FEDERAL REGISTER
Vol. 86 Tuesday No. 151 August 10, 2021
Pages 43583–43902
OFFICE OF THE FEDERAL REGISTER
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Contents Federal Register Vol. 86, No. 151
Tuesday, August 10, 2021
Agriculture Department NOTICES NOTICES Meetings: Agency Information Collection Activities; Proposals, Financial Advisory Board Webinar, 43652 Submissions, and Approvals, 43624–43626 Federal Aviation Administration Centers for Medicare & Medicaid Services RULES PROPOSED RULES Airspace Designations and Reporting Points: Most Favored Nation Model, 43618–43623 Kodiak, AK, 43589–43590 NOTICES Children and Families Administration Agency Information Collection Activities; Proposals, NOTICES Submissions, and Approvals: Agency Information Collection Activities; Proposals, Part 135––Operating Requirements: Commuter and on- Submissions, and Approvals: Demand Operations and Rules Governing Persons on Survey of the National Survey of Child and Adolescent Board such Aircraft, 43718–43719 Well-Being Adopted Youth, Young Adults, and Meetings: Adoptive Parents, 43665 Youth Access to American Jobs in Aviation Task Force; Final Issuance on the Administration for Native Americans Rescheduling, 43719 Program Policies and Procedures, 43663–43665 Federal Deposit Insurance Corporation Commerce Department NOTICES See International Trade Administration Agency Information Collection Activities; Proposals, See National Oceanic and Atmospheric Administration Submissions, and Approvals, 43652–43663 Defense Department Federal Energy Regulatory Commission NOTICES RULES Privacy Act; System of Records, 43631–43633 Standards for Business Practices of Interstate Natural Gas Pipelines, 43590–43598 Education Department NOTICES PROPOSED RULES Authorization for Continued Project Operation: Negotiated Rulemaking Committee: Blackstone Hydro Associates, 43651–43652 Negotiator Nominations and Schedule of Committee Combined Filings, 43649–43650 Meetings, 43609–43613 Environmental Assessments; Availability, etc.: Brookfield White Pine Hydro, LLC, 43651 Employment and Training Administration Filing: NOTICES Bonneville Power Administration, 43651 Agency Information Collection Activities; Proposals, Initial Market-Based Rate Filings Including Requests for Submissions, and Approvals: Blanket Section 204 Authorizations: Self Employment Assistance, 43680–43681 Rockhaven Wind Project, LLC, 43650–43651 Energy Department Federal Motor Carrier Safety Administration See Federal Energy Regulatory Commission PROPOSED RULES NOTICES Implementation of Household Goods Working Group Agency Information Collection Activities; Proposals, Recommendations, 43814–43842 Submissions, and Approvals, 43648–43649 Energy Conservation Program: Federal Reserve System RefPlus, Inc.; Notification of Petition for Waiver from the NOTICES Department of Energy Walk-in Coolers and Walk-in Change in Bank Control: Freezers Test Procedure and Notification of Grant of Acquisitions of Shares of a Bank or Bank Holding Interim Waiver, 43633–43648 Company, 43663 Proposals to Engage in or to Acquire Companies Engaged in Environmental Protection Agency Permissible Nonbanking Activities, 43663 PROPOSED RULES Air Quality State Implementation Plans; Approvals and Fish and Wildlife Service Promulgations: NOTICES California; San Diego Air Pollution Control District, Environmental Assessments; Availability, etc.: 43615–43617 San Diego National Wildlife Refuge, CA, 43672–43673 Missouri; Restriction of Emissions from Batch-Type Charcoal Kilns, 43617–43618 Food and Drug Administration Missouri; Restriction of Particulate Matter Emissions from NOTICES Fuel Burning Equipment Used for Indirect Heating, Agency Information Collection Activities; Proposals, 43613–43614 Submissions, and Approvals, 43665–43666 Revised 2023 and Later Model Year Light-Duty Vehicle Meetings: Greenhouse Gas Emissions Standards, 43726–43811 Pediatric Advisory Committee, 43666–43667
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Post-Marketing Pediatric-Focused Product Safety Reviews, National Aeronautics and Space Administration 43667–43669 NOTICES Performance Review Board: Geological Survey Senior Executive Service, 43682 NOTICES Privacy Act; System of Records, 43673–43674 National Endowment for the Humanities NOTICES Health and Human Services Department Meetings: See Centers for Medicare & Medicaid Services Humanities Panel, 43682–43684 See Children and Families Administration National Foundation on the Arts and the Humanities See Food and Drug Administration See National Endowment for the Humanities See National Institutes of Health National Institutes of Health Homeland Security Department NOTICES See Transportation Security Administration Meetings: NOTICES Center for Scientific Review, 43669 Agency Information Collection Activities; Proposals, Office of the Director; Helping to End Addiction Long- Submissions, and Approvals: Term Multi-Disciplinary Working Group, 43669 Office of the Immigration Detention Ombudsman Intake Prospective Grant of an Exclusive Patent License: Form, 43671–43672 Multi-domain Amphipathic Helical Peptide for Use as a Human Therapeutic in Patients with Atherosclerotic Interior Department Cardiovascular Disease, etc., 43670–43671 See Fish and Wildlife Service Senior Executive Service 2021 Performance Review Board, See Geological Survey 43669–43670 See Land Management Bureau See National Park Service National Oceanic and Atmospheric Administration NOTICES International Trade Administration Endangered and Threatened Species: NOTICES Take of Anadromous Fish, 43629–43630 Antidumping or Countervailing Duty Investigations, Orders, Permits: or Reviews: Marine Mammals and Endangered Species, 43630–43631 Oil Country Tubular Goods from the People’s Republic of China, 43627–43629 National Park Service Polyethylene Retail Carrier Bags from the Socialist NOTICES Republic of Vietnam, 43626–43627 National Register of Historic Places: Pending Nominations and Related Actions, 43677 International Trade Commission National Science Foundation NOTICES Investigations; Determinations, Modifications, and Rulings, NOTICES etc.: Meetings: Certain Gas Spring Nailer Products and Components National Artificial Intelligence Research Resource Task Thereof, 43677–43678 Force, 43684 Certain Optical Enclosures, Components Thereof, and Nuclear Regulatory Commission Products Containing the Same, 43678–43679 PROPOSED RULES Protection of Digital Computer and Communication Justice Department Systems and Networks, 43599–43609 NOTICES NOTICES Agency Information Collection Activities; Proposals, Environmental Impact Statements; Availability, etc.: Submissions, and Approvals Duke Energy Carolina, LLC; Duke Energy; Oconee Office for Victims of Crime Training and Technical Nuclear Station, Units 1, 2, and 3, 43684–43686 Assistance Center––Trafficking Information Monthly Notice: Management System, 43679–43680 Applications and Amendments to Facility Operating Proposed Consent Decree under the Clean Water Act, 43679 Licenses and Combined Licenses Involving No Significant Hazards Considerations, 43686–43696 Labor Department Systematic Assessment for Addressing Environmental See Employment and Training Administration Justice in Programs, Policies, and Activities, 43696– NOTICES 43698 Agency Information Collection Activities; Proposals, Submissions, and Approvals: Pipeline and Hazardous Materials Safety Administration Vehicle-Mounted Elevating and Rotating Work Platforms PROPOSED RULES Standard (Aerial Lifts), 43681–43682 Hazardous Materials: Harmonization with International Standards, 43844– Land Management Bureau 43898 NOTICES NOTICES Environmental Impact Statements; Availability, etc.: Agency Information Collection Activities; Proposals, Nevada Gold Mines, LLC’s Goldrush Mine Project, Submissions, and Approvals: Lander and Eureka Counties, NV, 43674–43677 Hazardous Materials, 43719–43722
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Presidential Documents Veterans Affairs Department EXECUTIVE ORDERS NOTICES Clean Cars and Trucks; U.S. Leadership, Strengthening Meetings: Efforts (EO 14037), 43583–43585 Veterans’ Family, Caregiver and Survivor Advisory ADMINISTRATIVE ORDERS Committee, 43722 Export Control Regulations; Continuation of National Emergency (Notice of August 6, 2021), 43899–43901 Requests for Nominations: Hong Kong Residents; Deferred Enforced Departure Advisory Committee on the Readjustment of Veterans, (Memorandum of August 5, 2021), 43587–43588 43722–43723 Securities and Exchange Commission NOTICES Self-Regulatory Organizations; Proposed Rule Changes: Separate Parts In This Issue Cboe Exchange, Inc., 43701–43704 Financial Industry Regulatory Authority, Inc., 43698– 43700 Part II NYSE American, LLC, 43700–43701 Environmental Protection Agency, 43726–43811 NYSE Arca, Inc., 43704–43717 Part III State Department NOTICES Transportation Department, Federal Motor Carrier Safety Charter Renewal: Administration, 43814–43842 Foreign Affairs Policy Board, 43717 Imposition of Nonproliferation Measures Against Foreign Part IV Persons, Including a Ban on United States Government Transportation Department, Pipeline and Hazardous Procurement, 43717–43718 Materials Safety Administration, 43844–43898 Surface Transportation Board NOTICES Part V Meetings: Presidential Documents, 43899–43901 National Grain Car Council, 43718 Release of Waybill Data, 43718 Transportation Department See Federal Aviation Administration Reader Aids See Federal Motor Carrier Safety Administration Consult the Reader Aids section at the end of this issue for See Pipeline and Hazardous Materials Safety phone numbers, online resources, finding aids, and notice Administration of recently enacted public laws. To subscribe to the Federal Register Table of Contents Transportation Security Administration electronic mailing list, go to https://public.govdelivery.com/ NOTICES accounts/USGPOOFR/subscriber/new, enter your e-mail Agency Information Collection Activities; Proposals, address, then follow the instructions to join, leave, or Submissions, and Approvals: manage your subscription. Law Enforcement Officer Flying Armed Training, 43672
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CFR PARTS AFFECTED IN THIS ISSUE
A cumulative list of the parts affected this month can be found in the Reader Aids section at the end of this issue.
3 CFR Executive Orders: 14037...... 43583 Administrative Orders: Memorandums: Memorandum of August 6, 2021...... 43587 Notices: Notice of August 6, 2021 ...... 43901 10 CFR Proposed Rules: 73...... 43599 14 CFR 71...... 43589 18 CFR 284...... 43590 34 CFR Proposed Rules: Ch. VI...... 43609 40 CFR Proposed Rules: 52 (3 documents) ...... 43613, 43615, 43617 86...... 43726 600...... 43726 42 CFR Proposed Rules: 513...... 43618 49 CFR Proposed Rules: 171...... 43844 172...... 43844 173...... 43844 175...... 43844 176...... 43844 178...... 43844 180...... 43844 371...... 43814 375...... 43814
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Federal Register Presidential Documents Vol. 86, No. 151
Tuesday, August 10, 2021
Title 3— Executive Order 14037 of August 5, 2021
The President Strengthening American Leadership in Clean Cars and Trucks
By the authority vested in me as President by the Constitution and the laws of the United States of America, and in order to promote the interests of American workers, businesses, consumers, and communities, it is hereby ordered as follows: Section 1. Policy. America must lead the world on clean and efficient cars and trucks. That means bolstering our domestic market by setting a goal that 50 percent of all new passenger cars and light trucks sold in 2030 be zero-emission vehicles, including battery electric, plug-in hybrid electric, or fuel cell electric vehicles. My Administration will prioritize setting clear standards, expanding key infrastructure, spurring critical innova- tion, and investing in the American autoworker. This will allow us to boost jobs—with good pay and benefits—across the United States along the full supply chain for the automotive sector, from parts and equipment manufacturing to final assembly. It is the policy of my Administration to advance these objectives in order to improve our economy and public health, boost energy security, secure consumer savings, advance environmental justice, and address the climate crisis. Sec. 2. Light-, Medium-, and Certain Heavy-Duty Vehicles Multi-Pollutant and Fuel Economy Standards for 2027 and Later. (a) The Administrator of the Environmental Protection Agency (EPA) shall, as appropriate and consistent with applicable law, consider beginning work on a rulemaking under the Clean Air Act (42 U.S.C. 7401–7671q) to establish new multi-pollutant emissions standards, including for greenhouse gas emis- sions, for light- and medium-duty vehicles beginning with model year 2027 and extending through and including at least model year 2030. (b) The Secretary of Transportation shall, as appropriate and consistent with applicable law, consider beginning work on a rulemaking under the Energy Independence and Security Act of 2007 (Public Law 110–140, 121 Stat. 1492) (EISA) to establish new fuel economy standards for passenger cars and light-duty trucks beginning with model year 2027 and extending through and including at least model year 2030. (c) The Secretary of Transportation shall, as appropriate and consistent with applicable law, consider beginning work on a rulemaking under EISA to establish new fuel efficiency standards for heavy-duty pickup trucks and vans beginning with model year 2028 and extending through and includ- ing at least model year 2030. Sec. 3. Heavy-Duty Engines and Vehicles Multi-Pollutant Standards for 2027 and Later. (a) The Administrator of the EPA shall, as appropriate and con- sistent with applicable law, consider beginning work on a rulemaking under the Clean Air Act to establish new oxides of nitrogen standards for heavy- duty engines and vehicles beginning with model year 2027 and extending through and including at least model year 2030. (b) The Administrator of the EPA shall, as appropriate and consistent with applicable law, and in consideration of the role that zero-emission heavy-duty vehicles might have in reducing emissions from certain market segments, consider updating the existing greenhouse gas emissions standards
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for heavy-duty engines and vehicles beginning with model year 2027 and extending through and including at least model year 2029. Sec. 4. Medium- and Heavy-Duty Engines and Vehicles Greenhouse Gas and Fuel Efficiency Standards as Soon as 2030 and Later. (a) The Adminis- trator of the EPA shall, as appropriate and consistent with applicable law, consider beginning work on a rulemaking under the Clean Air Act to establish new greenhouse gas emissions standards for heavy-duty engines and vehicles to begin as soon as model year 2030. (b) The Secretary of Transportation shall, as appropriate and consistent with applicable law, consider beginning work on a rulemaking under EISA to establish new fuel efficiency standards for medium- and heavy-duty en- gines and vehicles to begin as soon as model year 2030. Sec. 5. Rulemaking Targets. (a) With respect to the rulemaking described in section 3(a) of this order, the Administrator of the EPA shall, as appropriate and consistent with applicable law, consider issuing a notice of proposed rulemaking by January 2022 and any final rulemaking by December 2022. (b) With respect to the other rulemakings described in section 2 and section 4 of this order, the Secretary of Transportation and the Administrator of the EPA shall, as appropriate and consistent with applicable law, consider issuing any final rulemakings no later than July 2024. Sec. 6. Coordination and Engagement. (a) The Secretary of Transportation and the Administrator of the EPA shall coordinate, as appropriate and con- sistent with applicable law, during the consideration of any rulemakings pursuant to this order. (b) The Secretary of Transportation and the Administrator of the EPA shall consult with the Secretaries of Commerce, Labor, and Energy on ways to achieve the goals laid out in section 1 of this order, to accelerate innovation and manufacturing in the automotive sector, to strengthen the domestic supply chain for that sector, and to grow jobs that provide good pay and benefits. (c) Given the significant expertise and historical leadership demonstrated by the State of California with respect to establishing emissions standards for light-, medium-, and heavy-duty vehicles, the Administrator of the EPA shall coordinate the agency’s activities pursuant to sections 2 through 4 of this order, as appropriate and consistent with applicable law, with the State of California as well as other States that are leading the way in reducing vehicle emissions, including by adopting California’s standards. (d) In carrying out any of the actions described in this order, the Secretary of Transportation and the Administrator of the EPA shall seek input from a diverse range of stakeholders, including representatives from labor unions, States, industry, environmental justice organizations, and public health ex- perts. Sec. 7. General Provisions. (a) Nothing in this order shall be construed to impair or otherwise affect: (i) the authority granted by law to an executive department or agency, or the head thereof; or (ii) the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals. (b) This order shall be implemented consistent with applicable law and subject to the availability of appropriations.
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(c) This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.
THE WHITE HOUSE, August 5, 2021.
[FR Doc. 2021–17121 Filed 8–9–21; 8:45 am] Billing code 3295–F1–P
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Memorandum of August 5, 2021
Deferred Enforced Departure for Certain Hong Kong Resi- dents
Memorandum for the Secretary of State [and] the Secretary of Homeland Security
The United States supports the human rights and fundamental freedoms of the residents of Hong Kong. Recognizing the significant erosion of those rights and freedoms in Hong Kong by the People’s Republic of China (PRC), I am directing the deferral of removal of certain Hong Kong residents who are present in the United States. By unilaterally imposing on Hong Kong the Law of the People’s Republic of China on Safeguarding National Security in the Hong Kong Special Admin- istrative Region (NSL), the PRC has undermined the enjoyment of rights and freedoms in Hong Kong, including those protected under the Basic Law and the Sino-British Joint Declaration. Since the imposition of the NSL in June 2020, Hong Kong police have continued a campaign of politically motivated arrests, taking into custody at least 100 opposition politicians, activists, and protesters on NSL-related charges including secession, subver- sion, terrorist activities, and collusion with a foreign country or external elements. Over 10,000 individuals have been arrested for other charges in connection with anti-government protests. Over the last year, the PRC has continued its assault on Hong Kong’s autonomy, undermining its remaining democratic processes and institutions, imposing limits on academic freedom, and cracking down on freedom of the press. There are compelling foreign policy reasons to defer enforced departure for Hong Kong residents presently in the United States. The United States is committed to a foreign policy that unites our democratic values with our foreign policy goals, which is centered on the defense of democracy and the promotion of human rights around the world. Offering safe haven for Hong Kong residents who have been deprived of their guaranteed free- doms in Hong Kong furthers United States interests in the region. The United States will not waver in our support of people in Hong Kong. Pursuant to my constitutional authority to conduct the foreign relations of the United States, I have determined that it is in the foreign policy interest of the United States to defer for 18 months the removal of any Hong Kong resident subject to the conditions and exceptions provided below. Accordingly, I hereby direct the Secretary of Homeland Security to take appropriate measures to defer for 18 months the removal of any Hong Kong resident who is present in the United States on the date of this memorandum, except for those: (1) who have voluntarily returned to Hong Kong or the PRC after the date of this memorandum; (2) who have not continuously resided in the United States since the date of this memorandum; (3) who are inadmissible under section 212(a)(3) of the Immigration and Nationality Act (INA) (8 U.S.C. 1182(a)(3)) or deportable under section 237(a)(4) of the INA (8 U.S.C. 1227(a)(4));
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(4) who have been convicted of any felony or two or more misdemeanors committed in the United States, or who meet any of the criteria set forth in section 208(b)(2)(A) of the INA (8 U.S.C. 1158(b)(2)(A)); (5) who are subject to extradition; (6) whose presence in the United States the Secretary of Homeland Security has determined is not in the interest of the United States or presents a danger to public safety; or (7) whose presence in the United States the Secretary of State has reason- able grounds to believe would have potentially serious adverse foreign policy consequences for the United States. I further direct the Secretary of Homeland Security to take appropriate measures to authorize employment for noncitizens whose removal has been deferred, as provided by this memorandum, for the duration of such deferral, and to consider suspending regulatory requirements with respect to F–1 nonimmigrant students who are Hong Kong residents as the Secretary of Homeland Security determines to be appropriate. The Secretary of Homeland Security is authorized and directed to publish this memorandum in the Federal Register.
