beyond many points of view, as well as many definition of student growth will help these requirements, we do not agree that valid practices, that may guide an LEA’s students achieve proficiency, how their these measures of student growth need decision regarding the factors to include definition will help teachers to better to be based on assessments that, as the in its educator evaluation systems. understand their performance, and how commenter proposes, are widely Given the statutory requirement that the definition will identify educator accepted and formalized. grantees also base their educator strengths. Further, the Department has evaluations on multiple annual Discussion: The Department defines determined that TIF grantees need the observations, among other factors, the ‘‘student growth’’ as the change in flexibility to develop or adopt new LEA, in consultation with school staff student achievement for an individual assessments for certain grades and and with the support of any teacher’s student between two or more points in subjects. Where new assessment tools union that represents teachers in time. This definition, and the various may be needed to measure student collective bargaining, is in the best options it provides for determining achievement, applicants should position to determine the relative ‘‘student achievement’’ for grades and consider LEA capacity, costs, and the weight to give these other factors. The subjects for which assessments are and project timeline when determining

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whether to adopt readily available, makes evaluation based on classroom- percent of an educator’s evaluation, and valid, and reliable instruments, rather level student growth inappropriate. For two commenters requested that we not than develop new assessment tools. these teachers’ overall evaluation specify a minimum percentage or For these reasons, we decline to ratings, LEAs are free to identify another otherwise restrict the applicant’s require applicants to use widely- level of student growth measurement. flexibility to determine significance. accepted formalized assessments to Lastly, the Department does not agree Discussion: LEAs have wide determine student growth. with the commenter that an evaluation discretion in determining how to weight Changes: None. system that treats all classroom teachers or otherwise combine the evaluation Comment: Several commenters the same, evaluating each, in significant factors to derive an overall evaluation expressed concerns regarding the use of part, on the basis of the achievement of rating under Priority 2. However, a key classroom-level growth for measuring the students they teach, will create requirement relates to the student teacher performance, and recommended conflict among teachers who teach growth component of the evaluation that we allow LEAs to determine the different subjects. Conflict is more likely rubric: The overall evaluation rating level of student growth, be it classroom- among teachers when only some must be based, in significant part, on an level, school-level, or grade-level teachers are evaluated using the educator’s student growth outcomes. growth, appropriate for assessing achievement of students in their While understanding the commenters’ educators. These commenters were classrooms, while others are not. At the desire that student growth comprise 50 particularly concerned that, under same time, the Department agrees with percent of an educator’s evaluation, the Priority 2—LEA-Wide Educator the commenters that the assessments Department has decided that such a Evaluation Systems Based, in used to determine student growth must, requirement would be too inflexible, Significant Part, on Student Growth, for all grades and subjects, be rigorous and so has not established a specific applicants must use classroom-level and comparable across the schools in minimum weight for the student growth student growth for the evaluation of the LEA, and this is reflected in our component of the overall rating. This is, teachers with regular instructional definition of student growth. By in part, because there are reasonable responsibilities. The commenters requiring that all measures of student ways to derive an overall rating that asserted that this provision might growth that an LEA uses be rigorous and considers student growth, in significant encourage the evaluation of teachers in comparable across the LEA’s schools, part, without relying on a weighting non-tested grades and subjects based on we believe that the definition levels the approach. For example, an LEA may their students’ achievement in other playing field sufficiently between subjects or based on new assessments decide that student growth outcomes teachers of tested grades and subjects, below an established minimum will not yet tested for reliability, on the one hand, and teachers of non- standardization, or validity. always generate an overall rating of tested grades and subjects, on the other. ineffective—regardless of the other Additionally, one commenter stated that To help ensure that applicants focus measures included in the evaluation requiring classroom-level growth in their applications on this issue, we have rubric. Generally, however, an overall each subject and grade could create added language to Selection Criterion rating is not based, in significant part, conflict between teachers in tested (b)(2)(ii)—Rigorous, Valid, and Reliable on student growth if the growth measure subjects and grades, who are evaluated Educator Evaluation Systems to make has little effect on the overall rating or using accepted assessment instruments, clear that reviewers will examine the will affect an overall rating in only the and those in non-tested grades and rigor and comparability of assessment most extreme circumstances. Under subjects, who might be evaluated using tools an applicant proposes to use. instruments that have not been Changes: The Department has added paragraphs (b)(5)(i) and (b)(6)(i) of validated. language to Selection Criterion (b)(2)(ii) Selection Criterion—Rigorous, Valid, Discussion: The Department believes so that, in considering the extent to and Reliable Educator Evaluation that the improved educator evaluation which an applicant has provided Systems, peer reviewers will consider systems implemented under Priority 2— evidence, such as current research and whether an applicant bases its overall which depend upon generating an best practices, supporting the LEA’s evaluation rating on student growth, in evaluation rating that is an appropriate choice of student growth models, the significant part. In response to this reflection of each educator’s Department also considers how those criterion, applicants should carefully effectiveness—are a central component models demonstrate the rigor and explain why they believe that the of the reforms upon which the PBCS comparability of assessment tools used. student growth component of their and other human capital decisions must Comment: Several commenters proposed overall rating calculation is be based. In order to produce educator advised us to further clarify paragraph significant. evaluation data that are reflective of an (3) of Priority 2—LEA-Wide Educator While the Department appreciates the educator’s effectiveness, at least for Evaluation Systems Based, in concerns of commenters who argued for teachers with regular classroom Significant Part, on Student Growth, giving greater weight to student growth responsibilities for whom paragraph which requires that applications include in TIF-funded PBCSs, we continue to (2)(ii) of Priority 2 requires a plan for how the evaluation systems require that this factor be given consideration of classroom-level growth, will generate an overall evaluation ‘‘significant’’ weight in this final notice. applicants must base the student growth rating that is based, in significant part, In light of the statutory requirement that component of the evaluation rating on on student growth. The commenters grantees also base their evaluations on the growth of the students in a teacher’s requested that we set clear expectations multiple annual observations among own classroom, rather than the growth regarding how student growth must be other factors, we believe that the LEA, of students in other classrooms. incorporated into the proposed in consultation with school staff and Therefore, for the vast majority of evaluation rubric, and otherwise with the support of any teacher’s union teachers, student growth must be promote the strong use of student that represents teachers in collective determined at the classroom level. growth for differentiating educators bargaining, is in the best position to Further, the Department recognizes based on their performance. Of these determine the relative weight to give that some teachers do not have regular commenters, three requested that we these other factors. instructional responsibilities, which require that student growth comprise 50 Changes: None.

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Comment: One commenter requested educator to be effective overall, taking responsibilities, student growth must that we clarify in the priority that, for into consideration his or her be, rather than must include, classroom- charter-school consortia applicants, the performance on all measures. Each LEA level growth. proposed evaluation system may extend will determine the degree or weight to Priority 3—Improving Student to the entire consortium, rather than to be given to each measure in the Achievement in Science, Technology, the entire LEA in which the charter evaluation systems, bearing in mind that Engineering, and Mathematics (STEM) schools are located. the overall rating must be based, in Discussion: In a consortium of charter significant part, on student growth. Comment: Several commenters schools in which each charter school is The Department believes that recommended that we not conduct a considered an LEA in its State, each of requiring payments made under the separate TIF Competition with a Focus the charter schools listed in the PBCS to be based upon an overall rating on STEM. The commenters expressed partnership application is an LEA for of effective or higher will ensure that concern that encouraging applicants to purposes of Federal grants. Accordingly, grantees will provide compensation to single out educators in specific fields, each charter school in the consortium educators eligible for performance-based such as the STEM fields, for additional could implement its own evaluation compensation in high-need schools compensation could cause system because doing so would result in based on an evaluation of effectiveness misalignment in components of an implementing an LEA-wide evaluation that considers both practice and student LEA’s HCMS. system. Alternatively, all charter outcome data. While the Department Discussion: In the past several schools in the consortium (or group believes that compensating educators months, Federal agencies and private application) may choose to implement with very low scores on key aspects of partners have launched national efforts, the same evaluation system in all the evaluation rubric may send the such as Educate to Innovate, to increase charter schools in the consortium. In wrong message as to who should be the number of effective STEM teachers either case, the application would meet compensated based on performance, in the Nation over the next few years. the LEA-wide requirement of Priority 2. Priority 2 leaves to applicants to While we appreciate the commenters’ For the purposes of this notice, the determine how an LEA should ensure concerns, the Department believes it is evaluation system in a charter school that its overall evaluation ratings for necessary to help States and LEAs that is considered an LEA has nothing educators are based, in significant part, attract and retain highly-effective STEM to do with the evaluation system of the on student growth. Doing so provides teachers to schools, particularly high- LEA in which the charter school is great flexibility to an applicant on how need schools where students are in located (which might not be a part of the to design its evaluation systems and greatest need of academic improvement. charter schools’ TIF application). PBCS while ensuring that an educator’s As TIF provides applicants a unique Changes: None. impact on student achievement is opportunity to rethink LEA-wide human Comment: Two commenters central to the overall determination. capital management and revamp expressed concern regarding the Changes: None. educator compensation, we believe it is background statement provided for Comment: None. appropriate to use the TIF program to proposed Priority 2—LEA-Wide Discussion: Upon further encourage applicants to leverage this Educator Evaluation Systems Based, in consideration of the language in opportunity to recruit and develop top- Significant Part, on Student Growth in proposed paragraph 2(ii) of Priority 2, quality STEM educators, and thereby the NPP. Specifically, the commenters we believe that a slight wording change improve STEM instruction. On the other questioned the statement that our intent would better reflect what we intended hand, it is not our intent to prohibit, or behind this priority is to ensure that this provision to mean. We intended even discourage, applicants proposing educators eligible for performance-based this paragraph to require applicants to to meet Priority 3—Improving Student compensation meet minimum determine overall evaluation ratings for Achievement in Science, Technology, performance thresholds on all measures teachers with regular instructional Engineering, and Mathematics (STEM) included in an evaluation rubric. One of responsibilities based, in part, on from expanding performance-based the commenters stated that interpreting student growth at the classroom level. compensation to non-STEM educators, Priority 2 to require that educators meet To ensure that this component of principals, or other personnel. minimum thresholds on all measures in Priority 2 is sufficiently clear, we have Changes: None. an evaluation rubric would be too revised this paragraph to state that, for Comment: Several commenters restrictive for applicants that propose to the purpose of determining overall requested that we designate Priority 3— use many performance measures in their evaluation ratings for those teachers, Improving Student Achievement in evaluation rubric. Another commenter student growth ‘‘must be’’, rather than Science, Technology, Engineering, and suggested that such an interpretation ‘‘must include’’, the growth of the Mathematics (STEM) as either would require that any one of an students included in an individual competitive preference or invitational, educator’s performance measures teacher’s own classroom. We note that but not absolute. override any of the others, rather than as long as applicants are using Discussion: As mentioned elsewhere permit applicants to propose evaluation classroom-level growth to determine the in this notice, to preserve future systems that distribute weight more overall evaluation ratings for teachers flexibility to designate priorities as evenly across the various performance with regular instructional absolute, competitive preference, or measures. responsibilities to meet paragraph (2)(ii) invitational, as needed to serve the Discussion: In the background of the priority, they may also consider intended goals of any TIF competition, discussion of proposed Priority 2 whole-school growth as an additional we will not designate in this notice contained in the NPP, we did not intend factor under paragraph (2)(iii) of the whether the final priorities are absolute, to suggest that, to consider an educator priority. competitive preference, or invitational. effective, LEAs must find the educator’s Changes: The Department has revised Rather, we will make these designations performance to be satisfactory on each paragraph (2)(ii) of Priority 2 to clarify in the notice inviting applications for of the performance measures the LEA that, for the purpose of determining any competition in which we use one or adopts for its evaluation systems. overall evaluation ratings for teachers more of the priorities. While we have Rather, the LEA must determine the with regular instructional considered the commenter’s suggestions

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in designing the TIF 2012 competition, Changes: None. located in an LEA that previously we have determined that, consistent Comment: None. participated in a TIF-supported project, with our announcement in the NPP, we Discussion: The Department but that had excluded its charter schools will designate Priority 3 as an absolute determined that a minor edit to Priority from participation in the previous TIF priority in the NIA and hold a separate 3 will improve its alignment with project. TIF with a Focus on STEM competition Selection Criterion (g)—Comprehensive Discussion: As mentioned elsewhere in 2012. Approach to Improving STEM in this notice, to preserve future Changes: None. Instruction and avoid duplicating flexibility to designate priorities as Comment: One commenter elements required under Priority 2— absolute, competitive preference, or recommended replacing Priority 3— LEA-Wide Educator Evaluation Systems invitational, as needed to serve the Improving Student Achievement in Based, in Significant Part, on Student intended goals of any TIF competition, Science, Technology, Engineering, and Growth. As applicants must describe we do not designate in this notice Mathematics (STEM) with a priority their evaluation systems under Priority whether priorities are absolute, focused on providing additional pay to 2, we do not believe it necessary to ask competitive preference, or invitational. all teachers in high-need schools. The that applicants provide a separate We will make these designations in the commenter opposed providing description of how they propose to notice inviting applications for any TIF educators in a single field additional evaluate STEM teachers. Instead, we competition that uses one or more of compensation, because doing so would will require applicants to describe how these priorities. create inherently unequal pay systems each participating LEA will identify and Priority 4 applies to all applicants, and communicate to educators that develop the unique competencies that including SEAs, LEAs, and nonprofit some fields are more important than characterize effective STEM teachers. applicants. To the extent that a regional others. In making this statement, the We will assess this description, in part, educational service center or the like is commenter pointed to a number of hard- under Selection Criterion (g)(2), which ‘‘a public board of education or other to-staff fields, such as special education, makes reference to STEM-specific public authority legally constituted bilingual education, and specialized professional development opportunities, within a State ... to perform a service instructional support, that are not but not evaluation. function for, public elementary schools addressed by our proposed priorities, Changes: We have removed the term or secondary schools in a city, county, requirements, definitions, and selection ‘‘evaluate’’ from paragraph (2) of township, school district, or other criteria. Priority 3. political subdivision of a State, or of or Discussion: We do not prescribe, in Priority 4—New Applicants to the for a combination of school districts or either Priority 3 or Requirement 1— Teacher Incentive Fund (Now New or counties that is recognized in a State as Performance-Based Compensation for Rural Applicants to the Teacher an administrative agency for its public Teachers, Principals, and Other Incentive Fund) elementary schools or secondary Personnel, the proportion of educators schools’’ it is an LEA (See section in high-need schools that must be Comment: Several commenters 9101(23)(A) of the ESEA (20 U.S.C. served by the applicant’s proposed requested that we remove Priority 4 § 7801(26)(A))). Therefore, since a PBCS. Rather, we provide applicants the from the final priorities, or that we regional educational service center or flexibility to propose a PBCS that best designate it as either competitive like agency that meets this definition is serves the human capital needs of its preference or invitational, in order to an LEA, it may apply for a TIF grant and high-need schools, has the full support allow previous TIF cohorts to apply for Priority 4 applies to it. of the school community, and considers a new grant. Many commenters that are In years we designate Priority 4 as the feasibility of sustaining the PBCS recipients of a TIF grant expressed absolute, applicants would not be past the five-year project period. While concern that they would not be able to eligible to receive TIF funds unless they we acknowledge that applicants sustain their current programming provide an assurance, which the proposing to meet Priority 3 may choose without the financial support that TIF Department accepts, that each LEA to be to limit opportunities for performance- provides. Many commenters stated that, served by the project has not previously based compensation to STEM educators, if Priority 4 were an absolute priority, it participated in a TIF-supported project. applicants would not be prohibited from would slow momentum in those LEAs In years we designate Priority 4 as a expanding performance-based that have already demonstrated their competitive preference priority, compensation to other educators, willingness to pursue challenging applicants that fail to meet this priority principals, or other personnel, such as reform efforts. Many commenters also would be eligible to receive TIF funds; those in the types of hard-to-staff fields noted that, given the provisions in the however, applicants that meet this mentioned by the commenter. TIF NPP, the next competition would priority would receive additional points Accordingly, applicants with shortages help previously served LEAs to bring or preference over an application of in the areas of special education and their projects to scale. Further, one comparable merit that did not meet this bilingual education would have the commenter recommended that we allow priority. Regardless of whether this option to use TIF funds on performance- SEAs and Regional Education Service priority is designated competitive based compensation to attract new staff Agencies to apply as lead applicants, preference or absolute, SEAs and in those fields to their high-need even if an entity were the lead applicant nonprofit organization applicants that schools. While we recognize the merits under a previous TIF project, as SEAs have previously participated in a TIF- of the commenter’s recommendation, and Regional Education Service supported project may meet this and agree that comprehensive Agencies have the capacity to serve a priority, and, if they so choose, apply as compensation systems would be ideal, diverse group of LEAs. The commenter a lead applicant, if they propose to serve we find it more important to offer noted that it was unclear whether these only LEAs that have not previously applicants the flexibility to tailor their entities would be ineligible to apply for participated in a TIF-supported project. proposals to local need. We decline to a new TIF grant under Priority 4. One In years when we designate this priority replace Priority 3 with a priority commenter asked whether a nonprofit as absolute, LEA applicants (which may focused on providing competitive pay to applicant could meet Priority 4 if it include regional education service all teachers in high-need schools. proposed to serve charter schools agency applicants) may meet this

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priority, and, if they so choose, apply as applicants that might otherwise seek to evaluation system has been tested for a lead applicant, only if they have not include only one or some rural LEAs in reliability, and cautioned that linking previously participated in a TIF- the project. We also have modified the educator salary to what could be flawed supported project. In years when we title of the priority accordingly. evaluation ratings may work against designate this priority as competitive Changes: The Department has TIF’s goal of teacher retention. A fifth preference, LEA applicants that have modified Priority 4 to give priority to commenter expressed concern that it previously participated in a TIF- applicants that agree to serve either only would be difficult to convince teachers supported project may apply as a lead LEAs that have not previously in schools not participating in the TIF applicant, but may not meet this priority participated in a TIF-supported project, grant to support changes to their salary or receive competitive preference. or only rural LEAs. schedule, and such an effort would Further, group applications that include Priority 5—An Educator Salary require significant outreach at the outset charter schools in the application may Structure Based on Effectiveness of the project. meet this priority only if each charter Discussion: As mentioned elsewhere school included is either: an LEA that Comment: Several commenters in this notice, to preserve future has not previously participated in a TIF- requested that we revise Priority 5 to flexibility to designate priorities as supported project, or, if not an LEA, is allow applicants to choose between absolute, competitive preference, or located in an LEA that has not performance-based compensation invitational, as needed to serve the goals previously participated in a TIF- systems that either award bonuses or are of the TIF program, we do not designate supported project. implemented through a salary structure, in this notice whether priorities are With this priority, it is our intent to rather than require that all applicants absolute, competitive preference, or direct TIF resources to those LEAs that revise their salary schedules. While two invitational. We will make these are ready to pursue compensation commenters expressed support for our designations in the notice inviting reform, but have not yet benefited from effort to encourage salary schedule applications for any TIF competition the Federal financial assistance reform so that salary is linked to that uses one or more of these priorities. available under TIF to help support performance—one because adjustments In response to the first comment, in effective and sustained PBCSs and to the salary schedule would influence years when Priority 5 is designated as a related areas of reform. We agree that base pay, increase career earnings, and competitive preference or invitational this year’s notice inviting applications factor into pension calculations—they priority, applicants would be able to would provide current and former TIF and other commenters expressed choose whether their proposed PBCS grantees a unique opportunity to bring concern about making Priority 5 would be implemented through a salary their projects to scale, and, in years this absolute (i.e., requiring that applicants structure based on educator priority is designated either competitive meet it). One commenter disagreed with effectiveness or through a bonus or invitational, we would encourage these views, and suggested that we structure. In years when Priority 5 is entities to submit an application. At the require applicants to include a plan to designated as an absolute priority, same time, the Department notes that, transition from performance-based applicants would be required to consistent with the TIF authorizing compensation to a salary structure based implement their proposed PBCS statute, all current and former TIF on effectiveness. Many other through a salary structure based on grantees were expected to sustain their commenters expressed concern that educator effectiveness. PBCSs past the conclusion of the project such a requirement may lead to negative The Department agrees with many of period. As they have already consequences. For example, a the commenters about the practical implemented a PBCS with Federal TIF commenter stated that such a concerns that applicants will need to funding, these grantees have already requirement might dissuade LEAs from address in responding to Priority 5. We had an opportunity to convince applying for a TIF grant because teacher also recognize the challenges local laws stakeholders of the merits of salary schedules are often subject to and collective bargaining can pose to performance-based compensation and collective bargaining, and many LEAs such a change within an LEA. However, thereby solicit the local investment would be unwilling to commit to a the Department believes one way to needed for sustainability and scale up. scope of work that has not been increase the likelihood that a PBCS In order to provide new LEAs with the negotiated. A second commenter cited continues after the end of the grant same opportunity, we decline to remove one State’s laws regarding performance- period, and is sustained through local Priority 4 from this notice. based compensation—which requires budget fluctuations, is to award Changes: None. the implementation of performance- additional compensation not as Comment: One commenter based compensation, but allows incentive awards or bonuses, but rather recommended that we amend proposed compensation to take the form of a as part of an educator’s salary. In Priority 4—New Applicants to the bonus or new salary—and argued that response to the challenges raised by Teacher Incentive Fund to give greater flexibility for TIF applicants commenters, the Department has preference to rural applicants because would enable high-need schools to modified the priority by removing the these applicants are often not able to satisfy both State law and the priorities, language that would have required successfully compete for Federal requirements, definitions, and selection implementation of the salary structure discretionary grants. criteria included in this notice. A third beginning no later than the third year of Discussion: We agree that this notice commenter expressed concern that the project period. Instead, to meet this should help the Department ensure requiring all applicants to revise their priority, applicants must describe a geographic diversity among TIF salary schedules would reduce overall timeline for implementing a salary grantees, and have modified Priority 4 TIF participation, as it would create structure based on effectiveness as well to give priority to applicants that significant resource and stakeholder as the extent to which the proposed propose to serve only rural LEAs. We challenges. implementation is feasible, given that have limited the rural component of the A fourth commenter advised against implementation will depend upon priority to applicants that propose to promoting any tie between newly stakeholder support and applicable serve only rural LEAs in order to ensure developed evaluation systems and LEA-level policies. We believe that that the priority is not undermined by educator salary before the new these changes will provide LEAs with