THE WHITE HOUSE, Washington, August 5, 2021
[FR Doc. 2021–17122 Filed 8–9–21; 8:45 am] Billing code 4410–10–P
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Rules and Regulations Federal Register Vol. 86, No. 151
Tuesday, August 10, 2021
This section of the FEDERAL REGISTER information on the availability of FAA Availability and Summary of contains regulatory documents having general Order 7400.11E at NARA, email Documents for Incorporation by applicability and legal effect, most of which [email protected] or go to https:// Reference are keyed to and codified in the Code of www.archives.gov/federal-register/cfr/ This document amends FAA Order Federal Regulations, which is published under ibr-locations.html. 50 titles pursuant to 44 U.S.C. 1510. 7400.11E, Airspace Designations and FOR FURTHER INFORMATION CONTACT: Reporting Points, dated July 21, 2020, The Code of Federal Regulations is sold by Matthew Van Der Wal, Federal Aviation and effective September 15, 2020. FAA the Superintendent of Documents. Administration, Western Service Center, Order 7400.11E is publicly available as Operations Support Group, 2200 S listed in the ADDRESSES section of this DEPARTMENT OF TRANSPORTATION 216th Street, Des Moines, WA 98198; document. FAA Order 7400.11E lists telephone (206) 231–3695. Class A, B, C, D, and E airspace areas, Federal Aviation Administration air traffic service routes, and reporting SUPPLEMENTARY INFORMATION: points. 14 CFR Part 71 Authority for This Rulemaking The Rule [Docket No. FAA–2021–0226; Airspace The FAA’s authority to issue rules This amendment to 14 CFR part 71 Docket No. 20–AAL–2] regarding aviation safety is found in modifies the Class D airspace at Kodiak RIN 2120–AA66 Title 49 of the United States Code. Airport, Kodiak, AK. The Class D radius Subtitle I, Section 106 describes the is increased from 3.1 miles to 4.4 miles, Modification of Class D and Class E authority of the FAA Administrator. excluding the mountainous terrain west Airspace, and Removal of Class E Subtitle VII, Aviation Programs, and northwest of the airport and the Airspace; Kodiak, AK describes in more detail the scope of the airspace around Trident Basin Airport. Additionally, this action removes the AGENCY: agency’s authority. This rulemaking is Federal Aviation Class E airspace, designated as an Administration (FAA), DOT. promulgated under the authority described in Subtitle VII, Part A, extension to a Class D or Class E surface ACTION: Final rule. Subpart I, Section 40103. Under that area, east of the airport. The airspace is no longer required to contain arriving SUMMARY: This action modifies the Class section, the FAA is charged with IFR aircraft. D airspace at Kodiak Airport, Kodiak, prescribing regulations to assign the use Further, this action modifies the Class AK. This action also removes the Class of airspace necessary to ensure the E airspace extending upward from 700 E airspace designated as an extension to safety of aircraft and the efficient use of feet above the surface, by increasing the a Class D or Class E surface area, east airspace. This regulation is within the size of the area east of the airport to of the airport. Further, this action scope of that authority as it modifies the properly contain IFR aircraft performing increases the size of the Class E airspace Class D and Class E airspace, and the procedure turn maneuver for the extending upward from 700 feet above removes Class E airspace at Kodiak VOR RWY 26 approach. Lastly, this the surface. Finally, this action updates Airport, Kodiak, AK, to ensure the action updates the geographic the geographic coordinates in the third safety and management of instrument coordinates in the third line of the Class line of the Class D text header and flight rules (IFR) operations at the D text header to ‘‘lat. 57°44′59″ N, long. updates the term ‘‘Airport/Facility airport. 152°29′38″ W’’ and updates the term Directory’’ to ‘‘Chart Supplement’’ in History ‘‘Airport/Facility Directory’’ to ‘‘Chart the last sentence of the Class D airspace Supplement’’ in the last sentence of the description. The FAA published a notice of Class D airspace description. DATES: Effective 0901 UTC, December 2, proposed rulemaking in the Federal FAA Order 7400.11, Airspace 2021. The Director of the Federal Register (86 FR 29967; June 4, 2021) for Designations and Reporting Points, is Register approves this incorporation by Docket No. FAA–2021–0226 to modify published yearly and effective on reference action under 1 CFR part 51, the Class D and Class E airspace, and September 15. subject to the annual revision of FAA remove Class E airspace at Kodiak Order 7400.11 and publication of Airport, Kodiak, AK. Interested parties Regulatory Notices and Analyses conforming amendments. were invited to participate in this The FAA has determined that this ADDRESSES: FAA Order 7400.11E, rulemaking effort by submitting written regulation only involves an established Airspace Designations and Reporting comments on the proposal to the FAA. body of technical regulations for which Points, and subsequent amendments can No comments were received. frequent and routine amendments are be viewed online at https:// Class D, E4, and E5 airspace necessary to keep them operationally www.faa.gov//air_traffic/publications/. designations are published in current, is non-controversial, and For further information, you can contact paragraphs 5000, 6004, and 6005, unlikely to result in adverse or negative the Airspace Policy Group, Federal respectively, of FAA Order 7400.11E, comments. It, therefore: (1) Is not a Aviation Administration, 800 dated July 21, 2020, and effective ‘‘significant regulatory action’’ under Independence Avenue SW, Washington, September 15, 2020, which is Executive Order 12866; (2) is not a DC 20591; telephone: (202) 267–8783. incorporated by reference in 14 CFR ‘‘significant rule’’ under DOT The Order is also available for 71.1. The Class D and E airspace Regulatory Policies and Procedures (44 inspection at the National Archives and designation listed in this document will FR 11034; February 26, 1979); and (3) Records Administration (NARA). For be published subsequently in the Order. does not warrant preparation of a
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regulatory evaluation as the anticipated bearing from Kodiak Airport, and excluding ACTION: Final rule. impact is so minimal. Since this is a that airspace from the 024° bearing from the Kodiak Airport to the 325° bearing at 1.0 mile routine matter that will only affect air SUMMARY: from Trident Basin Airport, and excluding The Federal Energy traffic procedures and air navigation, it that airspace within a 1.0-mile radius of Regulatory Commission is amending its is certified that this rule, when Trident Basin Airport from the 325° bearing regulations to incorporate by reference, promulgated, would not have a from Trident Basin Airport counterclockwise with certain enumerated exceptions, the significant economic impact on a to the 250° bearing from Trident Basin latest version (Version 3.2) of business substantial number of small entities airport, and within a 0.3-mile radius of practice standards adopted by the Trident Basin Airport from the 250° bearing under the criteria of the Regulatory Wholesale Gas Quadrant of the North Flexibility Act. from Trident Basin Airport counterclockwise to the 119° bearing from the Trident Basin American Energy Standards Board Environmental Review Airport, and from the 119° bearing at 0.3 (NAESB) applicable to natural gas ° The FAA has determined that this miles from Trident Basin Airport to the 072 pipelines in place of the currently bearing at 4.4 miles from Kodiak Airport. incorporated version (Version 3.1) of action qualifies for categorical exclusion This Class D airspace area is effective during under the National Environmental the specific dates and times established in those business practice standards. The Policy Act in accordance with FAA advance by a Notice to Airmen. The effective revisions made by NAESB in this Order 1050.1F, ‘‘Environmental date and time will thereafter be continuously version of the standards are designed to Impacts: Policies and Procedures,’’ published in the Chart Supplement. enhance the natural gas industries’ paragraph 5–6.5a. This airspace action Paragraph 6004 Class E Airspace Areas system and software security measures is not expected to cause any potentially Designated as an Extension to a Class D or and to clarify the processing of certain significant environmental impacts, and Class E Surface Area. business transactions. no extraordinary circumstances exist * * * * * DATES: that warrant the preparation of an environmental assessment. AAL AK E4 Kodiak, AK [Removed] Effective date: This rule is effective Kodiak Airport, AK October 12, 2021. List of Subjects in 14 CFR Part 71 (Lat. 57°45′00″ N, long. 152°29′38″ W) Compliance date: Compliance filings Airspace, Incorporation by reference, Paragraph 6005 Class E Airspace Areas required by this rule are due on Navigation (air). Extending Upward From 700 feet or More November 12, 2021 and compliance Above the Surface of the Earth. Adoption of the Amendment with the standards incorporated in this * * * * * In consideration of the foregoing, the rule is required on and after June 1, Federal Aviation Administration AAL AK E5 Kodiak, AK [Amended] 2022. amends 14 CFR part 71 as follows: Kodiak Airport, AK Incorporation by reference: The ° ′ ″ ° ′ ″ (Lat. 57 44 59 N, long. 152 29 38 W) incorporation by reference of certain PART 71—DESIGNATION OF CLASS A, That airspace extending upward from 700 publications listed in this rule is B, C, D, AND E AIRSPACE AREAS; AIR feet above the surface within a 6.9-mile approved by the Director of the Federal TRAFFIC SERVICE ROUTES; AND radius of the airport, and within 8 miles REPORTING POINTS north and 4.1 miles south of the 071° bearing Register as of October 12, 2021. from the airport, extending from the 6.9-mile FOR FURTHER INFORMATION CONTACT: ■ 1. The authority citation for 14 CFR radius and extending from 5.2 miles east of part 71 continues to read as follows: the airport to 21.2 miles east of the airport, Stanley Wolf (technical issues), Office of excluding that airspace extending beyond 12 Energy Policy and Innovation, Federal Authority: 49 U.S.C. 106(f), 106(g), 40103, miles of the shoreline; and that airspace Energy Regulatory Commission, 888 40113, 40120; E.O. 10854, 24 FR 9565, 3 CFR, extending upward from 1,200 feet above the 1959–1963 Comp., p. 389. First Street NE, Washington, DC surface within a 73-mile radius of the Kodiak 20426, (202) 502–6841, stanley.wolf@ § 71.1 [Amended] Airport, AK, excluding that airspace extending beyond 12 miles of the shoreline. ferc.gov. ■ 2. The incorporation by reference in Issued in Des Moines, Washington, on Oscar F. Santillana (technical issues), 14 CFR 71.1 of FAA Order 7400.11E, August 2, 2021. Office of Energy Market Regulation, Airspace Designations and Reporting B.G. Chew, Federal Energy Regulatory Points, dated July 21, 2020, and Commission, 888 First Street NE, effective September 15, 2020, is Acting Group Manager, Operations Support Group, Western Service Center. amended as follows: Washington, DC 20426, (202) 502– [FR Doc. 2021–16827 Filed 8–9–21; 8:45 am] 6392, [email protected]. Paragraph 5000 Class D Airspace. BILLING CODE 4910–13–P Robert McLean (legal issues), Office of * * * * * the General Counsel, Federal Energy Regulatory Commission, 888 First AAL AK D Kodiak, AK [Amended] DEPARTMENT OF ENERGY Kodiak Airport, AK Street NE, Washington, DC 20426, (Lat. 57°44′59″ N, long. 152°29′38″ W) Federal Energy Regulatory (202) 502–8156, robert.mclean@ Trident Basin Airport, AK Commission ferc.gov. (Lat. 57°46′51″ N, long. 152°23′29″ W) That airspace extending upward from the 18 CFR Part 284 SUPPLEMENTARY INFORMATION: surface to and including 2,600 feet MSL within a 4.4-mile radius of the airport, and [Docket No. RM96–1–042; Order No. 587– Order No. 587–Z ° Z] within 1 mile each side of the 091 bearing Final Rule from the airport, extending from the 4.4-mile radius to 6.1 miles east of Kodiak Airport, Standards for Business Practices of (Issued July 13, 2021) excluding that airspace west and northwest Interstate Natural Gas Pipelines of a line beginning at the 228° bearing from Kodiak Airport, to the 308° bearing at 2.9 AGENCY: Federal Energy Regulatory miles from Kodiak Airport, to the 012° Commission, Department of Energy.
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Table of Contents
Paragraph Nos.
I. Background ...... 5 II. Discussion ...... 12 A. The NAESB WGQ Version 3.2 Business Practice Standards ...... 12 1. Modifications to Previous Version of Standards ...... 12 B. NAESB’s Process ...... 22 C. Adoption of Version 3.2 of the Standards ...... 23 D. Required Compliance Filings ...... 25 E. Implementation Schedule ...... 26 III. Notice of Use of Voluntary Consensus Standards ...... 28 IV. Incorporation by Reference ...... 29 V. Information Collection Statement ...... 39 VI. Environmental Analysis ...... 46 VII. Regulatory Flexibility Act ...... 47 VIII. Document Availability ...... 50 IX. Effective Date and Congressional Notification ...... 53
1. In this Final Rule, the Federal National Laboratory (Sandia) 3 report, should employ individual user Energy Regulatory Commission NAESB updated the Quadrant credentials; and (9) encourage security (Commission) amends its regulations at Electronic Delivery Mechanism (EDM) assessments and coordination between 18 CFR 284.12 to incorporate by Related Standards and internet customers, vendors, and trading reference, with certain enumerated Electronic Transport (IET) Related partners. exceptions,1 the latest version (Version Standards to specifically: (1) Require the 4. Further, in response to industry 3.2) of business practice standards implementation of fixes or patches for requests or through the normal course of adopted by NAESB’s WGQ applicable to known vulnerabilities as soon as WGQ activities, NAESB: (1) Updated the natural gas pipelines that NAESB reasonably practicable in coordination Nominations Related Standards to allow reported to the Commission on August with other trading partners; (2) specify a Service Requester to determine which 17, 2020 in place of the currently notification timelines to provide notice rights of the contract its segmentation incorporated version (Version 3.1) of to trading partners of any systems or nomination is using; (2) updated the those business practice standards. This software that have not been updated and Quadrant EDM Related Standards to (i) Final Rule requires interstate natural gas the potential impact of using the define a NAESB standard time frame for pipelines to file compliance filings with vulnerable system; (3) include both information to be retained on a the Commission by November 12, 2021 specific and broad adoptions of system pipeline’s Informational Postings and to comply with the standards security measures and specific website, (ii) allow for processing incorporated by reference in this rule on notification and coordination during functions at the line item level on and after June 1, 2022. outages with affected trading partners; Customer Activities websites and allow 2. The implementation of these (4) maintain a minimum encryption for the use of icons and/or graphical standards and regulations will promote strength of 128 bits, (5) specify that control elements for navigation and/or the additional efficiency and reliability OpenPGP 4 should be used to create processing functions, and (iii) make of the natural gas industries’ operations public and private keys for privacy and minor revisions designed to add clarity, thereby helping the Commission to digital signature applications; (6) update the minimum technical carry out its responsibilities under the specify Hyper-Text Transport Protocol characteristics to account for changes in Natural Gas Act (NGA). Further, the Secure (HTTPS) 5 whenever secure technology since the previous version implementation of these standards will communication is required to protect (Version 3.1) of the WGQ standards, and enhance the natural gas industries’ information in transit and support update the minimum and suggested computer security requirements.2 In overall privacy needs; (7) use the largest operating systems and web browsers addition, the implementation of these feasible key length consistent with that entities should support; (3) updated data requirements will provide implementation of current business multiple sets of standards to remove additional transparency to Informational processes; (8) state that secure websites references to the term ‘‘gigacalories’’ Postings websites and will improve and add the term ‘‘gigajoules’’ as the communication standards. 3 Sandia is a multidisciplinary national laboratory 3. The NAESB WGQ Version 3.2 standard quantity for nominations, and federally funded research and development confirmations, and scheduling in package of standards contains revisions center for the U.S. Department of Energy’s (DOE) to the NAESB WGQ Version 3.1 package National Nuclear Security Administration that Mexico; and (4) revised the NAESB of standards. As explained further supports numerous federal, state, and local WGQ data sets or other technical government agencies, companies, and below, in response to the implementation documentation while organizations. not resulting in modifications to the recommendations in the Sandia 4 OpenPGP is an encryption standard defined by the internet Engineering Task Force enabling design underlying business practice standards. 1 As explained below, we are not incorporating by and implementation free of licensing fees. At I. Background reference in this Final Rule the optional model present, the encryption method is generally contracts and the eTariff-related standards included considered the most secure. 5. Since 1996, the Commission has in the North American Energy Standards Board 5 HTTPS authentication encrypts username and (NAESB) Wholesale Gas Quadrant (WGQ) Version password combinations as part of a Uniform adopted regulations to standardize the 3.2 package of business practice standards. Resource Locator address. To obtain an HTTPS business practices and communication 2 As explained below, NAESB has developed and connection, a web browser must contact a trusted, methodologies of interstate natural gas adopted, in conjunction with Sandia National commercial Certificate Authority, such as a NAESB pipelines to create a more integrated Laboratories, a series of business practice standards Authorized Certificate Authority, to obtain the web and efficient pipeline system. These to protect the natural gas industries’ internet server’s public key, and follow other applicable security. HTTPS procedures. regulations have been promulgated in
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the Order No. 587 series of orders,6 3.2 business practice standards industry’s monthly billing cycle and wherein the Commission has (referenced above) applicable to natural shall avoid the complications of a mid- incorporated by reference standards for gas pipelines.8 month transition.13 interstate natural gas pipeline business 9. In response to the Version 3.2 II. Discussion practices and electronic NOPR, NAESB and the Interstate communications that were developed Natural Gas Association of America A. The NAESB WGQ Version 3.2 and adopted by NAESB’s WGQ. Upon (INGAA) filed comments. NAESB Business Practice Standards incorporation by reference, this version clarifies that Standards 4.3.60 and 10.3.16 do not require multi-factor (e.g., 1. Modifications to Previous Version of of the standards will replace the Standards currently incorporated version (Version two-factor) authentication on an 3.1) of those business practice individual basis. NAESB clarifies that a. Modifications in Response to the standards. Standard 4.3.60 states that a Customer Sandia Surety Assessment 6. On August 17, 2020, NAESB filed Activities website should be protected 12. NAESB revised previously a report informing the Commission that by [Hyper-Text Transport Protocol] incorporated standards and developed it had adopted and ratified WGQ (HTTP) 9 Basic Authentication using new standards in response to the Version 3.2 of its business practice transport layer security and require a recommendations in the Sandia Surety standards applicable to interstate single logon/password pair for each user Assessment. Specifically, NAESB natural gas pipelines. Version 3.2 of the session. NAESB further clarifies that adopted revisions to the WGQ EDM WGQ includes business practice Standard 10.3.16 states that trading Related Business Practice Standards, standards developed and modified in partners should implement HTTP Basic which establish the framework for the response to industry requests and Authentication using transport layer electronic dissemination and 10 directives from the NAESB Board of security. INGAA supports NAESB’s communication of information between 11 Directors. This version also includes the clarifying comments. parties in the North American wholesale standards developed in response to the 10. INGAA expresses support for the gas marketplace, and to the WGQ IET Commission’s proposal to incorporate recommendations of Sandia, which in Related Business Practice Standards, by reference NAESB’s WGQ Version 3.2 2019 issued a cybersecurity surety which define the implementation of business practice standards. INGAA also assessment of the NAESB standards various technologies necessary to supports the Commission’s proposal in sponsored by DOE (Sandia Surety communicate transactions and other the Version 3.2 NOPR, but urges the Assessment),7 and the standards electronic data using standard protocols Commission to ensure that developed to enable the use of for electronic commerce over the implementation of a Final Rule in this distributed ledger technologies when internet between trading partners. First, proceeding occurs for the first gas day transacting the NAESB Base Contract for NAESB adopted two new standards, of the month, but not prior to April 1, Sale and Purchase of Natural Gas. 4.3.109 and 10.3.28, to provide that 2022, after the winter heating season. 7. The NAESB report identifies all the INGAA states that implementation of a trading partners should evaluate changes made to the WGQ Version 3.1 Final Rule in this proceeding will software fixes or patches for known Standards and summarizes the require substantial time and effort from vulnerabilities within 30 days and deliberations that led to the changes both pipelines and their customers to implement the fix or patch as soon as being made. It also identifies changes to alter business systems, scheduling, and reasonably practicable based on the the existing standards that were coordination processes and, thus, it severity of the risk. Second, NAESB considered but not adopted due to a would be best to schedule adopted two new standards, 4.3.110 and lack of consensus or other reasons. implementation to not occur during the 10.3.29, to provide that trading partners 8. On February 18, 2021, the winter heating season.12 should mutually agree to the version of Commission issued a Notice of 11. Further, INGAA states that the EDM and IET to be used. Third, the Proposed Rulemaking proposing to requiring implementation to occur for new standards specify notification and amend its regulations to incorporate by the first gas day of the month is coordination timelines with trading reference, with certain enumerated important for both pipelines and partners, where applicable, to address exceptions, the NAESB WGQ Version shippers. INGAA explains that while vulnerable systems or software as soon pipelines update their software to as possible. Fourth, the Sandia Surety 6 This series of orders began with the accommodate the new NAESB version Assessment recommended that NAESB Commission’s issuance of Standards for Bus. Pracs. consider guidelines for configuration of Interstate Nat. Gas Pipelines., Ord. No. 587, 61 ahead of the implementation date, both FR 39053 (July 26, 1996), FERC Stats. & Regs. pipelines and shippers need to ensure and logging, network traffic monitoring, ¶ 31,038 (1996) (cross-referenced at 76 FERC that contract, nomination, allocation, alerting systems, and manual continuity ¶ 61,042). invoice, and other changes will be fully of operations in the event of abnormal 7 In April 2017, NAESB announced that Sandia, behavior or failure conditions within through funding provided by DOE, would be in place and working properly with the performing a surety assessment of the NAESB start of the gas month. INGAA states the system. In response, NAESB added standards. As determined by Sandia and DOE, the that this is consistent with the language to new Standards 4.3.110 and purpose of the surety assessment was to analyze 10.3.28 to include both specific and cybersecurity elements within the standards, 8 Standards for Bus. Pracs. of Interstate Nat. Gas broad adoptions of such system security focusing on four areas: (1) The NAESB Certification Pipelines, Notice of Proposed Rulemaking, 86 FR Program for Accredited Certification Authorities, measures. 12879 (Mar. 5, 2021), 174 FERC ¶ 61,103 (2021) including the Wholesale Electric Quadrant (WEQ)– 13. Further, NAESB added language (Version 3.2 NOPR). 012 Public Key Infrastructure Business Practice 9 to existing Standards 4.3.60, 4.3.61, Standards, the NAESB Accreditation Requirements HTTP is the original communications protocol of the internet which enables a web browser to 10.2.33, and 10.3.25 to clarify the for Authorized Certificate Authorities, and the 14 Authorized Certification Authority Process; (2) the depict text, pictures, shapes, live data, and click Transport Layer Security protocol, WEQ Open Access Same-Time Information Systems targets on a web browser. However, username and suite of standards; (3) the WGQ and Retail Markets password combinations are not encrypted in HTTP 13 Id. Quadrant IET and Quadrant EDM Related Standards Basic Authentication. 14 The National Institute of Standards and Manual; and (4) a high-level dependency analysis 10 NAESB Cmts. at 1. Technology Special Pub. 800–52 requires between the gas and electric markets to evaluate the 11 INGAA Cmts. at 3. government Transport Layer Security servers and different security paradigms the markets employ. 12 Id. at 2. clients to support Transport Layer Security Version
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which encrypts data to hide information Related Standards, and an effort that B. NAESB’s Process from electronic observers on the impacted multiple sets of standards. 22. NAESB used its consensus internet. NAESB also deleted all NAESB made corresponding revisions, procedures to develop and approve the references to the Secure Sockets Layer where appropriate, to the related data WGQ Version 3.2 Standards. As the protocol in the standards. sets and technical implementation as Commission found in Order No. 587, 14. Concerning identification key part of the standards development the adoption of consensus standards is lengths, the Sandia Surety Assessment effort. appropriate, because the consensus recommended that Rivest-Shamir- process helps ensure the reasonableness Adelman keys 15 must be no shorter i. Nomination Related Standards than 2048 bits, Elliptic Curve Digital of the standards by requiring that the 17. NAESB revised existing Standards Signature Algorithm keys 16 must be no standards draw support from a broad 1.3.27, 1.4.1, and 1.4.2 to add a new shorter than 224 bits, Hash 17 algorithms spectrum of industry participants should be from the Secure Hash data element ‘‘Capacity Block ID’’ to representing all segments of the Algorithm (SHA)–2 18 or SHA–3 allow a Service Requester to determine industry. Moreover, since the industry families, and acceptable Advanced which primary point rights of the itself must conduct business under 20 Encryption Standard key lengths range contract their segmented nomination these standards, the Commission’s from 128, to 192, to 256. The Sandia is using and eliminate an existing regulations should reflect those Surety Assessment recommended that, manual business process from the TSP standards that have the widest possible in general, implementors use the largest to automate the business process. support. In section 12(d) of the National feasible key length consistent with Technology Transfer and Advancement ii. Quadrant Electronic Delivery Act of 1995 (NTT&AA),23 Congress implementation of current business Mechanism Related Standards processes. In response, NAESB deleted affirmatively requires federal agencies to Standard 4.3.83 to remove legacy 18. NAESB developed two new use technical standards developed by support references and maintain a standards, Standard 4.3.107 to establish voluntary consensus standards minimum encryption strength of 128 a standard data retention period for organizations, like NAESB, as means to bits. Further, NAESB revised existing retrieval of Operationally Available data carry out policy objectives or activities Standards 10.2.34 and 10.3.15 to delete from the Informational Postings website, determined by the agencies unless an a proprietary Pretty Good Privacy and Standard 4.3.108, to establish a agency determines that the use of such (PGP) 19-related hyperlink and to standard data retention period for standards would be inconsistent with accommodate license-free OpenPGP, retrieval of Notices for the subcategories applicable law or otherwise impractical. respectively. NAESB also adopted a new of Critical, Non-Critical, and Planned C. Adoption of Version 3.2 of the Standard 10.2.39 to specify that Service Outage from the Informational Standards OpenPGP should be used to create Postings website. public and private keys for privacy and 23. In the Version 3.2 NOPR, the digital signature applications. iii. Revisions Impacting Multiple Commission proposed to incorporate by 15. Further, NAESB revised existing Standards reference, in its regulations, Version 3.2 Standards 4.3.60, 4.3.84, 10.3.4, and of the NAESB WGQ consensus business 10.3.16 to specify HTTPS, which is an 19. NAESB revised multiple practice standards, with the exception 21 22 encrypted version of HTTP, whenever a standards and data sets to remove of NAESB’s standards specifying the secure communication is required to references to the term ‘‘gigacalories’’ terms of optional model contracts and protect information in transit and and add the term ‘‘gigajoules,’’ as the the eTariff-related standards.24 None of support overall privacy needs. standard quantity for nominations, the commenters opposed the confirmations, and scheduling in Commission’s proposal to incorporate b. Modifications in Response to Industry Mexico. by reference the NAESB WGQ Version Requests 3.2 business practice standards as iv. Other Material in NAESB’s Report 16. The following section describes proposed in the Version 3.2 NOPR.25 standards development efforts 20. NAESB revised multiple data sets 24. After a review of the comments undertaken by NAESB in response to which impacted technical filed in response to the Version 3.2 industry requests or through the normal implementation documentation only. NOPR, and because the revisions made course of WGQ activities that resulted in by NAESB in this version of the 21. Further, NAESB revised its modifications to the Nomination standards are designed to enhance the optional model contracts and Related Standards, Quadrant EDM natural gas industries’ system and corresponding Mexican and Canadian software security measures and to Addendums to reflect a standard digital 1.2 and recommends support for Transport Layer clarify the processing of certain business Security Version 1.3 by the year 2024. representation of natural gas trade transactions, we amend Part 284 of the 15 Rivest-Shamir-Adelman is a public key events. NAESB states that these Commission’s regulations to incorporate infrastructure algorithm composed of a public revisions are intended to capitalize on by reference the NAESB WGQ Version component and a private component that is smart contracts and distributed ledger typically installed on a recognized Certificate 3.2 business practice standards, with the Authority. technologies. exceptions (as explained in the Version 16 Elliptic Curve Digital Signature Algorithm 3.2 NOPR) of the optional model public keys generate an encrypted signature to 20 In order for a Service Requester to have control contracts and the eTariff-related validate data. over its segmented nomination(s), the 17 A Hash is a cryptology technique used for Transportation Service Provider (TSP) will require standards. digital signatures in which a series of numbers that a ‘‘Capacity Block ID’’ to be submitted with each may represent, for example, a password, an image, nomination line item specifying a Transaction Type 23 Public Law 104–113, 12(d), 110 Stat. 775 a document, or an executable file is used to generate of ‘‘Segmented.’’ (1996). a cryptographic hash (i.e., a large number). 21 NAESB WGQ Version 3.2 Standards 1.3.14, 24 Version 3.2 NOPR, 174 FERC ¶ 61,103 at n.1 & 18 SHA–2 is a set of cryptographic hash functions. 1.3.15, 1.3.82, and 3.3.3. P 19. 19 PGP is a proprietary (i.e., an organization must 22 NAESB WGQ Version 3.2 Standards 0.4.1 25 NAESB’s clarifying comments regarding pay to use it) encryption program developed to through 0.4.3, 1.4.1, 1.4.3 through 1.4.6, 2.4.1, 2.4.6, revised existing Standards 4.3.60 and 10.3.16 are enhance the confidentiality and integrity of data. 2.4.17, 3.4.1, 3.4.2, and 5.4.24 through 5.4.26. discussed separately in section II above.