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the flexibility needed for this type of agreed upon by the organization until the beginning of the next school work. As a result of these changes, LEAs representing educators. Further, the year. addressing Priority 5 will not be held to commenter recommended that the Discussion: The Department believes a uniform deadline. Rather, proposed priority stipulate that the process for a salary structure based on effectiveness timelines will be based on local creating any new salary structure be will not negatively impact the goal of contexts. Thus, we believe Priority 5 transparent to ensure that performance- attracting and retaining effective will not dissuade LEAs from applying to based compensation is attainable and educators in high-need schools. In fact, the program. that teachers clearly understand the we believe the opposite is likely to The flexibility when Priority 5 is criteria for earning additional occur where the proposed salary designated as a competitive preference compensation. structure results in a highly sustainable or invitational priority addresses a Discussion: With regard to the request PBCS that may be more resistant to commenter’s concern regarding an that we require that elements of an budgetary fluctuations at the local level applicant’s ability to meet both State applicant’s proposal, including a than other PBCS designs. The concerns law and the priorities, requirements, proposal for a salary schedule based on expressed by commenters generally do definitions, and selection criteria educator effectiveness, be collectively not consider the flexibility an applicant included in the notice as well as one bargained, we decline to make this has in developing a salary structure commenter’s concern that requiring change because we believe it would based on educator effectiveness. We applicants to revise their salary constitute inappropriate Federal disagree with the commenters who schedules would reduce overall TIF involvement in local matters. With expressed concern that a salary participation by creating significant regard to the comment about the structure based on effectiveness does resource and stakeholder challenges. transparency of the new salary not give educators the same incentive to Our revision to the timeline requirement structure, we believe that a transparent remain in high-need schools or to will allow an applicant to ensure a high- and inclusive process is essential for a maintain high levels of performance. quality implementation of the change of this scope and scale to be Salary structures may contain many evaluation system and the subsequent successful. To this end, applicants must performance-based incentives, linkages to the salary structure. In provide evidence that educator including potential for greater base-pay addition, we believe that a sustained involvement in the design of the PBCS progression at high-need schools or performance-based salary structure will and the educator evaluation systems has career-ladder position opportunities enhance an LEA’s ability to retain been extensive and will continue to be only at high-need schools. Although an effective teachers. extensive during the grant period. Thus, LEA may not lower the salary of an We understand the commenter’s we do not believe that any change is educator moving from a high-need concern about the Department’s making required at this time. school to a low-need school, in this Priority 5 an absolute priority and will Changes: None. instance, the move would result in take that concern into consideration in Comment: A few commenters lower income potential. The concern any decision to designate the Priority as expressed concerns regarding the that a salary structure based on absolute, a competitive preference, or impact of a salary schedule, based on effectiveness does not provide an invitational. Finally, we agree with the effectiveness, on educator behaviors and incentive for educators to maintain commenter who expressed concern that TIF’s objective of attracting and high-levels of performance or is change of this scope would require retaining effective educators. The problematic in addressing lags in significant outreach at the outset of the commenters argued that salary performance does not acknowledge that project. The Department believes that structures based on effectiveness, the typical salary structure provides significant outreach is required for all compared with performance-based educators with an annual increase in types of performance-based bonuses, do not give educators the same income based on years of service with compensation reform and has designed incentive to remain in high-need no consideration given to effectiveness. this notice so that applicants must schools or to maintain high-levels of Lastly, the potential delay between include evidence that educators in each performance. Moreover, the commenters performance and receipt of participating LEA have been involved, noted that, under a salary schedule performance-based compensation (often and will continue to be involved, in the based on effectiveness, if an effective due to delays in an LEA’s receipt of development and implementation of the teacher decides to move from a high- student growth data) is no greater for a PBCS and evaluation systems described need school to a school that is not high- PBCS delivered through a salary in the application. need, it may prove difficult to reduce structure than through a bonus system. Changes: We have revised Priority 5 the teacher’s salary. Similarly, if an In both instances, applicants need to to require that each applicant describe, effective teacher earns a higher salary consider how best to address this as part of its plan for implementing the due to performance, but lags in challenge in designing an effective PBCS, a timeline for implementing the performance at a later point, it may PBCS. proposed LEA salary structure as well as again be difficult, and potentially Changes: None. a rationale for why the applicant views impermissible, to remove the Comment: Two commenters provided its implementation plan as feasible. We performance increment from the feedback regarding the impact of a also have removed language from the teacher’s salary. Further, one salary schedule, based on effectiveness, priority that would have required commenter noted that there would be a on sustainability and educator implementation of the salary structure significant delay between performance evaluation. One commenter speculated beginning no later than the third year of and compensation, which would that, to sustain a new salary structure the project period. potentially weaken the performance during tough budget times, Comment: One commenter incentive. This is because, quite often, municipalities might raise the criteria recommended that we add language to student growth does not become for a determination of effectiveness so Priority 5—An Educator Salary available until six months following the that fewer teachers would be awarded a Structure Based on Effectiveness to end of the school year. Once the data is higher salary. Under this scenario, require that the proposed salary received, it is unlikely that an LEA according to the commenter, bonuses structure be collectively bargained or would be able to change base salary would become less accessible and this,

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in turn, could undermine educator salary structure based on effectiveness only the discrete portion of the collaboration and result in declines in in the high-need schools listed in educator’s salary increase that would be educator base pay. A second commenter response to paragraph (a) of based on the educator’s overall expressed concern that salary schedules, Requirement 3—Documentation of evaluation rating. By revising this based on effectiveness, would be harder High-Need Schools. priority to require applicants to describe to sustain than bonuses, because Comment: None. the extent to which each LEA will use adjustments to base pay would increase Discussion: Upon further review, the these evaluation ratings to determine pension obligations while bonuses Department has determined that educator salaries, the Department would not. paragraph (b) of proposed Priority 5— intends that applicants should describe Discussion: The Department believes An Educator Salary Structure Based on only the part of the salary structure that a new salary structure will enhance Effectiveness—which required constitutes the increase attributable to sustainability and secure educator applicants to describe how TIF funds the PBCS. performance-based compensation past used for salary increases would be used Changes: We have revised Priority 5 the duration of the TIF grant. We further only to support the additional cost of by removing the requirement that an believe that a PBCS delivered through a the revised salaries for educators in applicant propose ‘‘a comprehensive salary structure based on effectiveness high-need schools—might erroneously revision’’ of an existing salary schedule. will be more likely to be maintained suggest to applicants that TIF funds may In paragraph (b) of the priority, we have during periods of budget fluctuations as not be used to support the entire cost of added language requiring the applicant compared with a bonus structure that is salary for effective educators who accept to describe the extent to which each ancillary to an LEA’s official salary career ladder positions. Under LEA will use the overall rating of the structure and, therefore, easily Requirement 6—Use of TIF Funds to evaluation to determine educator discontinued during such periods. As Support the PBCS, applicants may use salaries. one commenter speculated, during TIF funds to support the entire cost of Requirement 1—Performance-Based tough budget times an LEA could salary, up to 1 full-time equivalent Compensation for Teachers, Principals, respond by attempting to reduce position for every 12 teachers who are and Other Personnel educator salaries. We do not believe this not in a career ladder position. As would be either unique to a salary paragraph (b) of proposed Priority 5 Comment: A few commenters stated structure based on effectiveness or more seemed to conflict with Requirement 6, that applicants should not be allowed to likely to occur under such a salary we have revised Priority 5 to require propose PBCSs based solely on Design structure. Further, we believe that a applicants to describe how each LEA Model 2; instead these commenters salary structure based on effectiveness will use TIF funds to support the salary urged us to require all applicants to may impact pension obligations, but, as structure based on effectiveness in the implement a PBCS consistent with previously discussed, a typical salary high-need schools. Design Model 1. Three commenters schedule provides for annual increases Changes: We have removed from this expressed concern that Requirement 1— to an educator’s salary with no priority language that would have Performance-Based Compensation for consideration for educator effectiveness. required applicants to describe how TIF Teachers, Principals, and Other These increases have the same impact funds used for salary increases would be Personnel is inconsistent with the TIF on pension obligations as increases that used only to support the additional cost authorizing statute, which requires both do take effectiveness into consideration. of the revised salaries. Further, we have performance-based compensation and Changes: None. revised paragraph (b) of Priority 5 to incentives to encourage educators to Comment: One commenter requested require applicants to describe in their take on additional responsibilities and clarification of whether Priority 5—An proposal how each LEA will use TIF leadership roles. According to these Educator Salary Structure Based on funds to support the salary structure commenters, each applicant must offer Effectiveness pertained only to schools based on effectiveness in the high-need both components, and the Department supported under the TIF grant or to all schools listed in response to paragraph may not allow applicants to select only schools in the LEA. (a) of Requirement 3—Documentation of one for their TIF project. Further, a Discussion: Under Priority 5, High-Need Schools. number of commenters expressed applicants will have the discretion to Comment: None. concern that Design Model 2 would choose how broadly to implement the Discussion: Upon further review, the support a very limited concept of comprehensive salary schedule based Department has determined that performance-based compensation, and on effectiveness. At a minimum, the additional revisions are necessary to stated that any TIF-funded PBCS should salary schedule discussed in Priority 5 improve Priority 5—An Educator Salary provide all educators, not simply must include educators participating in Structure Based on Effectiveness. First, teacher leaders or principals, an the PBCS in the high-need schools after publishing the NPP, we realized opportunity to receive additional identified in response to paragraph (a) that some LEAs may already have salary compensation. of Requirement 3—Documentation of structures that meet or are close to Discussion: We disagree that Design High-Need Schools. We have revised satisfying the requirements of this Model 2 is inconsistent with the TIF paragraph (b) of Priority 5 to make this priority. For this reason, we have authorizing statute. As the commenters clear. The LEA may choose to extend removed the language requiring a stated, the TIF statute requires the the salary schedule to cover additional comprehensive revision of an existing Department to make funding available teachers or additional schools but salary schedule. Second, the to applicants to support their should carefully consider the Department recognizes that there might implementation of PBCSs for educators restrictions on the use of TIF funds be instances where only a discrete in high-need schools and offer educators described in Requirement 6—Use of TIF portion of an educator’s salary increase incentives to take on additional Funds to Support the PBCS. would be based on the educator’s leadership roles and responsibilities. Changes: We have revised paragraph overall evaluation rating and that the More specifically, the FY 2012 TIF (b) of Priority 5 to require applicants to remaining increase would be based on authorizing statute (Pub. L. 112–74) describe in their proposal how each other factors. In such a case, an provides that TIF-supported PBCSs LEA will use TIF funds to support the applicant may use TIF funds to pay for must consider gains in student

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academic achievement as well as recommended that we allow applicants providing performance-based classroom evaluations conducted to provide separate performance-based compensation outside of the proposed multiple times during each school year incentives to educators based on the TIF-funded PBCS, provided that non- among other factors and provide outcome of separate measures of TIF funds are used for performance- educators with incentives to take on performance, such as classroom based compensation. additional responsibilities and observation and student growth. One of Changes: None. leadership roles. the commenters explained that Comment: One commenter Under Design Model 1, applicants performance-based compensation recommended that we fund additional would establish a PBCS under which systems offering separate awards for compensation for teachers and they provide performance-based student performance and practice are principals who take on additional compensation to effective educators and attractive to teachers, who can easily responsibilities and leadership roles, would provide those educators with recognize the relationship between their even if they have not shown a record of incentives to take on additional work and the resulting award. classroom effectiveness. This leadership roles and responsibilities. Additionally, one commenter commenter noted that teacher attrition Under Design Model 2, applicants recommended that we allow applicants and turnover has created challenges for would include additional leadership to propose whole-school awards, based many schools, and claimed that roles and responsibilities in the PBCS, on school-level performance, as part of additional compensation for additional and then provide performance-based their PBCS. The commenter expressed responsibilities should enable schools to compensation to teachers who have concerns about the effects of individual compensate teachers for their work, received an overall evaluation rating of performance-based compensation on encourage them to advance based on effective or higher and who accept a turnaround schools, which could erode their interests and accomplishments, career ladder position as both another collegiality in fragile schools. The and provide them with opportunities for factor in the PBCS and an additional commenter asserted that whole-school leadership while maintaining the role or responsibility. Consistent with awards may help to promote a shared teacher’s instructional responsibilities. Priority 2 of this notice, applicants sense of ownership of reform amongst A second commenter expressed support under either design model must propose educators in high-need schools. for the requirement limiting awards for to use student growth, multiple Discussion: We acknowledge the taking on additional responsibilities to observations, and other factors in the potential merits of either providing those who have demonstrated determination of each educator’s overall whole-school compensation based on effectiveness, but noted that evaluation rating, which aligns with the school-level performance or rewarding implementation of career ladder statutory requirements governing educators based on separate measures of programs may be delayed in areas where educator eligibility for performance- performance, as these approaches may the evaluation system has not yet been based compensation. We also note in prove effective for encouraging specific developed. response to the last comment that an practices or behaviors. However, we Discussion: The purpose of the TIF applicant has the option to offer believe that the effectiveness and program is to support LEA performance-based compensation to sustainability of a PBCS, and its impact implementation of an effective and other personnel who work in identified on increasing student achievement in sustainable PBCS that rewards high-need schools under either design high-need schools is much greater if TIF educators determined to be effective model. dollars reward only individual based on student growth, multiple Further, it is our intent to give an LEA educators determined to be effective observations, and other factors, and to flexibility to use its best judgment in based on a comprehensive evaluation provide educators with incentives to designing a PBCS that will increase that uses multiple factors, student take on additional responsibilities and educator effectiveness and student growth, and observations of educator leadership roles. The Department achievement. While a PBCS under practice. We believe that, by using believes that, to best meet this purpose, Design Model 2 could make a smaller rigorous evaluations to identify the all payments made to educators under a number of teachers eligible for highest quality educators, and then PBCS, including those provided to take performance-based compensation than a rewarding these educators with on additional responsibilities and PBCS under Design Model 1, as some opportunities for advancement and leadership roles, must be made to commenters suggest, a PBCS under additional compensation, high-need educators determined to be effective. Design Model 2 might still produce schools will be in the best position to Requirement 2, like all of the priorities, greater gains in teacher effectiveness attract and retain the highly-skilled requirements, definitions, and selection and student achievement. Achieving workforce needed to help students criteria contained in this notice are these important goals does not depend achieve. Further, we recognize the designed to do this. solely on the number of teachers eligible importance of communicating to As mentioned elsewhere in this for compensation. It depends on a educators the nuances of any proposed notice, it is the Department’s belief that, variety of factors, including the quality PBCS or evaluation system so that by using rigorous evaluations to identify of the evaluation system and the job- educators may recognize the the highest quality educators, and, embedded professional development the relationship between their efforts and subsequently, rewarding these educators career ladder teachers provide. For these accomplishments and the resulting with opportunities for advancement and reasons, we decline to remove Design rewards and other consequences. We additional compensation, high-need Model 2 from this notice. note, however, that this challenge is schools will be in the best position to Changes: None. present regardless of the design of the attract and retain the highly-skilled Comment: A few commenters proposed reform. workforce needed to help students in recommended that we allow applicants Accordingly, we decline to revise those schools to achieve. While grantees to award forms of compensation not Requirement 1 to allow for either whole- may wish to supplement their TIF described in Requirement 1— school compensation or compensation project, using local dollars, so that Performance-Based Compensation for based on separate measures for educators who have not been Teachers, Principals, and Other performance. That said, nothing in this determined to be effective under the Personnel. A few commenters notice prohibits applicants from LEA’s evaluation system are rewarded

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for accepting additional responsibilities, Through this restriction, we intend to Changes: None. they may do so, but they may only use reserve this design model for LEAs that Comment: One commenter TIF dollars for educators who have been wish to move ahead with an recommended that we require teachers determined to be effective. improvement strategy that relies heavily and principals who receive We fully recognize that the on career ladder positions and the performance-based compensation to development of the required PBCSs and comprehensive career ladder program share their effective practices with other related evaluation systems as well as the that these positions require to be educators. procedures for directing TIF funds to successful in improving teacher practice Discussion: We fully agree that purposes permitted under this notice and student achievement. We expect effective teachers and principals should will require applicants to consider that an LEA opting for this design model be provided opportunities to carefully their timelines for will develop a comprehensive plan demonstrate instructional leadership implementing the evaluation systems through which career ladder teachers and share their practices with peers. We and PBCSs. Moreover, some applicants, will get the extensive training and believe that this is adequately addressed if awarded a TIF grant, will need time release time they need to make a by Requirement 1—Performance-Based to implement their PBCSs and significant difference in teacher practice Compensation for Teachers, Principals, evaluation systems, and meet the other in each participating high-need school. and Other Personnel, which requires requirements and priorities we have By contrast, the other types of applicants proposing to implement established for this program. We believe additional responsibilities and Design Model 1 to offer effective that the timelines we have established leadership roles contemplated under the teachers, and, at their discretion, provide sufficient time for grantees to definition of that term in the NIA may effective principals, opportunities to do so. Under Priority 2, applicants must be very limited in their scope and effect. take on additional responsibilities and propose a plan to implement their To ensure that any career ladder leadership roles. Similarly, Design evaluations for at least a subset of program proposed under Design Model Model 2 requires applicants to offer teachers or schools in the LEA by the 2 is both comprehensive and coherent, career ladder positions to effective beginning of the second project year. we decline to expand the model to teachers and allows applicants to offer Under paragraph (4) of Priority 1, allow applicants to provide additional additional compensation to principals, applicants must use evaluation compensation to effective teachers who at their discretion, for taking on information to inform the design and take on other types of additional additional responsibilities and delivery of professional development responsibilities and leadership roles. leadership roles. We have defined and the award of performance Changes: None. additional responsibilities and compensation under their proposed Comment: One commenter opposed leadership roles, including career PBCS (to educators in high-need schools limitations restricting applicants to only ladder positions, to mean meaningful, listed in response to paragraph (a) of one of the two PBCS design models, and school-based opportunities to Requirement 3—Documentation of recommended that we revise strengthen instruction and instructional High-Need Schools) by the third project Requirement 1 to allow applicants to leadership in a systemic way. While this year. While applicants may, at their include both components in their PBCS certainly may include responsibilities to discretion, begin implementation proposal. share effective practices with other sooner, we have established these Discussion: We fully agree that educators, we believe that how to define timelines as base requirements to help applicants should have the flexibility to these responsibilities, too, is best left to applicants that need time to put their implement any of the allowable PBCS each participating LEA and those with PBCSs and evaluation systems in place, components included in Design Models whom it collaborates on the components for reasons such as those noted by one 1 and 2. We view Design Model 1 as of its PBCS. of the commenters. inclusive of all of the components of Changes: None. Comment: One commenter opposed Design Model 2, because career ladder Comment: One commenter our restricting applicants from offering positions, which are specifically recommended that we revise the effective educators an opportunity to referenced in Design Model 2, are proposed priorities, requirements, receive additional compensation for included in the definition of additional definitions, and selection criteria to taking on career ladder positions and for responsibilities and leadership roles. provide applicants with the flexibility to taking on additional responsibilities and For this reason, we do not believe any propose collaboratively developed leadership roles. change is necessary to respond to this compensation systems that integrate the Discussion: Applicants proposing to comment. following salary schedule principles: (a) implement Design Model 1 must Changes: None. A professional growth salary schedule provide, as part of their PBCS, Comment: One commenter suggested must start with a professional-level additional compensation to effective that we encourage applicants to offer salary of at least $40,000 for all teachers (and, at their discretion, career ladder positions to a team of beginning teachers entering the effective principals) who voluntarily educators, rather than individuals, to classroom, a minimum of $25,000 for accept additional responsibilities and build team collaboration among education support professionals, and leadership roles. To satisfy Design instructional leadership and thereby educators should be able to reach their Model 1, therefore, applicants must increase the impact of their work. ‘‘maximum’’ salary on the schedule compensate effective teachers (and, at Discussion: The Department within 10 years; (b) a professional their discretion, effective principals) for recognizes the merit of offering career growth salary schedule must be co- taking on additional responsibilities and ladder positions to a team of educators, created or designed with educators leadership roles, which may include rather than doing so to selected through collective bargaining or, where career ladder positions. However, under individuals, and encourages applicants there is no collective bargaining, agreed Design Model 2, applicants are required to consider the benefits of this to by the organization representing to offer effective teachers career ladder approach. However, we believe that educators, and it must allow for the positions and do not have the option of applicants should have the flexibility to strictly voluntary participation of offering other types of additional tailor their proposed PBCSs to best meet current educators; (c) a professional responsibilities and leadership roles. the needs of their high-need schools. growth salary schedule must contain

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several levels through which educator involved, in the development and educators in participating LEAs in the progress is based on prescribed skills, implementation of the PBCS and design of the PBCS, as well as in the knowledge, licenses, certifications, evaluation systems described in the design of the underlying evaluation degrees, responsibilities, and application. Under Selection Criterion systems that inform the PBCS. Further, accomplishments; (d) each level of any (d)—Involvement of Educators, we will under this requirement, an applicant professional growth salary schedule evaluate applicants based on the quality must include in its application evidence should build on previous ones and of educator involvement in the demonstrating how educators in the contain salary increases for specified development of those same PBCSs and participating LEAs will be involved in time periods within each level; (e) evaluation systems. an ongoing basis with the generally, early levels on any Further, the Department has reviewed implementation of the PBCS and professional growth salary schedule the salary schedule principles submitted evaluation systems. Beyond educator should be linked to the probationary by the commenter, and has determined involvement, an applicant must also period of employment, advancement that the final priorities, requirements, provide a description of the extent to through the initial levels should be definitions, and selection criteria allow which the applicant has educator required, and movement through later applicants to develop compensation support for the proposed PBCS and levels may be voluntary; (f) a systems in ways that align with these evaluation systems. professional growth salary schedule principles. Given that applicants will In requiring this description in the must be linked to a professional have the flexibility requested by the application, it is not our intent to development system that has been commenters, we do not believe a change require that applicants demonstrate in locally developed with educators and is necessary. their applications that they have already tied to high-quality professional Changes: None. secured a specific level of educator development standards; (g) any Comment: None. support; rather, under Selection professional growth salary schedule Discussion: Upon further review, we Criterion (d), we will evaluate should clearly define what will be have determined that the ‘‘Note’’ in applications based on the strength of measured and how those measurements Requirement 1 should be amended to educator support that those applications will be conducted; (h) any professional provide additional context for the charts describe in response to Requirement 2— growth salary schedule should be tied to provided in that Requirement. These Involvement and Support of Teachers locally developed, research-based, charts illustrate how applicants can and Principals. Applications that reflect professional learning opportunities design their PBCS to meet the definition low levels of educator support can be targeted to the needs of the students; (i) of a PBCS. expected to receive a lower score under Changes: We have amended the note a professional growth salary schedule Selection Criterion (d). Conversely, in Requirement 1 to provide an must have adequate and sustainable applications that reflect higher levels of applicant with additional context for the sources of funding, both initially and on educator support can be expected to charts found in the Requirement. an ongoing basis, and grants should be receive a higher score. Requirement 2—Involvement and Changes: None. viewed only as temporary resources that Comment: Three commenters Support of Teachers and Principals are not capable of sustaining a career recommended that we prescribe the salary program; (j) any professional Comment: One commenter appeared forms of evidence that an applicant growth salary schedule should be to interpret Priority 1 as requiring LEAs must submit, and the processes in accessible to everyone who is eligible, to make significant modifications to which applicants must engage, to meet without quotas; (k) any professional their HCMSs, and expressed concern Requirement 2—Involvement and growth salary schedule should be that applicants would not be able to Support of Teachers and Principals. locally bargained or, where there is no secure educator support for systems still One commenter suggested that we collective bargaining, agreed to with the in their development stages. While the require applicants to conduct an organization representing the educators, commenter acknowledged that educator educator vote, as such a process would flexible and structured for the contexts support was important, the commenter be a definitive method for assessing in which they will be implemented; (l) stated that this support is only one of whether there is sufficient support to a professional growth salary schedule multiple factors that should be implement a PBCS. A second must be understandable to educators considered in the decision to implement commenter recommended that we and the public; (m) an annual a PBCS. require applicants to collaborate with assessment of any professional growth Discussion: The TIF authorizing effective teachers and a diverse cross- salary schedule should be undertaken to statute requires that each TIF grantee section of stakeholders in designing and determine its effectiveness in improving demonstrate that its PBCS has been implementing the PBCS. According to educator salaries, teaching quality, and developed with the input of teachers this commenter, involving these the recruitment and retention of high- and principals in the schools and LEAs stakeholders would help to create quality staff; and (n) all parties must to be served by the grant. Further, it is professional education communities agree on, and clarify, who is eligible to the Department’s belief that ongoing where top performers help to solve participate in a professional growth involvement by educators in the complex challenges. This commenter salary schedule. development and implementation of the also recommended that we provide Discussion: We believe that the PBCS and evaluation systems is critical strong guidelines for submitting letters proposed priorities, requirements, to the success and sustainability of the of support to ensure that these letters definitions, and selection criteria PBCS, and that educators are more are genuine and represent a significant encourage applicants to collaboratively likely to embrace these reforms if they portion of educators. A third commenter develop compensation systems. Under have had a role in developing and recommended that we require Requirement 2—Involvement and implementing them. Accordingly, we applicants to collaborate with Support of Teachers and Principals, we believe it is appropriate and consistent recognized educator representatives. require each applicant to provide with the statute to require each Discussion: While applicants must evidence that educators have been applicant to include in its application submit evidence of educator involved, and will continue to be evidence of the involvement of involvement to meet Requirement 2—