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D. Required Compliance Filings 042) a sample tariff record, to provide applicable law or otherwise 33 25. As suggested by INGAA, we have filers an illustrative example to aid them impractical. in preparing their compliance filings; 30 selected an implementation schedule for IV. Incorporation by Reference compliance with this Final Rule that (2) For each standard, each pipeline delays implementation until after the must specify in the tariff record a list of 29. The Office of the Federal Register 2021–2022 winter heating period. To all the NAESB standards currently requires agencies incorporating material implement the standards that we are incorporated by reference by the by reference in final rules to discuss the incorporating by reference in this Final Commission: ways that the materials it incorporates by reference are reasonably available to Rule, we will require each interstate (a) whether the standard is natural gas pipeline to file a separate interested parties and how interested incorporated by reference; 34 tariff record reflecting the changed parties can obtain the materials. The standards by November 12, 2021, to take (b) for those standards not regulations also require agencies to effect on June 1, 2022 26 We are adopting incorporated by reference, the tariff summarize, in the preamble of the final this implementation schedule to give provision that complies with the rule, the material it incorporates by the interstate natural gas pipelines standard; 31 and reference. The standards that we are subject to these standards adequate time (c) a statement identifying any incorporating by reference in this Final to implement these changes. standards for which the pipeline has Rule consist of seven suites of NAESB been granted a waiver, extension of WGQ Business Practice Standards that E. Implementation Schedule time, or other variance with respect to address a variety of topics and are 26. To implement these standards, we compliance with the standard.32 designed to streamline the transactional require interstate natural gas pipelines processes for the wholesale natural gas (3) If the pipeline is requesting a to file tariff records to reflect the industry by promoting a more changed standards by November 12, continuation of a previously granted competitive and efficient market. These 2021. None of the comments took issue waiver or extension of time to comply include the: Additional Business with the Commission’s explanation of with certain NAESB WGQ standards, it Practice Standards; Nominations its policies on tariff filings and on must include a table in its transmittal Related Business Practice Standards; waiver requests to comply with these letter that states the standard for which Flowing Gas Related Business Practice standards.27 Therefore, we are not a waiver or extension of time was Standards; Invoicing Related Business modifying these policies in this Final granted, and the docket number or order Practice Standards; Quadrant Electronic Rule and affirm the explanation of those citation to the proceeding in which the Delivery Mechanism Related Business policies the Commission made in the waiver or extension of time was granted. Practice Standards; Capacity Release Version 3.2 NOPR. III. Notice of Use of Voluntary Related Business Practice Standards; 27. In addition, consistent with the Consensus Standards and internet Electronic Transport requirements in Order No. 587–W,28 we Related Business Practice Standards. We are including the following filing 28. Office of Management and Budget summarize these standards below. requirements for the November 12, 2021 (OMB) Circular A–119 (section 11) (Feb. 30. The Additional Business Practice compliance filing to increase the 10, 1998) provides that when a federal Standards address six areas: transparency of the pipelines’ agency issues or revises a regulation Creditworthiness; Storage Information; incorporation by reference of the containing a standard, the agency Gas/Electric Operational NAESB WGQ Standards so that shippers should publish a statement in the Final Communications; Operational Capacity; and the Commission will know which Rule stating whether the adopted Unsubscribed Capacity; and Location tariff provision(s) implements each standard is a voluntary consensus Data Download. standard as well as the status of each standard or a government-unique • The Creditworthiness related standard. standard. In this Final Rule, we are standards describe requirements for the (1) The pipelines must designate a incorporating by reference voluntary exchange of information, notification, single tariff record under which every consensus standards developed by and communication between parties NAESB standard currently incorporated NAESB’s WGQ. In section 12(d) of during the creditworthiness evaluation by reference by the Commission is NTT&AA, Congress affirmatively process. listed.29 This section should be a requires federal agencies to use • The Storage Information related separate tariff record under the technical standards developed by standards define the information to be Commission’s electronic tariff filing voluntary consensus standards provided to natural gas service requirement and should be filed organizations to carry out policy requesters related to storage activities electronically using the eTariff portal objectives or activities determined by and/or balances. using the Type of Filing Code 580. We the agencies unless use of such • The Gas/Electric Operational will post on the Commission’s eLibrary standards would be inconsistent with Communications related standards website (under Docket No. RM96–1– define communication protocols 30 Id. intended to improve coordination 26 To aid in compliance, promptly after issuance 31 For example, pipelines are required to include between the gas and electric industries of this Final Rule, we will post a sample tariff the full text of the NAESB nomination and capacity in daily operational communications record on the Commission’s website that may be release timeline standards (WGQ Standards 1.3.2(i- accessed at https://www.ferc.gov/ferc-online/ vi) and 5.3.2, respectively) in their tariffs. See, e.g., between transportation service elibrary. All interstate natural gas pipelines are to Standards for Bus. Pracs. of Interstate Nat. Gas providers and gas-fired power plants. file their tariff records in conformance with this Pipelines, Ord. No. 587–U, 75 FR 16337 (Apr. 1, The standards include requirements for sample tariff record. 2010), 130 FERC ¶ 61,212, at P 39 & n.42 (2010). communicating anticipated power 27 Version 3.2 NOPR, 174 FERC ¶ 61,103 at PP Each pipeline’s submittal is to identify which tariff 20–24. provision complies with each of these standards. generation fuel for the upcoming day as 28 Standards for Bus. Pracs. of Interstate Nat. Gas 32 Shippers can use the Commission’s electronic Pipelines, Ord. No. 587–W, 80 FR 67302 (Nov. 2, tariff system to locate the tariff record containing 33 Public Law 104–113, 12(d), 110 Stat. 775 2015), 153 FERC ¶ 61,061, at P 42 (2015) (Ord. No. the NAESB WGQ standards, which will indicate the (1996), 15 U.S.C. 272 note (1997). 587–W). docket number in which any waiver or extension 34 1 CFR 51.5 (2020). See Incorporation by 29 See supra n.21. of time was granted. Reference, 79 FR 66267 (Nov. 7, 2014).
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well as any operating problems that business processes for communication V. Information Collection Statement might hinder gas-fired power plants of information related to the selling of from receiving contractual gas all or any portion of a transmission 39. OMB regulations require that quantities. service requester’s contract rights. OMB approve certain reporting, record • keeping, and public disclosure The Operational Capacity related 36. The internet Electronic Transport standards define requirements of the requirements (information collection) Related Business Practice Standards 35 transportation service provider related imposed by an agency. Therefore, we define the implementation of various are submitting this proposed to the reporting and requesting of a technologies necessary to communicate transportation service provider’s information collection to OMB for transactions and other electronic data review in accordance with section operational capacity, total scheduled using standard protocols for electronic quantity, and operationally available 3507(d) of the Paperwork Reduction Act commerce over the internet between of 1995. Upon approval of a collection capacity. trading partners. • The Unsubscribed Capacity related of information, OMB will assign an standards define requirements of the 37. The Commission’s regulations OMB control number and an expiration transportation service provider related provide that copies of the standards date. Respondents subject to the filing to the reporting and requesting of a incorporated by reference may be requirements of a rule will not be transportation service provider’s obtained from NAESB at https:// penalized for failing to respond to these available unsubscribed capacity. www.naesb.org// or (713) 356–0060. collections of information unless the • The Location Data Download Once the Novel Coronavirus Disease collection of information displays a related standards define requirements (COVID–19) restrictions are lifted, valid OMB control number. for the use of codes assigned by the copies of the standards may be 40. The Commission solicited transportation service provider for inspected at the Federal Energy comments on the need for this locations and common codes for parties Regulatory Commission, Public information, whether the information communicating electronically. Reference Room, 888 First Street NE, will have practical utility, the accuracy 31. The Nominations Related Washington, DC 20426, Phone: (202) of the provided burden estimates, ways Business Practice Standards define the 502–8371, https://www.ferc.gov/. At this to enhance the quality, utility, and process by which a natural gas service time, the Commission has suspended clarity of the information to be requester with a natural gas access to the Commission’s Public collected, and any suggested methods transportation contract nominates (or Reference Room due to the President’s for minimizing respondents’ burden, requests) service from a pipeline or a March 13, 2020 proclamation declaring including the use of automated transportation service provider for the a National Emergency concerning information techniques. No comments delivery of natural gas. COVID–19. were filed raising any objections to the 32. The Flowing Gas Related Business 38. NAESB is a private consensus burden estimate presented in the Practice Standards define the business standards developer that develops Version 3.2 NOPR. Accordingly, we will processes related to the communication voluntary wholesale and retail use that same burden estimate in this of entitlement rights of flowing gas at a standards related to the energy industry. Final Rule. location, of the entitlement rights on a The procedures used by NAESB make 41. Public Reporting Burden: The contractual basis, of the management of its standards reasonably available to burden estimates for this Final Rule are imbalances, and of the measurement those affected by Commission for one-time implementation of the and gas quality information of the actual regulations, which generally is information collection requirements of flow of gas. comprised of entities that have the this Final Rule (including tariff filing, 33. The Invoicing Related Business means to acquire the information they documentation of the process and Practice Standards define the process need to effectively participate in procedures, and information technology for the communication of charges for Commission proceedings. Participants work). can join NAESB, for an annual services rendered (Invoice), 42. The collections of information membership cost of $8,000, which communication of details about funds related to this Final Rule fall under entitles them to full participation in rendered in payment for services FERC–545 (Gas Pipeline Rates: Rate NAESB and enables them to obtain rendered (Payment Remittance), and Change (Non-Formal)) 36 and FERC– these standards at no additional cost. communication of the financial status of 549C (Standards for Business Practices Non-members may obtain the Individual a customer’s account (Statement of of Interstate Natural Gas Pipelines).37 Standards Manual or Booklets for each Account). The following estimates of reporting 34. The Quadrant Electronic Delivery of the seven Manuals by email for $250 burden are related only to this Final Mechanism Related Business Practice per manual, which in the case of these Rule and include the costs to pipelines Standards define the framework for the standards would total $1,750. Non- for compliance with the Commission’s electronic dissemination and members also may obtain the complete directives in this Final Rule. The burden communication of information between set of Standards Manuals, Booklets, and estimates are primarily related to parties in the North American wholesale Contracts on USB flash drive for $2,000. implementing these standards and gas marketplace for Electronic Data NAESB also provides a free electronic regulations and will not result in Interchange/EDM transfers, batch flat read-only version of the standards for a ongoing costs. file/EDM transfers, informational three-business day period or, in the case postings websites, Electronic Bulletin of a regulatory comment period, through 35 Boards/EDM, and interactive flat file/ the end of the comment period. In 5 CFR 1320.11 (2020). 36 FERC–545 covers rate change filings made by EDM. addition, NAESB considers requests for natural gas pipelines, including tariff changes. 35. The Capacity Release Related waivers of the charges on a case-by-case 37 FERC–549C covers Standards for Business Business Practice Standards define the basis depending on need. Practices of Interstate Natural Gas Pipelines.
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RM96–1–042 FINAL RULE (STANDARDS FOR BUSINESS PRACTICES OF INTERSTATE NATURAL GAS PIPELINES)
Annual Total annual Annual costs Number of number of Total number Average burden burden hours & 38 responses per respondents per respond- of responses hr. per response total annual respondent 39 ent cost
(1) (2) (1)*(2) = (3) (4) (3)*(4) = (5) (5)/(1) = (6)
FERC–545 (one-time) ...... 178 1 178 10 hrs.; $1,010 1,780 hrs.; $1,010 $179,780. FERC–549C (one-time) ...... 178 1 178 100 hrs.; 17,800 hrs.; $10,100 $10,100. $1,797,800.
Total ...... 356 ...... 19,580 hrs.; ...... $1,977,580.
The one-time burden (for both the OMB Control Nos.: 1902–0154 (FERC– Final Rule to the Commission’s FERC–545 and FERC–549C) will take 545), 1902–0174 (FERC–549C). regulations will upgrade current place in Year 1 and will be averaged Respondents: Business or other for business practices and communication over three years: profit (e.g., Natural Gas Pipelines, standards by specifically: (1) Updating FERC–545: 1,780 hours ÷ 3 = 593 hours/ applicable to only a few small the Nominations Related Standards to year over three years businesses). allow a Service Requester to determine FERC–549C: 17,800 hours ÷ 3 = 5,933 Frequency of Responses: One-time which rights of the contract its hours/year over three years implementation (related to business segmentation nomination is using; (2) The number of responses is also procedures, capital/start-up). updating the Quadrant EDM Related averaged over three years (for both the Necessity of Information: In response Standards to (i) define a NAESB FERC–545 and FERC–549C): to the recommendations in the Sandia standard time frame for information to FERC–545: 178 responses ÷ 3 = 59 report, the revisions in this Final Rule be retained on a pipeline’s responses/year to the Commission’s regulations will Informational Postings website, (ii) FERC–549C: 178 responses ÷ 3 = 59 upgrade current business practices and allow for processing functions at the responses/year communication standards by updating line item level on Customer Activities The responses and burden for Years the Quadrant EDM Related Standards websites and allow for the use of icons 1–3 will total respectively as follows: and IET Related Standards to and/or graphical control elements for Year 1: 59 responses; 593 hours (FERC– specifically: (1) Require the navigation and/or processing functions, 545); 5,933 hours (FERC–549C) implementation of fixes or patches for and (iii) make minor revisions designed Year 2: 59 responses; 593 hours (FERC– known vulnerabilities as soon as to add clarity, update the minimum 545); 5,933 hours (FERC–549C) reasonably practicable in coordination technical characteristics to account for Year 3: 59 responses; 593 hours (FERC– with other trading partners; (2) specify changes in technology since the notification timelines to provide notice 545); 5,933 hours (FERC–549C) previous version (Version 3.1) of the to trading partners of any systems or Title: FERC–545, Gas Pipeline Rates: WGQ standards, and update the software that have not been updated and Rates Change (Non-Formal); FERC– minimum and suggested operating the potential impact of using the 549C, Standards for Business Practices systems and web browsers that entities vulnerable system; (3) include both of Interstate Natural Gas Pipelines. should support; (3) updating multiple specific and broad adoptions of system Action: Proposed information sets of standards to remove references to collections. security measures and specific notification and coordination during the term ‘‘gigacalories’’ and add the term ‘‘gigajoules’’ as the standard 38 outages with affected trading partners; The number of respondents is the number of quantity for nominations, confirmations, entities in which a change in burden from the (4) maintain a minimum encryption current standards to the proposed exists, not the strength of 128 bits; (5) specify that and scheduling in Mexico; and (4) total number of entities from the current or OpenPGP should be used to create revising the NAESB WGQ data sets or proposed standards that are applicable. other technical implementation 39 public and private keys for privacy and The estimated hourly cost (salary plus benefits) documentation while not resulting in provided in this section is based on the salary digital signature applications; (6) figures for May 2019 posted by the Bureau of Labor specify HTTPS whenever secure modifications to the underlying Statistics for the Utilities sector (available at https:// communication is required to protect business practice standards. The www.bls.gov/oes/current/naics3_221000.htm) and package of standards also includes scaled to reflect benefits using the relative information in transit and support importance of employer costs for employee overall privacy needs; (7) use the largest minor corrections. The implementation compensation from June 2020 (available at https:// feasible key length consistent with of these data requirements will provide www.bls.gov/news.release/ecec.nr0.htm). The implementation of current business additional transparency to Informational hourly estimates for salary plus benefits are: processes; (8) state that secure websites Postings websites and will improve Computer and Information Systems Manager (Occupation Code: 11–3021), $101.58 should employ individual user communication standards. The Computer and Information Analysts (Occupation credentials; and (9) encourage security implementation of these standards and Code: 15–1210), $87.42 assessments and coordination between regulations will promote the additional Electrical Engineer (Occupation Code: 17–2071), customers, vendors, and trading efficiency and reliability of the natural $70.19 partners. gas industries’ operations thereby Legal (Occupation Code: 23–0000), $142.65 43. Further, in response to industry helping the Commission to carry out its The average hourly cost (salary plus benefits), weighting all of these skill sets evenly, is $100.50. requests or through the normal course of responsibilities under the NGA. In We round it to $101/hour. WGQ activities, the revisions in this addition, the Commission’s Office of
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Enforcement will use the data for that will have significant economic VIII. Document Availability general industry oversight. impact on a substantial number of small 50. In addition to publishing the full Internal Review: We have reviewed entities. The Commission is not text of this document in the Federal the requirements pertaining to business required to make such analysis if Register, we provide all interested practices of interstate natural gas proposed regulations would not have persons an opportunity to view and/or pipelines and have determined that the such an effect. print the contents of this document via revisions are necessary to establish a 48. As we stated in the WGQ Version the internet through the Commission’s more efficient and integrated pipeline 3.2 NOPR, approximately 178 interstate Home Page (https://www.ferc.gov/). At grid. These requirements conform to the natural gas pipelines, both large and this time, we have suspended access to Commission’s plan for efficient small, are potential respondents subject the Commission’s Public Reference information collection, communication, to the requirements adopted by this Room due to the President’s March 13, and management within the natural gas rule. Most of the natural gas pipelines 2020 proclamation declaring a National pipeline industries. We determined, regulated by the Commission do not fall Emergency concerning COVID–19. through our internal review, that there within the RFA’s definition of a small 51. From the Commission’s Home is specific, objective support for the entity,43 which is currently defined for Page on the internet, this information is burden estimates associated with the natural gas pipelines as a company that, available on eLibrary. The full text of information requirements. this document is available on eLibrary 44. Interested persons may obtain in combination with its affiliates, has in PDF and Microsoft Word format for information on the reporting total annual receipts of $30 million or 44 viewing, printing, and/or downloading. requirements by contacting the less. For the year 2019, only 11 To access this document in eLibrary, following: Federal Energy Regulatory companies not affiliated with larger type the docket number excluding the Commission, 888 First Street NE, companies had annual revenues in last three digits of this document in the Washington, DC 20426 [Attention: Ellen combination with its affiliates of $30 docket number field. Brown, Office of the Executive Director], million or less and therefore could be considered a small entity under the 52. User assistance is available for email: [email protected], eLibrary and the Commission’s website telephone: (202) 502–8663, fax: (202) RFA. This represents about six percent of the total universe of potential during normal business hours from the 273–0873. Commission’s Online Support at (202) 45. Comments concerning the respondents that may have a significant 502–6652 (toll free at 1–866–208–3676) collection of information(s) and the burden imposed on them. We estimate or email at [email protected], associated burden estimate(s), should be that the one-time implementation cost or the Public Reference Room at (202) sent to the contact listed above and to of the proposals in this Final Rule is 502–8371, TTY (202) 502–8659. Email the Office of Management and Budget, $1,977,580 (or $11,110 per entity, 45 the Public Reference Room at Office of Information and Regulatory regardless of entity size). We do not [email protected]. Affairs, Washington, DC 20503 consider the estimated $11,110 impact [Attention: Desk Officer for the Federal per entity to be significant. Moreover, IX. Effective Date and Congressional Energy Regulatory Commission], these requirements are designed to Notification benefit all customers, including small telephone: (202) 395–0710; fax: (202) 53. These regulations are effective 395–4718. businesses that must comply with them. Further, as noted above, adoption of October 12, 2021. We have determined VI. Environmental Analysis consensus standards helps ensure the (with the concurrence of the 46. The Commission is required to reasonableness of the standards by Administrator of the Office of prepare an Environmental Assessment requiring that the standards draw Information and Regulatory Affairs of or an Environmental Impact Statement support from a broad spectrum of OMB) that this rule is not a ‘‘major rule’’ for any action that may have a industry participants representing all as defined in section 351 of the Small significant adverse effect on the human segments of the industry. Because of Business Regulatory Enforcement environment.40 The actions that we take that representation and the fact that Fairness Act of 1996. This Final Rule is here fall within categorical exclusions industry conducts business under these being submitted to the Senate, House, in the Commission’s regulations for standards, the Commission’s regulations and Government Accountability Office. rules that are clarifying, corrective, or should reflect those standards that have List of Subjects in 18 CFR Part 284 the widest possible support. procedural, for information gathering, Incorporation by reference, Natural analysis, and dissemination, and for 49. Accordingly, pursuant to section gas, Reporting and recordkeeping rules regarding sales, exchange, and 605(b) of the RFA,46 the regulations requirements. transportation of natural gas that require being promulgated herein should not no construction of facilities.41 have a significant economic impact on By direction of the Commission. Therefore, an environmental review is a substantial number of small entities. Issued: July 15, 2021. unnecessary and has not been prepared Debbie-Anne A. Reese, as part of this Final Rule. 43 See 5 U.S.C. 601(3) citing section 3 of the Small Deputy Secretary. VII. Regulatory Flexibility Act Business Act (SBA), 15 U.S.C. 623. Section 3 of the In consideration of the foregoing, we SBA defines a ‘‘small business concern’’ as a amend part 284, chapter I, title 18, Code business which is independently owned and 47. The Regulatory Flexibility Act of of Federal Regulations, as follows: 1980 (RFA) 42 generally requires a operated, and which is not dominant in its field of operation (2019). description and analysis of final rules 44 13 CFR 121.201 (Subsector 486—Pipeline PART 284—CERTAIN SALES AND Transportation; North American Industry TRANSPORTATION OF NATURAL GAS 40 Reguls. Implementing the Nat’l Envt’l Pol’y Act, Classification System code 486210; Pipeline UNDER THE NATURAL GAS POLICY Ord. No. 486, 52 FR 47897 (Dec. 17, 1987), FERC Transportation of Natural Gas) (2020). ‘‘Annual Stats. & Regs. Preambles 1986–1990 ¶ 30,783 (1987) Receipts’’ are total income plus cost of goods sold. ACT OF 1978 AND RELATED (cross-referenced at 41 FERC ¶ 61,284). 45 This number is derived by dividing the total AUTHORITIES 41 See 18 CFR 380.4(a)(2)(ii), 380.4(a)(5), and cost figure by the number of respondents. 380.4(a)(27) (2020). $1,977,580/178 = $11,110. ■ 1. The authority citation for part 284 42 5 U.S.C. 601–612. 46 5 U.S.C. 605(b). continues to read as follows:
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Authority: 15 U.S.C. 717–717z, 3301– (i) Additional Standards (Version 3.2, of these standards may be obtained from 3432; 42 U.S.C. 7101–7352; 43 U.S.C. 1331– August 15, 2020); the North American Energy Standards 1356. (ii) Nominations Related Standards Board, 801 Travis Street, Suite 1675, ■ 2. Amend § 284.12 by revising (Version 3.2, August 15, 2020); Houston, TX 77002, Phone: (713) 356– (iii) Flowing Gas Related Standards paragraphs (a)(1) and (2) to read as 0060. NAESB’s website is at https:// (Version 3.2, August 15, 2020); follows: www.naesb.org/. Copies may be (iv) Invoicing Related Standards inspected at the Federal Energy § 284.12 Standards for pipeline business (Version 3.2, August 15, 2020); Regulatory Commission, Public operations and communications. (v) Quadrant Electronic Delivery Reference Room, 888 First Street NE, Mechanism Related Standards (Version (a) * * * Washington, DC 20426, Phone: (202) 3.2, August 15, 2020); 502–8371, https://www.ferc.gov/, or at (1) An interstate pipeline that (vi) Capacity Release Related the National Archives and Records transports gas under subparts B or G of Standards (Version 3.2, August 15, Administration (NARA). For this part must comply with the business 2020); and information on the availability of this practices and electronic (vii) internet Electronic Transport material at NARA, email fr.inspection@ communications standards as Related Standards (Version 3.2, August nara.gov, or go to: www.archives.gov/ promulgated by the North American 15, 2020). federal-register/cfr/ibr-locations.html. Energy Standards Board, as (2) This incorporation by reference incorporated herein by reference in was approved by the Director of the * * * * * paragraphs (a)(1)(i) through (vii) of this Federal Register in accordance with 5 [FR Doc. 2021–16915 Filed 8–9–21; 8:45 am] section. U.S.C. 552(a) and 1 CFR part 51. Copies BILLING CODE 6717–01–P
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Proposed Rules Federal Register Vol. 86, No. 151
Tuesday, August 10, 2021
This section of the FEDERAL REGISTER for Docket ID NRC–2014–0165. Address to issue, amend, or rescind any contains notices to the public of the proposed questions about NRC dockets to Dawn regulation. On June 12, 2014, the NRC issuance of rules and regulations. The Forder; telephone: 301–415–3407; received a PRM from Anthony purpose of these notices is to give interested email: [email protected]. For Pietrangelo on behalf of the Nuclear persons an opportunity to participate in the technical questions, contact the Energy Institute (NEI or the petitioner). rule making prior to the adoption of the final FOR FURTHER rules. individuals listed in the The petitioner requested that the NRC INFORMATION CONTACT section of this amend its regulations in § 73.54, document. ‘‘Protection of digital computer and • NUCLEAR REGULATORY NRC’s Agencywide Documents communication systems and networks,’’ COMMISSION Access and Management System to clarify the scope of § 73.54(a) to only (ADAMS): You may obtain publicly- protect those systems and networks 10 CFR Part 73 available documents online in the associated with structures, systems, or ADAMS Public Documents collection at [Docket No. PRM–73–18; NRC–2014–0165] components (SSCs) that are either https://www.nrc.gov/reading-rm/ necessary to prevent core damage and Protection of Digital Computer and adams.html. To begin the search, select spent fuel sabotage, or whose failure Communication Systems and ‘‘Begin Web-based ADAMS Search.’’ For would cause a reactor scram. Networks problems with ADAMS, please contact The NRC identified two principal the NRC’s Public Document Room (PDR) issues in the petition. First, the AGENCY: Nuclear Regulatory reference staff at 1–800–397–4209, 301– petitioner asserts that a rulemaking is Commission. 415–4737, or by email to pdr.resource@ needed to clarify the language in ACTION: Petition for rulemaking; denial. nrc.gov. For the convenience of the § 73.54(a) to make it consistent with the reader, the ADAMS accession numbers original intent of this provision to SUMMARY: The U.S. Nuclear Regulatory and instructions about obtaining protect against radiological sabotage by Commission (NRC) is denying a petition materials referenced in this document only protecting those digital assets that for rulemaking (PRM), dated June 12, are provided in the ‘‘Availability of if compromised could directly cause 2014, submitted by Anthony Pietrangelo Documents’’ section of this document. significant core damage or spent fuel on behalf of the Nuclear Energy The incoming petition is available in sabotage, or whose failure would cause Institute. The petitioner requested that ADAMS under Accession No. a reactor scram. Second, the petitioner the NRC amend its power reactor cyber ML14184B120. • asserts that what it sees as the broad security regulations to make them Attention: The PDR, where you may scoping language in § 73.54(a)(1) goes consistent with the original intent of the examine and order copies of public considerably beyond the scope of rule and clarify that the scope of those documents, is currently closed. You systems and networks necessary to regulations only require the protection may submit your request to the PDR via prevent radiological sabotage, of those digital assets that can directly email at [email protected] or call unnecessarily diverting licensee cause core damage and spent fuel 1–800–397–4209 between 8:00 a.m. and attention from the protection of those sabotage, or whose failure would cause 4:00 p.m. (EST), Monday through digital assets having a direct a reactor scram. The petition was Friday, except Federal holidays. relationship to radiological sabotage. docketed by the NRC on September 22, FOR FURTHER INFORMATION CONTACT: Juan According to the petitioner, the time, 2014, and assigned Docket No. PRM– Lopez, Office of Nuclear Material Safety resources, and costs of protecting from 73–18. The NRC staff has determined and Safeguards; telephone: 301–415– a cyber attack those digital assets not that the information presented in PRM– 2338; email: [email protected]; or Ilka directly related to preventing 73–18 does not support rulemaking. The Berrios, Office of Nuclear Material radiological sabotage are inconsistent NRC has also determined that existing Safety and Safeguards; telephone: 301– with the intent of the cyber security rule and ongoing revisions to guidance can 415–2404; email: [email protected]. and are not justified. As discussed in effectively address the issues raised by Both are staff of the U.S. Nuclear the ‘‘Reasons for Denial’’ section of this the petitioner in this PRM. Therefore, Regulatory Commission, Washington, document, the petitioner presented for the reasons discussed in the DC 20555–0001. several assertions to support its petition SUPPLEMENTARY INFORMATION of this SUPPLEMENTARY INFORMATION: that the NRC considered in the document, the NRC is denying PRM– Table of Contents evaluation the PRM. On September 22, 73–18. 2014, the NRC published a notice of DATES: The docket for the petition for I. The Petition docketing of PRM–73–18 in the Federal rulemaking, PRM–73–18, is closed on II. Background Register along with a request for public August 10, 2021. III. Reasons for Denial IV. Public Comments on the Petition comment. ADDRESSES: Please refer to Docket ID V. Availability of Documents II. Background NRC–2014–0165 when contacting the VI. Conclusion NRC about the availability of Following the terrorist attacks of information for this action. You may I. The Petition September 11, 2001, the NRC conducted obtain publicly-available information Section 2.802 of title 10 of the Code a review of its security requirements to related to this action by any of the of Federal Regulations (10 CFR), ensure that nuclear power reactors and following methods: ‘‘Petition for rulemaking—requirements other licensed facilities could effectively • Federal Rulemaking website: Go to for filing,’’ provides an opportunity for protect against the changing threat https://www.regulations.gov and search any person to petition the Commission environment. Based on this review, the
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NRC issued a series of security orders time, both industry and the NRC gained language in § 73.54(a) was not included imposing new security requirements on valuable insights and lessons learned in the 2006 proposed rule and was nuclear power reactors and other from implementation of the NRC’s cyber added to the 2009 final rule without the facilities. In NRC Order EA–02–026, security requirements. opportunity for public notice and ‘‘Interim Safeguards and Security In January 2019, the Office of Nuclear comment. The petitioner further asserts Compensatory Measures for Nuclear Security and Incident Response’s (NSIR) that the effects of this scoping language Power Plants,’’ dated February 25, 2002, Cyber Security Branch initiated an were likely not clear when the final rule the NRC required licensees to address assessment of the NRC’s cyber security was issued. certain cyber security threats at their regulations and Power Reactor Cyber NRC Response to Assertion A: facilities to protect against a cyber Security Program. Its purpose was to The NRC disagrees with the attack. A subsequent order, NRC Order identify key areas of improvement that petitioner’s Assertion A. The 2006 EA–03–086, ‘‘Issuance of Order would strengthen the NRC’s Power proposed rule contained a new Requiring Compliance with Revised Reactor Cyber Security Program. The § 73.55(m) titled ‘‘Digital computer and Design Basis Threat for Operating Power cyber assessment team engaged with communication networks.’’ Section Reactors,’’ dated April 29, 2003, external stakeholders to gain additional 73.55(m)(1) would have required required licensees to address additional insights. The Cyber Security Branch in licensees to have a cyber security cyber attack characteristics. NSIR completed its assessment of the program that would protect computer In 2006, the NRC published in the NRC’s Power Reactor Cyber Security systems that, if compromised, would Federal Register a proposed Program in July 2019. The assessment adversely impact SSEP. The NRC rulemaking, ‘‘Power Reactor Security identified several enhancements to the received several comments on the cyber Requirements’’ (71 FR 62664; October Power Reactor Cyber Security Program, security requirements in the 2006 26, 2006), to amend its existing security and the NRC staff developed an action proposed rule. This included a requirements and add new security plan to facilitate and prioritize comment that the term ‘‘protected requirements applicable to nuclear implementation of these enhancements. computer system’’ used in power reactors. This proposed rule The enhancements are intended to § 73.55(m)(1)(iii) lacked clarity and contained a new § 73.55(m), ‘‘Digital further risk-inform the NRC’s Power should be better defined in the final computer and communication Reactor Cyber Security Program. Based rule. As the Commission stated in the networks.’’ Section 73.55(m)(1) would on the assessment results, the NRC SOC to the 2009 final rule, in response have required nuclear power reactor determined that there was a need to to a public comment, the NRC revised licensees to protect computer systems further revise guidance documents the language in § 73.55(m)(1), that, if compromised, would adversely beyond updates already implemented renumbered as § 73.54(a) in the 2009 impact safety, security and emergency by industry stakeholders to, among final rule, to provide a more detailed list preparedness (SSEP). Section other things, address issues associated of the types of computer systems and 73.55(m)(2) would have required with the scoping of critical digital assets networks requiring protection from a licensees to systematically assess and (CDAs). cyber attack consistent with the manage cyber risks at their facilities. language in the proposed rule. The NRC received comments on the III. Reasons for Denial The language in § 73.55(m)(1) of the proposed rule, including comments on The NRC is denying the petition 2006 proposed rule put licensees on § 73.55(m). because the petitioner did not present notice that they were required to protect After considering all comments, the sufficient new information to warrant computer systems that, if compromised, NRC issued a final rule, ‘‘Power Reactor the requested changes to the NRC’s could adversely affect SSEP. The Security Requirements,’’ (74 FR 13926; regulations in § 73.54. Specifically, the language in § 73.54(a) of the 2009 final March 27, 2009). This final rule petitioner did not show that the rule, while modifying the 2006 language relocated the cyber security regulatory language in § 73.54(a) is from ‘‘SSEP’’ to ‘‘SSEP functions’’ to requirements in the proposed rule’s inconsistent with the original intent of better identify the computer systems § 73.55(m) to a new stand-alone § 73.54 this provision or the cyber security rule and networks requiring protection, did in the final rule. As noted by the and did not show that the regulatory not significantly change any cyber Commission in the 2009 final rule language in § 73.54(a)(1) is overly broad. security requirements from the Statement of Considerations (SOC), Furthermore, an assessment of the proposed rule to the final rule. The 2009 relocating the cyber security NRC’s cyber security regulations and language is consistent with, and a requirements into their own stand-alone Power Reactor Cyber Security Program logical outgrowth of, the language in the section was appropriate because the performed by NRC staff as a separate 2006 proposed rule. Accordingly, the implementation of a cyber security effort from the review of this petition NRC was not required to submit this program requires a uniquely determined that existing and ongoing clarifying language for public notice and independent technical expertise and revisions to guidance can effectively comment. knowledge that would not necessarily address the issues raised by the Assertion B in Section III of the PRM: be implemented by security personnel. petitioner in this PRM without the need The petitioner asserts that one result As further noted, placing the cyber for rulemaking. of the § 73.54(a)(1) language in the 2009 security requirements in a stand-alone final rule was to enlarge the scope of section would enable these Assertions in the Petition digital assets to be protected from cyber requirements to be made applicable to The assertions made by the petitioner attack beyond what the Commission other types of facilities in the future, if in Section III of PRM–73–18, ‘‘Bases for originally intended in the 2006 warranted. the Action Requested by Petitioner,’’ are proposed rule. The petitioner further In 2013, the NRC began performing summarized in the following paragraphs asserts that the § 73.54(a)(1) language inspections of NRC licensees’ 10 CFR along with the NRC’s responses to those requires licensees to implement cyber 73.54 cyber security programs. By 2016, assertions. security controls on hundreds to the NRC had completed initial Assertion A in Section III of the PRM: thousands of digital assets, most of inspections of all NRC licensees’ cyber In support of its PRM, the petitioner which do not, even if compromised, security programs. During this period of asserts, in part, that the scoping have a direct relationship to radiological