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Involvement and Support of Teachers This commenter also stated that, to Human Management Capital System and Principals, we do not believe it is ensure the highest return on the TIF (HMCS) to address the impact of local necessary or appropriate to prescribe the investment, we should not award funds policies on project feasibility. composition of educators that an to applicants when union policy would Changes: Under Priority 5—An applicant must include in the prohibit implementation of the PBCS or Educator Salary Structure Based on collaboration. We anticipate that some evaluation system. effectiveness, we have included new high-scoring applicants may engage in Discussion: As mentioned elsewhere language (in paragraph (c)) directing ongoing collaborative efforts where a in this notice and in the NPP, educator applicants to describe the feasibility of handful of effective teachers and involvement and support is critical to its proposed salary structure’s principals continuously work with the successful implementation and implementation, considering, in part, district officials to manage the design sustainability of any applicant’s applicable local policies. In addition, and implementation of the PBCS and proposed PBCS and evaluation systems. under Selection Criterion (a)(2)(iii)—A evaluations systems. Conversely, some For this reason, each applicant must Coherent and Comprehensive Human high-scoring applicants may seek less provide evidence of educator Capital Management System, we have substantive or formal involvement and involvement in the development and added language to allow the Secretary to input, but pursue feedback on a larger implementation of both components of consider LEA-level policies that might scale, and provide all educators in high- its project, and must describe the extent inhibit or facilitate modifications need schools listed in response to to which it has educator support for needed to use educator effectiveness as paragraph (a) of Requirement 3— both of these components. Further, a factor in human capital decisions Documentation of High-Need Schools under Selection Criterion (d)— when evaluating project feasibility. We with opportunities to provide feedback Involvement of Educators, applications have also added a Note to Requirement on the development and that demonstrate strong evidence of 2 to clarify that it is the responsibility implementation of the project. Thus, educator involvement and support can of the grantee to ensure that, in while the commenters’ be expected to receive more points than observing the rights, remedies, and recommendations regarding the form of those that do not. procedures afforded school or school collaboration are all reasonable and may With these requirements and selection district employees under Federal, State, be very appropriate for certain LEAs, we criteria, we believe it unnecessary to or local laws (including applicable do not accept any of them as procedures include the additional restriction, regulations or court orders) or under the Department should mandate for all recommended by the commenter, which terms of collective bargaining LEAs that would participate in a TIF would prohibit the involvement of LEAs agreements, memoranda of project. whose unions have policies prohibiting understanding, or other agreements Further, while evidence of educators’ implementation of the PBCS or between these employees and their support in the form of letters or other evaluation system. We hope that those employers, the grantee also remains in communications that endorse the unions would be willing to reconsider compliance with the priorities, specifics of the applicant’s proposal their positions and see the benefit of the requirements, and definitions included may make a stronger application for TIF reforms that we are proposing through in this notice. Further, this Note funds, the Department has chosen not to the priorities, requirements, definitions, clarifies that, in the event that a grantee require applicants to submit evidence of and selection criteria described in this is unable to comply with these educator support in their applications in notice. In addition, we have added a priorities, requirements, and definitions, order to satisfy Requirement 2. Rather, ‘‘Note’’ to Requirement 2 to clarify that the Department may take appropriate to meet this requirement, applicants it is the responsibility of the grantee to enforcement action (e.g., discontinue must provide a description of the extent ensure that, in observing the rights, support for the project). to which the applicant has educator remedies, and procedures afforded support for the proposed PBCS and school or school district employees Requirement 3—Documentation of educator evaluation systems. We will under Federal, State, or local laws High-Need Schools then evaluate the evidence provided to (including applicable regulations or We received no comments regarding support this description, under court orders) or under terms of Requirement 3. paragraph (2) of Selection Criterion collective bargaining agreements, Requirement 4—SEA and Other Group (d)—Involvement of Educators; memoranda of understanding, or other Applications applications that include strong agreements between these employees evidence of educator support can be and their employers, the grantee also Comment: One commenter asked expected to receive a greater number of remains in compliance with the whether an LEA that was part of a group points under paragraph (2) than priorities, requirements, and definitions application in a previous TIF project, applications that do not include this included in this notice. Further, this but not the lead applicant for that level of support. ‘‘Note’’ clarifies that if a grantee is project, is eligible to apply for TIF As the Department is letting unable to comply with these priorities, funding under the priorities, applicants decide how best to describe requirements, and definitions, the requirements, definitions, and selection educator support in their applications Department may take appropriate criteria in this notice. without requiring applicants to submit enforcement action (e.g., discontinue Discussion: Priority 4—New or Rural evidence of educator support in their support for the project). Applicants to the Teacher Incentive TIF applications, we decline to At the same time, the Department Fund and Requirement 7—Limitation on prescribe the methods an applicant may agrees that local policies, including Using TIF Funds in High-Need Schools use to submit evidence for the purposes union policies, may have a strong Served by Existing TIF Grants address of Selection Criterion (d)(2). impact on the feasibility of an eligibility for LEA applicants that Changes: None. applicant’s proposal. For this reason, we previously participated in a TIF- Comment: One commenter have revised both Priority 5—An supported project. As noted elsewhere recommended that we not allow Educator Salary Structure Based on in this notice, we designate whether a educator representation to influence effectiveness and Selection Criterion priority is absolute, competitive determinations of applicant eligibility. (a)—A Coherent and Comprehensive preference, or invitational in the notice

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inviting applications for a competition. Comment: One commenter is more likely to sustain a PBCS that is For competitions in which we designate recommended that we remove the embedded within a comprehensive Priority 4 as absolute, applicants would requirement that SEAs or other group HCMS. All TIF applications, whether not be eligible to receive TIF funds applicants must implement a full HCMS from individual LEAs or from groups of unless they provide an assurance, which when partnering with LEAs. According LEAs, SEAs, or nonprofit organizations, the Department accepts, that each LEA to the commenter, this change would must propose ways to ensure that the to be served by the project has not allow SEAs and other group applicants participating LEA(s) implement this previously participated in a TIF- to form partnerships with LEAs while responsibility, but how a group does supported project. In years when we also maintaining their flexibility to this is up to the group to decide. We, designate Priority 4 as a competitive apply for a different scope of work, such therefore, decline to make a change in preference, LEA applicants that fail to as a PBCS, educator evaluation system, the requirement based on this comment. provide this assurance would still be or salary structure overhaul. Changes: None. Discussion: We are not certain that we eligible to receive TIF funds although Requirement 5—Submitting an understand this comment fully. We ineligible to receive the additional Application for One Competition points available under the Priority. We believe that the commenter consider an LEA to have previously recommended that we not require SEAs Comment: None. Discussion: In reviewing proposed participated in a TIF-supported project or nonprofit organizations that apply as Requirement 5—Submitting an if it participated, or was included, in a part of group application to enter into Application for One Competition, under previous or current TIF grant. For an MOU with participating LEAs. It which all eligible applicants were example, an LEA has previously appears that the commenter believes prohibited from applying to both participated if a previous TIF that, in entering into such an MOU, competitions offered in any fiscal year, application that the Department funded SEAs and nonprofit organizations the Department has determined that this identified it as a recipient of services would thereby take on responsibility for the development of the LEAs’ HCMSs. restriction was overly broad. With this under a previous TIF competition—even restriction, our original intent was to if the funded project did not move into The commenter stated that, if we did not require SEAs or nonprofit encourage each applicant to develop full implementation, did not continue to one high-quality application that receive funding throughout the entire organizations to execute such an MOU, we would enable them to have a reflects the goals of the participating performance period, or the LEA for LEAs that will implement the new some reason did not directly benefit different scope of work, such as the PBCS, educator evaluation system, or evaluation systems, HCMS, and PBCS. from its participation in the project. Based on this rationale, we have now Similarly, we consider an LEA to have salary structure overhaul. It appears that the commenter determined that the restriction of one previously participated if the grantee misinterpreted the purpose of the MOU application per fiscal year need only added the LEA as a participant in the that group applicants would execute apply to LEAs. Further, the Department project after a TIF project’s initial under Requirement 4. Under paragraph has decided to rephrase this restriction funding. (1) the MOU would contain a to clarify that an LEA can participate in Where Priority 4 is designated as a commitment by each participating LEA only one application—an application in competitive preference, Requirement to implement the HCMS, including the the General TIF Competition or an 7—Limitation on Using TIF Funds in educator evaluation systems and the application in the TIF Competition with High-Need Schools Served by Existing PBCS, described in the application, and a Focus on STEM. This means that an TIF Grants will impact the permissible under paragraph (5) the MOU must LEA may be included in only one scope of an application, submitted contain a description of the activities application for one competition in any under a new TIF competition, that that each member of the group will fiscal year—whether it applies on its involves an LEA that is currently perform. Requirement 4 does not require own or with a group of LEAs, an SEA, participating in a TIF project at the that an SEA or nonprofit organization or a nonprofit organization. Because the beginning of the new grant’s project partner must take responsibility for LEA will be the primary actor in any period. Under Requirement 7, developing the HCMS. While the TIF project, the Department believes applicants must provide an assurance participating LEA(s) in the group or that this clarification is essential to that TIF funds received under the partnership application must do so, the avoid multiple awards for the same competition will only be used to responsibility of SEA or nonprofit project. implement the PBCS in high-need organization partners, if any, to assist The Department has also determined schools that are not served, as of the the LEA(s) would be determined by the that its goals can be achieved by beginning of the grant’s project period partners and described in the MOU. allowing an SEA to participate in a or as planned in the future, by an Under Priority 1—An LEA-wide group application for one competition existing TIF grant. Thus, if all the high- Human Capital Management System (General) and to participate in another need schools in an LEA are already (HCMS) with Educator Evaluation group application for the other being served—or will be served—by a Systems at the Center, and Requirement competition (TIF Competition with a current TIF grant as of the beginning of 1—Performance-Based Compensation Focus on STEM) so long as the LEAs in the grant’s project period, that LEA for Teachers, Principals, and Other each group application are different. To would not be eligible to receive funds or Personnel, each participating LEA must minimize the risk of double funding, an otherwise participate in a grant funded have a TIF-funded PBCS that is SEA can participate in only one under this competition. Current TIF implemented as part of an LEA-wide application for each competition. grantees with one or more high-need HCMS. As we have explained elsewhere Similarly, with the focus on not schools that are not served—and will in this notice, we believe that having multiple applications from any not be served—by the current grant as integrating a PBCS within an LEA’s one LEA, the Department has decided of the beginning of the grant’s project larger HCMS will help ensure that the not to restrict the number of group period would be eligible to receive PBCS is a successful mechanism for applications in which a nonprofit funds under this notice. improving classroom instruction and organization can participate. If two or Changes: None. educator effectiveness, and that an LEA more applications from the same entity

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(an SEA or a non-profit) are successful, instructional team meetings); however, will garner the support, including the Department will allocate any LEAs often do not have the funding to financial support, needed to sustain the overlapping costs to the appropriate support non-instructional positions. applicant’s PBCS once grant funds are grant during the post-award period. Therefore, without TIF support, most spent. Changes: The Department has revised LEAs could not fully release their For these reasons, we are revising Requirement 5— Submitting an master teachers from instructional Requirement 6 to allow applicants to Application for One Competition to responsibilities. One commenter shared use TIF funds for full-time salaries of stipulate the number of applications, that its LEA could not continue to teachers in career ladder positions in and the number of competitions, that support full-time master teacher participating high-need schools up to a any applicant may participate in during positions without TIF support, even ceiling. As suggested by several any fiscal year, with special rules for though the LEA currently relies on an commenters, this ceiling is expressed as LEAs, SEAs, and nonprofits. In new assortment of Federal, State, and local a ratio. We carefully considered the paragraph (a) of this requirement, we funds. Several commenters recommendations made by commenters state that an LEA may participate in recommended that we fund one salary based on current work in the field only one application in any fiscal year. augmentation and one salary for a given regarding individuals in career ladder In new paragraph (b) of this number of classroom teachers to allow positions, such as master teacher, requirement, we state that an SEA may for appropriate TIF support that meets mentor teacher, and others, taking on participate in a group application for the needs of small and large schools. additional roles and responsibilities. each of the competitions in any fiscal Specifically, a few commenters Our approach differs from commenters’ year. In new paragraph (c) of this recommended that we fund the full-time recommendations by providing one requirement, we state that a non-profit salary of one fully-released master ratio for both career ladder positions organization may participate in an teacher for every 15 classroom teachers and other additional roles and unlimited number of group applications and, additionally, the salary responsibilities to allow for the greatest for each competition in any fiscal year. augmentation for one mentor teacher, flexibility for project design to best meet Finally, to be consistent with the who would retain some instructional local needs. substantive changes to this requirement, responsibilities, for every eight regular In light of these recommendations, we we have changed the name of the classroom teachers. One commenter have determined that TIF funds may requirement to ‘‘Limitations on Multiple recommended a ratio of one master support the cost of up to one full-time Applications.’’ teacher for every 12 to 15 classroom equivalent position for every 12 teachers teachers and one mentor teacher for who are not in a career ladder position Requirement 6—Use of TIF Funds To every six to eight classroom teachers. in the high-need schools listed in Support the PBCS While acknowledging this approach response to paragraph (a) of Comment: In the NPP, we requested may cause concern for project Requirement 3—Documentation of comments regarding the use of TIF sustainability, one commenter argued High-Need Schools. This ratio falls funds to support the full amount of that financial support is critical for within the range of the commenters salary and salary augmentations ensuring that career ladder positions recommendations. Further, we believe associated with career ladder positions have a strong foundation for lasting that the ratio reflects an appropriate use and other additional responsibilities implementation. of TIF dollars for additional and leadership roles. We received Discussion: We greatly appreciate all responsibilities and leadership roles, several comments responding to this of the thoughtful comments provided on particularly in view of the flexibility request. Two commenters recommended this critical issue. After careful provided to grantees to configure the that we fund only salary augmentations, consideration of the recommendations various positions that TIF funds would and not full salaries, for career ladder provided, we have revised Requirement support. positions. One of those two commenters 6—Use of TIF Funds to Support the Thus, if there are 48 classroom noted that this approach would be more PBCS to limit the amount of TIF funds teachers in these participating high- consistent with our goal of enhancing available to support the costs of career need schools, TIF funds may be used to project sustainability. At the same time, ladder positions and other additional support the full-time salary of up to four the commenter recommended that we responsibilities and leadership roles for career ladder positions. This approach place no limit on salary augmentations teachers. provides applicants with significant associated with additional In setting this limit, we balance flexibility by enabling an LEA to design responsibilities and leadership roles several considerations, including the its program of additional because this compensation may be more desire to promote the sustainability of responsibilities and leadership roles effective for improving student projects funded by the TIF program using only full-time career ladder outcomes than compensation awarded while also promoting the routine positions, only part-time positions, or strictly on the basis of educator delivery of job-embedded professional some combination of both, as necessary performance. development in the high-need schools. to implement either PBCS Design Model Several commenters recommended While the availability of TIF support 1 or Design Model 2. Thus, in the that we support the cost of both salaries should not encourage applicants to preceding example, while TIF funds and salary augmentations, even in spite propose projects too large to sustain could support four full-time positions, of, according to one commenter, the beyond the grant’s project period, TIF the applicant could elect instead to use potential risks to project sustainability. funds should provide applicants, and the amount of available funds These commenters noted that master their stakeholders, an opportunity to differently. For example, rather than teachers have the greatest impact when realize the benefits of full-time, fully- supporting four full-time positions, the they are fully released from released career ladder positions for applicant could use TIF funds to instructional responsibilities to provide providing high-quality, job-embedded support two full-time positions and four full-time support to other teachers (e.g., professional development. By providing half-time positions. In the latter case, by analyzing data, conducting this opportunity, we believe TIF funds would support two salaries evaluations, coaching teachers Requirement 6 will increase the and four salary augmentations (i.e., an individually, and facilitating likelihood that career ladder positions additional amount of compensation over

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and above what the LEA would need, additional compensation and paragraph (a) of Requirement 3— otherwise pay the effective teacher). professional development for teachers, Documentation of High-Need Schools. Further, we intend for this limitation principals, and other personnel who TIF funds may also be used both to to apply to compensation for both career work in non-high-need schools must be support (1) the development and ladder positions and educators who take paid for with non-TIF funds. improvement of systems and tools that on additional responsibilities and Changes: None. are necessary to implement the PBCS leadership roles in accordance with the Comment: One commenter asked under the priorities, requirements, and priorities, requirements, and definitions whether TIF funds may be used for definitions contained in this notice, and in this notice. In the preceding example, direct services for students. Specifically, (2) the processes the LEA uses to act on an applicant using Design Model 1 may the commenter asked whether TIF funds the information generated by these use TIF-funds to support the costs of could be used to support a STEM systems and tools, for example, in two full-time positions, and four salary Academy for students run by effective determining to whom to award augmentations for effective teachers teachers taking on career ladder performance-based compensation. In who accept additional responsibilities positions or other additional keeping with these general principles, and leadership roles. As several responsibilities and leadership roles. TIF funds may be used for costs needed commenters noted, both full-time and Discussion: Under the priorities, to make proposed modifications to an part-time career ladder positions, and requirements, and definitions in this LEA’s HCMS that are needed to address similar activities, can play a critical role notice, TIF funds generally may not be Priority 1—An LEA-Wide Human in supporting teacher growth and used to provide direct services to Capital Management System (HCMS) student outcomes. students. Given the purpose of the TIF with Educator Evaluation Systems at the Changes: We have revised program, we have trouble envisioning Center, where these costs are reasonable Requirement 6—Use of TIF Funds to how TIF funds may be used to provide and necessary for the development or Support the PBCS to clarify that direct services for students except improvement of systems and tools that applicants may use TIF funds to support perhaps, under PBCS Design Model 1, support the PBCS. the costs of both salaries and salary as part of an LEA’s incentives for Further, consistent with the TIF augmentations up to the cost of one full- effective teachers to take on additional authorizing statute, TIF funds may be time equivalent position for every 12 leadership roles and responsibilities. In used for the development and teachers who are not in a career ladder this regard, the definition of additional improvement of systems and tools that position in the high-need schools responsibilities and leadership roles support the PBCS and benefit the entire identified in response to paragraph (a) provides that these are ‘‘meaningful LEA, but not for the LEA-wide of Requirement 3—Documentation of school-based responsibilities that implementation of these systems and High-Need Schools. This new element teachers may voluntarily accept to tools. Therefore, the salaries of staff who of the requirement appears in paragraph strengthen instruction or instructional are charged with implementing these (b)(3) of Priority 5. leadership in a systemic way’’. So any systems and tools that would be charged Comment: Two commenters requested direct services to students would need to TIF funds are subject to basic that we allow TIF funds to be used to to be provided within the context of principles regarding allocation of costs assist schools that are not high-need. strengthening instruction or charged to Federal grant funds among One commenter requested that we allow instructional leadership in a systemic different programs or cost objectives. applicants to use TIF funds to assist all way. For example, given the timelines in this schools within an LEA or a State. A To the extent that (1) the additional notice, the costs related to new second commenter requested that we responsibilities and leadership roles evaluation systems can be considered allow TIF funds to be used to provide assumed by the teachers in a STEM development and improvement costs up professional development to schools academy involve the provision of direct to the first year of LEA-wide that are not high-need because doing so services to students, and (2) the STEM implementation. From the beginning of would allow for the efficient use of academy is located in a high-need the first year of LEA-wide scarce resources without harm to the school that is identified in response to implementation, these costs would no high-need schools. paragraph (a) of Requirement 3— longer be considered development or Discussion: While the Department Documentation of High-Need Schools, improvement costs for purposes of the does not dispute the potential TIF funds may be used for incentives for TIF program; rather, they are advantages of LEA-wide PBCSs or the academy’s teachers to take on these implementation costs, which TIF funds professional development opportunities, additional responsibilities and cannot support on an LEA-wide basis. the statutory authority for the TIF leadership roles. Under generally applicable Federal cost program does not allow applicants to Changes: None. principles related to cost allocation, TIF use TIF funds to support performance- Comment: One commenter requested funds may only support that proportion based compensation for educators that the Department allow grantees to of the total implementation costs that working in schools that are not high- use TIF funds to address specific benefit the high-need schools identified need. By law, TIF funds may be used components of an LEA’s broader HCMS. in response to paragraph (a) of only for additional compensation to For example, the commenter stated that Requirement 3—Documentation of teachers, principals, and other the Department should allow an LEA High-Need Schools. personnel who work in high-need that already has a robust teacher Changes: None. schools. While the authorizing statute evaluation system to use TIF funds to Comment: None. also permits TIF funds to be used to build and implement a principal Discussion: As proposed, help develop and implement the tools evaluation system as long as the LEA Requirement 6—Use of TIF Funds to and systems, such as evaluation demonstrates alignment between the Support the PBCS generally restricted systems, that would be needed to two. grantees from using TIF funds to implement a PBCS in non-high-need Discussion: TIF funds may be used to compensate educators except in two schools and that would help to identify support the development and circumstances: when the compensation what professional development implementation of the PBCS in the high- is part of the PBCS or involves educators in non-high-need schools may need schools identified in response to compensating an educator who is