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sabotage. According to the petitioner, must protect against the DBT as equipment and digital assets requiring this creates an inconsistency between described in § 73.1. There is no language protection that are associated with those the NRC’s cyber security requirements indicating that protecting against the systems can directly cause significant and the § 73.55 physical protection DBT is limited to protecting only those core damage or spent fuel sabotage. The program. The petitioner, citing digital assets that can directly cause NRC further explained that as computer § 73.55(b)(3) and referencing the significant core damage or spent fuel technology is increasingly integrated existing process used to identify target sabotage. Similarly, Regulatory Guide into nuclear power plants, many plant sets, asserts that the performance (RG) 5.71, ‘‘Cyber Security Program for safety and security systems rely on this objectives of the § 73.55 physical Nuclear Facilities,’’ and the other technology to carry out their functions. protection program must protect against documents cited by the petitioner The NRC intended that digital assets significant core damage and spent fuel reiterate the general performance associated with such systems be sabotage. However, according to the objective that licensees must protect protected to minimize potential attack petitioner, because the current language against the DBT and prevent significant pathways that could indirectly or in § 73.54(a)(1) requires the protection core damage or spent fuel damage. directly result in radiological sabotage. of digital assets that cannot, even if The petitioner references the existing Accordingly, the NRC does not agree compromised, result in significant core process used to identify target sets to with the petitioner’s assertion that the damage or spent fuel sabotage, it is support the assertion that the original intent of the cyber security inconsistent with the performance performance objectives of the § 73.55 requirements in the 2006 proposed rule objectives of the § 73.55 physical physical protection program only was limited to protecting only those protection program. require protection against significant digital assets that could directly cause NRC Response to Assertion B: core damage and spent fuel sabotage. As significant core damage or spent fuel The NRC disagrees with the noted previously, the NRC agrees that a sabotage. For these reasons, the NRC has petitioner’s Assertion B. The petitioner licensee’s cyber security program must determined that the language in asserts that the language in § 73.54(a)(1) protect against significant core damage § 73.54(a)(1) is consistent with the is inconsistent with the cyber security and spent fuel sabotage. The NRC original intent of the 2006 proposed rule rule’s original intent of protecting further agrees that the process for and is consistent with the performance against the Design Basis Threat (DBT) of developing and identifying target sets objectives in § 73.55. radiological sabotage. The petitioner’s defines the set of equipment that must Assertion C in Section III of the PRM: assertion is predicated on the be protected from a physical attack to The petitioner asserts that the assumption that protecting against the prevent significant core damage and language in § 73.54(a)(1) unnecessarily DBT of radiological sabotage is limited spent fuel sabotage. The NRC notes that requires licensees to focus on protecting to only protecting that equipment and § 73.55(f)(2) requires that licensees hundreds to thousands of digital assets those digital assets that can directly consider cyber attacks in the at their sites that are, in some way, cause significant core damage or spent development and identification of target associated with the SSEP functions fuel sabotage. sets. However, the purpose of the cyber identified in § 73.54(a)(1). The The NRC agrees that, consistent with security language in § 73.55(f)(2) is to petitioner asserts that many of these the regulatory language in § 73.54(b)(3) identify a specific type of threat that digital assets have no nexus to and § 73.55(b)(3), a licensee’s cyber target sets must be protected from. This radiological sabotage. As a result, the security program must protect against language is not intended and should not considerable time, resources and costs significant core damage and spent fuel be used to define the scope of the NRC’s needed to protect these assets is not sabotage. However, the NRC does not cyber security requirements. justified. The petitioner further asserts agree that protecting against the As previously noted in the NRC’s that granting the petition will lead to a radiological sabotage DBT only involves response to petitioner’s Assertion A, more efficient use of licensee resources protecting those digital assets that can § 73.55(m)(1) of the 2006 proposed rule without compromising plant safety or directly cause significant core damage would have required licensees to have security. and spent fuel sabotage. Rather, a cyber security program that would NRC Response to Assertion C: protecting against radiological sabotage protect computer systems that, if The NRC disagrees with the also involves protecting those digital compromised, would adversely impact petitioner’s assertion that the NRC’s assets that could either directly or SSEP. In the SOC to the 2006 proposed cyber security requirements in indirectly cause significant core damage rule, the NRC explained that the cyber § 73.54(a)(1) require the protection of or spent fuel sabotage. Additionally, the security requirements were designed to hundreds, and in some cases thousands, NRC included EP systems in the cyber minimize potential attack pathways and of digital assets that have no nexus to security rule because such systems are the consequences of a successful cyber radiological sabotage. Section essential to mitigate the consequences of attack. These requirements are part of a 73.54(a)(1) requires that licensees radiological sabotage. Accordingly, for defense-in-depth strategy to protect protect digital computer and the reasons described in this section, the SSEP digital assets that, if communication systems and networks NRC does not agree that the language in compromised, could directly or associated with SSEP functions from a § 73.54(a)(1) is inconsistent with either indirectly result in radiological sabotage cyber attack. The NRC recognizes that the cyber security rule’s original intent at an NRC-licensed nuclear power plant. these systems may contain hundreds of protecting against the DBT of Additionally, the NRC included EP and possibly thousands of digital assets. radiological sabotage or inconsistent systems in the cyber security rule It is not the NRC’s expectation that all with the performance objectives of because such systems are essential to digital assets associated with such § 73.55. mitigate the consequences of functions will necessarily require There is nothing in the language of radiological sabotage. protection in accordance with the NRC’s either the 2006 proposed rule or the The NRC made a conscious and cyber security requirements. Consistent 2009 final rule that supports the deliberate decision to include computer with the requirements in § 73.54(a)(2), petitioner’s assertion. Section 73.54(a) and network systems that could affect only those digital assets that could of the 2009 final rule states the general SSEP functions in the cyber security adversely impact SSEP functions are performance objective that licensees rule, even though not all of the within the scope of the NRC’s cyber
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security requirements and must be requirements. One of the major lessons power plants. The petitioner further protected against a cyber attack. learned from these inspections and the notes that as a result of this policy Section 73.54(b)(1) requires licensees assessment is that many licensees determination, SSCs in the BOP were no to conduct an analysis of digital adopted a conservative approach to longer subject to the Federal Energy computer and communication systems identifying digital assets at their Regulatory Commission’s (FERC) and networks and identify those digital facilities that could potentially impact Critical Infrastructure Protection assets that must be protected against a SSEP functions. This resulted in a large reliability standards. The petitioner cyber attack. This requirement reflects number of digital assets being included states that this policy determination the NRC’s recognition that licensees are within the scope of licensees’ cyber expanded the scope of the cyber well situated to determine the safety security programs. As a result of the security program to include digital and security significance of digital lessons learned from these inspections assets not strictly necessary to prevent systems and assets at their facilities. The and the assessment, the NRC has been radiological sabotage. NRC issued RG 5.71 to provide guidance and is continuing to engage with NRC Response to Assertion D: to licensees in implementing the NRC’s stakeholders to revise existing guidance The NRC agrees with the petitioner cyber security requirements. Section and refine the methodology for that on October 21, 2010, the 3.1.3 of RG 5.71 recognizes that not all identifying CDAs that fall within the Commission made a policy digital assets associated with SSEP scope of the NRC’s cyber security determination to apply the NRC’s cyber functions may need to be protected. It requirements. Based on these security regulations to SSCs in a nuclear sets forth a process for identifying those interactions, NEI revised NEI 13–10 to power plant’s BOP that have a nexus to assets, referred to as CDAs in the include a consequence-based, graded radiological health and safety. The regulatory guide, that must be protected approach for identifying CDAs. The NEI petitioner asserts that this policy against a cyber attack. CDAs are those 13–10 guidance enables industry to determination expanded the scope of digital assets that meet the criteria in focus resources on the more significant § 73.54(a) to include digital assets not § 73.54(a)(2) and, if compromised, could digital assets. The NRC is continuing to strictly necessary to be protected to adversely impact SSEP functions. work with stakeholders to identify prevent radiological sabotage. The petitioner identifies examples of additional revisions to the guidance for As the petitioner notes, the digital assets—specifically fax identifying those digital assets that must Commission’s October 2010 policy machines, hand-held calibration be protected from a cyber attack. For the devices, radios and pagers, and certain determination applied the NRC’s cyber reasons discussed in this section, the security regulations to BOP digital calculators used by licensee staff—that NRC does not agree with the petitioner’s it claims have no nexus to radiological assets that by themselves, even if assertion that the language in compromised, could not directly cause sabotage. The NRC agrees that some § 73.54(a)(1) requires the protection of significant core damage or spent fuel digital assets associated with SSEP digital assets that do not have a nexus sabotage. For the same reasons set forth functions may not need to be protected to radiological sabotage. from cyber attack. Consistent with The NRC disagrees with the assertion in the NRC’s response to the petitioner’s § 73.54(b)(1), determining whether a that the cyber security rule requires the Assertions B and C, the NRC does not specific digital asset, such as a fax unnecessary expenditure of licensee agree with the petitioner’s statement machine, calibration device, radio, or resources to protect digital assets that that this policy determination resulted the like, has a nexus to radiological have no nexus to radiological sabotage. in an expansion of the scope of either sabotage requires a site-specific analysis The NRC issued RG 5.71 in January the 2006 proposed rule or the 2009 final to determine the safety and security 2010 to provide guidance to licensees in rule. significance of the specific asset. The implementing the NRC’s cyber security From its inception, the 2006 proposed purpose of the analysis is to determine requirements. It establishes a process for cyber security rule would have required if a specific digital asset must be identifying those digital assets, called licensees to protect those digital assets protected consistent with the criteria in CDAs, that must be protected against a associated with SSEP that, if § 73.54(a)(2). That is why neither the cyber attack. Some stakeholders have compromised, could either directly or NRC’s cyber security rule nor RG 5.71 taken a conservative approach to indirectly cause radiological sabotage prescribe a list of specific digital assets identifying CDAs. The NRC has resulting in significant core damage or that must be protected against a cyber determined that this is an spent fuel sabotage. As the Commission attack. implementation issue, not an issue with stated in SRM–COMWCO–10–0001, it As elaborated in the NRC Response to the cyber security rule language. ‘‘has determined as a matter of policy Assertion B, the NRC does not agree Accordingly, the NRC has been and is that the NRC’s cyber security rule at 10 with the petitioner’s assertion that only continuing to work with industry CFR 73.54 should be interpreted to those digital assets that, if stakeholders to revise existing guidance include SSCs in the BOP that have a compromised, can directly result in and establish new guidance to refine the nexus to radiological health and safety radiological sabotage are subject to the methodology for identifying CDAs. For at NRC-licensed nuclear power plants.’’ NRC’s cyber security requirements. these reasons, the NRC does not agree In SECY–10–0153, ‘‘Cyber Security— Digital assets, the compromise of which with the petitioner’s assertion that the Implementation of the Commission’s may not directly cause significant core language in § 73.54(a)(1) requires the Determination of Systems and damage or spent fuel sabotage, but that protection of digital assets that do not Equipment within the Scope of Title 10 could serve as attack pathways that have a nexus to radiological sabotage of the Code of Federal Regulations, potentially increase the risk of a and results in an unjustified burden and Section 73.54,’’ dated November 19, successful cyber attack if not protected, costs for licensees. 2010, the staff informed the Commission are within the scope of the NRC’s cyber Assertion D in Section III of the PRM that it considered SSCs in the BOP that security requirements. The petitioner notes that on October have a nexus to radiological health and The NRC has been conducting cyber 21, 2010, the Commission made a policy safety to be those that could, if security inspections since 2013 and determination to apply the NRC’s cyber compromised, directly or indirectly recently completed a major assessment security rule to SSCs in the balance of affect reactivity of a nuclear power of the NRC’s cyber security plant (BOP) at NRC-licensed nuclear plant, and are therefore within the scope
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of important-to-safety functions § 73.54(a)(1) does not identify specific NRC Response to Category 1 described in § 73.54(a)(1). digital assets that must be protected by Comments: The comments included in To the extent that Assertion D raises licensee cyber security programs. It is Category 1 reiterate assertions made in issues concerning FERC’s jurisdiction at the responsibility of the licensee to the petition that the scope of the cyber nuclear power plants, the NRC does not conduct the analysis required by security rule is too broad. For the have the authority to limit the § 73.54(b)(1) and correctly identify those reasons set forth in the ‘‘Reasons for jurisdiction granted to other agencies by digital assets that, if compromised, Denial’’ section of this document, the statute. could adversely impact SSEP functions. NRC does not agree with these Assertion E in Section III of the PRM: Failure to correctly identify digital comments. The petitioner states that, as of March assets may result in violations of the The NRC also disagrees with the 1, 2014, NRC inspections had identified NRC’s cyber security requirements. commenters’ assertion that actions violations of low safety significance The NRC also disagrees that the required by § 73.54 are overly associated with the failure of reactor violations have conveyed to the public burdensome and have no nexus to licensees to identify digital assets an incorrect impression that the state of protecting the health and safety of the needing protection against cyber attacks cyber security preparedness at reactor public. As the Commission stated in under § 73.54(a)(1). The petitioner views sites is less than adequate. The SRM–COMWCO–10–0001, it ‘‘has the violations as an illustration of the petitioner provides no evidence that the determined as a matter of policy that the problems created by the § 73.54(a)(1) public has formed such an impression NRC’s cyber security rule at 10 CFR scoping language. The petitioner as a result of these violations. 73.54 should be interpreted to include concludes that although these violations SSCs in the BOP that have a nexus to IV. Public Comments on the Petition ‘‘have little to no safety significance,’’ radiological health and safety at NRC- they have resulted in unnecessary The comment period closed on licensed nuclear power plants.’’ In expense and a diversion of licensee December 8, 2014, and the NRC SECY–10–0153, ‘‘Cyber Security— resources, as well as conveying to the received 19 comment submissions on Implementation of the Commission’s public ‘‘an incorrect impression that the the PRM. All of the comment Determination of Systems and state of cyber security preparedness at submissions received on this petition Equipment within the Scope of Title 10 those sites is less than adequate.’’ are available on https:// of the Code of Federal Regulations, NRC Response to Assertion E: www.regulations.gov under Docket ID Section 73.54,’’ dated November 19, The NRC agrees that several violations NRC–2014–0165. 2010, the Commission was informed have been identified during its Of the 19 comment submissions that SSCs in the BOP that have a nexus inspections of licensee cyber security received, 15 comment submissions to radiological health and safety are programs at reactor sites. The supported the petition, two opposed the those that could, if compromised, implementation plan for licensees’ petition, and two provided other directly or indirectly affect reactivity of cyber security programs, which has observations on the cyber security rule a nuclear power plant, and are therefore eight distinct milestones, was developed language. Overall, the comments within the scope of important-to-safety to allow a phased approach to full received do not present additional functions described in § 73.54(a)(1). implementation of the cyber security information to support the petitioner’s Consistent with the NRC’s cyber requirements in § 73.54. One of the proposal that the NRC amend its cyber security rule, it is the licensee’s goals of this phased approach was to security regulations. The NRC organized responsibility to analyze its digital allow lessons learned to be applied by the 19 comment submissions into 18 computer and communication systems licensees prior to full program comment categories that are and networks and identify those digital implementation. The use of this phased summarized and evaluated in the assets that could adversely impact SSEP approach was intended to identify following paragraphs. functions if compromised by a cyber issues in an iterative way, particularly Comment Category 1: Scope of the attack. The NRC agrees with the in regard to digital asset identification. rule language is too broad. commenters that some licensees may In cases where violations were In support of the PRM, several have conservatively identified certain identified during cyber security comment submissions assert that the digital assets that could not adversely inspections of milestones 1 through 7, scope of the existing cyber security impact SSEP functions even if the NRC performed an evaluation and requirements in § 73.54 is too broad. compromised as being within the scope did not cite the violations if the licensee They contend that this broad scope has of the NRC’s cyber security rule. had made a ‘‘good faith’’ effort to resulted in unnecessary burden on RG 5.71 contains NRC guidance for comply with the requirements. reactor licensees having to maintain complying with the regulations in Licensees addressed these issues and hundreds to thousands of digital assets § 73.54. Licensees may use methods made corrections to their cyber security within their cyber security programs. other than those described in RG 5.71 to programs prior to full program The comment submissions state that meet the regulations in § 73.54. The implementation. The identification and most of these digital assets have no NRC has also engaged with stakeholders resolution of these cyber security issues nexus to protecting the health and safety regarding revisions to industry guidance help ensure that licensees successfully of the public. One commenter stated to assist licensees in better identifying implement an effective cyber security that the high level of protection required digital assets that fall within the scope program. by § 73.54 should be focused on the of the NRC’s cyber security rule. For The NRC disagrees with the equipment whose compromise could example, as a result of insights gained petitioner’s assertion that the violations endanger the health and safety of the from these interactions, NEI revised NEI illustrate problems with the scoping public. Another commenter stated that 08–09, ‘‘Cyber Security Plan for Nuclear language in § 73.54(a)(1). This scoping the regulations in § 73.54 now allow the Power Reactors,’’ and NEI 13–10, language correctly identifies the digital NRC to require that licensees classify an ‘‘Cyber Security Control Assessment,’’ computer and communication systems excessive number of components as to address the application of cyber and networks that the Commission ‘‘critical’’ even though their functions security controls for CDAs at nuclear intends licensees to protect against a have little or no bearing on nuclear power plants. Similarly, NEI revised cyber attack. The language in safety. NEI 13–10, Revision 6, to address
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scoping issues using a consequence- component’s risk significance for The NRC also disagrees with the based approach for screening CDAs. The exemption from additional treatment. assertion that the application of cyber consequence-based approach in NEI 13– Two commenters assert that the cost of security controls reduces the 10 enables industry to focus resources implementing and maintaining the effectiveness of digital assets. The on the more consequential digital assets requirements of the rule directly commenters did not provide any that require protection. The NRC competes with the cost of facility evidence to support this assertion. The continues to engage with stakeholders to modifications that could improve plant NRC is not aware of any operational review and revise, as appropriate, safety, equipment reliability, and reduce experience or data that demonstrates a relevant cyber security guidance, the likelihood of an initiating event. reduction in effectiveness of digital including guidance on the scoping of Another commenter states that the assets due to the application of cyber CDAs. scope of the existing requirements in security controls to those assets. Comment Category 2: Implementation § 73.54 introduce significant and The NRC does not agree that the rule costs are significantly higher than those unwarranted costs in terms of language in § 73.54 imposes presented in the regulatory analysis for complying with the requirements in requirements for monitoring and the 2009 rule. § 73.56, and that these issues would be assessment that are ‘‘outside of current Two comment submissions that resolved by granting the PRM. practices.’’ The cyber security rule does support the PRM assert that the costs Two commenters suggest specific not require any change to existing associated with implementation of the alternatives for refocusing the rule licensee monitoring and assessment cyber security requirements in § 73.54 language in § 73.54. One commenter practices that have already been are substantially higher than those suggests, as an alternative to the implemented and does not impose any presented in the NRC’s 2009 regulatory petitioner’s suggested changes: (1) requirement that licensees develop and analysis of these requirements. Modifying § 73.54(a)(1)(i) to directly implement new monitoring and NRC Response to Category 2 state that only ‘‘Target Set and credited assessment practices. Comments: The NRC acknowledges that security system equipment’’ need The NRC disagrees with the the costs regarding the implementation special consideration for preventing the comments regarding limiting the scope of § 73.54 were underestimated in the previously established § 73.1 DBT intent of § 73.54 to only target sets and 2009 regulatory analysis that supported of radiological sabotage; and (2) credited security system equipment, and the final rule. Specifically, the quantity modifying § 73.54(a)(1)(ii) to focus on trips and transients created by cyber of digital assets identified as CDAs far trips and transients created by cyber attacks initiated by outsiders external to exceeded the NRC’s estimates attacks initiated by outsiders external to the PA. Cyber attacks can adversely developed at the time the cyber security the Protected Area (PA). Another affect the performance of SSEP rule was finalized. As noted previously, commenter similarly suggested that the functions of a nuclear facility, which are given that many licensees adopted a NRC refocus the rule language on: (1) broader than the functions performed by conservative approach to identifying High assurance protection for target sets and security system digital assets at their facilities, the NRC preventing radiological sabotage; (2) equipment. As described in RG 5.71, the has and is continuing to engage with preventing plant trips and transients scope of the cyber security rule goes stakeholders to revise guidance for caused by cyber attacks initiated from beyond consideration of cyber attacks identifying CDAs. The NRC anticipates outside the PA; and (3) preventing initiated by outsiders external to the PA that this will reduce the number of accidental initiation of a cyber attack because a defense-in-depth approach identified CDAs and result in a caused by insider action. requires the licensee to evaluate threats reduction of costs to licensees in NRC Response to Category 3 from all possible vectors, including implementing the NRC’s cyber security Comments: The NRC disagrees that a internal and external threats. The NRC requirements. As a separate effort, the graded approach is not acceptable for further notes that the commenters did NRC is reviewing its process for use by licensees in complying with the not provide a technical basis to support developing cost estimates associated requirements in § 73.54. A consequence- their recommendations. with rulemakings. based, graded assessment process for Certain Category 3 comments are Comment Category 3: Unnecessary identifying CDAs and determining the outside the scope of the petition for diversion of licensee resources and appropriate security controls to be rulemaking. First, the comment that the attention. applied to those CDAs may contribute to requirements in § 73.54 create a need for The commenters assert that in reducing unnecessary costs to licensees. vendor processes outside of a well- determining required cyber security Using this graded approach may result vetted procurement process is outside controls, no graded approach is in the application of certain minimum the scope of the petition. The petition acceptable for use by NRC licensees in cyber security controls to specifically does not discuss the alleged need for complying with the requirements in identified CDAs as well as provide a additional vendor processes identified § 73.54. These commenters assert that method to assess alternate means of in the comment submission. the cost of implementing and protecting CDAs, for example EP CDAs, Additionally, the commenter did not maintaining these controls contribute no from cyber attacks. However, this provide any evidence that the NRC’s added value, are costly to maintain, and graded approach will still require that cyber security rule impacts licensee reduce the effectiveness of the digital licensees adequately protect CDAs from procurement processes. Licensees may assets. a cyber attack. For these reasons and the procure any computer systems, One commenter asserts that the reasons stated in the ‘‘Reasons for networks or digital assets that enable current rule language significantly Denial’’ section of this document, the them to comply with NRC requirements increases costs by: (1) Creating a need NRC disagrees with the assertion that and are not prohibited by federal law. for vendor processes outside of a well- the development of a consequence- The cyber security rule requires vetted procurement process; (2) based, graded approach for licensees to ensure that CDAs associated imposing requirements for monitoring implementing the requirements in with whatever digital systems the and assessment outside of current § 73.54 contributes no added value, and licensee procures are adequately practices; and (3) failing to accept therefore, results in the unnecessary protected from a cyber attack by the current maintenance rule analysis of a expenditure of licensee resources. application of appropriate security