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employed or hired to help administer educator effectiveness and student highlight those LEAs eligible to receive the TIF project. The Department has achievement in high-need schools. funds under the Department’s Rural determined that a third exception to the However, nothing in this notice Education Achievement Program, general restriction is appropriate. This precludes applicants from proposing to including the Small Rural School third exception would allow grantees to use non-TIF funds to provide additional Achievement program and the Rural use TIF funds to compensate educators compensation to first-year teachers or to and Low-Income School program. who work in high-need schools effective educators who transfer from Changes: We have defined ‘‘rural identified in the application as included one high-need school to another. local educational agency’’ in this notice in the TIF project for attending Changes: None. as an LEA that is eligible under the professional development that addresses Comment: One commenter requested Small Rural School Achievement needs identified through the educators’ that we revise paragraph (b)(1) of the program or the Rural and Low-Income evaluation results and that educators definition of performance-based School program authorized under Title need to enable them to benefit from the compensation by removing the VI, Part B of the ESEA. requirement that compensation for PBCS. As the provision of professional Student Growth development to these educators with educators who previously worked in TIF funds is itself permissible, we view another LEA and who are hired to work Comment: One commenter payment of reasonable and necessary in a high-need school be based on an recommended that we amend the compensation to educators for their time overall evaluation rating of effective or definition of student growth to reduce attending TIF-related professional higher under evaluation systems that are the emphasis on standardized tests, and development outside of official duty comparable to the applicant’s proposed promote the use of other assessment hours as likewise permissible. In this evaluation systems. The commenter instruments and other measures, in situation, TIF funds may only be used expressed concern that this element of order to avoid incenting teachers to to compensate educators if the PBCS- the definition would increase applicant teach to the test and to ensure that related professional development they burden, as applicants would have to educators provide instruction that attend occurs outside of the educators’ investigate the evaluation systems of promotes 21st century skills. Discussion: As mentioned elsewhere official duty hours. other LEAs. in this notice, Congress has authorized Changes: We have revised the last Discussion: The TIF authorizing and appropriated funds for the TIF paragraph of this requirement statute requires that TIF-funded program to support the development of (paragraph (c)) to clarify that TIF funds performance-based compensation be PBCSs that consider gains in student may be used to compensate educators provided on the basis of a PBCS that achievement (i.e., student growth), and for attending TIF-related professional considers student growth, multiple the Department believes that student development outside their official duty observations, and other factors. In the growth is a meaningful measure of hours. case of an educator hired from another LEA, payment of performance-based teacher and principal effectiveness that Requirement 7—Limitation on Using compensation would thus be based on should be a significant part of rigorous, TIF Funds in High-Need Schools Served the new LEA’s PBCS—not the former transparent, and fair evaluation systems by Existing TIF Grants LEA in which the educator had worked. that include multiple measures. The We received no comments regarding Accordingly, applicants may not use Department strongly disagrees with the Requirement 7. TIF funds to provide additional notion that the existence of cheating compensation to educators transferring reflects on the merits of standardized Definitions from another LEA, where those testing or the usage of standardized test Performance-based Compensation educators have not been evaluated using data for accountability purposes. System (PBCS) factors that are comparable to the Moreover, the Department believes that receiving LEA’s proposed evaluation standardized testing has no special Comment: One commenter requested system and the provisions of the TIF vulnerability to this type of behavior; that we clarify paragraph (b)(1) of the authorizing statute. While we rather, under any system of educational definition of performance-based acknowledge that there is some burden accountability, we must work to ensure compensation system (PBCS). This associated with investigating another that the metrics used are as fair, paragraph describes the optional LEA’s educator evaluation system, the transparent, and rigorous as possible. recruitment components of a PBCS. This only alternative to the exception we Further, under the definition of student commenter recommended that we revise have provided would be to prohibit growth in this notice, applicants have this paragraph to specify that additional payment of additional compensation to broad flexibility to select the compensation may be provided to educators who previously worked in assessments used to measure student educators transferring from one high- another LEA and who are hired to work achievement for those grades and need school to another and to first-year in a high-need school. We believe the subjects not required to be assessed teachers in a high-need school. The exception we have provided is under section 1111(b)(3) of the ESEA, commenter stated that this change preferable. and to supplement the assessments in would help high-need schools address Changes: None. grades and subjects that are required common challenges with recruitment under section 1111(b)(3) with other Rural Local Educational Agency and retention. measures of student learning. For these Discussion: It was not our intent in Comment: None. reasons, we decline to amend the the NPP to allow TIF-funded PBCSs to Discussion: We have modified Priority definition of student growth as support either educator recruitment for 4 to give priority to applicants that requested by the commenter. first year teachers, for whom there may propose to serve only rural LEAs to help Changes: None. be no evaluation information available, ensure geographic diversity. The or educator transfers between high-need Department needs to define the term Vision of Instructional Improvement schools. These proposals would not ‘‘rural local educational agency’’ for the Comment: Two commenters requested necessarily support the overall purpose purpose of this notice. In developing that we expand the definition of vision of the TIF program—to improve this definition, the Department chose to of instructional improvement to include

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cultural competency, classroom Selection Criterion (b) to encourage growth and instructional practice, we management, social and emotional applicants to use a range of prescribed believe such a change is unnecessary. learning, and conflict prevention and factors, reflective of a principal’s many We believe that our new Selection resolution among the key competencies responsibilities, to evaluate principal Criterion (c)(3) is sufficient to encourage for which LEAs must evaluate performance. Another commenter applicants to propose school-based, job- educators. One of the commenters noted suggested that we amend Selection embedded professional development that school safety, school discipline, Criterion (b) to encourage applicants to opportunities likely to improve and academic achievement are develop comprehensive evaluations, instructional and leadership practice, interlinked, and cited research showing where multiple factors are equally without prescribing how applicants that positive, evidence-based and weighted in each applicant’s proposed should demonstrate that these supports preventative approaches to discipline evaluation rubric, instead of evaluations are effective. resulted in higher attendance, where student growth receives Changes: The Department has revised achievement, and teacher morale. significant weight. According to this Selection Criterion (c) by adding a new Discussion: The Department agrees commenter, comprehensive evaluations paragraph (3) under which the that competencies related to school will properly assess whether students Department will consider the extent to climate may support educator efforts to are provided the opportunities to learn which each participating LEA has a help students attain higher levels of 21st century skills without giving high-quality plan to provide school- academic achievement. At the same educators incentives to push students based, job-embedded opportunities for time, however, we do not believe it is out of school or take steps to artificially educators to transfer new knowledge necessary or appropriate to require raise test scores. into instructional and leadership LEAs participating in a TIF project to Discussion: We agree with the practices. develop or amend their vision of commenters that there are merits to Comment: One commenter suggested instructional improvement in any using a range of factors to evaluate that we amend Selection Criterion (f)— particular way. Rather, to meet Priority principal and teacher effectiveness. Sustainability, to allow an applicant to 1, applicants must articulate how their However, the Department believes that make adjustments and improvements to HCMS aligns or will align with the applicants should have the flexibility to its PBCS, as needed, during and after LEA’s vision, leaving to the LEA select which other factors, apart from the project period has ended. Citing whether it chooses to adjust it for student growth and multiple what the commenter considered a purposes of implementing a TIF-funded evaluations, that they will use as part of model performance-based compensation project. Therefore, we decline to amend their evaluation rubrics. We decline to system, which differs significantly from the definition of vision of instructional prescribe factors beyond those required the pilot project that preceded it, the improvement to include specific by statute, and outlined in Selection commenter expressed concern that competencies as recommended by the Criterion (b). proposed Selection Criterion (f) would commenters. Changes: None. not allow for the continual Changes: None. Comment: Two commenters improvement that was critical for recommended that we make changes to bringing that system to its current state. Selection Criteria Selection Criterion (c)—Professional Discussion: We do not agree that Comment: One commenter Development Systems to Support the Selection Criterion (f) precludes an recommended that we revise Selection Needs of Teachers and Principals applicant from making adjustments and Criterion (a)—A Coherent and Identified Through the Evaluation improvements to its educator evaluation Comprehensive Human Capital Process, to encourage applicants to systems and PBCS. Management System (HCMS), to reward propose strong, evidence-based Moreover, the Department certainly applicants who have in place policies professional development supports as agrees that it is important to continually that support the usage of evaluation part of their TIF project. One commenter improve projects based on a formal information from human capital stated that, to remain consistent with project evaluation. In this regard, under decision-making. research and best practice, we should Selection Criterion (e)—Project Discussion: The Department agrees amend Selection Criterion (c) to Management, an applicant will be with the commenter’s recommendation, encourage applicants to propose awarded points depending on the extent and has amended Selection Criterion professional development opportunities to which its management plan includes (a)(2)(iii) to allow the Secretary to that are both job-embedded and an effective evaluation plan. The provide more points to applicants ongoing. Another commenter Department also believes that any whose local policies would support the recommended that we amend Selection adjustments and improvements made to usage of evaluation information for Criterion (c) to award additional points a project based on the results of a formal human capital decision-making. to applicants who provide a evaluation that examines the project Changes: The Department has methodology for examining the impact during various phases of amended Selection Criterion (a)(2)(iii) to of their proposed professional implementation can help ensure the allow the Secretary to consider the development on student growth and project’s long-term sustainability. extent to which the LEA has applicable instructional practice. Regardless of how applications are LEA-level policies that might either Discussion: We agree that applicants evaluated, grantees are free to work to inhibit or facilitate modifications should propose ongoing, job-embedded continually improve their projects once needed to use educator effectiveness as supports as part of the professional awarded a TIF grant. We fully expect all a factor in human capital decision- development opportunities offered to grantees to make adjustments and making. educators, and have amended Selection improvements in their projects subject Comment: Two commenters Criterion (c)(3) accordingly. With to the following conditions: That any recommended the addition of new respect to the comment regarding changes that might affect the scope of measures to Selection Criteria (b)(5) and awarding additional points to applicants the project first receive Department (b)(6)(Rigorous, Valid, and Reliable who provide a methodology for approval, and that the project remain Educator Evaluation Systems). One examining the impact of the proposed consistent with their approved commenter requested that we amend professional development on student applications and the priorities,

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requirements and definitions contained projects and project outcomes, Priority 2: LEA-Wide Educator in this notice. consistent with their approved Evaluation Systems Based, in Changes: None. applications and the priorities, Significant Part, on Student Growth. Comment: One commenter expressed requirements, and definitions contained To meet this priority, an applicant concern that minimal attention is given in this notice. must include, as part of its application, to project evaluation under Selection Changes: None. a plan describing how it will develop Criterion (e)—Project Management; this and implement its proposed LEA-wide commenter requested that we add a new Final Priorities educator evaluation systems. The plan selection criterion focused on project The Assistant Secretary establishes must describe— evaluation. The commenter noted that, the following 5 priorities for the TIF (1) The frequency of evaluations, as many educators and school officials program. The Assistant Secretary may which must be at least annually; are skeptical of performance-based apply one or more of these priorities in (2) The evaluation rubric for compensation, rigorous and FY 2012 and later years in which this educators that includes at least three independent evaluation of each project program is in effect. performance levels and the following— would help to increase the credibility of (i) Two or more observations during compensation reforms. Priority 1—An LEA-Wide Human each evaluation period; Discussion: The Department fully Capital Management System (HCMS) (ii) Student growth, which for the agrees that an evaluation of each TIF With Educator Evaluation Systems at evaluation of teachers with regular project would help to build the the Center instructional responsibilities must be evidence supporting performance-based To meet this priority, the applicant growth at the classroom level; and compensation, and, therefore, local (iii) Additional factors determined by support both for sustaining the PBCS must include, in its application, a description of its LEA-wide HCMS, as it the LEA; beyond the project period and, more (3) How the evaluation systems will exists currently and with any generally, for compensation reform generate an overall evaluation rating modifications proposed for based on PBCSs. For this reason, we that is based, in significant part, on implementation during the project proposed and have included Selection student growth; and Criterion (e)(4) so that when evaluating period of the grant. The application (4) The applicant’s timeline for applications, we can award points based must describe— implementing its proposed LEA-wide on the effectiveness of the project (1) How the HCMS is or will be educator evaluation systems. Under the evaluation plans included in the aligned with the LEA’s vision of timeline, the applicant must implement applications. Further, the Department instructional improvement; these systems as the LEA’s official has recently invested in two rigorous, (2) How the LEA uses or will use the evaluation systems for assigning overall national evaluations of performance- information generated by the evaluation evaluation ratings for at least a subset of based compensation—one of which is systems it describes in its application to educators or schools no later than the an evaluation of grantees that received inform key human capital decisions, beginning of the second year of the funds under the TIF fiscal year 2010 such as decisions on recruitment, grant’s project period. The applicant competition (the TIF 2010 hiring, placement, retention, dismissal, may phase in the evaluation systems by competition)—that will provide the compensation, professional applying them, over time, to additional field with information related to the development, tenure, and promotion; schools or educators so long as the new commenter’s request. For these reasons, (3) The human capital strategies the evaluation systems are the official we decline to include a new selection LEA uses or will use to ensure that high- evaluation systems the LEA uses to criteria focused on project evaluation. need schools are able to attract and assign overall evaluation ratings for all Changes: None. retain effective educators; and educators within the LEA no later than Comment: One commenter (4) Whether or not modifications are the beginning of the third year of the recommended that we add a new needed to an existing HCMS to ensure grant’s project period. selection criterion, under which we that it includes the features described in Priority 3: Improving Student would award points to those applicants response to paragraphs (1), (2), and (3) that articulate how they will modify and Achievement in Science, Technology, of this priority, a timeline for Engineering, and Mathematics (STEM) improve their project, as needed, with implementing the described features, the goal of continual improvement. provided that the use of evaluation To meet this priority, an applicant Discussion: The Department agrees information to inform the design and must include a plan in its application that it is important for TIF grantees to delivery of professional development that describes the applicant’s strategies continually improve projects, whether and the award of performance-based for improving instruction in STEM based on a formal project evaluation or compensation under the applicant’s subjects through various components of other data the grantee gathers about proposed PBCS in high-need schools each participating LEA’s HCMS, project implementation. That said, the begins no later than the third year of the including its professional development, Department does not believe it is grant’s project period in the high-need evaluation systems, and PBCS. At a necessary to include a new selection schools listed in response to paragraph minimum, the plan must describe— criterion solely focused on the goal of (a) of Requirement 3—Documentation of (1) How each LEA will develop a continual improvement. Under High-Need Schools. corps of STEM master teachers who are Selection Criterion (e)—Project skilled at modeling for peer teachers Management, an applicant will receive Note: TIF funds can be used to support the pedagogical methods for teaching STEM points depending on the extent to which costs of the systems and strategies described skills and content at the appropriate the proposed project’s management plan under this priority, Priority 3—Improving Student Achievement in Science, grade level by providing additional includes an effective evaluation plan. In Technology, Engineering, and Mathematics compensation to teachers who— addition, we expect all grantees during (STEM), and Priority 5—An Educator Salary (i) Receive an overall evaluation the course of their project period to Structure Based on Effectiveness only to the rating of effective or higher under the work to secure and examine data with extent allowed under Requirement 6—Use of evaluation system described in the which to continually improve their TIF Funds to Support the PBCS. application;

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(ii) Are selected based on criteria that timeline for implementing no later than application by (1) awarding additional are predictive of the ability to lead other in the fifth year of the grant’s project points, depending on the extent to teachers; period a salary structure based on which the application meets the priority (iii) Demonstrate effectiveness in one effectiveness for both teachers and (34 CFR 75.105(c)(2)(i)); or (2) selecting or more STEM subjects; and principals. As part of this proposal, an an application that meets the priority (iv) Accept STEM-focused career applicant must describe— over an application of comparable merit ladder positions; (a) The extent to which and how each that does not meet the priority (34 CFR (2) How each LEA will identify and LEA will use overall evaluation ratings 75.105(c)(2)(ii)). develop the unique competencies that, to determine educator salaries; Invitational priority: Under an based on evaluation information or (b) How each LEA will use TIF funds invitational priority, we are particularly other evidence, characterize effective to support the salary structure based on interested in applications that meet the STEM teachers; effectiveness in the high-need schools priority. However, we do not give an (3) How each LEA will identify hard- listed in response to Requirement 3(a); application that meets the priority a to-staff STEM subjects, and use the and preference over other applications (34 HCMS to attract effective teachers to (c) The extent to which the proposed CFR 75.105(c)(1)). positions providing instruction in those implementation is feasible, given that subjects; implementation will depend upon Final Requirements (4) How each LEA will leverage stakeholder support and applicable community support, resources, and LEA-level policies. The Assistant Secretary establishes expertise to inform the implementation the following requirements for the TIF of its plan; Note: To meet Priority 2—LEA-wide Educator Evaluation Systems Based, in program. The Assistant Secretary may (5) How each LEA will ensure that apply one or more of these requirements financial and non-financial incentives, Significant Part, on Student Growth, an applicant must implement its proposed PBCS in FY 2012 and later years in which this including performance-based in the high-need schools listed in response to program is in effect. These requirements compensation, offered to reward or paragraph (a) of Requirement 3— are in addition to the statutory promote effective STEM teachers are Documentation of High-Need Schools by the requirements that apply to the program adequate to attract and retain persons beginning of the third year of the grant’s and any priorities, definitions, and with strong STEM skills in high-need project period. If the timeline for selection criteria we announce in the schools; and implementing the salary structure proposed notice inviting applications for a TIF under this Priority 5 does not meet that (6) How each LEA will ensure that competition. students have access to and participate deadline, the applicant must describe, under in rigorous and engaging STEM Requirement 1—Performance-Based Requirement 1—Performance-Based coursework. Compensation for Teachers, Principals, and Compensation for Teachers, Principals, Other Personnel, a proposed PBCS that the and Other Personnel Priority 4: New or Rural Applicants to LEA will implement until the proposed the Teacher Incentive Fund salary structure is implemented. In its application, an applicant must describe, for each participating LEA, To meet this priority, an applicant Types of Priorities must provide at least one of the two how its proposed PBCS will meet the following assurances, which the When inviting applications for a definition of a PBCS set forth in this Department accepts: competition using one or more notice. priorities, we designate the type of each (a) An assurance that each LEA to be Note: The following charts illustrate how priority as absolute, competitive served by the project has not previously applicants can design their PBCS to meet the participated in a TIF-supported project. preference, or invitational through a definition of PBCS. Chart 1 describes the two (b) An assurance that each LEA to be notice in the Federal Register. The types of design models that meet the served by the project is a rural local effect of each type of priority follows: statutory requirements. Chart 2 identifies educational agency (as defined in this Absolute priority: Under an absolute additional optional features that could be notice). priority, we consider only applications implemented as part of a PBCS. To ensure that meet the priority (34 CFR Priority 5: An Educator Salary that funded applications reflect a diversity of 75.105(c)(3)). PBCSs, the Secretary reserves the right to Structure Based on Effectiveness Competitive preference priority: fund a sufficient number of high-quality To meet this priority, an applicant Under a competitive preference priority, Design Model 1 and Design Model 2 projects, must propose, as part of its PBCS, a we give competitive preference to an as shown in Chart 1.

CHART 1—PBCS DESIGN OPTIONS TO MEET STATUTORY REQUIREMENTS

Design model Mandatory elements

1 * ...... Proposed PBCS provides both of the following: * Corresponds to paragraph (a)(1) of the (1) Additional compensation for teachers and principals who receive an overall rating of PBCS definition. effective or higher under the evaluation systems described in the application. (2) Of those teachers and principals eligible for compensation under paragraph (1), addi- tional compensation for teachers and, at the applicant’s discretion, for principals, who take on additional responsibilities and leadership roles (as defined in this notice). 2* ...... Proposed PBCS provides both of the following: * Corresponds to paragraph (a)(2) of the (1) Additional compensation for teachers who receive an overall rating of effective or high- PBCS definition. er under the evaluation system described in the application and who take on career lad- der positions (as defined in this notice). (2) Additional compensation for one or both of the following: (A) Principals who receive an overall rating of effective or higher under the evaluation sys- tem described in the application, or

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CHART 1—PBCS DESIGN OPTIONS TO MEET STATUTORY REQUIREMENTS—Continued

Design model Mandatory elements

(B) Principals who receive an overall rating of effective or higher under the evaluation sys- tem described in the application and who take on additional responsibilities and leader- ship roles (as defined in this notice).

CHART 2—PBCS OPTIONAL FEATURES

Optional elements

Compensation for Transfers to High-Need Proposed PBCS provides additional compensation for educators (which at the applicant’s op- Schools. tion may be for teachers or principals or both) who receive an overall rating of effective or higher under the evaluation systems described in the application or under comparable eval- uation systems in another LEA, and who either: (1) Transfer to a high-need school from a school of the LEA that is not high-need, or (2) For educators who previously worked in another LEA, are hired to work in a high-need school. Compensation for Other Personnel ...... Proposed PBCS provides additional compensation for other personnel, who are not teachers or principals, based on performance standards established by the LEA so long as those standards, in significant part, include student growth, which may be school-level student growth.

Requirement 2—Involvement and (as defined in this notice), or application the LEA(s) and any SEA(s) Support of Teachers and Principals persistently lowest-achieving schools with which the proposed project would In its application, the applicant must (as defined in this notice). Each be implemented. include— applicant must provide, in its (c) An applicant that is an SEA must application— (a) Evidence that educators in each apply for a grant under this program as participating LEA have been involved, (a) A list of high-need schools in which the proposed TIF-supported part of a group application that includes and will continue to be involved, in the one or more LEAs in the same State as development and implementation of the PBCS would be implemented; (b) For each high-poverty school the SEA, and must identify in the PBCS and evaluation systems described listed, the most current data on the application the LEA(s) in which the in the application; percentage of students who are eligible project would be implemented. (b) A description of the extent to for free or reduced-price lunch subsidies which the applicant has educator (d) All group applications must under the Richard B. Russell National support for the proposed PBCS and include a Memorandum of School Lunch Act or are considered educator evaluation systems; and Understanding (MOU) or other binding (c) A statement indicating whether a students from low-income families agreement signed by all of the members union is the exclusive representative of based on another poverty measure that of the group. the LEA uses (see section 1113(a)(5) of either teachers or principals in each At a minimum, the MOU or other participating LEA. the ESEA (20 U.S.C. 6313(a)(5))). Data provided to demonstrate eligibility as a agreement must include— Note: It is the responsibility of the grantee high-poverty school must be school- to ensure that, in observing the rights, (1) A commitment by each level data; the Department will not participating LEA to implement the remedies, and procedures afforded school or accept LEA- or State-level data for school district employees under Federal, HCMS, including the educator State, or local laws (including applicable purposes of documenting whether a evaluation systems and the PBCS, regulations or court orders) or under terms of school is a high-poverty school; and described in the application; collective bargaining agreements, memoranda (c) For any priority schools listed, of understanding, or other agreements documentation verifying that the State (2) An identification of the lead between these employees and their has received approval of a request for applicant; employers, the grantee also remains in ESEA flexibility, and that the schools (3) A description of the compliance with the priorities, requirements, have been identified by the State as responsibilities of the lead applicant in and definitions included in this notice. In the priority schools. event that a grantee is unable to comply with managing any grant funds and ensuring these priorities, requirements, and Requirement 4—SEA and Other Group overall implementation of the proposed definitions, the Department may take Applications project as described in the application if appropriate enforcement action (e.g., approved by the Department; discontinue support for the project). (a) Applications from the following are group applications: (4) A description of the activities that each member of the group will perform; Requirement 3—Documentation of (1) Any application from two or more High-Need Schools LEAs. and (2) Any application that includes one (5) A statement binding each member Each applicant must demonstrate, in or more SEAs. of the group to every statement and its application, that the schools (3) Any application that includes a assurance made in the application. participating in the implementation of nonprofit organization. the TIF-funded PBCS are high-need (b) An applicant that is a nonprofit (e) In any group application identified schools (as defined in this notice), organization must apply in a in paragraph (a) of this requirement, including high-poverty schools (as partnership that includes one or more each entity in the group is considered a defined in this notice), priority schools LEAs, and must identify in the grantee.