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controls. Second, the assertion that the specific to an active insider with The comment submissions supporting requirements in § 73.54 fail to address physical CDA access. Two comment the PRM generally assert that granting the maintenance rule’s analysis of a submissions cited the Plant Process the petition would: (1) Have an component’s risk significance is also Computer (PPC) as an example of a immediate positive impact on overall outside the scope of the petition. The system that should not be subject to safety and security while reducing petition does not discuss the application cyber security requirements. unnecessary burden on reactor of the maintenance rule and its NRC Response to Category 4 licensees; (2) continue to provide discussion of a component’s risk Comments: These comments reiterate defense-in-depth protection for those significance. Finally, the commenters issues raised in the petition; the NRC digital assets having a nexus to assertion that the requirements in does not agree with these comments for radiological safety and security, thereby § 73.54 introduce significant and the reasons stated in the ‘‘Reasons for eliminating the unnecessary diversion unwarranted costs in terms of Denial’’ section of this document. of attention and resources expended on compliance with the access Regarding the comment that the protecting digital assets that do not have authorization requirements in § 73.56 application of cyber security controls to a nexus to radiological safety and are also outside the scope of the CDAs for demonstrating compliance security; and (3) be consistent with the petition. The petition does not discuss with the cyber security requirements in NRC’s original intent to prevent the impact of the cyber security rule on § 73.54 is not consistent with other radiological sabotage, in accordance access authorization requirements. elements of the physical protection with long-standing physical protection Furthermore, the rule does not limit program, the commenter did not program requirements. Several comment licensees’ ability to purchase any digital provide an example that supports this submissions added that if the petition is system that helps it meet the NRC’s assertion. Furthermore, the cyber granted, they would still be able to meet access authorization requirements. The security requirements in § 73.54 are not the requirements in § 73.54 to provide NRC is not aware of any operational inconsistent with the physical high assurance of adequate protection experience or data showing that protection program performance from cyber attacks. Two comment licensees have had significant and objectives set forth in § 73.55. submissions assert that granting the unwarranted costs that are unique to Specifically, there is no inconsistency as petition would support grid reliability compliance with access authorization protecting against radiological sabotage through protection of digital assets requirements as a result of the cyber is not limited to protecting only those capable of causing a reactor trip, and security rule. digital assets the compromise of which they continue to support having the Comment Category 4: Issues with can directly cause significant core NRC as the single regulatory authority process for identification of CDAs. damage and spent fuel sabotage. Rather, for cyber security in order to enhance In support of the PRM, several protecting against radiological sabotage regulatory clarity and implementation comment submissions assert that a involves protecting those digital assets efficiency. significant amount of resources are that, if compromised by a cyber attack, NRC Response to Category 5 expended on protecting CDAs that have could either directly or indirectly cause Comments: For the reasons set forth in no capability to cause core damage or significant core damage or spent fuel response to petitioner’s Assertion B, the spent fuel sabotage even if sabotage. As noted previously, the NRC disagrees with the commenters’ compromised, and that these efforts Commission included EP functions assertion that the current version of the result in no measurable increase in within the scope of the cyber security cyber security rule is not consistent reactor and spent fuel security. One rule because they are essential to with the original intent of the rule. commenter specifies in this regard that mitigate the consequences of Additionally, the NRC disagrees with each CDA requires documentation of an radiological sabotage. the comments asserting that the assessment as configured against the Regarding the comment on the need petitioner’s proposed changes would cyber security technical controls in NEI to assess CDAs that have no capability have an immediate positive impact on 08–09, Revision 6, Appendix D, ‘‘even to cause core damage or spent fuel overall safety and security while if the CDA has no capability to cause sabotage even if compromised, this reducing unnecessary burden on reactor core damage or spent fuel sabotage.’’ essentially repeats assertions made in licensees. Instead, granting the petition Several comment submissions identify the petition. The NRC does not agree would have the opposite effect as it CDAs associated with EP that protecting against radiological would increase the risk of SSEP communication systems and other sabotage is limited to protecting only functions being compromised by a cyber equipment as examples of CDAs that those digital assets that can directly attack. should not be included in the scope of cause significant core damage or spent The NRC also disagrees with the the cyber security program. One fuel sabotage if impacted by a cyber commenters’ assertions that the commenter similarly states that the attack. petitioner’s proposed changes would application of cyber security controls to The comments identify the PPC as an continue to provide defense-in-depth CDAs is not consistent with other example of a system that should not be protection of digital assets (i.e., digital elements of the physical protection subject to cyber security requirements. computer and communication systems program, since cyber security controls Consistent with § 73.54(b)(1), a licensee and networks). The NRC explained in are required for systems and equipment must conduct a site-specific analysis to the 2009 SOC that as computer that go beyond the systems and identify those digital assets that meet technology is increasingly integrated equipment necessary to prevent the criteria of § 73.54(a)(1) and must be into nuclear power plants, many plant radiological sabotage. One commenter protected from a cyber attack. safety and security systems rely on this asserts that the resources expended on Determining whether or not the PPC technology to carry out their functions. protecting these CDAs may delay other should or should not be subject to the The digital assets associated with these facility enhancements that would NRC’s cyber security requirements is integrated systems must be protected to protect more important equipment. dependent upon the outcome of the site- minimize potential attack pathways and One commenter further states that specific analysis. the consequences of a successful cyber additional burden is added to protect Comment Category 5: Benefits of attack. Granting the petition would have CDAs when the postulated attack is granting the petition. the opposite effect as it would remove
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cyber security protection for such digital Security Control Assessment,’’ provide related to cyber security, to avoid dual assets and decrease defense-in-depth, guidance to licensees on the regulation of nuclear power plants. By inconsistent with the rule. For example, development of licensee cyber security the memorandum of agreement dated the term ‘‘defense-in-depth’’ used in plans that meet NRC requirements, September 22, 2015, the NRC and FERC § 73.54(c)(2) requires that a cyber including the process of identifying and have reached a mutual agreement of security program be designed to apply implementing appropriate cyber how each agency will implement its and maintain ‘‘defense-in-depth security controls for CDAs. jurisdiction over cyber security assets at protective strategies to ensure the The NRC is continuing to engage with nuclear power plants. capability to detect, respond to, and stakeholders to develop guidance Comment Category 8: The petition recover from cyber attacks.’’ In revisions to streamline the process for should be denied. responding to a comment on what addressing the application of cyber Two comment submissions assert that became § 73.54(c)(2), the Commission in security controls to CDAs. For example, the petition should be denied. The Section III.D of the 2009 SOC stated that the NRC has reviewed NEI proposals for commenters assert that granting the defense-in-depth for digital assets risk-informing the identification of petition would roll back cybersecurity ‘‘includes technical and administrative CDAs for EP, BOP, important-to-safety regulations essential for nuclear safety. controls that are integrated and used to and safety-related digital assets The comment submissions endorse mitigate threats from identified risks’’ (ADAMS Accession Nos. ML20129J981, maintaining a high level of (74 FR 13934; March 27, 2009). ML20209A442, and ML20223A256). cybersecurity protection for both To the extent that the comment NEI has stated its intent to incorporate nuclear facilities and communication submissions are asserting that the NRC these revisions into its guidance networks. should be the single regulatory authority documents and to submit them to the NRC Response to Category 8 establishing cyber security requirements NRC for endorsement. Comments: The NRC agrees that the for nuclear power plants, the NRC does Comment Category 7: Critical petition should be denied. As discussed not have the authority to limit the Infrastructure Protection standards. in the ‘‘Reasons for Denial’’ section of jurisdiction granted to other agencies by Two comment submissions assert that this document, the existing cyber statute. However, the NRC has worked the evidence required by the NRC and security regulations in § 73.54 are closely with FERC on matters of mutual the North American Electric Reliability necessary to ensure adequate protection interest related to the nation’s electric Corporation Critical Infrastructure of digital computer and communication power grid reliability and nuclear power Protection standards regarding systems and networks associated with plant safety and security, including but compliance with cybersecurity SSEP functions and their related not limited to, coordination of activities requirements should be brought into support systems. related to cyber security at nuclear closer alignment through rulemaking to Comment Category 9: Include PRM- power plants. By the memorandum of reduce the current burden on those proposed changes in the cyber security agreement dated September 22, 2015, utilities that run both nuclear and event notification rulemaking. the NRC and FERC have reached a non-nuclear facilities. The comment Eleven comment submissions assert mutual agreement on how each agency submissions further assert that § 73.54 that the cyber security event notification will implement its jurisdiction over requires utilities to comply with the rulemaking could provide a ready cyber security assets at nuclear power requirements of multiple regulatory vehicle for the changes proposed in the plants. agencies and having to provide different petition. Comment Category 6: Interpretation of types of evidence to different agencies NRC Response to Category 9 ‘‘Critical Digital Assets’’ under the cyber places unnecessary burdens on the Comments: The Cyber Security Event security rule. limited number of utility cybersecurity Notification final rule was published in One commenter asserts that NRC professionals. One of these comment the Federal Register on November 2, inspectors have interpreted ‘‘critical submissions also asserts that a 2015 (80 FR 67264). It was a separate digital assets’’ to include backup valve rulemaking should establish clear action that did not address the issues position indicators to which an operator boundaries of jurisdiction between the raised by the petitioner in PRM–73–18. may refer during an abnormal plant NRC and other regulatory agencies. These comments are outside the scope condition. The commenter states that if NRC Response to Category 7 of this PRM. such indicators were affected by a cyber Comments: These comments pertain to Comment Category 10: Specific security event, the required response issues that were not raised by the examples of equipment that should not action could be potentially delayed but petitioner and, therefore, are outside the be covered by the cyber security rule. would not affect plant safety. The scope of this PRM. The NRC’s cyber Nine comment submissions provide commenter concludes that designating security rule is applicable only to NRC examples of equipment that should not valve position indicators as CDAs ‘‘adds power reactor licensees and is not be required to be protected by the cyber hundreds of components to the critical applicable to non-nuclear electric security rule. Some of the examples the digital asset program’’ without utilities. commenters provide are digital process contributing to plant safety and goes Further, to the extent that the instruments within BOP systems, well beyond any reasonable definition comment submissions are asserting that wireless control systems associated with of what constitutes a ‘‘critical’’ digital the NRC should establish clear plant cranes, non-safety related digital asset. boundaries to limit the jurisdiction of indicators, business computer systems, NRC Response to Category 6 other Federal regulatory agencies, the and cameras, transmitters, and media Comments: The subject of whether any NRC has no authority to limit the converters. digital asset is a ‘‘critical digital asset’’ jurisdiction granted to other agencies by NRC Response to Category 10 is based on a site-specific analysis of statute. However, the NRC has worked Comments: The issue of whether a digital assets performed by the licensee. closely with FERC on matters of mutual specific digital asset must be protected RG 5.71, ‘‘Cyber Security Program for interest related to the nation’s electric from cyber attacks under the regulations Nuclear Facilities,’’ NEI 08–09, ‘‘Cyber power grid reliability and nuclear power in § 73.54 is based on a site-specific Security Plan for Nuclear Power plant safety and security, including but analysis made by the licensee. The NRC Reactors,’’ and NEI 13–10, ‘‘Cyber not limited to coordination of activities notes that, to address issues associated
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with determining if certain equipment Also, the commenter asserts that authenticity checking; and (5) malware should be protected by the cyber engineers and technicians that are has been shown to affect certain cyber security rule, the NRC has found the experts in instrumentation and control vulnerable systems such as human guidance in NEI 13–10 and NEI 10–04 (I&C), electrical engineering, and plant machine interfaces that are used in to be acceptable for use in identifying maintenance should be part of the cyber reactor facilities. systems and assets subject to the cyber security team, and that the NRC should NRC Response to Category 13 security rule. NEI 10–04 provides consider the use of digital I&C and Comments: The NRC agrees that industry with a risk-informed electrical systems for nuclear plant granting the PRM could lessen methodology for determining which safety applications. The commenter protection against cyber attacks. For the digital assets should be considered asserts that the training for engineers to reasons set forth in the ‘‘Reasons for CDAs. NEI 13–10 provides guidance for be able to identify potential cyber Denial’’ section of this document, the developing a consequence-based, graded incidents is minimal, and that the NRC has decided to deny the PRM. The approach to comply with the regulations current NRC requirements for cyber commenter is requesting that the NRC in § 73.54. This approach provides for security are not conservative when take action to strengthen its cyber the application of certain minimum compared to safety requirements. security requirements to increase cyber security controls to specifically NRC Response to Category 12 protection of digital computer and identified CDAs, and a method to assess Comments: The NRC notes that the communication systems and networks alternate means for protecting certain NRC’s cyber security requirements do at nuclear power plants. The NRC has classes of equipment from cyber attack. not distinguish between intentional and determined that the current cyber Furthermore, the NRC has reviewed NEI unintentional cyber attacks. Licensees security requirements are robust and proposals for risk-informing the are required to protect against any cyber provide reasonable assurance that identification of CDAs for EP, BOP, attack that could adversely impact critical digital assets are adequately important-to-safety and safety-related critical digital assets associated SSEP protected to prevent a cyber attack. digital assets. NEI has stated its intent functions. The NRC’s existing cyber Comment Category 14: Specific to incorporate these revisions into its security regulations in § 73.54 provide Disagreement with petitioner’s changes. guidance documents and to submit high assurance that digital computer Two comment submissions that them to the NRC for endorsement. and communication systems and oppose the PRM assert that the Comment Category 11: Suggested networks associated with SSEP petitioner’s proposed changes do not alternatives to granting the petition. functions are protected against a cyber adequately protect safety and security of Several comment submissions suggest attack. The NRC’s cyber security nuclear power plants, and that the the NRC should reassess the adequacy framework also requires that the petitioner’s proposed changes are not of the cyber security rule and should licensee’s cyber security staff have the conservative. The comment submissions work with external stakeholders to appropriate training. assert that cyber threats to safety-related consider other approaches such as a Comment Category 13: Examples of and important-to-safety functions can risk-informed, graded approach, or cyber security incidents that illustrate cause, or contribute to, core melt international ISA99 industrial need for more requirements. scenarios. The comment submissions standards. Several comment One commenter who opposes the also assert that a reduction in cyber submissions provide specific examples PRM asserts that the current NRC cyber security requirements for EP systems is of alternate approaches to the cyber security requirements need to be unacceptable because it would not then security rule. One commenter also strengthened, and that granting the PRM be possible to meet existing regulations asserts that concepts such as would lessen protection against cyber concerning notification of emergency redundancy, diversity, and common- attacks. The commenter provides responders if these systems were cause failures should be reexamined in examples of cyber security incidents compromised. the context of cyber security. supporting his concern, and further One commenter further asserts that NRC Response to Category 11 asserts that: (1) The NRC cyber security limiting the § 73.54 cybersecurity Comments: In 2019, the NRC performed review of the Oconee I&C upgrade was requirements to the prevention of an assessment of the Power Reactor not adequate, and the NRC should significant core damage and spent fuel Cyber Security Program. The program accordingly reassess the adequacy of the sabotage would not provide effective assessment identified opportunities to cyber security rule because control protection for other safety-critical further risk-inform the cyber security systems are not adequately protected by systems. This commenter also asserts guidance in lieu of pursuing changes to the current scope of § 73.54; (2) a that only the strongest, layered defenses the cyber security rule. For example, the comprehensive review is needed to are likely to discourage reconnaissance NRC has reviewed NEI proposals for understand the potential system and attack vector development, and that risk-informing the identification of interactions of the different devices in a granting the PRM would (1) eviscerate CDAs for EP, BOP, important-to-safety reactor facility’s safety and non-safety the NRC’s strong cybersecurity and safety-related digital assets. NEI has systems, and these system regulations and technical guidance; and, stated its intent to incorporate these vulnerabilities should be covered by (2) exacerbate dependence of nuclear revisions into its guidance documents § 73.54; (3) air-gapped security measures facilities on offsite AC power, therefore and to submit them to the NRC for are not necessarily adequate since it is producing greater exposure to long-term endorsement. possible that a well-meaning insider loss of offsite power risks. Comment Category 12: NRC should could unintentionally connect infected NRC Response to Category 14 impose additional requirements for portable media to a plant system or Comments: The NRC generally agrees cyber security. component, and the commenter with these comments. Cyber attacks on One commenter asserts that provides examples of how a reactor safety-related and important-to-safety unintentional or non-malicious cyber facility could be compromised using an functions may cause, or contribute to, incidents are not adequately addressed unintentional insider as a vector for a radiological sabotage (e.g., core melt in NRC guidance documents, and that cyber attack; (4) integrity checking does scenarios). If the provisions in the NRC should have a requirement to not offer protection against malicious § 73.54(a)(1)(iii) (requiring the include unintentional cyber incidents. manipulations until complemented with protection of digital computer and
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communication systems and networks in the comment submissions. The NRC Comment Category 17: Cyber Security associated with EP functions, including performs periodic reviews of its Language was not offered for public offsite communications) were removed guidance documents to determine if comment. as the PRM requests, this would likely they need revision. The results of the One commenter reiterates the hamper a reactor licensee’s ability to most recent periodic review of RG 5.71 petitioner’s assertion that the 2006 notify emergency responders in the can be found under ADAMS Accession proposed rule’s scoping language (71 FR event that offsite communication No. ML15099A158. The NRC disagrees 62664; October 26, 2006) was removed systems were compromised in a cyber that the current interpretation of the and replaced with new text in the 2009 attack. cyber security rule is increasing plant final rule (74 FR 13926; March 27, The NRC assumes that the risk by reducing operational stability. 2009), asserting that the practical effect commenter’s reference to ‘‘layered The comment submissions did not of the new scoping language was likely defenses’’ refers to the concept of provide support for this assertion, and not clear when the final rule was issued. defense-in-depth. As discussed in the the NRC is not aware of any such response to the Category 5 Comments, reduction in operational stability. NRC Response to Category 17 the existing regulations in § 73.54 reflect Comment Category 16: Existing plant Comments: For the reasons stated in the a defense-in-depth approach, and the processes are sufficient to protect most ‘‘Reasons for Denial’’ section of this NRC agrees that granting the PRM digital equipment. document, the NRC does not agree with would not be consistent with Two comment submissions that this comment. The clarifying changes maintaining defense-in-depth. support the PRM assert that while there made to the scoping language in the Comment Category 15: RG 5.71 and are thousands of digital assets that are 2009 final rule are consistent with and NEI 08–09 should be reassessed. important to the efficient operation of a logical outgrowth of the proposed rule, Two comment submissions opposing reactor facilities, such assets would be and the reasons for making these the petition assert that the current adequately protected by the existing changes were adequately explained in regulatory guidance is insufficient. The plant controls such as physical the 2009 SOC. commenters assert that neither RG 5.71 protection, network isolation, Comment Category 18: NRC cyber nor NEI 08–09 addresses cyber threats configuration management, security requirements should be and vulnerabilities that have been maintenance and testing. One of the expanded. demonstrated to be exploitable, and that comment submissions adds that EP One commenter suggested that in the scope of RG 5.71 should be functionality assets, such as order to cover ‘‘all digital assets reassessed. One commenter also states communication systems, are typically involved in the management of power- that the scope of RG 5.71 should be protected using redundancy and block industrial energy,’’ the scope of reassessed to better address control diversity. § 73.54 should be expanded. system-specific cyber security issues. NRC Response to Category 16 The commenters also provide various Comments: The NRC recognizes that NRC Response to Category 18 examples of concerns regarding the there may be large numbers of digital Comments: The NRC assumes that in current regulatory guidance and specific assets that are important to the efficient referencing ‘‘all digital assets involved suggestions for improving this guidance. operation at a nuclear power plant. in the management of power-block The commenters assert that the current These assets may well be protected by industrial energy’’ the commenter is interpretation of the cyber security rule existing plant controls. The NRC cyber referring to digital assets or digital is increasing plant risk by reducing security requirements do not require the components used to support a reactor operational stability. The commenters protection of such assets if they cannot facility’s on-site power systems. Safety- further assert that configuration changes adversely impact SSEP functions even if related digital assets or safety-related prescribed by NEI 08–09 and RG 5.71 they are compromised. The NRC has digital components interfacing with the contribute to uncertainty in the determined that CDAs that can facility’s on-site power systems are reliability of CDAs. The commenters adversely impact SSEP functions must addressed in the safety requirements of assert that RG 5.71 should be updated be protected from a cyber attack. If a 10 CFR part 50 (specifically in appendix to include consideration of plant risk. licensee’s site-specific analysis can A to 10 CFR part 50, general design One commenter asserts that the existing demonstrate that existing plant controls criterion 17). The commenter does not guidance is too focused on information at a given nuclear power plant can provide a basis for expanding the scope technology and ignores the merits of protect these CDAs from a cyber attack, of § 73.54 to include matters relating to current protective approaches that are then the licensee does not need to apply general design criterion 17. based on traditional I&C Engineering additional security controls to meet the V. Availability of Documents and other license requirements. requirements of the NRC’s cyber NRC Response to Category 15 security rule. If existing plant controls The documents identified in the Comments: These comments are beyond cannot provide such protection, then following table are available to the scope of the PRM. The petition does additional cyber security controls for interested persons through one or more not raise the guidance issues identified CDAs would be required. of the following methods, as indicated.
Adams Accession No. or Federal Document Date Register citation or website
PRM–73–18—Petition to Amend 10 CFR 73.54, ‘‘Protection of Digital Computer and Com- June 12, 2014 ...... ML14184B120 munication Systems and Networks’’ submitted by Nuclear Energy Institute (NEI). Protection of Digital Computer and Communication Systems and Networks; Notice of Dock- September 22, 2014 ...... 79 FR 56525 eting and Request for Comment.