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Requirement 5—Limitations on (c) Other Permissible Types of (c) In the case of States that have Multiple Applications Compensation received the Department’s approval of a request for ESEA flexibility, a priority (a) An LEA applicant may participate Nothing in this requirement precludes the use of TIF funds to compensate school. in no more than one application in any High-poverty school means a school educators who are hired by a grantee to fiscal year. with 50 percent or more of its administer or implement the TIF- (b) An SEA applicant may participate enrollment from low-income families, supported PBCS, or to compensate in no more than one group application based on eligibility for free or reduced- educators who attend TIF-supported for the General TIF Competition, and no price lunch subsidies under the Richard professional development outside their more than one group application for the B. Russell National School Lunch Act, official duty hours, or to develop or TIF Competition with a Focus on STEM or other poverty measures that LEAs use improve systems and tools needed to in any fiscal year. (see section 1113(a)(5) of the ESEA (20 support the PBCS. (c) Nonprofit organization applicants U.S.C. 6313(a)(5)). For middle and high may participate in one or more group Requirement 7—Limitation on Using schools, eligibility may be calculated on applications for the General TIF TIF Funds in High-Need Schools Served the basis of comparable data from feeder Competition, and in one or more by Existing TIF Grants schools. Eligibility as a high-poverty applications for the TIF Competition Each applicant must provide an school under this definition is with a Focus on STEM, in any fiscal determined on the basis of the most year. assurance, in its application, that, if successful under this competition, it currently available data. Human capital management system Requirement 6—Use of TIF Funds To will use the grant award to implement (HCMS) means a system by which an Support the PBCS the proposed PBCS and professional LEA makes and implements human development only in high-need schools (a) LEA-Wide Improvements to Systems capital decisions, such as decisions on that are not served, as of the beginning and Tools recruitment, hiring, placement, of the grant’s project period or as retention, dismissal, compensation, TIF funds may be used to develop and planned in the future, by an existing TIF professional development, tenure, and improve systems and tools that support grant. the PBCS and benefit the entire LEA. promotion. Final Definitions Other personnel means school-based (b) Performance-Based Compensation personnel who are not serving in a and Professional Development The Assistant Secretary establishes the following definitions for the TIF teacher or principal position. Other (1) High Need Schools. TIF funds may program. The Assistant Secretary may personnel may include, for example, be used to provide performance-based apply one or more of these definitions school counselors, media specialists, or compensation and related professional in FY 2012 and later years in which this para-educators. Performance-based compensation development in the high-need schools program is in effect. listed in response to paragraph (a) of system (PBCS) means a system that— Additional responsibilities and (a) Provides additional compensation Requirement 3—Documentation of leadership roles means: for teachers and principals in one of the High-Need Schools. TIF funds may not (a) In the case of teachers, meaningful following circumstances— be used to provide performance-based school-based responsibilities that (1)(i) Design Model 1. Additional compensation or professional teachers may voluntarily accept to compensation for teachers and development in schools other than those strengthen instruction or instructional principals who receive an overall high-need schools listed in response to leadership in a systemic way, such as evaluation rating of effective or higher paragraph (a) of Requirement 3— additional responsibilities related to under the evaluation systems described Documentation of High-Need Schools. lesson study, professional development, in the application; and (2) PBCSs. TIF funds may be used to and peer evaluation, and may also (ii) Of those teachers and principals compensate educators only when the include career ladder positions. eligible for compensation under compensation is provided as part of the (b) In the case of principals, paragraph (a)(1)(i) of this definition, LEA’s PBCS, as described in the additional responsibilities and additional compensation for teachers application. leadership roles that principals may and, at the applicant’s discretion, for (3) For Additional Responsibilities voluntarily accept, such as a position in principals, who take on additional and Leadership Roles. When a proposed which an effective principal coaches a responsibilities and leadership roles; or PBCS provides additional compensation novice principal. (2)(i) Design Model 2. Additional to effective educators who take on Career ladder positions means school- compensation for teachers who receive additional responsibilities and based instructional leadership positions an overall evaluation rating of effective leadership roles, TIF funds may be used designed to improve instructional or higher under the evaluation system for either the entire amount of salary for practice, which teachers may described in the application and who career ladder positions, or for salary voluntarily accept, such as positions take on career ladder positions; and augmentations (i.e., an additional described as master teacher, mentor (ii) Additional compensation for (A) amount of compensation over and above teacher, demonstration or model principals who receive an overall what the LEA would otherwise pay the teacher, or instructional coach, and for evaluation rating of effective or higher effective teacher), or both. TIF-funds which teachers are selected based on under the evaluation system described may be used to fund additional criteria that are predictive of the ability in the application, or (B) principals who compensation for additional to lead other teachers. receive an overall evaluation rating of responsibilities and leadership roles up Educators means teachers and effective or higher under the evaluation to the cost of 1 full-time equivalent principals. system described in the application and position for every 12 teachers, who are High-need school means: who take on additional responsibilities not in a career ladder position, located (a) A high-poverty school, or and leadership roles. in the high-need schools listed in (b) A persistently lowest-achieving (b) May provide the following response to Requirement 3(a). school, or compensation:

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(1) Additional compensation for Priority school means a school that selection criteria, in whole or in part, in educators (which at the applicant’s has been identified by the State as a any year in which we conduct a General option may be for teachers or principals priority school pursuant to the State’s TIF Competition. The Assistant or both) who receive an overall approved request for Elementary and Secretary may apply the TIF evaluation rating of effective or higher Secondary Education Act (ESEA) Competition with a Focus on STEM under the evaluation systems described flexibility. selection criteria, in whole or in part, in the application or under comparable Rural local educational agency means together with one or more of the General evaluation systems in another LEA, and an LEA that is eligible under the Small TIF Competition selection criteria, in who either: (i) Transfer to a high-need Rural School Achievement program or any year in which we conduct a TIF school from a school of the LEA that is the Rural and Low-Income School Competition with a Focus on STEM. In not high-need, or, (ii) for educators who program authorized under Title VI, Part combination with or in place of the previously worked in another LEA, are B of the ESEA. Applicants may General TIF Competition selection hired to work in a high-need school. determine whether a particular LEA is criteria or the TIF Competition with a (2) Additional compensation for other eligible for these programs by referring Focus on STEM selection criteria, the personnel, who are not teachers or to information on the Department’s Web Assistant Secretary may apply the principals, based on performance site at http://www2.ed.gov/nclb/ general selection criteria in the standards established by the LEA so freedom/local/reap.html. Education Department General long as those standards, in significant Student growth means the change in Administrative Regulations (EDGAR) in part, include student growth, which student achievement for an individual 34 CFR 75.210; criteria based on may be school-level student growth. student between two or more points in statutory provisions in accordance with Persistently lowest-achieving school time. For the purpose of this definition, 34 CFR 75.209; or any combination means, as determined by the State: student achievement means— thereof in any year in which there is a (i) Any Title I school in improvement, (a) For grades and subjects in which TIF competition. In the notice inviting corrective action, or restructuring that— assessments are required under section applications, or the application package, (a) Is among the lowest-achieving five 1111(b)(3) of ESEA: (1) A student’s score or both, we will announce the percent of Title I schools in on such assessments and may include maximum possible points assigned to improvement, corrective action, or (2) other measures of student learning, each criterion. restructuring or the lowest-achieving such as those described in paragraph (b) (a) A Coherent and Comprehensive five Title I schools in improvement, of this definition, provided those Human Capital Management System corrective action, or restructuring in the measures are rigorous and comparable (HCMS). We will consider the quality State, whichever number of schools is across schools within an LEA. and comprehensiveness of each greater; or (b) For grades and subjects in which participating LEA’s HCMS as described (b) Is a high school that has had a assessments are not required under in the application. In determining the graduation rate as defined in 34 CFR section 1111(b)(3) of ESEA: Alternative quality of the HCMS, as it currently 200.19(b) that is less than 60 percent measures of student learning and exists and as the applicant proposes to over a number of years; and performance such as student results on modify it during the grant period, we (ii) Any secondary school that is pre-tests, end-of-course tests, and will consider the extent to which the eligible for, but does not receive, Title objective performance-based HCMS described in the application is— I funds that— assessments; student learning (1) Aligned with each participating (a) Is among the lowest-achieving five objectives; student performance on LEA’s clearly described vision of percent of secondary schools or the English language proficiency instructional improvement; and lowest-achieving five secondary schools assessments; and other measures of (2) Likely to increase the number of in the State that are eligible for, but do student achievement that are rigorous effective educators in the LEA’s schools, not receive, Title I funds, whichever and comparable across schools within especially in high-need schools, as number of schools is greater; or an LEA. demonstrated by— (b) Is a high school that has had a Teacher means any person who meets (i) The range of human capital graduation rate as defined in 34 CFR the definition of that term under State decisions for which the applicant 200.19(b) that is less than 60 percent or local law. proposes to consider educator over a number of years. Vision of instructional improvement effectiveness—based on the educator To identify the persistently lowest means a summary of the key evaluation systems described in the achieving schools, a State must take into competencies and behaviors of effective application. account both: teaching that an LEA views as necessary (ii) The weight given to educator (i) The academic achievement of the to produce high levels of student effectiveness—based on the educator ‘‘all students’’ group in a school in achievement, as well as how educators evaluation systems described in the terms of proficiency on the State’s acquire or improve these competencies application—when human capital assessments under section 1111(b)(3) of and behaviors. decisions are made; the ESEA in reading/language arts and (iii) The feasibility of the HCMS mathematics combined; and Final Selection Criteria described in the application, including (ii) The school’s lack of progress on The Assistant Secretary announces the extent to which the LEA has prior those assessments over a number of two sets of selection criteria—the experience using information from the years in the ‘‘all students’’ group. General TIF Competition selection educator evaluation systems described Principal means any person who criteria (selection criteria (a) through (f)) in the application to inform human meets the definition of that term under and the TIF Competition with the Focus capital decisions, and applicable LEA- State or local law. At an LEA’s on STEM selection criteria (selection level policies that might inhibit or discretion, it may also include an criterion (g))—to be used to review an facilitate modifications needed to use assistant or vice principal or a person in applicant’s proposal for funding under educator effectiveness as a factor in a position that contributes to the any FY 2012 competition and any future human capital decisions; organizational management or competitions. The Assistant Secretary (iv) The commitment of the LEA’s instructional leadership of a school. may apply General TIF Competition leadership to implementing the

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described HCMS, including all of its (ii) Evaluates, among other factors, a (e) Project Management. We will component parts; and principal’s practice in— consider the quality of the management (v) The adequacy of the financial and (A) Focusing every teacher, and the plan of the proposed project. In nonfinancial strategies and incentives, school community generally, on student determining the quality of the including the proposed PBCS, for growth; management plan, we will consider the attracting effective educators to work in (B) Establishing a collaborative school extent to which the management plan— high-need schools and retaining them in culture focused on continuous (1) Clearly identifies and defines the those schools. improvement; and roles and responsibilities of key (b) Rigorous, Valid, and Reliable (C) Supporting the academic needs of personnel; Educator Evaluation Systems. We will special student populations, including (2) Allocates sufficient human consider, for each participating LEA, the students with disabilities and English resources to complete project tasks; quality of the educator evaluation learners, for example, by creating (3) Includes measurable project systems described in the application. In systems to support successful co- objectives and performance measures; determining the quality of each teaching practices, providing resources and (4) Includes an effective project evaluation system, we will consider the for research-based intervention services, evaluation plan; extent to which— or similar activities. (c) Professional Development Systems (5) Specifies realistic and achievable (1) Each participating LEA has timelines for: finalized a high-quality evaluation to Support the Needs of Teachers and Principals Identified Through the (i) Implementing the components of rubric, with at least three performance the HCMS, PBCS, and educator levels (e.g., highly effective, effective, Evaluation Process. We will consider the extent to which each participating evaluation systems, including any developing, unsatisfactory), under proposal to phase in schools or which educators will be evaluated; LEA has a high-quality plan for professional development to help all educators. (2) Each participating LEA has (ii) Successfully completing project presented: educators located in high-need schools, listed in response to Requirement 3(a), tasks and achieving objectives. (i) A clear rationale to support its (f) Sustainability. We will consider to improve their effectiveness. In consideration of the level of student the quality of the plan to sustain the determining the quality of each plan for growth achieved in differentiating proposed project. In determining the professional development, we will performance levels; and quality of the sustainability plan, we consider the extent to which the plan (ii) Evidence, such as current research will consider the extent to which the and best practices, supporting the LEA’s describes how the participating LEA sustainability plan— choice of student growth models and will— (1) Identifies and commits sufficient (1) Use the disaggregated information demonstrating the rigor and non-TIF resources, financial and generated by the proposed educator comparability of assessments; nonfinancial, to support the PBCS and evaluation systems to identify the (3) Each participating LEA has made educator evaluation systems during and professional development needs of substantial progress in developing a after the grant period; and individual educators and schools; (2) Is likely to be implemented and, if high-quality plan for multiple teacher (2) Provide professional development and principal observations, including implemented, will result in a sustained in a timely way; PBCS and educator evaluation systems identification of the persons, by position (3) Provide school-based, job- and qualifications, who will be after the grant period ends. embedded opportunities for educators (g) Comprehensive Approach to conducting the observations, the to transfer new knowledge into observation tool, the events to be Improving STEM Instruction. To meet instructional and leadership practices; Priority 3, we will consider the quality observed, the accuracy of raters in using and observation tools and the procedures for of an applicant’s plan for improving (4) Provide professional development educator effectiveness in STEM ensuring a high degree of inter-rater that is likely to improve instructional reliability; instruction. In determining the quality and leadership practices, and is guided of the plan, we will consider the extent (4) The participating LEA has by the professional development needs experience measuring student growth at to which— of individual educators as identified in (1) The financial and nonfinancial the classroom level, and has already paragraph (c)(1) of this criterion. strategies and incentives, including the implemented components of the (d) Involvement of Educators. We will proposed PBCS, are adequate for proposed educator evaluation systems; consider the quality of educator attracting effective STEM educators to (5) In the case of teacher evaluations, involvement in the development and work in high-need schools and retaining the proposed evaluation system— implementation of the proposed PBCS them in these schools; (i) Bases the overall evaluation rating and educator evaluation systems (2) The proposed professional for teachers, in significant part, on described in the application. In development opportunities— student growth; determining the quality of such (a) Will provide college-level STEM (ii) Evaluates the practice of teachers, involvement, we will consider the skills and content knowledge to STEM including general education teachers extent to which— teachers while modeling for teachers and teachers of special student (1) The application contains evidence pedagogical methods for teaching those populations, in meeting the needs of that educator involvement in the design skills and that content at the appropriate special student populations, including of the PBCS and the educator evaluation grade level; and students with disabilities and English systems has been extensive and will (b) Will enable STEM teachers to learners; continue to be extensive during the provide students in high-need schools (6) In the case of principal grant period; and with increased access to rigorous and evaluations, the proposed evaluation (2) The application contains evidence engaging STEM coursework appropriate system— that educators support the elements of for their grade level, including college- (i) Bases the overall evaluation rating the proposed PBCS and the educator level material in high schools; on, in significant part, student growth; evaluation systems described in the (3) The applicant will significantly and application. leverage STEM-related funds across

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other Federal, State, and local programs and have determined that the benefits limitations, and data sources, as well as to implement a high-quality and justify the costs. regulatory alternatives we considered. comprehensive STEM plan; and We have also reviewed these Need for Federal Regulatory Action (4) The applicant provides evidence priorities, requirements, definitions, and (e.g., letters of support) that the LEA has selection criteria under Executive Order These priorities, requirements, or will develop extensive relationships 13563, which supplements and definitions, and selection criteria are with STEM experts and resources in explicitly reaffirms the principles, needed to implement the TIF program. industry, academic institutions, or structures, and definitions governing The Department does not believe that associations to effectively implement its regulatory review established in the authorizing legislation for this STEM plan and ensure that instruction Executive Order 12866. To the extent program, by itself, provides a sufficient prepares students to be college-and- permitted by law, Executive Order level of detail to ensure that the program career ready. 13563 requires that an agency— achieves the greatest national impact in This notice does not preclude us from (1) Propose or adopt regulations only promoting the development and proposing additional priorities, on a reasoned determination that their implementation of PBCSs. The requirements, definitions, or selection benefits justify their costs (recognizing authorizing and appropriations language criteria, subject to meeting applicable that some benefits and costs are difficult is very brief and provides only broad rulemaking requirements. to quantify); parameters to govern the program. The (2) Tailor its regulations to impose the priorities, requirements, definitions, and Note: This notice does not solicit selection criteria in this notice clarify applications. In any year in which we choose least burden on society, consistent with to use these priorities, requirements, and obtaining regulatory objectives and the types of activities the Department definitions, we invite applications through a taking into account—among other things seeks to fund, and permit the notice in the Federal Register. and to the extent practicable—the costs Department to evaluate proposed of cumulative regulations; projects using selection criteria that are Executive Orders 12866 and 13563 (3) In choosing among alternative based on the purpose of the program regulatory approaches, select those and are closely aligned with the Regulatory Impact Analysis approaches that maximize net benefits Department’s priorities. Under Executive Order 12866, the (including potential economic, In the absence of specific selection Secretary must determine whether this environmental, public health and safety, criteria for the TIF program, the regulatory action is ‘‘significant’’ and and other advantages; distributive Department would use the general therefore subject to the requirements of impacts; and equity); selection criteria in 34 CFR 75.210 of the Executive order and subject to (4) To the extent feasible, specify the Education Department General review by Office of Management and performance objectives, rather than the Administrative Regulations in selecting Budget (OMB). Section 3(f) of Executive behavior or manner of compliance a grant recipients. However, the Order 12866 defines a ‘‘significant regulated entity must adopt; and Department does not believe the use of regulatory action’’ as an action likely to (5) Identify and assess available those general criteria would be result in a rule that may— alternatives to direct regulation, appropriate for a TIF program (1) Have an annual effect on the including economic incentives—such as competition because they do not focus economy of $100 million or more, or user fees or marketable permits—to on the development of PBCSs or adversely affect a sector of the economy, encourage the desired behavior, or activities most likely to increase the productivity, competition, jobs, the provide information that enables the quality of teaching and school environment, public health or safety, or public to make choices. administration and improve educational State, local or tribal governments, or Executive Order 13563 also requires outcomes for students. communities in a material way (also an agency ‘‘to use the best available referred to as an ‘‘economically techniques to quantify anticipated Regulatory Alternatives Considered significant’’ rule); present and future benefits and costs as The Department considered a variety (2) Create serious inconsistency or accurately as possible.’’ The Office of of possible priorities, requirements, otherwise interfere with an action taken Information and Regulatory Affairs of definitions, and selection criteria before or planned by another agency; OMB has emphasized that these deciding on those included in this (3) Materially alter the budgetary techniques may include ‘‘identifying notice. For example, the Department impacts of entitlement grants, user fees, changing future compliance costs that considered— or loan programs or the rights and might result from technological (1) Limiting eligible LEA applicants to obligations of recipients thereof; or innovation or anticipated behavioral those that already have in place the (4) Raise novel legal or policy issues changes.’’ basic infrastructure necessary to arising out of legal mandates, the We are establishing these priorities, generate student growth data at the President’s priorities, or the principles requirements, definitions, and selection classroom level. However, we took an set forth in the Executive Order. criteria only on a reasoned alternative approach because we This regulatory action will have an determination that their benefits justify recognize that one purpose of the TIF annual effect on the economy of more their costs. In choosing among program is to nurture innovation and than $100 million because the amount alternative regulatory approaches, we reform in LEAs that may be beginning of government transfers provided selected those approaches that their reform efforts in this area. through the TIF program will exceed maximize net benefits. Based on the (2) Requiring an applicant to commit that amount. Therefore, this regulatory analysis that follows, the Department a certain percentage of non-TIF funds to action is ‘‘economically significant’’ and believes that this regulatory action is the project in order to help ensure the subject to OMB review under section consistent with the principles in project’s sustainability after the grant 3(f)(1) of Executive Order 12866. Executive Order 13563. period. However, we took an alternative Notwithstanding this determination, we In this regulatory impact analysis we approach that requires the PBCS to be have assessed the potential costs and discuss the need for regulatory action, part of an LEA-wide HCMS because we benefits—both quantitative and the potential costs and benefits, net believe that having the PBCS qualitative—of this regulatory action budget impacts, assumptions, implemented as part of an LEA-wide

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HCMS will help generate project application and that the benefits of Generally, under the CRA, a major rule sustainability. Further, we believe that implementing this regulatory action will takes effect 60 days after the date on the selection criteria that direct justify any costs incurred by the which the rule is published in the reviewers to assess the degree of LEA applicant. This is because, during the Federal Register. Section 808(2) of the commitment, both financial and project period, the applicant will pay CRA, however, provides that any rule nonfinancial, and its effect on project the costs of actually carrying out which an agency for good cause finds sustainability, will be sufficient to activities under a TIF grant with (and incorporates the finding and a brief ensure that funded projects are program funds and any matching funds. statement of reasons therefore in the sustained after the end of the grant Further, many of the systems that TIF rule issued) that notice and public period. funds will support, including educator procedure thereon are impracticable, The priorities, requirements, evaluation systems and systems of unnecessary, or contrary to the public definitions, and selection criteria in this professional development, are ones that interest, shall take effect at such time as notice reflect and promote the purpose LEAs regularly support with their own the Federal agency promulgating the of the TIF program. They also align TIF, funds. Thus, the costs of implementing rule determines. where possible and permissible, with a TIF project using these priorities, These final priorities, requirements, other Presidential and Departmental requirements, definitions, and selection definitions, and selection criteria are priorities, such as the State Fiscal criteria will not be a significant burden needed to implement the TIF program, Stabilization Fund, the Race to the Top for any eligible applicant, including a authorized under the Department of Fund, the School Improvement Grants small entity. Education Appropriations Act, 2012 program, and the ESEA Flexibility Elsewhere in this section under (Division F, Title III of Public Law 112– initiative. Through this regulatory Paperwork Reduction Act of 1995, we 74), which was signed into law on action, the Department provides an identify and explain burdens December 23, 2011. The Department eligible applicant with a great deal of specifically associated with information must award TIF funds under this flexibility in designing the systems and collection requirements associated with authority to qualified applicants by selecting the activities to carry out its this regulatory action. September 30, 2012, or the funds will proposed project. The Secretary believes lapse. Even on an extremely expedited that the priorities, requirements, Accounting Statement timeline, it is impracticable for the definitions, and selection criteria in this As required by OMB Circular A–4 Department to adhere to a 60-day notice appropriately balance the need (available at http://www.Whithouse.gov/ delayed effective date for the final for specific programmatic guidance omb/Circulars/a004/a-4.pdf), in the priorities, requirements, definitions, and while providing each applicant with following table, we have prepared an selection criteria and make grant awards flexibility to design innovative and accounting statement showing the to qualified applicants by the September enduring PBCSs. classification of the expenditures 30, 2012 deadline. When the 60-day associated with the provisions of this delayed effective date is added to the Summary of Costs and Benefits regulatory action. This table provides time the Department will need to The Department believes that these our best estimate of the Federal receive applications (approximately 45 priorities, requirements, definitions, and payments to be made to States, LEAs, days), review the applications selection criteria do not impose and nonprofit organizations under this (approximately 21 days), and finally significant costs on eligible States, program as a result of this regulatory approve applications (approximately 65 LEAs, or nonprofit organizations that action. This table is based on funds days), the Department will not be able would receive assistance through the available for new awards under the FY to award funds authorized under the TIF program. The Secretary also 2012 appropriation. Expenditures are Department of Education believes that the benefits of classified as transfers to States, LEAs, Appropriations Act, 2012 to applicants implementing the priorities and and nonprofit organizations. by September 30, 2012. The Department requirements contained in this notice has therefore determined that, pursuant justify any associated costs. Accounting Statement Classification of to section 808(2) of the CRA, the 60-day The Department believes that the Estimated Expenditures delay in the effective date generally priorities, requirements, definitions, and Transfers required for congressional review is selection criteria in this notice will Category (in millions) impracticable, contrary to the public result in the selection of high-quality interest, and waived for good cause. applications to implement activities that Annual Monetized $284.5. will improve the quality of teaching and Transfers Paperwork Reduction Act of 1995 educational administration. Through From Whom to Federal Government to As part of its continuing effort to these priorities, requirements, and Whom States, LEAs, and reduce paperwork and respondent selection criteria, we clarify the scope of nonprofits. burden, the Department conducts a activities we expect to support with preclearance consultation process to program funds and the expected burden Effect on Other Levels of Government provide the public and Federal agencies to prepare an application and We have also determined that this with an opportunity to comment on implement a project under the program. regulatory action will not unduly proposed and continuing collections of A potential applicant must consider interfere with State, local, or tribal information in accordance with the carefully the resources needed to governments in the exercise of their Paperwork Reduction Act of 1995 (PRA) prepare a strong application and its governmental functions. (44 U.S.C. 3506(c)(2)(A)). This helps capacity to implement a successful ensure that: The public understands the project. Waiver of Congressional Review Act Department’s collection instructions, The Department believes that the These priorities, requirements, respondents can provide the requested costs imposed on an applicant by the definitions, and selection criteria have data in the desired format, reporting priorities, requirements, definitions, and been determined to be a major rule for burden (time and financial resources) is selection criteria are largely limited to purposes of the Congressional Review minimized, collection instruments are the paperwork burden of preparing an Act (CRA) (5 U.S.C. 801, et seq.). clearly understood, and the Department