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Adams Accession No. or Federal Document Date Register citation or website
PRM–73–18—Public Comments RE: Protection of Digital Computer and Communication August 10, 2020 ...... ML20223A027 Systems and Networks. SRM–CMWCO–10–0001—‘‘Regulation of Cyber Security at Nuclear Power Plants’’ ...... October 21, 2010 ...... ML102940009 Regulatory Guide 5.71, ‘‘Cyber Security Program for Nuclear Facilities’’ ...... January 2010 ...... ML090340159 NEI 08–09, ‘‘Cyber Security Plan for Nuclear Power Reactors,’’ Revision 6 ...... April 2010 ...... ML101180437 NEI 13–10, ‘‘Cyber Security Control Assessment,’’ Revision 6, ...... August 2017 ...... ML17234A615 Regulatory Analysis and Backfit Analysis; Final Rulemaking: Power Reactor Security Re- March 17, 2009 ...... ML083390372 quirements. GAO–15–98, NRC Needs to Improve Its Cost Estimates by Incorporating More Best Prac- December 12, 2014 ...... https:// tices. www.gao.gov/ products/ GAO-15-98 SECY–14–0002, ‘‘Plan for Updating the U.S. Nuclear Regulatory Commission’s Cost-Benefit January 17, 2014 ...... ML13274A495 Guidance’’. NUREG/BR–0058, ‘‘Regulatory Analysis Guidelines of the U.S. Nuclear Regulatory Commis- April 2017 ...... ML17100A480 sion, Draft Report for Comment,’’ Revision 5. MD 8.2, ‘‘Management of Backfitting, Forward Fitting, Issue Finality, and Information Re- September 20, 2019 ...... ML18093B087 quests’’. SECY–20–0008: Draft Final NUREG/BR–0058, Regulatory Analysis Guidelines of the U.S. February 13, 2020 ...... ML19261A277 Nuclear. Memorandum of Agreement between the U.S. Nuclear Regulatory Commission (NRC) and September 22, 2015 ...... ML15033A181 the Federal Energy Regulatory Commission (FERC). SECY–14–0129: Rulemaking: Final Rule: Cyber Security Event Notification (CSEN) ...... November 20, 2014 ...... ML14136A212 Power Reactor Security Requirements; Final Rule ...... March 27, 2009 ...... 74 FR 13926 Power Reactor Cyber Security Program Assessment ...... July 12, 2019 ...... ML19175A211 Periodic Review of RG 5.71 ...... April 9, 2015 ...... ML15099A158 Draft Regulatory Guide (DG)-5061, ‘‘Cyber Security Program for Nuclear Power Reactor’’ ..... August 2018 ...... ML18016A129 Power Reactor Security Requirements; Proposed Rule ...... October 26, 2006 ...... 71 FR 62664 Cyber Security Event Notifications; Final Rule ...... November 2, 2015 ...... 80 FR 67265 Memorandum of Understanding Between the U.S. Nuclear Regulatory Commission and the December 17, 2019 ...... ML093510905 North American Electric Reliability Corporation. EA–02–026, Issuance of Order for Interim Safeguards and Security Compensatory Measures February 25, 2002 ...... ML020510635 for Nuclear Power Plants. EA–03–086, ‘‘Issuance of Order Requiring Compliance with Revised Design Basis Threat for April 29, 2003 ...... ML030740002 Operating Power Reactors’’. SECY–10–0153, ‘‘Cyber Security—Implementation of the Commission’s Determination of November 19, 2010 ...... ML103490344 Systems and Equipment within the Scope of Title 10 of the Code of Federal Regulations, Section 73.54’’. NEI 10–04, ‘‘Identifying Systems and Assets Subject to the Cyber Security Rule, Rev. 2’’ ..... July 2012 ...... ML12180A081
VI. Conclusion For the Nuclear Regulatory Commission. programs authorized under title IV of Annette L. Vietti-Cook, the Higher Education Act of 1965, as For the reasons discussed in this Secretary of the Commission. amended (HEA). The committee will document, the NRC finds that the [FR Doc. 2021–16889 Filed 8–9–21; 8:45 am] include representatives of organizations petitioner did not present sufficient new BILLING CODE 7590–01–P or groups with interests that are information to warrant the requested significantly affected by the subject changes in PRM–73–18. The NRC’s matter of the proposed regulations. We current cyber security requirements are DEPARTMENT OF EDUCATION request nominations for individual consistent with the NRC’s original negotiators who represent key intent for the cyber security rule, and 34 CFR Chapter VI stakeholder constituencies for the issues these requirements continue to provide to be negotiated to serve on the [Docket ID ED–2021–OPE–0077] reasonable assurance of adequate committee. We also announce the protection of public health and safety, Negotiated Rulemaking Committee; creation of a subcommittee, and request and the common defense and security. Negotiator Nominations and Schedule nominations for individuals with Further, the NRC has determined that of Committee Meetings pertinent expertise to participate on the the language in § 73.54(a) is not overly subcommittee. The Department has set broad. Finally, the NRC has determined AGENCY: Office of Postsecondary a schedule for committee meetings. that existing and ongoing revisions to Education, Department of Education. DATES: We must receive your guidance can effectively address the ACTION: Intent to establish rulemaking committee. nominations for negotiators to serve on other issues raised by the petitioner in the committee on or before August 31, this PRM without the need for SUMMARY: We announce our intention to 2021. The dates and times of the rulemaking. Accordingly, the NRC is establish one negotiated rulemaking committee and subcommittee meetings denying the PRM–73–18. committee to prepare proposed are set out in the Schedule for Dated: August 3, 2021. regulations for the Federal Student Aid Negotiations section in the
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SUPPLEMENTARY INFORMATION section. All (10) The Public Service Loan (6) Interest capitalization on Federal meetings will be virtual. Forgiveness program under 34 CFR student loans under 34 CFR 682.202, ADDRESSES: Please email your 685.219; 685.202, 685.209, and 685.220; nominations for negotiators to (11) Mandatory pre-dispute (7) Mandatory pre-dispute arbitration [email protected]. If you are arbitration and prohibition of class and prohibition of class action lawsuits unable to email your nomination, send action lawsuits provisions in provisions in institutions’ enrollment it to Vanessa Gomez, U.S. Department of institutions’ enrollment agreements agreements (formerly under 34 CFR Education, 400 Maryland Ave. SW, (formerly under 34 CFR 685.300) and 685.300) and associated counseling Room 2C179, Washington, DC 20202. associated counseling about such about such arrangements under 34 CFR 685.304; FOR FURTHER INFORMATION CONTACT: arrangements under 34 CFR 685.304; For (8) Pell Grant eligibility for prison (12) Financial responsibility for information about negotiated education programs under 34 CFR part participating institutions of higher rulemaking, see ‘‘The Negotiated 690; and Rulemaking Process for Title IV education under 34 CFR subpart L, such (9) The Public Service Loan Regulations Frequently Asked as events that indicate heightened Forgiveness program under 34 CFR Questions’’ at https://www2.ed.gov/ financial risk; 685.219. policy/highered/reg/hearulemaking/ (13) Gainful employment (formerly As a part of the negotiated rulemaking hea08/neg-reg-faq.html. For information located in 34 CFR subpart Q); and process, we are forming a Prison about the content of this document, (14) Pell Grant eligibility for prison Education Program Subcommittee to including additional information about education programs under 34 CFR part expand the range of expertise and the negotiated rulemaking process or the 690. constituencies represented on this topic. nomination submission process, We also announced three public The committee will consider the contact: Vanessa Gomez, U.S. hearings at which interested parties subcommittee’s recommendations in its Department of Education, 400 Maryland could comment on the topics suggested consideration of proposed regulations to Ave. SW, Room 2C179, Washington, DC by the Department and suggest implement Pell Grant eligibility for 20202. 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Recordings and Consolidated Appropriations Act of transcripts from the public hearings are 2021 amended sections 401 and 484 of Background available at: https://www2.ed.gov/ the HEA to remove this prohibition; On May 26, 2021, we published an policy/highered/reg/hearulemaking/ however, the amendments require that announcement of our intent to establish 2021/index.html. an incarcerated student enroll in a negotiated rulemaking committees Written comments submitted in qualifying prison education program to under section 492 of the HEA to develop response to the Negotiated Rulemaking qualify for a Pell Grant. The Department proposed regulations related to a Committee Notice may be viewed intends to develop regulations to number of higher education practices through the Federal eRulemaking Portal implement those changes. and issues in the Federal Register (86 at www.regulations.gov. Instructions for This subcommittee will address these FR 28299) (Negotiated Rulemaking finding comments are available on the issues and make recommendations to Committee Notice). The Department site under ‘‘FAQ’’. Individuals can enter the committee. The subcommittee is not suggested the following topics for the docket ID ED–2021–OPE–0077 in the authorized to make decisions for the negotiated rulemaking process: search box to locate the appropriate Affordability and Student Loans (1) Change of ownership and change docket. Committee. The subcommittee may be in control of institutions of higher comprised of some members of the education under 34 CFR 600.31; Committee Topics committee (negotiators), as well as (2) Certification procedures for After considering the information individuals who are not committee participation in title IV, HEA programs received at the public hearings and the members but who have expertise that under 34 CFR 668.13; written comments, we have decided to will be helpful in developing proposed (3) Standards of administrative establish the Affordability and Student regulations. Therefore, in addition to capability under 34 CFR 668.16; Loans Committee to address the asking for nominations for individual (4) Ability to benefit under 34 CFR following topics: negotiators who represent key 668.156; stakeholder constituencies for issues to (1) Borrower defense to repayment (5) Borrower defense to repayment be negotiated to serve on the committee under 34 CFR 682.410, 682.411, under 34 CFR 682.410, 682.411, (see Constituencies for Negotiator 685.206, and 685.222; 685.206, and 685.222; Nominations), we seek nominations for (6) Discharges for borrowers with a (2) Closed school discharges under 34 individuals with specific types of total and permanent disability under 34 CFR 685.214 and 682.402(d); experience to serve on the CFR 674.61, 682.402(c), and 685.213; (3) Discharges for borrowers with a subcommittee. Before conclusion of the (7) Closed school discharges under 34 total and permanent disability under 34 negotiations, the subcommittee will CFR 685.214 and 682.402(d); CFR 674.61, 682.402(c), and 685.213; present its recommendations for (8) Discharges for false certification of (4) Discharges for false certification of regulatory changes to the committee for student eligibility under 34 CFR 685.215 student eligibility under 34 CFR 685.215 its consideration. and 682.402(e); and 682.402(e); Seven of the 14 topics listed in the (9) Loan repayment plans under 34 (5) Loan repayment plans under 34 Negotiated Rulemaking Committee CFR 682.209, 682.215, 685.208, and CFR 682.209, 682.215, 685.208, and Notice are not on the list of topics to be 685.209; 685.209; considered by the Affordability and
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Student Loans Committee. These knowledge in these areas, citing specific (12) Private nonprofit institutions of remaining topics and other topics topics outlined in the Committee Topics higher education. suggested in the public hearings and section. Constituencies for the (13) Proprietary institutions. written comments provided to the Affordability and Student Loans (14) Minority-serving institutions— Department may be considered by a Committee are: institutions of higher education eligible separate rulemaking committee(s) (1) Dependent students—these are to receive Federal assistance under title formed at a later date, which we would undergraduate students who are III, parts A, B, and F, and title V of the announce in a separate Federal Register typically traditionally-aged college HEA, which include Historically Black notice. students. A student is a dependent Colleges and Universities, Hispanic- We intend to select negotiators for the student if they were required to enter Serving Institutions, American Indian Affordability and Student Loans both their and their parents’ information Tribally Controlled Colleges and Committee who represent the interests on their most recent FAFSA submission. Universities, Alaska Native and Native of those significantly affected by the (2) Independent students—these are Hawaiian-Serving Institutions, topics proposed for negotiation. In so often older or nontraditional students, Predominantly Black Institutions, doing, we will comply with the such as students over the age of 24. Native American-Serving Nontribal requirement in section 492(b)(1) of the Students who are married, have Institutions, and Asian American and HEA that the individuals selected must children or other dependents, or who Native American Pacific Islander- have demonstrated expertise or were unaccompanied and homeless or Serving Institutions. experience in the relevant topics at risk of being homeless are (15) Federal Family Education Loan proposed for negotiations. We will also independent students. Independent (FFEL) lenders and/or guaranty select individual negotiators who reflect students can be pursuing undergraduate agencies. the diversity among program or graduate studies. A student is an (16) Accrediting agencies. participants, in accordance with section independent student if they were not The goal of the committee is to 492(b)(1) of the HEA. Our goal is to required to enter their parents’ develop proposed regulations that establish a committee and subcommittee information on their most recent FAFSA reflect a final consensus of the that will allow significantly affected submission. committee. Consensus means that there parties to be represented while keeping Note: Students who were formerly is no dissent by any member of a the committee size manageable. incarcerated and participated in negotiating committee, including the We generally select a primary and postsecondary education while in committee member representing the alternate negotiator for each prison are included in the independent Department. constituency represented on a and dependent student categories An individual selected as a negotiator committee. The primary negotiator regardless of whether they received is expected to represent the interests of participates for the purpose of Federal student aid, and we encourage their organization or group and to determining consensus. The alternate nominations for individuals with those participate in the negotiations in a participates for the purpose of experiences. For both student spots, we manner consistent with the goal of determining consensus in the absence of developing proposed regulations on the primary negotiator. The Department also encourage individuals or organizations representing low-income which the committee will reach will provide more detailed information consensus. If consensus is reached, all to both primary and alternate students to apply. (3) Student loan borrowers. This members of the organization or group negotiators selected to participate on the represented by a negotiator are bound committee about the logistics and includes but is not limited to: Student loan borrowers who are currently by the consensus and are prohibited protocols of the meetings. The from commenting negatively on the subcommittee will only have a primary repaying their student loans, student loan borrowers who defaulted or are resulting proposed regulations. The member. We will not select alternates Department will not consider any such for the subcommittee. currently in default, student loan borrowers who were in forbearance or negative comments on the proposed Individuals who are not members of regulations that are submitted by a the committee will be able to observe are currently in the administrative (automatic) forbearance due to COVID– member of such an organization. the committee meetings, will have We are interested in nominations for 19, and student loan borrowers who access to individuals representing their members of the Prison Education prior to the administrative forbearance constituencies, and may be able to Program Subcommittee from were delinquent (late) on their student participate in informal working groups individuals who represent the following loans payments. on various issues between the meetings. groups: (4) Legal assistance organizations that (1) Consumer advocacy organizations. Constituencies for Negotiator represent students and/or borrowers. Nominations (2) Financial aid administrators. (5) U.S. military service members, (3) Formerly incarcerated students. We have identified the following veterans, or groups representing them. (4) Groups that represent incarcerated constituencies as having interests that (6) State attorneys general. students. are significantly affected by the topics (7) State higher education executive (5) Postsecondary institutions that are proposed for negotiation. We plan to officers, State authorizing agencies, and/ prison education program providers. include as negotiators individuals from or State regulators of institutions of (6) State correctional education organizations or groups representing higher education and/or loan servicers. directors. these constituencies and/or individuals (8) Individuals with disabilities or (7) State higher education executive who are a part of the constituency. We groups representing them. officers. particularly encourage organizations (9) Financial aid administrators at We encourage representatives from representing the interests of historically postsecondary institutions. postsecondary institutions that are underserved and/or low-income (10) Two-year public institutions of currently participating in the communities to submit their higher education. Department’s Second Chance Pell nominations. Nominations must include (11) Four-year public institutions of Experiment to submit nominations. For evidence of the nominee’s specific higher education. more information on the Second Chance
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Pell experiment please visit: https:// to Public Service Loan Forgiveness index.html. If a constituency does not experimentalsites.ed.gov/exp/ arise. The Department will work with have a qualifying nominee, the approved.html. the committee and the advisors to Department will also provide determine more specific dates and times information at that site about how any Advisors that the advisors must be present for the vacancies can be filled at the beginning The Department also invites committee meetings. The advisors may of the October 4, 2021 committee nominations for two advisors. These be asked to provide information on their meeting. advisors will not be members of the experience as an employer in a public committee and will not impact the service job and as an economist and/or Schedule for Negotiations consensus vote; however, we will higher education researcher, The Affordability and Student Loans consult with the advisors, who will respectively. For example, the employer Committee will meet for three sessions serve as a resource. We seek an advisor advisor should be prepared to relay how on the following dates: representing qualifying employers on they assist employees with the Session 1: October 4–8, 2021 the topic of Public Service Loan Employment Certification Form or how Session 2: November 1–5, 2021 Forgiveness. The term ‘‘public service the full-time employment requirement Session 3: December 6–10, 2021 job’’ for purposes of the Public Service for the Public Service Loan Forgiveness Loan Forgiveness program is defined in Times for the committee meetings Program impacts part-time employees. will be published here: https:// section 455(m)(3)(B) of the HEA as The economic and/or higher education including jobs in: Emergency www2.ed.gov/policy/highered/reg/ research advisor should be prepared to hearulemaking/2021/index.html. management, government (excluding examine data related to student loan time served as a member of Congress), The Prison Education Program repayment, including income-driven Subcommittee will meet for two military service, public safety, law repayment plans. The advisors may also enforcement, public health (including sessions in October and November. The offer recommendations to the committee sessions will be three days each. We nurses, nurse practitioners, nurses in a on regulatory language. clinical setting, and full-time will announce the dates and times of the professionals engaged in health care Nominations subcommittee meetings as soon as practitioner occupations and health care We strongly suggest that nominations possible here: https://www2.ed.gov/ support occupations, as such terms are for both the committee and policy/highered/reg/hearulemaking/ defined by the Bureau of Labor subcommittee include the information 2021/index.html. Statistics), public education, social work described in this section. The All negotiated rulemaking committee in a public child or family service Department anticipates increased meetings will be conducted virtually agency, public interest law services interest due to the number of topics, and and available for the public to view. (including prosecution or public nominations lacking that information Individuals who wish to observe the defense or legal advocacy on behalf of may be more difficult for the committee meetings will be required to low-income communities at a nonprofit Department to evaluate. We also suggest register for each day they would like to organization), early childhood that nominees exclude any observe. We will post registration links education (including licensed or supplementary information that is not closer to the start of negotiations on our regulated childcare, Head Start, and requested in this section. website at: www2.ed.gov/policy/ State funded prekindergarten), public (1) The exact name of the highered/reg/hearulemaking/2021/ service for individuals with disabilities, constituency or constituencies the index.html. The Department will also public service for the elderly, public nominee is being nominated for (see post recordings and transcripts of the library sciences, school-based library Constituencies for Negotiator meetings on that site. sciences and other school-based Nominations); At the end of each day, the services, or at an organization that is (2) The name of the nominee; Department will reserve 30 minutes for described in section 501(c)(3) of the (3) The nominee’s place of public comment. We will provide Internal Revenue Code of 1986 and employment or institution at which they information on how to request time to exempt from taxation under section are or were enrolled and, if different, the speak on our website at www2.ed.gov/ 501(a) of such Code, or teaching as a organization the nominee represents; policy/highered/reg/hearulemaking/ full-time faculty member at a Tribal (4) A resume or evidence of the 2021/index.html. College or University as defined in nominee’s expertise and experience in Accessible Format: On request to the section 316(b) of the HEA and other the topics proposed for negotiations; program contact person listed under FOR faculty teaching in high-needs subject and FURTHER INFORMATION CONTACT, areas or areas of shortage (including (5) The nominee’s contact individuals with disabilities can obtain nurse faculty, foreign language faculty, information, including the nominee’s this document and a copy of the and part-time faculty at community email address, telephone number, and application package in an accessible colleges), as determined by the physical mailing address or post office format. The Department will provide the Secretary. box. requestor with an accessible format that Additionally, we seek an advisor with Please see the ADDRESSES section for may include Rich Text Format (RTF) or expertise in economic and/or higher submission information. If the text format (txt), a thumb drive, an MP3 education policy analysis and higher nomination is submitted by the file, braille, large print, audiotape, or education data to support the committee recommended email method to compact disc, or other accessible format. in evaluating and understanding its [email protected], the Electronic Access to this Document: options. submitter will receive an email The official version of this document is The advisors will be expected to be confirmation of receipt. The Department the document published in the Federal available throughout the duration of the will provide additional information to Register. You may access the official Affordability and Student Loans those we select to serve as negotiators. edition of the Federal Register and the Committee (excluding the Prison Once complete, a list of negotiators will Code of Federal Regulations at Education Program subcommittee) be posted here: www2.ed.gov/policy/ www.govinfo.gov. At this site you can meetings, in the event that issues related highered/reg/hearulemaking/2021/ view this document, as well as all other
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documents of this Department rulemaking. Comments received will be 6.405 ‘‘Restriction of Particulate Matter published in the Federal Register, in posted without change to https:// Emissions from Fuel Burning text or Portable Document Format www.regulations.gov/, including any Equipment Used for Indirect Heating’’ (PDF). To use PDF you must have personal information provided. For which restricts the emission of Adobe Acrobat Reader, which is detailed instructions on sending particulate matter from fuel burning available free at the site. You may also comments and additional information equipment used for indirect heating access the documents of the Department on the rulemaking process, see the except where 10 CSR 10–6.070 would published in the Federal Register by ‘‘Written Comments’’ heading of the be applied. This rule applies throughout using the article search feature at: SUPPLEMENTARY INFORMATION section of the state with additional conditions www.federalregister.gov. Specifically, this document. applicable to the metropolitan areas of through the advanced search feature at FOR FURTHER INFORMATION CONTACT: Kansas City, Springfield, and St. Louis. this site, you can limit your search to Robert F. Webber, Environmental These revisions add incorporation by documents published by the Protection Agency, Region 7 Office, Air reference information, remove Department. Permitting and Standards Branch, 11201 unnecessary words, and make other Program authority: 20 U.S.C. 1098a. Renner Boulevard, Lenexa, Kansas editorial changes for clarity. These 66219; telephone number: (913) 551– revisions are described in detail in the Michelle Asha Cooper, 7251; email address: webber.robert@ technical support document (TSD) Acting Assistant Secretary for Postsecondary epa.gov. included in the docket for this action. Education. Missouri received two comments from [FR Doc. 2021–16953 Filed 8–9–21; 8:45 am] SUPPLEMENTARY INFORMATION: the EPA during the comment period. Throughout this document ‘‘we,’’ ‘‘us,’’ BILLING CODE 4000–01–P Missouri addressed the comments from and ‘‘our’’ refer to the EPA. the EPA. The EPA is proposing to Table of Contents approve the revisions to this rule ENVIRONMENTAL PROTECTION because it will not have a negative I. Written Comments AGENCY II. What is being addressed in this document? impact on air quality. III. Have the requirements for approval of a 40 CFR Part 52 III. Have the requirements for approval SIP revision been met? of a SIP revision been met? [EPA–R07–OAR–2021–0476; FRL–8757–01– IV. What action is the EPA proposing to take? R7] V. Incorporation by Reference The State submission has met the VI. Statutory and Executive Order Reviews public notice requirements for SIP submissions in accordance with 40 CFR Air Plan Approval; Missouri; I. Written Comments Restriction of Particulate Matter 51.102. The submission also satisfied Emissions From Fuel Burning Submit your comments, identified by the completeness criteria of 40 CFR part Equipment Used for Indirect Heating Docket ID No. EPA–R07–OAR–2021– 51, appendix V. The State provided 4076, at https://www.regulations.gov. public notice on this SIP revision from AGENCY: Environmental Protection Once submitted, comments cannot be January 2, 2020 to April 2, 2020. The Agency (EPA). edited or removed from Regulations.gov. State received and addressed two ACTION: Proposed rule. The EPA may publish any comment comments from the EPA. As explained received to its public docket. Do not in more detail in the TSD which is part SUMMARY: The Environmental Protection submit electronically any information of this docket, the SIP revision Agency (EPA) is proposing approval of you consider to be Confidential a State Implementation Plan (SIP) submission meets the substantive SIP Business Information (CBI) or other requirements of the CAA, including revision submitted by Missouri on information whose disclosure is January 19, 2021. Missouri requests that section 110 and implementing restricted by statute. Multimedia regulations. the EPA approve into Missouri’s SIP submissions (audio, video, etc.) must be revisions to its rule related to the accompanied by a written comment. IV. What action is the EPA proposing to restriction of particulate matter The written comment is considered the take? emissions from fuel burning equipment official comment and should include The EPA is proposing to approve used for indirect heating. These discussion of all points you wish to Missouri’s request to revise 10 CSR 10– revisions add incorporation by reference make. The EPA will generally not 6.405. The EPA is soliciting comment information, remove unnecessary consider comments or comment on the substantive and administrative words, and make other editorial changes contents located outside of the primary revisions detailed in this proposal and for clarity. The EPA believes that the submission (i.e. on the web, cloud, or the TSD. The EPA is not soliciting revisions are administrative in nature, other file sharing system). For comment on existing rule text that has do not impact the stringency of the SIP additional submission methods, the full been previously approved by the EPA and do not adversely impact air quality. EPA public comment policy, into the SIP. Final rulemaking will The EPA’s proposed approval of this information about CBI or multimedia occur after consideration of any rule revision is being done in submissions, and general guidance on comments. accordance with the requirements of the making effective comments, please visit V. Incorporation by Reference Clean Air Act (CAA). https://www.epa.gov/dockets/ DATES: Comments must be received on commenting-epa-dockets. In this document, the EPA is or before September 9, 2021. proposing to include regulatory text in ADDRESSES: You may send comments, II. What is being addressed in this an EPA final rule that includes identified by Docket ID No. EPA–R07– document? incorporation by reference. In OAR–2021–0476 to https:// The EPA is proposing to approve accordance with requirements of 1 CFR www.regulations.gov. Follow the online revisions to the Missouri SIP received 51.5, the EPA is proposing to instructions for submitting comments. on January 19, 2021. The revisions are incorporate by reference the Missouri Instructions: All submissions received to Title 10, Division 10 of the Code of Regulation described in the proposed must include the Docket ID No. for this State Regulations (CSR), 10 CSR 10– amendments to 40 CFR part 52 set forth
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below. The EPA has made, and will substantial number of small entities implications and will not impose continue to make, these materials under the Regulatory Flexibility Act (5 substantial direct costs on tribal generally available through U.S.C. 601 et seq.); governments or preempt tribal law as www.regulations.gov and at the EPA • Does not contain any unfunded specified by Executive Order 13175 (65 Region 7 Office (please contact the mandate or significantly or uniquely FR 67249, November 9, 2000). person identified in the FOR FURTHER affect small governments, as described INFORMATION CONTACT section of this in the Unfunded Mandates Reform Act List of Subjects in 40 CFR Part 52 preamble for more information). of 1995 (Pub. L. 104–4); • Does not have Federalism Environmental protection, Air VI. Statutory and Executive Order implications as specified in Executive pollution control, Incorporation by Reviews Order 13132 (64 FR 43255, August 10, reference, Particulate matter. Under the CAA, the Administrator is 1999); Dated: July 30, 2021. • required to approve a SIP submission Is not an economically significant Edward H. Chu, that complies with the provisions of the regulatory action based on health or Acting Regional Administrator, Region 7. Act and applicable Federal regulations. safety risks subject to Executive Order 42 U.S.C. 7410(k); 40 CFR 52.02(a). 13045 (62 FR 19885, April 23, 1997); For the reasons stated in the Thus, in reviewing SIP submissions, the • Is not a significant regulatory action preamble, EPA proposes to amend 40 EPA’s role is to approve state choices, subject to Executive Order 13211 (66 FR CFR part 52 as set forth below: provided that they meet the criteria of 28355, May 22, 2001); the CAA. Accordingly, this action • Is not subject to requirements of the PART 52—APPROVAL AND merely approves state law as meeting National Technology Transfer and PROMULGATION OF Federal requirements and does not Advancement Act (NTTA) because this IMPLEMENTATION PLANS impose additional requirements beyond rulemaking does not involve technical those imposed by state law. For that standards; and ■ 1. The authority citation for part 52 • reason, this action: Does not provide EPA with the continues to read as follows: • Is not a significant regulatory action discretionary authority to address, as subject to review by the Office of appropriate, disproportionate human Authority: 42 U.S.C. 7401 et seq. Management and Budget under health or environmental effects, using Subpart AA—Missouri Executive Orders 12866 (58 FR 51735, practicable and legally permissible October 4, 1993) and 13563 (76 FR 3821, methods, under Executive Order 12898 ■ January 21, 2011); (59 FR 7629, February 16, 1994). 2. In § 52.1320, the table in paragraph • Does not impose an information The SIP is not approved to apply on (c) is amended by revising the entry collection burden under the provisions any Indian reservation land or in any ‘‘10–6.405’’ to read as follows: of the Paperwork Reduction Act (44 other area where EPA or an Indian tribe § 52.1320 Identification of plan. U.S.C. 3501 et seq.); has demonstrated that a tribe has • Is certified as not having a jurisdiction. In those areas of Indian * * * * * significant economic impact on a country, the rule does not have tribal (c) * * *
EPA—APPROVED MISSOURI REGULATIONS
State effective Missouri citation Title date EPA approval date Explanation
Missouri Department of Natural Resources
*******
Chapter 6—Air Quality Standards, Definitions, Sampling and Reference Methods, and Air Pollution Control Regulations for the State of Missouri
******* 10–6.405 ...... Restriction of Particulate Matter Emissions 9/30/2020 [Date of publication of the final rule in the ...... from Fuel Burning Equipment Used for In- Federal Register], [Federal Register ci- direct Heating. tation of the final rule].