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can properly assess the impact of weigh them against the benefits likely of entities would submit in the absence of collection requirements on respondents. implementing the TIF project. An this regulatory action and the time This notice contains information eligible entity will probably apply only needed to prepare an application would collection requirements that are subject if it determines that the likely benefits be comparable if the competition relied to review by the Office of Management exceed the costs of preparing an exclusively on the selection criteria in and Budget (OMB) under the Paperwork application and implementing a project. 34 CFR 75.210 for this competition. Reduction Act of 1995 (44 U.S.C. 3501– The likely benefits of applying for a TIF Further, this regulatory action may 3520). We estimate that each applicant program grant include the potential help a small entity determine whether it will spend approximately 248 hours of receipt of a grant as well as other has the interest, need, or capacity to staff time to address the priorities, benefits that may accrue to an entity implement activities under the program requirements, definitions, and selection through its development of an and, thus, prevent a small entity that criteria, prepare the application, and application, such as the use of its TIF does not have such an interest, need, or obtain necessary clearances. Based on application to spur development and capacity from absorbing the burden of the number of applications the implementation of PBCSs without applying. Department received in the FY 2010 Federal funding through the TIF This regulatory action will not have a competition, we expect to receive program. significant economic impact on a small approximately 120 applications for The U.S. Small Business entity once it receives a grant because it these funds. The total number of hours Administration (SBA) Size Standards will be able to meet the costs of for all expected applicants is an define ‘‘small entities’’ as for-profit or compliance using the funds provided estimated 29,760 hours. We estimate the nonprofit institutions with total annual under this program and with any total cost per hour of the applicant-level revenue below $7,000,000 or, if they are matching funds provided by private- staff who carry out this work to be $30 institutions controlled by small sector partners. per hour. The total estimated cost for all governmental jurisdictions (that are applicants is $892,800. comprised of cities, counties, towns, Intergovernmental Review In the NPP we invited comment on townships, villages, school districts, or This program is subject to the the paperwork burden estimated for this special districts), with a population of requirements of Executive Order 12372 collection. We did not receive any less than 50,000. The Urban Institute’s and the regulations in 34 CFR part 79. comments. National Center for Charitable Statistics One of the objectives of the Executive The Paperwork Reduction Act of 1995 reported that of 173,172 nonprofit order is to foster an intergovernmental does not require you to respond to a organizations that had an educational partnership and a strengthened collection of information unless it mission and reported revenue to the federalism. The Executive order relies displays a valid OMB control number. Internal Revenue Service (IRS) by on processes developed by State and The OMB control number assigned to December 2011, 168,669 (over 97 local governments for coordination and this information collection is 1810– percent) had revenues of less than $5 review of proposed Federal financial 0700. million. In addition, there are 12,358 assistance. Regulatory Flexibility Act Certification LEAs in the country that meet the SBA’s This document provides early definition of small entity. While these notification of our specific plans and The Secretary certifies that this entities are eligible to apply for funding actions for this program. regulatory action will not have a under the TIF program, the Secretary Accessible Format: Individuals with significant economic impact on a believes that only a small number of disabilities can obtain this document in substantial number of small entities. them will apply. In the FY 2010 TIF an accessible format (e.g., braille, large The small entities that this regulatory competition, approximately 23 print, audiotape, or computer diskette) action may affect are (1) small LEAs, nonprofit organizations applied for on request to the program contact and (2) nonprofit organizations applying funding in partnership with an LEA or person listed under FOR FURTHER for and receiving funds under this SEA, and few of these organizations INFORMATION CONTACT. program in partnership with an LEA or appeared to be a small entity. The Electronic Access to This Document: SEA. The Secretary believes that the Secretary has no reason to believe that The official version of this document is costs imposed on an applicant by the a future competition under this program the document published in the Federal priorities, requirements, definitions, and would be different. To the contrary, we Register. Free Internet access to the selection criteria will be limited to expect that the FY 2012 competition official edition of the Federal Register is paperwork burden related to preparing will be similar to the FY 2010 available via the Federal Digital System an application and that the benefits of competition because only a limited at www.gpo.gov/fdsys. At this site you implementing these priorities, number of nonprofit organizations are can view this document, as well as all requirements, definitions, and selection working actively on the development of other documents of this Department criteria would outweigh any costs PBCSs and many of these organizations published in the Federal Register, in incurred by the applicant. are larger organizations. Thus, the text or Adobe Portable Document Participation in the TIF program is likelihood that the priorities, Format (PDF). To use PDF you must voluntary. For this reason, the priorities, requirements, definitions, and selection have Adobe Acrobat Reader, which is requirements, definitions, and selection criteria in this notice will have a available free at this site. criteria included in this notice will significant economic impact on small You may also access documents of the impose no burden on small entities entities is minimal. Department published in the Federal unless they apply for funding under the In addition, the Secretary believes Register by using the article search TIF program using the priorities, that the priorities, requirements, feature at www.federalregister.gov. requirements, definitions, and selection definitions, and selection criteria in this Specifically, through the advanced criteria in this notice. We expect that in notice do not impose any additional search feature at this site, you can limit determining whether to apply for TIF burden on a small entity applying for a your search to documents published by funds, an eligible entity will evaluate grant than the entity would face in the the Department. the costs of preparing an application absence of the regulatory action. That is, Delegation of Authority: The Secretary and implementing a TIF project and the length of the applications those of Education has delegated authority to

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Michael Yudin, Deputy Assistant Secretary for Elementary and Secondary Dated: June 7, 2012. Secretary for Policy for Elementary and Education. Michael Yudin, Secondary Education to perform the Deputy Assistant Secretary for Policy and functions and duties of the Assistant Strategic Initiatives, delegated the authority to perform the functions and duties of the Assistant Secretary for Elementary and Secondary Education. [FR Doc. 2012–14276 Filed 6–13–12; 8:45 am] BILLING CODE 4000–01–P

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Part III

Department of Education

Applications for New Awards; Teacher Incentive Fund; Notice

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DEPARTMENT OF EDUCATION Deadline for Transmittal of applicants from the General TIF Applications: July 27, 2012. Competition and the TIF Competition Applications for New Awards; Teacher Deadline for Intergovernmental with a Focus on STEM (CFDA 84.374A Incentive Fund Review: September 25, 2012. and 84.374B), the first two priorities, AGENCY: Office of Elementary and Full Text of Announcement Priority 1—A Local educational agency (LEA)-wide Human Capital Secondary Education, Department of I. Funding Opportunity Description Education. Management System (HCMS) with ACTION: Notice. Purpose of Program: The purpose of Educator Evaluation Systems at the the TIF program is to support the Center and Priority 2—LEA-wide Overview Information development and implementation of Educator Evaluation Systems Based, in sustainable performance-based Significant Part, on Student Growth, are Teacher Incentive Fund; General TIF compensation systems (PBCSs) for Competition and TIF Competition with absolute priorities. For FY 2012 and any teachers, principals, and other subsequent year in which we make a Focus on STEM. Notice inviting personnel in high-need schools in order applications for new awards for fiscal awards from the list of unfunded to increase educator effectiveness and applicants from the TIF Competition year (FY) 2012. student achievement in those schools. with a Focus on STEM (CFDA 84.374B), Catalog of Federal Domestic Assistance Priorities: This notice contains five (CFDA) Numbers: 84.374A and 84.374B. priorities, three of which are absolute the third priority, Priority 3—Improving Student Achievement in Science, DATES: Applications Available: June 14, priorities and two of which are 2012. competitive preference priorities. These Technology, Engineering, and Deadline for Notice of Intent to Apply: priorities are from the notice of final Mathematics (STEM), is an absolute June 26, 2012. priorities, requirements, definitions, and priority. Under 34 CFR 75.105(c)(3) we Dates of Pre-Application Workshops: selection criteria for this program, will only approve applications that meet Visit the Teacher Incentive Fund’s Web published elsewhere in this issue of the either the first two or all three of these site at: http://www2.ed.gov/programs/ Federal Register. applicable absolute priorities. The teacherincentive/applicant.html for Absolute Priorities: For FY 2012 and following chart illustrates which more information about TIF Pre- any subsequent year in which we make absolute priorities apply to each Application Workshops. awards from the list of unfunded competition:

Competition Absolute priorities

TIF General Competition (CFDA 84.374A) ...... • Priority 1—An LEA-wide Human Capital Management System (HCMS) with Educator Eval- uation Systems at the Center. • Priority 2—LEA-wide Educator Evaluation Systems Based, in Significant Part, on Student Growth. TIF Competition with a Focus on STEM (CFDA • Priority 1—An LEA-wide Human Capital Management System (HCMS) with Educator Eval- 84.374B). uation Systems at the Center. • Priority 2—LEA-wide Educator Evaluation Systems Based, in Significant Part, on Student Growth. • Priority 3—Improving Student Achievement in Science, Technology, Engineering, and Math- ematics (STEM).

These priorities are: (3) The human capital strategies the (STEM), and Priority 5—An Educator Salary LEA uses or will use to ensure that high- Structure Based on Effectiveness only to the Priority 1 (Absolute): An LEA-Wide need schools are able to attract and extent allowed under Requirement 6—Use of Human Capital Management System retain effective educators; and TIF Funds to Support the PBCS. (HCMS) With Educator Evaluation Systems at the Center (4) Whether or not modifications are Priority 2 (Absolute): LEA-Wide needed to an existing HCMS to ensure Educator Evaluation Systems Based, in To meet this priority, the applicant that it includes the features described in Significant Part, on Student Growth must include, in its application, a response to paragraphs (1), (2), and (3) To meet this priority, an applicant description of its LEA-wide HCMS, as it of this priority, and a timeline for must include, as part of its application, exists currently and with any implementing the described features, a plan describing how it will develop modifications proposed for provided that the use of evaluation and implement its proposed LEA-wide implementation during the project information to inform the design and educator evaluation systems. The plan period of the grant. The application delivery of professional development must describe— must describe— and the award of performance-based (1) The frequency of evaluations, compensation under the applicant’s (1) How the HCMS is or will be which must be at least annually; proposed PBCS in high-need schools aligned with the LEA’s vision of (2) The evaluation rubric for begins no later than the third year of the instructional improvement; educators that includes at least three grant’s project period in the high-need performance levels and the following— (2) How the LEA uses or will use the schools listed in response to paragraph (i) Two or more observations during information generated by the evaluation (a) of Requirement 3—Documentation of each evaluation period; systems it describes in its application to High-Need Schools. (ii) Student growth, which for the inform key human capital decisions, Note: TIF funds can be used to support the evaluation of teachers with regular such as decisions on recruitment, costs of the systems and strategies described instructional responsibilities must be hiring, placement, retention, dismissal, under this priority, Priority 3—Improving growth at the classroom level; and compensation, professional Student Achievement in Science, (iii) Additional factors determined by development, tenure, and promotion; Technology, Engineering, and Mathematics the LEA;

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(3) How the evaluation systems will (4) How each LEA will leverage timeline for implementing no later than generate an overall evaluation rating community support, resources, and in the fifth year of the grant’s project that is based, in significant part, on expertise to inform the implementation period a salary structure based on student growth; and of its plan; effectiveness for both teachers and (4) The applicant’s timeline for (5) How each LEA will ensure that principals. As part of this proposal, an implementing its proposed LEA-wide financial and non-financial incentives, applicant must describe— educator evaluation systems. Under the including performance-based (a) The extent to which and how each timeline, the applicant must implement compensation, offered to reward or LEA will use overall evaluation ratings these systems as the LEA’s official promote effective STEM teachers are to determine educator salaries; evaluation systems for assigning overall adequate to attract and retain persons (b) How each LEA will use TIF funds evaluation ratings for at least a subset of with strong STEM skills in high-need to support the salary structure based on educators or schools no later than the schools; and effectiveness in the high-need schools beginning of the second year of the (6) How each LEA will ensure that listed in response to Requirement 3(a); grant’s project period. The applicant students have access to and participate and in rigorous and engaging STEM may phase in the evaluation systems by (c) The extent to which the proposed applying them, over time, to additional coursework. Competitive Preference Priorities: For implementation is feasible, given that schools or educators so long as the new implementation will depend upon evaluation systems are the official FY 2012 and any subsequent year in which we make awards from the list of stakeholder support and applicable evaluation systems the LEA uses to LEA-level policies. assign overall evaluation ratings for all unfunded applicants from the educators within the LEA no later than competitions announced in this notice, Note: To meet Priority 2 (Absolute)—LEA- the beginning of the third year of the the following two priorities are wide Educator Evaluation Systems Based, in Significant Part, on Student Growth, an grant’s project period. competitive preference priorities: Priority 4 (Competitive Preference)— applicant must implement its proposed PBCS Priority 3 (Absolute): Improving Student in the high-need schools listed in response to New or Rural Applicants to the Teacher paragraph (a) of Requirement 3— Achievement in Science, Technology, Incentive Fund and Priority 5 Engineering, and Mathematics (STEM) Documentation of High-Need Schools by the (Competitive Preference)—An Educator beginning of the third year of the grant’s To meet this priority, an applicant Salary Structure Based on Effectiveness. project period. If the timeline for must include a plan in its application Under 34 CFR 75.105(c)(2)(i) we award implementing the salary structure proposed that describes the applicant’s strategies up to an additional 30 points to an under this Priority 5 does not meet that for improving instruction in STEM application, depending on how well the deadline, the applicant must describe, under subjects through various components of application meets one or more of these Requirement 1—Performance-Based priorities. Compensation for Teachers, Principals, and each participating LEA’s HCMS, Other Personnel, a proposed PBCS that the including its professional development, Priority 4 (Competitive Preference): New LEA will implement until the proposed evaluation systems, and PBCS. At a or Rural Applicants to the Teacher salary structure is implemented. minimum, the plan must describe— Incentive Fund (Up to 10 Total Points) (1) How each LEA will develop a Requirements: corps of STEM master teachers who are To meet this priority, an applicant The following requirements, which skilled at modeling for peer teachers must provide at least one of the two are from the notice of final priorities, pedagogical methods for teaching STEM following assurances, which the requirements, definitions, and selection skills and content at the appropriate Department accepts: for this program, published elsewhere in grade level by providing additional (a) An assurance that each LEA to be this issue of the Federal Register, apply compensation to teachers who— served by the project has not previously to the competitions announced in this (i) Receive an overall evaluation participated in a TIF-supported project. notice. (b) An assurance that each LEA to be rating of effective or higher under the served by the project is a rural local Requirement 1—Performance-Based evaluation system described in the educational agency (as defined in this Compensation for Teachers, Principals, application; notice). and Other Personnel (ii) Are selected based on criteria that are predictive of the ability to lead other Note: An applicant that proposes to serve In its application, an applicant must teachers; only LEAs that have not previously describe, for each participating LEA, (iii) Demonstrate effectiveness in one participated in a TIF-supported project may how its proposed PBCS will meet the earn 6 points. An applicant that proposes to or more STEM subjects; and definition of a PBCS set forth in this serve only rural LEAs may earn 10 points. An notice. (iv) Accept STEM-focused career applicant may not receive more than 10 ladder positions; points under this priority. In other words, an Note: The following charts illustrate how (2) How each LEA will identify and applicant that meets both paragraph (a) and an applicant can design its PBCS to meet the develop the unique competencies that, (b) of this priority may receive no more than definition of a PBCS. Chart 1 describes the based on evaluation information or 10 total points. two types of design models that meet the other evidence, characterize effective statutory requirements. Chart 2 identifies STEM teachers; Priority 5 (Competitive Preference): An additional optional features that could be Educator Salary Structure Based on implemented as part of a PBCS. To ensure (3) How each LEA will identify hard- that funded applications reflect a diversity of to-staff STEM subjects, and use the Effectiveness (Up to 20 Additional Points) PBCSs, the Secretary reserves the right to HCMS to attract effective teachers to fund a sufficient number of high-quality positions providing instruction in those To meet this priority, an applicant Design Model 1 and Design Model 2 projects, subjects; must propose, as part of its PBCS, a as shown in Chart 1.

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CHART 1—PBCS DESIGN OPTIONS TO MEET STATUTORY REQUIREMENTS

Design model Mandatory elements

1 * ...... Proposed PBCS provides both of the following: *Corresponds to paragraph (a)(1) of the (1) Additional compensation for teachers and principals who receive an overall rating of PBCS definition. effective or higher under the evaluation systems described in the application. (2) Of those teachers and principals eligible for compensation under paragraph (1), addi- tional compensation for teachers and, at the applicant’s discretion, for principals, who take on additional responsibilities and leadership roles (as defined in this notice). 2 * ...... Proposed PBCS provides both of the following: *Corresponds to paragraph (a)(2) of the (1) Additional compensation for teachers who receive an overall rating of effective or high- PBCS definition. er under the evaluation system described in the application and who take on career lad- der positions (as defined in this notice). (2) Additional compensation for one or both of the following: (A) Principals who receive an overall rating of effective or higher under the evalua- tion system described in the application, or (B) Principals who receive an overall rating of effective or higher under the evalua- tion system described in the application and who take on additional responsibilities and leadership roles (as defined in this notice).

CHART 2—PBCS OPTIONAL FEATURES

Optional elements

Compensation for Transfers to High-Need Proposed PBCS provides additional compensation for educators (which at the applicant’s op- Schools. tion may be for teachers or principals or both) who receive an overall rating of effective or higher under the evaluation systems described in the application or under comparable eval- uation systems in another LEA, and who either: (1) Transfer to a high-need school from a school of the LEA that is not high-need, or (2) For educators who previously worked in another LEA, are hired to work in a high-need school. Compensation for Other Personnel ...... Proposed PBCS provides additional compensation for other personnel, who are not teachers or principals, based on performance standards established by the LEA so long as those standards, in significant part, include student growth, which may be school-level student growth.

Requirement 2—Involvement and appropriate enforcement action (e.g., provided to demonstrate eligibility as a Support of Teachers and Principals discontinue support for the project). high-poverty school must be school- level data; the Department will not In its application, the applicant must Requirement 3—Documentation of include— accept LEA- or State-level data for High-Need Schools purposes of documenting whether a (a) Evidence that educators in each school is a high-poverty school; and participating LEA have been involved, Each applicant must demonstrate, in its application, that the schools (c) For any priority schools listed, and will continue to be involved, in the documentation verifying that the State development and implementation of the participating in the implementation of the TIF-funded PBCS are high-need has received approval of a request for PBCS and evaluation systems described ESEA flexibility, and that the schools in the application; schools (as defined in this notice), including high-poverty schools (as have been identified by the State as (b) A description of the extent to priority schools. which the applicant has educator defined in this notice), priority schools support for the proposed PBCS and (as defined in this notice), or Requirement 4—SEA and Other Group educator evaluation systems; and persistently lowest-achieving schools Applications (as defined in this notice). Each (c) A statement indicating whether a (a) Applications from the following applicant must provide, in its union is the exclusive representative of are group applications: application— either teachers or principals in each (1) Any application from two or more participating LEA. (a) A list of high-need schools in LEAs. which the proposed TIF-supported Note: It is the responsibility of the grantee (2) Any application that includes one to ensure that, in observing the rights, PBCS would be implemented; or more SEAs. remedies, and procedures afforded school or (b) For each high-poverty school (3) Any application that includes a school district employees under Federal, listed, the most current data on the nonprofit organization. State, or local laws (including applicable percentage of students who are eligible (b) An applicant that is a nonprofit regulations or court orders) or under terms of for free or reduced-price lunch subsidies organization must apply in a collective bargaining agreements, memoranda under the Richard B. Russell National partnership that includes one or more of understanding, or other agreements School Lunch Act or are considered LEAs, and must identify in the between these employees and their students from low-income families application the LEA(s) and any SEA(s) employers, the grantee also remains in compliance with the priorities, requirements, based on another poverty measure that with which the proposed project would and definitions included in this notice. In the the LEA uses (see section 1113(a)(5) of be implemented. event that a grantee is unable to comply with the Elementary and Secondary (c) An applicant that is an SEA must these priorities, requirements, and Education Act of 1965, as amended apply for a grant under this program as definitions, the Department may take (ESEA) (20 U.S.C. 6313(a)(5))). Data part of a group application that includes

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one or more LEAs in the same State as be used to provide performance-based strengthen instruction or instructional the SEA, and must identify in the compensation or related professional leadership in a systemic way, such as application the LEA(s) in which the development in schools other than those additional responsibilities related to project would be implemented. high-need schools listed in response to lesson study, professional development, (d) All group applications must paragraph (a) of Requirement 3— and peer evaluation, and may also include a Memorandum of Documentation of High-Need Schools. include career ladder positions. Understanding (MOU) or other binding (2) PBCSs. TIF funds may be used to (b) In the case of principals, agreement signed by all of the members compensate educators only when the additional responsibilities and of the group. At a minimum, the MOU compensation is provided as part of the leadership roles that principals may or other agreement must include— LEA’s PBCS, as described in the voluntarily accept, such as a position in (1) A commitment by each application. which an effective principal coaches a participating LEA to implement the (3) For Additional Responsibilities novice principal. HCMS, including the educator and Leadership Roles. When a proposed Career ladder positions means school- evaluation systems and the PBCS, PBCS provides additional compensation based instructional leadership positions described in the application; to effective educators who take on designed to improve instructional (2) An identification of the lead additional responsibilities and practice, which teachers may applicant; leadership roles, TIF funds may be used voluntarily accept, such as positions (3) A description of the for either the entire amount of salary for described as master teacher, mentor responsibilities of the lead applicant in career ladder positions, or for salary teacher, demonstration or model managing any grant funds and ensuring augmentations (i.e., an additional teacher, or instructional coach, and for overall implementation of the proposed amount of compensation over and above which teachers are selected based on project as described in the application if what the LEA would otherwise pay the criteria that are predictive of the ability approved by the Department; effective teacher), or both. TIF-funds to lead other teachers. (4) A description of the activities that may be used to fund additional Educators means teachers and each member of the group will perform; compensation for additional principals. and responsibilities and leadership roles up High-need school means: (5) A statement binding each member to the cost of 1 full-time equivalent (a) A high-poverty school, or of the group to every statement and position for every 12 teachers, who are (b) A persistently lowest-achieving assurance made in the application. not in a career ladder position, located school, or (e) In any group application identified in the high-need schools listed in (c) In the case of States that have in paragraph (a) of this requirement, response to Requirement 3(a). received the Department’s approval of a each entity in the group is considered a (c) Other Permissible Types of request for ESEA flexibility, a priority grantee. Compensation. Nothing in this school. requirement precludes the use of TIF High-poverty school means a school Requirement 5—Limitations on with 50 percent or more of its Multiple Applications funds to compensate educators who are hired by a grantee to administer or enrollment from low-income families, (a) An LEA applicant may participate implement the TIF-supported PBCS, or based on eligibility for free or reduced- in no more than one application in any to compensate educators who attend price lunch subsidies under the Richard fiscal year. TIF-supported professional B. Russell National School Lunch Act, (b) An SEA applicant may participate development outside their official duty or other poverty measures that LEAs use in no more than one group application hours, or to develop or improve systems (see section 1113(a)(5) of the ESEA (20 for the General TIF Competition, and no and tools needed to support the PBCS. U.S.C. 6313(a)(5)). For middle and high more than one group application for the schools, eligibility may be calculated on TIF Competition with a Focus on STEM Requirement 7—Limitation on Using the basis of comparable data from feeder in any fiscal year. TIF Funds in High-Need Schools Served schools. Eligibility as a high-poverty (c) A nonprofit organization applicant by Existing TIF Grants school under this definition is may participate in one or more group Each applicant must provide an determined on the basis of the most applications for the General TIF assurance, in its application, that, if currently available data. Competition, and in one or more successful under this competition, it Human capital management system applications for the TIF Competition will use the grant award to implement (HCMS) means a system by which an with a Focus on STEM, in any fiscal the proposed PBCS and professional LEA makes and implements human year. development only in high-need schools capital decisions, such as decisions on recruitment, hiring, placement, Requirement 6—Use of TIF Funds To that are not served, as of the beginning retention, dismissal, compensation, Support the PBCS of the grant’s project period or as planned in the future, by an existing TIF professional development, tenure, and (a) LEA-wide Improvements to grant. promotion. Systems and Tools. TIF funds may be Definitions: Other personnel means school-based used to develop and improve systems The following definitions, which are personnel who are not serving in a and tools that support the PBCS and from the notice of final priorities, teacher or principal position. Other benefit the entire LEA. requirements, definitions, and selection personnel may include, for example, (b) Performance-based Compensation criteria for this program, published school counselors, media specialists, or and Professional Development. elsewhere in this issue of the Federal para-educators. (1) High-Need Schools. TIF funds may Register, apply to the competitions Performance-based compensation be used to provide performance-based announced in this notice. system (PBCS) means a system that: compensation and related professional Additional responsibilities and (a) Provides additional compensation development in the high-need schools leadership roles means: for teachers and principals in one of the listed in response to paragraph (a) of (a) In the case of teachers, meaningful following circumstances— Requirement 3—Documentation of school-based responsibilities that (1)(i) Design Model 1. Additional High-Need Schools. TIF funds may not teachers may voluntarily accept to compensation for teachers and

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principals who receive an overall (a) Is among the lowest-achieving five objectives; student performance on evaluation rating of effective or higher percent of secondary schools or the English language proficiency under the evaluation systems described lowest-achieving five secondary schools assessments; and other measures of in the application; and in the State that are eligible for, but do student achievement that are rigorous (ii) Of those teachers and principals not receive, Title I funds, whichever and comparable across schools within eligible for compensation under number of schools is greater; or an LEA. paragraph (a)(1)(i) of this definition, (b) Is a high school that has had a Teacher means any person who meets additional compensation for teachers graduation rate as defined in 34 CFR the definition of that term under State and, at the applicant’s discretion, for 200.19(b) that is less than 60 percent or local law. principals, who take on additional over a number of years. Vision of instructional improvement responsibilities and leadership roles; or To identify the persistently lowest means a summary of the key (2)(i) Design Model 2. Additional achieving schools, a State must take into competencies and behaviors of effective compensation for teachers who receive account both: teaching that an LEA views as necessary an overall evaluation rating of effective (i) The academic achievement of the to produce high levels of student or higher under the evaluation system ‘‘all students’’ group in a school in achievement, as well as how educators described in the application and who terms of proficiency on the State’s acquire or improve these competencies take on career ladder positions; and assessments under section 1111(b)(3) of and behaviors. the ESEA in reading/language arts and (ii) Additional compensation for (A) Program Authority: The Department of principals who receive an overall mathematics combined; and (ii) The school’s lack of progress on Education Appropriations Act, 2012 evaluation rating of effective or higher (Division F, Title III of Pub. L. 112–74). those assessments over a number of under the evaluation system described Applicable Regulations: (a) The in the application, or (B) principals who years in the ‘‘all students’’ group. Principal means any person who Education Department General receive an overall evaluation rating of meets the definition of that term under Administrative Regulations (EDGAR) in effective or higher under the evaluation State or local law. At an LEA’s 34 CFR parts 74, 75, 77, 79, 80, 81, 82, system described in the application and discretion, it may also include an 84, 86, 97, 98, and 99. (b) The Education who take on additional responsibilities assistant or vice principal or a person in Department suspension and debarment and leadership roles. a position that contributes to the regulations in 2 CFR part 3485. (c) The (b) May provide the following organizational management or notice of final priorities, requirements, compensation: instructional leadership of a school. definitions, and selection criteria for (1) Additional compensation for Priority school means a school that this program, published elsewhere in educators (which at the applicant’s has been identified by the State as a this issue of the Federal Register. option may be for teachers or principals priority school pursuant to the State’s or both) who receive an overall Note: The regulations in 34 CFR part 79 approved request for Elementary and apply to all applicants except federally evaluation rating of effective or higher Secondary Education Act (ESEA) recognized Indian tribes. under the evaluation systems described flexibility. in the application or under comparable Rural local educational agency means Note: The regulations in 34 CFR part 86 evaluation systems in another LEA, and an LEA that is eligible under the Small apply to institutions of higher education who either: (i) transfer to a high-need Rural School Achievement program or only. school from a school of the LEA that is the Rural and Low-Income School II. Award Information not high-need, or, (ii) for educators who program authorized under Title VI, Part previously worked in another LEA, are B of the ESEA. Applicants may Type of Award: Discretionary grants. hired to work in a high-need school. determine whether a particular LEA is Estimated Available Funds: (2) Additional compensation for other eligible for these programs by referring $284,461,350. personnel, who are not teachers or to information on the Department’s Web Contingent upon the availability of principals, based on performance site at http://www2.ed.gov/nclb/ funds and the quality of applications, standards established by the LEA so freedom/local/reap.html. we may make additional awards in FY long as those standards, in significant Student growth means the change in 2013 from the list of unfunded part, include student growth, which student achievement for an individual applicants from the competitions may be school-level student growth. student between two or more points in announced in this notice. Persistently lowest-achieving school time. For the purpose of this definition, Estimated Range of Awards: means, as determined by the State: student achievement means— $500,000–$12,000,000 for the first year (i) Any Title I school in improvement, (a) For grades and subjects in which of the project period. Funding for the corrective action, or restructuring that— assessments are required under section second through fifth years of the project (a) Is among the lowest-achieving five 1111(b)(3) of ESEA: (1) A student’s score period is subject to the availability of percent of Title I schools in on such assessments and may include funds and the approval of continuation improvement, corrective action, or (2) other measures of student learning, awards (see 34 CFR 75.253). restructuring or the lowest-achieving such as those described in paragraph (b) Estimated Average Size of Awards: five Title I schools in improvement, of this definition, provided those $10,000,000 for the first year of the corrective action, or restructuring in the measures are rigorous and comparable project period. Funding for the second State, whichever number of schools is across schools within an LEA. through fifth years of the project period greater; or (b) For grades and subjects in which is subject to the availability of funds and (b) Is a high school that has had a assessments are not required under the approval of continuation awards graduation rate as defined in 34 CFR section 1111(b)(3) of ESEA: alternative (see 34 CFR 75.253). 200.19(b) that is less than 60 percent measures of student learning and Estimated Number of Awards: 30. over a number of years; and performance such as student results on (ii) Any secondary school that is pre-tests, end-of-course tests, and Note: The Department is not bound by any eligible for, but does not receive, Title objective performance-based estimates in this notice. I funds that— assessments; student learning Project Period: Up to 60 months.

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III. Eligibility Information the application narrative to no more connection with the application 1. Eligible Applicants: than 60 pages, using the following process, the individual’s application (a) LEAs, including charter schools standards: remains subject to all other • A ‘‘page’’ is 8.5″ x 11″, on one side requirements and limitations in this that are LEAs. ″ (b) States that apply with one or more only, with 1 margins at the top, bottom, notice. LEAs. and both sides. Deadline for Intergovernmental • Double space (no more than three (c) Nonprofit organizations that apply Review: September 25, 2012. lines per vertical inch) all text in the in partnership with an LEA or an LEA 4. Intergovernmental Review: This application narrative, including titles, and State. program is subject to Executive Order headings, footnotes, quotations, 2. Cost Sharing or Matching: This 12372 and the regulations in 34 CFR references, and captions, as well as all program does not require cost sharing or part 79. Information about text in charts, tables, figures, and matching. Intergovernmental Review of Federal graphs. Programs under Executive Order 12372 • IV. Application and Submission Use a font that is either 12 point or is in the application package for this Information larger or no smaller than 10 pitch program. 1. Address to Request Application (characters per inch). 5. Funding Restrictions: We reference • Use one of the following fonts: Package: regulations outlining funding Times New Roman, Courier, Courier Miriam Lund, U.S. Department of restrictions in the Applicable New, or Arial. Education, 400 Maryland Avenue SW., Regulations section of this notice. The suggested page limit does not 6. Data Universal Numbering System Room 3E245, LBJ Building, Washington, apply to the cover sheet; the budget DC 20202–6200. Telephone: (202) 205– Number, Taxpayer Identification section, including the narrative budget Number, and Central Contractor 5224 or by email: [email protected]. justification; the assurances and If you use a telecommunications Registry: To do business with the certifications; or the one-page abstract, device for the deaf (TDD) or a text Department of Education, you must— the resumes, the bibliography, or the telephone (TTY), call the Federal Relay a. Have a Data Universal Numbering letters of support. However, the Service (FRS), toll free, at 1–800–877– System (DUNS) number and a Taxpayer suggested page limit does apply to all of 8339. Identification Number (TIN); the application narrative section. b. Register both your DUNS number Individuals with disabilities can 3. Submission Dates and Times: obtain a copy of the application package Applications Available: June 14, 2012. and TIN with the Central Contractor in an accessible format (e.g., braille, Deadline for Notice of Intent to Apply: Registry (CCR), the Government’s large print, audiotape, or compact disc) June 26, 2012. primary registrant database; by contacting the program contact Deadline for Transmittal of c. Provide your DUNS number and person listed in this section. Applications: July 27, 2012. TIN on your application; and 2. Content and Form of Application Pre-application workshops will be d. Maintain an active CCR registration Submission: Requirements concerning held for this competition in June. The with current information while your the content of an application, together workshops are intended to provide application is under review by the with the forms you must submit, are in technical assistance to all interested Department and, if you are awarded a the application package for this grant applicants. Detailed information grant, during the project period. program. regarding the pre-application workshops You can obtain a DUNS number from Notice of Intent to Apply: We will be times, and on-line registration form, can Dun and Bradstreet. A DUNS number able to develop a more efficient process be found on the Teacher Incentive can be created within one business day. for reviewing grant applications if we Fund’s Web site at http://www2.ed.gov/ If you are a corporate entity, agency, understand the number of applicants programs/0teacherincentive/ institution, or organization, you can that intend to apply for funding under applicant.html. obtain a TIN from the Internal Revenue these competitions. Therefore, the Applications for grants under this Service. If you are an individual, you Secretary strongly encourages each program must be submitted can obtain a TIN from the Internal potential applicant to notify us of the electronically using the Grants.gov Revenue Service or the Social Security applicant’s intent to submit an Apply site (Grants.gov). For information Administration. If you need a new TIN, application for funding by sending a (including dates and times) about how please allow 2–5 weeks for your TIN to short email message. This short email to submit your application become active. should provide (1) the applicant electronically, or in paper format by The CCR registration process may take organization’s name and address, (2) the mail or hand delivery if you qualify for five or more business days to complete. competition for which the applicant an exception to the electronic If you are currently registered with the intends to apply (i.e., the TIF General submission requirement, please refer to CCR, you may not need to make any Competition or the TIF Competition section IV. 7. Other Submission changes. However, please make certain with a Focus on STEM), and (3) all Requirements of this notice. that the TIN associated with your DUNS competitive preference priorities the We do not consider an application number is correct. Also note that you applicant intends to address. The that does not comply with the deadline will need to update your CCR Secretary requests that this email requirements. registration on an annual basis. This notification be sent to [email protected] with Individuals with disabilities who may take three or more business days to ‘‘Intent to Apply’’ in the email subject need an accommodation or auxiliary aid complete. line. Applicants that do not provide this in connection with the application In addition, if you are submitting your email notification may still apply for process should contact the person listed application via Grants.gov, you must (1) funding. under FOR FURTHER INFORMATION be designated by your organization as an Page Limit: The application narrative CONTACT in section VII of this notice. If Authorized Organization Representative is where you, the applicant, address the the Department provides an (AOR); and (2) register yourself with selection criteria that reviewers use to accommodation or auxiliary aid to an Grants.gov as an AOR. Details on these evaluate your application. Please limit individual with a disability in steps are outlined at the following

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Grants.gov Web page: www.grants.gov/ date. We do not consider an application second notification to you by email. applicants/get_registered.jsp. that does not comply with the deadline This second notification indicates that 7. Other Submission Requirements: requirements. When we retrieve your the Department has received your Applications for grants under this application from Grants.gov, we will application and has assigned your program must be submitted notify you if we are rejecting your application a PR/Award number (an ED- electronically unless you qualify for an application because it was date and time specified identifying number unique to exception to this requirement in stamped by the Grants.gov system after your application). accordance with the instructions in this 4:30:00 p.m., Washington, DC time, on • We may request that you provide us section. the application deadline date. original signatures on forms at a later • a. Electronic Submission of The amount of time it can take to date. upload an application will vary Applications Application Deadline Date Extension depending on a variety of factors, in Case of Technical Issues with the Applications for grants under the including the size of the application and Grants.gov System: If you are Teacher Incentive Fund, CFDA number the speed of your Internet connection. experiencing problems submitting your 84.374A, the General TIF Competition Therefore, we strongly recommend that application through Grants.gov, please and 84.374B, the TIF Competition with you do not wait until the application contact the Grants.gov Support Desk, a Focus on STEM, must be submitted deadline date to begin the submission toll free, at 1–800–518–4726. You must electronically using the process through Grants.gov. obtain a Grants.gov Support Desk Case Governmentwide Grants.gov Apply site • You should review and follow the Number and must keep a record of it. at www.Grants.gov. Through this site, Education Submission Procedures for If you are prevented from you will be able to download a copy of submitting an application through electronically submitting your the application package, complete it Grants.gov that are included in the application on the application deadline offline, and then upload and submit application package for this program to date because of technical problems with your application. You may not email an ensure that you submit your application electronic copy of a grant application to in a timely manner to the Grants.gov the Grants.gov system, we will grant you us. system. You can also find the Education an extension until 4:30:00 p.m., We will reject your application if you Submission Procedures pertaining to Washington, DC time, the following submit it in paper format unless, as Grants.gov under News and Events on business day to enable you to transmit described elsewhere in this section, you the Department’s G5 system home page your application electronically or by qualify for one of the exceptions to the at http://www.G5.gov. hand delivery. You also may mail your electronic submission requirement and • You will not receive additional application by following the mailing submit, no later than two weeks before point value because you submit your instructions described elsewhere in this the application deadline date, a written application in electronic format, nor notice. statement to the Department that you will we penalize you if you qualify for If you submit an application after qualify for one of these exceptions. an exception to the electronic 4:30:00 p.m., Washington, DC time, on Further information regarding submission requirement, as described the application deadline date, please calculation of the date that is two weeks elsewhere in this section, and submit contact the person listed under FOR before the application deadline date is your application in paper format. FURTHER INFORMATION CONTACT in provided later in this section under • You must submit all documents section VII of this notice and provide an Exception to Electronic Submission electronically, including all information explanation of the technical problem Requirement. you typically provide on the following you experienced with Grants.gov, along You may access the electronic grant forms: the Application for Federal with the Grants.gov Support Desk Case application for the Teacher Incentive Assistance (SF 424), the Department of Number. We will accept your Fund competitions at www.Grants.gov. Education Supplemental Information for application if we can confirm that a You must search for the downloadable SF 424, Budget Information—Non- technical problem occurred with the application package for this program by Construction Programs (ED 524), and all Grants.gov system and that that problem the CFDA number. Do not include the necessary assurances and certifications. affected your ability to submit your CFDA number’s alpha suffix in your • You must upload any narrative application by 4:30:00 p.m., search (e.g., search for 84.374, not sections and all other attachments to Washington, DC time, on the 84.374A). your application as files in a PDF application deadline date. The Please note the following: (Portable Document) read-only, non- Department will contact you after a • When you enter the Grants.gov site, modifiable format. Do not upload an determination is made on whether your you will find information about interactive or fillable PDF file. If you application will be accepted. submitting an application electronically upload a file type other than a read- Note: The extensions to which we refer in through the site, as well as the hours of only, non-modifiable PDF or submit a this section apply only to the unavailability operation. password-protected file, we will not of, or technical problems with, the Grants.gov • Applications received by Grants.gov review that material. system. We will not grant you an extension are date and time stamped. Your • Your electronic application must if you failed to fully register to submit your application must be fully uploaded and comply with any page-limit application to Grants.gov before the submitted and must be date and time requirements described in this notice. application deadline date and time or if the stamped by the Grants.gov system no • After you electronically submit technical problem you experienced is later than 4:30:00 p.m., Washington, DC your application, you will receive from unrelated to the Grants.gov system. time, on the application deadline date. Grants.gov an automatic notification of Exception to Electronic Submission Except as otherwise noted in this receipt that contains a Grants.gov Requirement: You qualify for an section, we will not accept your tracking number. (This notification exception to the electronic submission application if it is received—that is, date indicates receipt by Grants.gov only, not requirement, and may submit your and time stamped by the Grants.gov receipt by the Department.) The application in paper format, if you are system—after 4:30:00 p.m., Washington, Department then will retrieve your unable to submit an application through DC time, on the application deadline application from Grants.gov and send a the Grants.gov system because––

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• You do not have access to the (1) A private metered postmark. STEM. Selection Criteria (g) applies Internet; or (2) A mail receipt that is not dated by only to applicants applying to the TIF • You do not have the capacity to the U.S. Postal Service. Competition with a Focus on STEM. upload large documents to the If your application is postmarked after The maximum score for all of the Grants.gov system; and the application deadline date, we will General TIF Competition selection • No later than two weeks before the not consider your application. criteria is 200 points. The maximum application deadline date (14 calendar Note: The U.S. Postal Service does not score for the TIF Competition with a days or, if the fourteenth calendar day uniformly provide a dated postmark. Before Focus on STEM is 225 points. The before the application deadline date relying on this method, you should check maximum score for each criterion and falls on a Federal holiday, the next with your local post office. subcriterion is indicated in parentheses. business day following the Federal The selection criteria for these holiday), you mail or fax a written c. Submission of Paper Applications by competitions are as follows: statement to the Department, explaining Hand Delivery (a) A Coherent and Comprehensive which of the two grounds for an If you qualify for an exception to the Human Capital Management System exception prevent you from using the electronic submission requirement, you (HCMS). (45 points) We will consider Internet to submit your application. (or a courier service) may deliver your the quality and comprehensiveness of If you mail your written statement to paper application to the Department by each participating LEA’s HCMS as the Department, it must be postmarked hand. You must deliver the original and described in the application. In no later than two weeks before the two copies of your application by hand, determining the quality of the HCMS, as application deadline date. If you fax on or before the application deadline it currently exists and as the applicant your written statement to the date, to the Department at the following proposes to modify it during the grant Department, we must receive the faxed address: U.S. Department of Education, period, we will consider the extent to statement no later than two weeks Application Control Center, Attention: which the HCMS described in the before the application deadline date. (CFDA Number 84.374A for the General application is— Address and mail your statement to: (1) Aligned with each participating TIF Competition or CFDA Number Miriam Lund, U.S. Department of LEA’s clearly described vision of 84.374B for the TIF Competition with a Education, 400 Maryland Avenue SW., instructional improvement (10 points); Focus on STEM), 550 12th Street SW., Room, 3E245, Washington, DC, 20202– and Room 7041, Potomac Center Plaza, 6200. (2) Likely to increase the number of Washington, DC 20202–4260. Your paper application must be effective educators in the LEA’s schools, The Application Control Center submitted in accordance with the mail especially in high-need schools, as accepts hand deliveries daily between or hand delivery instructions described demonstrated by (35 points)— 8:00 a.m. and 4:30:00 p.m., Washington, in this notice. (i) The range of human capital DC time, except Saturdays, Sundays, decisions for which the applicant b. Submission of Paper Applications by and Federal holidays. proposes to consider educator Mail Note for Mail or Hand Delivery of Paper effectiveness—based on the educator If you qualify for an exception to the Applications: If you mail or hand deliver evaluation systems described in the electronic submission requirement, you your application to the Department— application. may mail (through the U.S. Postal (1) You must indicate on the envelope (ii) The weight given to educator Service or a commercial carrier) your and—if not provided by the Department—in effectiveness—based on the educator Item 11 of the SF 424 the CFDA number, application to the Department. You including suffix letter, if any, of the evaluation systems described in the must mail the original and two copies competition under which you are submitting application—when human capital of your application, on or before the your application; and decisions are made; application deadline date, to the (2) The Application Control Center will (iii) The feasibility of the HCMS Department at the following address: mail to you a notification of receipt of your described in the application, including U.S. Department of Education, grant application. If you do not receive this the extent to which the LEA has prior Application Control Center, Attention: notification within 15 business days from the experience using information from the (CFDA Number 84.374A for the General application deadline date, you should call educator evaluation systems described TIF Competition or CFDA Number the U.S. Department of Education in the application to inform human Application Control Center at (202) 245– capital decisions, and applicable LEA- 84.374B for the TIF Competition with a 6288. Focus on STEM), LBJ Basement Level 1, level policies that might inhibit or 400 Maryland Avenue SW., V. Application Review Information facilitate modifications needed to use Washington, DC 20202–4260. educator effectiveness as a factor in You must show proof of mailing 1. Selection Criteria: The selection human capital decisions; consisting of one of the following: criteria for this program are from the (iv) The commitment of the LEA’s (1) A legibly dated U.S. Postal Service notice of final priorities, requirements, leadership to implementing the postmark. definitions, and selection criteria for described HCMS, including all of its (2) A legible mail receipt with the this program, published elsewhere in component parts; and date of mailing stamped by the U.S. this edition of the Federal Register. The (v) The adequacy of the financial and Postal Service. points or weights assigned to each nonfinancial strategies and incentives, (3) A dated shipping label, invoice, or criterion are indicated in parentheses. including the proposed PBCS, for receipt from a commercial carrier. Non-Federal peer reviewers will review attracting effective educators to work in (4) Any other proof of mailing each application. They will be asked to high-need schools and retaining them in acceptable to the Secretary of the U.S. evaluate and score each program those schools. Department of Education. narrative against the following selection (b) Rigorous, Valid, and Reliable If you mail your application through criteria. Educator Evaluation Systems. (35 the U.S. Postal Service, we do not Selection Criteria (a) through (f) apply points) We will consider, for each accept either of the following as proof to both the General TIF Competition and participating LEA, the quality of the of mailing: the TIF Competition with a Focus on educator evaluation systems described

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in the application. In determining the learners, for example, by creating (2) Allocates sufficient human quality of each evaluation system, we systems to support successful co- resources to complete project tasks (5 will consider the extent to which— teaching practices, providing resources points); (1) Each participating LEA has for research-based intervention services, (3) Includes measurable project finalized a high-quality evaluation or similar activities. objectives and performance measures (5 rubric, with at least three performance (c) Professional Development Systems points); and levels (e.g., highly effective, effective, to Support the Needs of Teachers and (4) Includes an effective project developing, unsatisfactory), under Principals Identified Through the evaluation plan (5 points); which educators will be evaluated (2 Evaluation Process. (35 points) We will (5) Specifies realistic and achievable points); consider the extent to which each timelines for: (2) Each participating LEA has participating LEA has a high-quality (i) Implementing the components of presented (4 points)— plan for professional development to the HCMS, PBCS, and educator (i) A clear rationale to support its help all educators located in high-need evaluation systems, including any consideration of the level of student schools, listed in response to proposal to phase in schools or growth achieved in differentiating Requirement 3(a), to improve their educators (8 points). performance levels; and effectiveness. In determining the quality (ii) Successfully completing project (ii) Evidence, such as current research of each plan for professional tasks and achieving objectives (4 and best practices, supporting the LEA’s development, we will consider the points). choice of student growth models and extent to which the plan describes how (f) Sustainability. (20 points) We will demonstrating the rigor and the participating LEA will— consider the quality of the plan to comparability of assessments; (1) Use the disaggregated information sustain the proposed project. In (3) Each participating LEA has made generated by the proposed educator determining the quality of the substantial progress in developing a evaluation systems to identify the sustainability plan, we will consider the high-quality plan for multiple teacher professional development needs of extent to which the sustainability and principal observations, including individual educators and schools (8 plan— identification of the persons, by position points); (1) Identifies and commits sufficient and qualifications, who will be (2) Provide professional development non-TIF resources, financial and conducting the observations, the in a timely way (2 points); nonfinancial, to support the PBCS and observation tool, the events to be (3) Provide school-based, job- educator evaluation systems during and observed, the accuracy of raters in using embedded opportunities for educators after the grant period (10 points); and to transfer new knowledge into observation tools and the procedures for (2) Is likely to be implemented and, if instructional and leadership practices (5 ensuring a high degree of inter-rater implemented, will result in a sustained points); and reliability (13 points); PBCS and educator evaluation systems (4) The participating LEA has (4) Provide professional development after the grant period ends (10 points). experience measuring student growth at that is likely to improve instructional (g) Comprehensive Approach to the classroom level, and has already and leadership practices, and is guided Improving STEM Instruction. (25 points) implemented components of the by the professional development needs To meet Priority 3, we will consider the proposed educator evaluation systems of individual educators as identified in quality of an applicant’s plan for (4 points); paragraph (c)(1) of this criterion (20 improving educator effectiveness in (5) In the case of teacher evaluations, points). STEM instruction. In determining the the proposed evaluation system (6 (d) Involvement of Educators. (35 quality of the plan, we will consider the points)— points) We will consider the quality of (i) Bases the overall evaluation rating educator involvement in the extent to which— for teachers, in significant part, on development and implementation of the (1) The financial and nonfinancial student growth; proposed PBCS and educator evaluation strategies and incentives, including the (ii) Evaluates the practice of teachers, systems described in the application. In proposed PBCS, are adequate for including general education teachers determining the quality of such attracting effective STEM educators to and teachers of special student involvement, we will consider the work in high-need schools and retaining populations, in meeting the needs of extent to which— them in these schools (4 points); special student populations, including (1) The application contains evidence (2) The proposed professional students with disabilities and English that educator involvement in the design development opportunities— learners; of the PBCS and the educator evaluation (a) Will provide college-level STEM (6) In the case of principal systems has been extensive and will skills and content knowledge to STEM evaluations, the proposed evaluation continue to be extensive during the teachers while modeling for teachers system (6 points)— grant period (10 points); and pedagogical methods for teaching those (i) Bases the overall evaluation rating (2) The application contains evidence skills and that content at the appropriate on, in significant part, student growth; that educators support the elements of grade level (4 points); and and the proposed PBCS and the educator (b) Will enable STEM teachers to (ii) Evaluates, among other factors, a evaluation systems described in the provide students in high-need schools principal’s practice in— application (25 points). with increased access to rigorous and (A) Focusing every teacher, and the (e) Project Management. (30 points) engaging STEM coursework appropriate school community generally, on student We will consider the quality of the for their grade level, including college- growth; management plan of the proposed level material in high schools (7 points); (B) Establishing a collaborative school project. In determining the quality of the (3) The applicant will significantly culture focused on continuous management plan, we will consider the leverage STEM-related funds across improvement; and extent to which the management plan— other Federal, State, and local programs (C) Supporting the academic needs of (1) Clearly identifies and defines the to implement a high-quality and special student populations, including roles and responsibilities of key comprehensive STEM plan (7 points); students with disabilities and English personnel (3 points); and

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(4) The applicant provides evidence 3. Reporting: (a) If you apply for a ‘‘substantial progress toward meeting (e.g., letters of support) that the LEA has grant under one the competitions the objectives in its approved or will develop extensive relationships announced in this notice, you must application.’’ This consideration with STEM experts and resources in ensure that you have in place the includes the review of a grantee’s industry, academic institutions, or necessary processes and systems to progress in meeting the targets and associations to effectively implement its comply with the reporting requirements projected outcomes in its approved STEM plan and ensure that instruction in 2 CFR part 170 should you receive application, and whether the grantee prepares students to be college-and- funding under one of the competitions. has expended funds in a manner that is career ready (3 points). This does not apply if you have an consistent with its approved application 2. Review and Selection Process: We exception under 2 CFR 170.110(b). and budget. In making a continuation remind potential applicants that in (b) At the end of your project period, grant, the Secretary also considers reviewing applications in any you must submit a final performance whether the grantee is operating in discretionary grant competition, the report, including financial information, compliance with the assurances in its Secretary may consider, under 34 CFR as directed by the Secretary. If you approved application, including those 75.217(d)(3), the past performance of the receive a multi-year award, you must applicable to Federal civil rights laws applicant in carrying out a previous submit an annual performance report that prohibit discrimination in programs award, such as the applicant’s use of that provides the most current or activities receiving Federal financial funds, achievement of project performance and financial expenditure assistance from the Department (34 CFR objectives, and compliance with grant information as directed by the Secretary 100.4, 104.5, 106.4, 108.8, and 110.23). conditions. The Secretary may also under 34 CFR 75.118. The Secretary consider whether the applicant failed to may also require more frequent VII. Agency Contact submit a timely performance report or performance reports under 34 CFR FOR FURTHER INFORMATION CONTACT: submitted a report of unacceptable 75.720(c). For specific requirements on Miriam Lund, U.S. Department of quality. reporting, please go to www.ed.gov/ Education, 400 Maryland Avenue SW., fund/grant/apply/appforms/ In addition, in making a competitive Room 3E245, LBJ Building, Washington, appforms.html. grant award, the Secretary also requires DC 20202–6200. Telephone: (202) 205– 4. Performance Measures: Pursuant to various assurances including those 5224 or by email: [email protected]. applicable to Federal civil rights laws the Government Performance and If you use a TDD or a TTY, call the that prohibit discrimination in programs Results Act of 1993, the Department has FRS, toll free, at 1–800–877–8339. or activities receiving Federal financial established the following performance assistance from the Department of measures that it will use to evaluate the VIII. Other Information overall effectiveness of the grantee’s Education (34 CFR 100.4, 104.5, 106.4, Accessible Format: Individuals with project, as well as the TIF program as a 108.8, and 110.23). disabilities can obtain this document 3. Special Conditions: Under 34 CFR whole: and a copy of the application package in 74.14 and 80.12, the Secretary may Measure 1. The number of teachers an accessible format (e.g., braille, large impose special conditions on a grant if and principals, who are rated at the print, audiotape, or compact disc) on the applicant or grantee is not highest level, at least effective, and not request to the program contact person financially stable; has a history of effective, as measured by the district’s listed under FOR FURTHER INFORMATION unsatisfactory performance; has a evaluation system and the number who CONTACT in section VII of this notice. financial or other management system are not rated. Electronic Access to This Document: that does not meet the standards in 34 Measure 2. The number of teachers The official version of this document is CFR parts 74 or 80, as applicable; has teaching in a high-need field or subject, the document published in the Federal not fulfilled the conditions of a prior such as teaching English learners, Register. Free Internet access to the grant; or is otherwise not responsible. students with disabilities, or STEM, who are rated at the highest level, at official edition of the Federal Register VI. Award Administration Information least effective, and not effective, as and the Code of Federal Regulations is 1. Award Notices: If your application measured by the district’s evaluation available via the Federal Digital System is successful, we notify your U.S. system and the number who are not at: www.gpo.gov/fdsys. At this site you Representative and U.S. Senators and rated. can view this document, as well as all send you a Grant Award Notification Measure 3. The number of teachers other documents of this Department (GAN). We may notify you informally, and principals who were rated at the published in the Federal Register, in also. highest level, at least effective, and not text or Adobe Portable Document If your application is not evaluated or effective, as measured by the district’s Format (PDF). To use PDF you must not selected for funding, we notify you. evaluation system, and the number who have Adobe Acrobat Reader, which is 2. Administrative and National Policy were not rated, in the previous year and available free at the site. Requirements: We identify who returned to serve in the same high- You may also access documents of the administrative and national policy need school in the LEA. Department published in the Federal requirements in the application package Measure 4. The number of school Register by using the article search and reference these and other districts participating in a TIF grant that feature at: www.federalregister.gov. requirements in the Applicable use educator evaluation systems to Specifically, through the advanced Regulations section of this notice. inform the following human capital search feature at this site, you can limit We reference the regulations outlining decisions: recruitment; hiring; your search to documents published by the terms and conditions of an award in placement; retention; dismissal; the Department. the Applicable Regulations section of professional development; tenure; Delegation of Authority: The Secretary this notice and include these and other promotion; or all of the above. of Education has delegated authority to specific conditions in the GAN. The 5. Continuation Awards: In making a Michael Yudin, Deputy Assistant GAN also incorporates your approved continuation award, the Secretary may Secretary for Policy for Elementary and application as part of your binding consider, under 34 CFR 75.253, the Secondary Education to perform the commitments under the grant. extent to which a grantee has made functions and duties of the Assistant

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Secretary for Elementary and Secondary Dated: June 7, 2012. Education. Michael Yudin, Deputy Assistant Secretary for Policy, and Strategic Initiatives, Delegated, the Authority to Perform the Functions, and Duties of the Assistant, Secretary for Elementary and Secondary, Education. [FR Doc. 2012–14269 Filed 6–13–12; 8:45 am] BILLING CODE 4000–01–P

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Reader Aids Federal Register Vol. 77, No. 115 Thursday, June 14, 2012

CUSTOMER SERVICE AND INFORMATION CFR PARTS AFFECTED DURING JUNE

Federal Register/Code of Federal Regulations At the end of each month the Office of the Federal Register General Information, indexes and other finding 202–741–6000 publishes separately a List of CFR Sections Affected (LSA), which aids lists parts and sections affected by documents published since Laws 741–6000 the revision date of each title. 10 CFR Presidential Documents 3 CFR Executive orders and proclamations 741–6000 26...... 33619 Proclamations: 71...... 34194 The United States Government Manual 741–6000 8829...... 32875 73...... 34194 Other Services 8830...... 32877 8831...... 32879 Proposed Rules: Electronic and on-line services (voice) 741–6020 8832...... 33595 430...... 33106, 35299 Privacy Act Compilation 741–6064 8833...... 33597 431...... 32916 741–6043 Public Laws Update Service (numbers, dates, etc.) 8834...... 33599 1703...... 32433, 33980 TTY for the deaf-and-hard-of-hearing 741–6086 8835...... 33601 12 CFR 8836...... 33603 1...... 35253, 35259 ELECTRONIC RESEARCH Administrative Orders: 5...... 35253 Memorandums: World Wide Web 16...... 35253 Memorandum of April Full text of the daily Federal Register, CFR and other publications 28...... 35253 24, 2012 ...... 33945 is located at: www.fdsys.gov. 160...... 35253, 35259 Memorandum of May 225...... 33949 Federal Register information and research tools, including Public 23, 2012 ...... 32391 241...... 32881 Inspection List, indexes, and links to GPO Access are located at: Memorandum of June 1236...... 33950 www.ofr.gov. 7, 2012 ...... 35241 Proposed Rules: E-mail Presidential Determinations: 1026...... 33120 FEDREGTOC-L (Federal Register Table of Contents LISTSERV) is No. 2012–07 of April 1282...... 34263 an open e-mail service that provides subscribers with a digital 24, 2012 ...... 33947 form of the Federal Register Table of Contents. The digital form 14 CFR of the Federal Register Table of Contents includes HTML and 5 CFR 39 ...... 32884, 32887, 32889, PDF links to the full text of each document. 32892, 33083, 33619, 33622, Ch. LXXXIII...... 34179 34206 To join or leave, go to http://listserv.access.gpo.gov and select 9301...... 34179 71 ...... 32393, 32895, 32896, Online mailing list archives, FEDREGTOC-L, Join or leave the list Proposed Rules: (or change settings); then follow the instructions. 34208, 34209, 34210, 34211, 532...... 34854 35617, 35618 PENS (Public Law Electronic Notification Service) is an e-mail 1200...... 33663 97...... 33085, 33087 service that notifies subscribers of recently enacted laws. 1201...... 33663 121...... 34784 1203...... 33663 To subscribe, go to http://listserv.gsa.gov/archives/publaws-l.html Proposed Rules: 1208...... 33663 and select Join or leave the list (or change settings); then follow 39 ...... 32433, 32437, 32439, 1209...... 33663 the instructions. 32918, 33125, 33127, 33129, FEDREGTOC-L and PENS are mailing lists only. We cannot 6 CFR 33332, 33334, 34281, 34283, respond to specific inquiries. 34870, 34872, 34874, 34876, 5...... 33605 34878, 34881, 35304, 35306 Reference questions. Send questions and comments about the Proposed Rules: 71 ...... 32921, 33685, 33687 Federal Register system to: [email protected] 5...... 33683 73...... 35308 The Federal Register staff cannot interpret specific documents or 121...... 32441 regulations. 7 CFR 15 CFR Reminders. Effective January 1, 2009, the Reminders, including 7...... 33063 Rules Going Into Effect and Comments Due Next Week, no longer 28...... 33289 Proposed Rules: appear in the Reader Aids section of the Federal Register. This 205...... 33290 740...... 33688 information can be found online at http://www.regulations.gov. 319...... 34781 742...... 33688, 35310 614...... 34186 774...... 33688, 35310 CFR Checklist. Effective January 1, 2009, the CFR Checklist no 930...... 33303 906...... 33980 longer appears in the Federal Register. This information can be 985...... 33076 1400...... 34883 found online at http://bookstore.gpo.gov/. 1700...... 35245 Proposed Rules: 16 CFR FEDERAL REGISTER PAGES AND DATE, JUNE 932...... 33104 Proposed Rules: 1205...... 34855 305...... 33337 32391–32880...... 1 1280...... 34868 32881–33062...... 4 3201...... 33270 17 CFR 33063–33288...... 5 46...... 35200 33289–33594...... 6 9 CFR 275...... 35263 33595–33944...... 7 11...... 33607 Proposed Rules: 33945–34178...... 8 55...... 35542 240...... 35625 34179–34780...... 11 81...... 35542 34781–35240...... 12 93...... 34783 19 CFR 35241–35616...... 13 94...... 34783 12...... 33624 35617–35806...... 14 95...... 34783 111...... 33964

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163...... 33964 117 ...... 32393, 32394, 33337, 123...... 34315, 34927 194...... 33860 34797 124...... 34315, 34927 196...... 33860 20 CFR 151...... 33969, 35268 125...... 34315, 34927 532...... 33971 404...... 35264 165 ...... 32394, 32898, 33089, 725...... 35331 33094, 33308, 33309, 33312, 1039...... 34149 47 CFR 21 CFR 33970, 34797, 34798, 35268, 42 CFR 1...... 33097 179...... 34212 35271, 35619, 35621 11...... 33661 417...... 32407 510...... 32897 Proposed Rules: 15...... 33098 422...... 32407 Proposed Rules: 100...... 33130, 35321 51...... 35623 423...... 32407 172...... 35317 165...... 34285, 34894 54...... 33097, 35623 Proposed Rules: 64...... 33662, 34233 22 CFR 36 CFR 88...... 35574 73...... 32900 120...... 33089 242...... 35482 412...... 34326 90...... 33972 413...... 34326 123...... 33089 Proposed Rules: Proposed Rules: 424...... 34326 124...... 33089 220...... 35323 11...... 33995 476...... 34326 126...... 33089 54...... 33896 37 CFR 489...... 34326 127...... 33089 64...... 35336 Proposed Rules: 129...... 33089 45 CFR 73...... 33997 Proposed Rules: 201...... 35643 121...... 33698, 35317 Proposed Rules: 38 CFR 156...... 33133 48 CFR 25 CFR 3...... 34218 6...... 35624 9...... 32397 46 CFR 15...... 35624 Proposed Rules: 25...... 33860 19...... 35624 543...... 32444 39 CFR 27...... 33860 547...... 32465 20...... 33640 28...... 33860 49 CFR 26 CFR 111...... 33314 31...... 33860 234...... 35164 34...... 33860 1...... 34785, 34788 40 CFR 371...... 32901 35...... 33860 375...... 32901 Proposed Rules: 51...... 33642 62...... 33860 386...... 32901, 34249 1...... 34884, 34887 52 ...... 32398, 33642, 33659, 71...... 33860 387...... 32901 34218, 34801, 34808, 34810, 27 CFR 76...... 33860 390...... 34846 34819, 35273, 35279, 35285, 78...... 33860 395...... 33098, 33331 478...... 33625, 33630 35287 91...... 33860 396...... 34846 Proposed Rules: 81...... 34221, 34819 95...... 33860 541...... 32903 9...... 33985 82...... 33315 97...... 33860 Proposed Rules: 85...... 34130 107...... 33860 29 CFR 594...... 35338 86...... 34130 108...... 33860 595...... 33998 Proposed Rules: 97...... 34830 112...... 33860 1572...... 35343 1206...... 33701 180 ...... 32400, 32401, 35291, 115...... 33860 35295 118...... 33860 30 CFR 271...... 34229 119...... 33860 50 CFR Proposed Rules: 1039...... 34130 122...... 33860 17...... 33100, 35118 917...... 34888 Proposed Rules: 131...... 33860 100...... 35482 936...... 34890 52 ...... 32481, 32483, 32493, 132...... 33860 226...... 32909 944...... 34892 33022, 33360, 33363, 33372, 147...... 33860 622 ...... 32408, 32913, 32914, 950...... 34894 33380, 34288, 34297, 34300, 162 ...... 33860, 33969, 35268 34254 34302, 34306, 34897, 34898, 167...... 33860 665...... 34260 31 CFR 34906, 35326, 35327, 35329, 169...... 33860 679 ...... 33103, 34262, 34853 344...... 33634 35652 176...... 33860 697...... 32420 1010...... 33635 60...... 33812 181...... 33860 Proposed Rules: 1020...... 33638 63...... 33812 182...... 33860 17 ...... 32483, 32922, 33142, 80...... 34915 185...... 33860 33143, 34338 33 CFR 85...... 34149 189...... 33860 20...... 34931 100 ...... 33089, 33337, 33967, 86...... 34149 190...... 33860 600...... 35349 34215, 35266 122...... 34315, 34927 193...... 33860 665...... 34331, 34334

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Superintendent of Documents, H.R. 3992/P.L. 112–130 U.S. Government Printing LIST OF PUBLIC LAWS Office, Washington, DC 20402 To allow otherwise eligible Public Laws Electronic (phone, 202–512–1808). The Israeli nationals to receive E-2 Notification Service This is a continuing list of text will also be made nonimmigrant visas if similarly (PENS) public bills from the current available on the Internet from situated United States session of Congress which GPO’s Federal Digital System nationals are eligible for have become Federal laws. It PENS is a free electronic mail (FDsys) at http://www.gpo.gov/ similar nonimmigrant status in may be used in conjunction fdsys. Some laws may not yet notification service of newly Israel. (June 8, 2012; 126 with ‘‘P L U S’’ (Public Laws be available. enacted public laws. To Update Service) on 202–741– Stat. 376) subscribe, go to http:// 6043. This list is also H.R. 2947/P.L. 112–129 listserv.gsa.gov/archives/ available online at http:// H.R. 4097/P.L. 112–131 publaws-l.html www.archives.gov/federal- To provide for the release of register/laws. the reversionary interest held John F. Kennedy Center Note: This service is strictly by the United States in certain Reauthorization Act of 2012 for E-mail notification of new The text of laws is not land conveyed by the United (June 8, 2012; 126 Stat. 377) laws. The text of laws is not published in the Federal States in 1950 for the available through this service. Register but may be ordered establishment of an airport in Last List June 11, 2012 PENS cannot respond to in ‘‘slip law’’ (individual Cook County, Minnesota. specific inquiries sent to this pamphlet) form from the (June 8, 2012; 126 Stat. 375) address.

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