*******
* * * * * [FR Doc. 2021–16847 Filed 8–9–21; 8:45 am] BILLING CODE 6560–50–P
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ENVIRONMENTAL PROTECTION www.regulations.gov. For comments accommodation at no cost to you, please AGENCY submitted at Regulations.gov, follow the contact the person identified in the FOR online instructions for submitting FURTHER INFORMATION CONTACT section. 40 CFR Part 52 comments. Once submitted, comments FOR FURTHER INFORMATION CONTACT: [EPA–R09–OAR–2021–0371; FRL–8746–01– cannot be edited or removed from Robert Schwartz, EPA Region IX, 75 R9] Regulations.gov. The EPA may publish Hawthorne St., San Francisco, CA any comment received to its public 94105. By phone: (415) 972–3286 or by Air Plan Approval; California; San docket. Do not submit electronically any email at [email protected]. Diego Air Pollution Control District information you consider to be SUPPLEMENTARY INFORMATION: AGENCY: Environmental Protection Confidential Business Information (CBI) Throughout this document, ‘‘we,’’ ‘‘us’’ Agency (EPA). or other information whose disclosure is and ‘‘our’’ refer to the EPA. restricted by statute. Multimedia ACTION: Proposed rule. submissions (audio, video, etc.) must be Table of Contents SUMMARY: The Environmental Protection accompanied by a written comment. I. The State’s Submittal Agency (EPA) is proposing to approve The written comment is considered the A. What rules did the State submit? revisions to the San Diego Air Pollution official comment and should include B. Are there other versions of these rules? Control District (SDAPCD) portion of discussion of all points you wish to C. What is the purpose of the submitted the California State Implementation make. The EPA will generally not rule revisions? Plan (SIP). These revisions concern consider comments or comment II. The EPA’s Evaluation and Action A. How is the EPA evaluating the rules? emissions of volatile organic contents located outside of the primary B. Do the rules meet the evaluation compounds (VOCs) from cold solvent submission (i.e. on the web, cloud, or criteria? cleaning and stripping operations and other file sharing system). For C. The EPA’s recommendations to further from vapor degreasing operations. We additional submission methods, please improve the rules are proposing to approve changes to contact the person identified in the FOR D. Public comment and proposed action SIP-approved local rules to regulate FURTHER INFORMATION CONTACT section. III. Incorporation by Reference these emission sources under the Clean For the full EPA public comment policy, IV. Statutory and Executive Order Reviews Air Act (CAA or the Act). We are taking information about CBI or multimedia I. The State’s Submittal comments on this proposal and plan to submissions, and general guidance on follow with a final action. making effective comments, please visit A. What rules did the State submit? DATES: Comments must be received on https://www.epa.gov/dockets/ Table 1 lists the rules addressed by or before September 9, 2021. commenting-epa-dockets. If you need this proposal with the dates that they ADDRESSES: Submit your comments, assistance in a language other than were adopted by the local air agency identified by Docket ID No. EPA–R09– English or if you are a person with and submitted by the California Air OAR–2021–0371 at https:// disabilities who needs a reasonable Resources Board (CARB).
TABLE 1—SUBMITTED RULES
Revised and Local agency Rule # Rule title adopted Submitted
SDAPCD ...... 67.6.1 Cold Solvent Cleaning and Stripping Operations ...... 02/10/2021 04/20/2021 SDAPCD ...... 67.6.2 Vapor Degreasing Operations ...... 02/10/2021 04/20/2021
On June 7, 2021, the EPA determined C. What is the purpose of the submitted SDAPCD’s reasonably available control that the submittal for SDAPCD Rule rule revisions? technology (RACT) demonstrations for 67.6.1 and Rule 67.6.2 met the Emissions of VOCs contribute to the the 2008 8-hr ozone national ambient air completeness criteria in 40 CFR part 51 production of ground-level ozone and quality standards (NAAQS) (also Appendix V, which must be met before smog, which harm human health and referred to as the ‘‘2016 RACT SIP’’). formal EPA review. the environment. Section 110(a) of the These deficiencies were identified in CAA requires states to submit our August 10, 2020 proposed partial B. Are there other versions of these 2 regulations that control VOC emissions. approval and partial disapproval. For rules? The District revised Rule 67.6.1 to Rule 67.6.1, the deficiency identified was an inappropriate exemption for We approved earlier versions of Rule include more stringent solvent cleaning VOC limits, increase the stringency of a sources covered by the NESHAP 67.6.1 and Rule 67.6.2 into the SIP on standard. Revisions to Rule 67.6.1 were 1 qualifying VOC limit for an exemption October 13, 2009. The SDAPCD submitted on April 20, 2021, in part to adopted revisions to the SIP-approved to the rule, and remove an inappropriate exemption for sources covered by a correct this deficiency. The EPA’s versions on February 10, 2021 and technical support document (TSD) has CARB submitted them to us on April 20, National Emission Standards for Hazardous Air Pollutants (NESHAP) more information about these rules. 2021. If we take final action to approve standard. Rule 67.6.2 was revised to the February 10, 2021 versions of Rule II. The EPA’s Evaluation and Action increase the stringency of a qualifying 67.6.1 and Rule 67.6.2, these versions VOC limit for an exemption to the rule A. How is the EPA evaluating the rules? will replace the previously approved and to add several housekeeping Rules in the SIP must be enforceable versions of these rules in the SIP. updates. (see CAA section 110(a)(2)), must not Additionally, on December 3, 2020 interfere with applicable requirements (85 FR 77996), the EPA partially 1 74 FR 52427. approved and partially disapproved 2 85 FR 48127.
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concerning attainment and reasonable Additionally, the District revised Rule SIP submission that complies with the further progress or other CAA 67.6.1 to include more stringent solvent provisions of the Act and applicable requirements (see CAA section 110(l)), cleaning VOC limits and to increase the federal regulations. 42 U.S.C. 7410(k); and must not modify certain SIP control stringency of a qualifying VOC limit for 40 CFR 52.02(a). Thus, in reviewing SIP requirements in nonattainment areas an exemption to the rule. The District submissions, the EPA’s role is to without ensuring equivalent or greater revised Rule 67.6.2 to increase the approve state choices, provided that emissions reductions (see CAA section stringency of a qualifying VOC limit for they meet the criteria of the Clean Air 193). an exemption to the rule. The TSD has Act. Accordingly, this proposed action Generally, SIP rules must require more information on our evaluation. merely proposes to approve state law as RACT for each category of sources C. The EPA Recommendations to meeting federal requirements and does covered by a Control Techniques Further Improve the Rules not impose additional requirements Guidelines (CTG) document as well as beyond those imposed by state law. For each major source of VOCs in ozone We recommend that the District add that reason, this proposed action: nonattainment areas classified as a reference to SDAPCD Rule 67.17 that • Is not a ‘‘significant regulatory Moderate or above (see CAA section contains provisions for this source action’’ subject to review by the Office 182(b)(2)). The SDAPCD regulates an category supplementary to Rule 67.6.1 of Management and Budget under ozone nonattainment area classified as a and Rule 67.6.2. The TSD includes Executive Orders 12866 (58 FR 51735, Severe nonattainment area for the 2008 additional recommendations for the October 4, 1993) and 13563 (76 FR 3821, and 2015 8-hour ozone NAAQS (40 CFR next time the local agency modifies the January 21, 2011); 81.305).3 Therefore, these rules must rules. • Does not impose an information implement RACT. In addition, we D. Public Comment and Proposed collection burden under the provisions evaluated the rule to ensure it cured the Action of the Paperwork Reduction Act (44 deficiencies we identified in the partial U.S.C. 3501 et seq.); As authorized in section 110(k)(3) of disapproval of the SDAPCD’s 2016 • Is certified as not having a the Act, the EPA proposes to fully RACT SIP 4 with respect to the significant economic impact on a approve the submitted rules because requirement to establish RACT-level substantial number of small entities they fulfill all relevant requirements. controls for sources covered by the under the Regulatory Flexibility Act (5 We will accept comments from the ‘‘Control Techniques Guidelines for U.S.C. 601 et seq.); public on this proposal until September • Does not contain any unfunded Industrial Cleaning Solvents.’’ 9, 2021. If we take final action to Guidance and policy documents that mandate or significantly or uniquely approve the submitted rules, our final we used to evaluate enforceability, affect small governments, as described action will incorporate these rules into revision/relaxation and rule stringency in the Unfunded Mandates Reform Act the federally enforceable SIP. In requirements for the applicable criteria of 1995 (Pub. L. 104–4); addition, if we finalize our approval of • pollutants include the following: Does not have federalism Rule 67.6.1, it will address our implications as specified in Executive 1. ‘‘State Implementation Plans; General obligation to promulgate a Federal Order 13132 (64 FR 43255, August 10, Preamble for the Implementation of Title I of Implementation Plan for the Industrial the Clean Air Act Amendments of 1990,’’ 57 1999); Cleaning Solvent CTG source category • Is not an economically significant FR 13498 (April 16, 1992); 57 FR 18070 associated with our partial disapproval (April 28, 1992). regulatory action based on health or 2. ‘‘Issues Relating to VOC Regulation of the District’s 2008 RACT SIP, and safety risks subject to Executive Order Cutpoints, Deficiencies, and Deviations,’’ satisfy the District’s requirement to 13045 (62 FR 19885, April 23, 1997); EPA, May 25, 1988 (the Bluebook, revised establish RACT-level controls for this • Is not a significant regulatory action January 11, 1990). source category.5 subject to Executive Order 13211 (66 FR 3. ‘‘Guidance Document for Correcting III. Incorporation by Reference 28355, May 22, 2001); Common VOC & Other Rule Deficiencies,’’ • Is not subject to requirements of EPA Region 9, August 21, 2001 (the Little In this rule, the EPA is proposing to Section 12(d) of the National Bluebook). include in a final EPA rule regulatory Technology Transfer and Advancement 4. ‘‘Control of Volatile Organic Emissions text that includes incorporation by from Solvent Metal Cleaning,’’ EPA–450/2– Act of 1995 (15 U.S.C. 272 note) because reference. In accordance with application of those requirements would 77–022, November 1977. requirements of 1 CFR 51.5, the EPA is 5. ‘‘Control Techniques Guidelines for be inconsistent with the Clean Air Act; Industrial Cleaning Solvents,’’ EPA–453/R– proposing to incorporate by reference and 06–001, September 2006. the SDAPCD rules described in Table 1 • Does not provide the EPA with the of this preamble. The EPA has made, discretionary authority to address B. Do the rules meet the evaluation and will continue to make, these disproportionate human health or criteria? materials available through https:// environmental effects with practical, www.regulations.gov and at the EPA These rules meet CAA requirements appropriate, and legally permissible Region IX Office (please contact the and are consistent with relevant methods under Executive Order 12898 person identified in the FOR FURTHER guidance regarding enforceability, (59 FR 7629, February 16, 1994). INFORMATION CONTACT section of this RACT, and SIP revisions. The revisions In addition, the SIP is not approved preamble for more information). to Rule 67.6.1 cure the deficiency to apply on any Indian reservation land identified in our partial disapproval of IV. Statutory and Executive Order or in any other area where the EPA or SDAPCD’s 2016 RACT SIP with respect Reviews an Indian tribe has demonstrated that a to the requirement to establish RACT- tribe has jurisdiction. In those areas of Under the Clean Air Act, the Indian country, the rule does not have level controls for sources covered by the Administrator is required to approve a Industrial Cleaning Solvents CTG. tribal implications and will not impose substantial direct costs on tribal 5 Sanctions and FIP clocks still apply as they 3 86 FR 29522 (June 2, 2021). relate to deficiencies in other CTG source categories governments or preempt tribal law as 4 85 FR 77996 (December 3, 2020) and 85 FR identified elsewhere in our partial disapproval of specified by Executive Order 13175 (65 48127 (August 10, 2020). the District’s 2008 RACT SIP (85 FR 77996). FR 67249, November 9, 2000).
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List of Subjects in 40 CFR Part 52 ‘‘Written Comments’’ heading of the These revisions correct an erroneous Environmental protection, Air SUPPLEMENTARY INFORMATION section of reference to 10 CSR 10–6.030(21), pollution control, Incorporation by this document. update, correct and clarify references to reference, Intergovernmental relations, FOR FURTHER INFORMATION CONTACT: test methods, remove unnecessary Ozone, Reporting and recordkeeping Robert F. Webber, Environmental words, and make other grammatical and requirements, Volatile organic Protection Agency, Region 7 Office, Air typographical corrections. These compounds. Permitting and Standards Branch, 11201 revisions are described in detail in the Renner Boulevard, Lenexa, Kansas technical support document (TSD) Authority: 42 U.S.C. 7401 et seq. 66219; telephone number: (913) 551– included in the docket for this action. Dated: July 19, 2021. 7251; email address: webber.robert@ Missouri received no comments Deborah Jordan, epa.gov. during the state public comment period. The EPA is proposing to approve the Acting Regional Administrator, Region IX. SUPPLEMENTARY INFORMATION: revisions to this rule because it will not [FR Doc. 2021–16665 Filed 8–9–21; 8:45 am] Throughout this document ‘‘we,’’ ‘‘us,’’ have a negative impact on air quality. BILLING CODE 6560–50–P and ‘‘our’’ refer to the EPA. III. Have the requirements for approval Table of Contents of a SIP revision been met? ENVIRONMENTAL PROTECTION I. Written Comments The State submission has met the AGENCY II. What is being addressed in this document? III. Have the requirements for approval of a public notice requirements for SIP 40 CFR Part 52 SIP revision been met? submissions in accordance with 40 CFR IV. What action is the EPA proposing to take? 51.102. The submission also satisfied [EPA–R07–OAR–2021–0475; FRL–8754–01– V. Incorporation by Reference the completeness criteria of 40 CFR part R7] VI. Statutory and Executive Order Reviews 51, appendix V. The State provided public notice on this SIP revision from Air Plan Approval; Missouri; I. Written Comments September 16, 2019 to December 10, Restriction of Emissions From Batch- Submit your comments, identified by 2019 and received no comments on this Type Charcoal Kilns Docket ID No. EPA–R07–OAR–2021– rulemaking. As explained above, the 0475, at https://www.regulations.gov. AGENCY: Environmental Protection revision meets the substantive SIP Once submitted, comments cannot be Agency (EPA). requirements of the CAA, including edited or removed from Regulations.gov. ACTION: Proposed rule. section 110 and implementing The EPA may publish any comment regulations. received to its public docket. Do not SUMMARY: The Environmental Protection submit electronically any information IV. What action is the EPA proposing to Agency (EPA) is proposing approval of take? a State Implementation Plan (SIP) you consider to be Confidential revision submitted by Missouri on Business Information (CBI) or other The EPA is proposing to approve January 19, 2021. Missouri requests that information whose disclosure is Missouri’s request to revise 10 CSR 10– the EPA approve into Missouri’s SIP restricted by statute. Multimedia 6.330. The EPA is soliciting comment revisions to its rule related to control of submissions (audio, video, etc.) must be on the substantive and administrative emissions from Batch-Type Charcoal accompanied by a written comment. revisions detailed in this proposal and Kilns. These revisions correct an The written comment is considered the the TSD. The EPA is not soliciting erroneous reference, update, correct and official comment and should include comment on existing rule text that has clarify references to test methods, discussion of all points you wish to been previously approved by the EPA remove unnecessary words, and make make. The EPA will generally not into the SIP. Final rulemaking will other grammatical and typographical consider comments or comment occur after consideration of any corrections. These revisions are contents located outside of the primary comments. submission (i.e. on the web, cloud, or administrative in nature and do not V. Incorporation by Reference impact the stringency of the SIP or have other file sharing system). For an adverse impact to air quality. The additional submission methods, the full In this document, the EPA is EPA’s proposed approval of this rule EPA public comment policy, proposing to include regulatory text in revision is being done in accordance information about CBI or multimedia an EPA final rule that includes with the requirements of the Clean Air submissions, and general guidance on incorporation by reference. In Act (CAA). making effective comments, please visit accordance with requirements of 1 CFR https://www.epa.gov/dockets/ 51.5, the EPA is proposing to DATES: Comments must be received on commenting-epa-dockets. incorporate by reference the Missouri or before September 9, 2021. Regulation described in the proposed II. What is being addressed in this ADDRESSES: You may send comments, amendments to 40 CFR part 52 set forth document? identified by Docket ID No. EPA–R07– below. The EPA has made, and will OAR–2021–0475 to https:// The EPA is proposing to approve continue to make, these materials www.regulations.gov. Follow the online revisions to the Missouri SIP received generally available through instructions for submitting comments. on January 19, 2021. The revisions are www.regulations.gov and at the EPA Instructions: All submissions received to Title 10, Division 10 of the Code of Region 7 Office (please contact the must include the Docket ID No. for this State Regulations (CSR), 10 CSR 10– person identified in the FOR FURTHER rulemaking. Comments received will be 6.330 ‘‘Restriction of Emissions From INFORMATION CONTACT section of this posted without change to https:// Batch-Type Charcoal Kilns’’ which preamble for more information). www.regulations.gov/, including any establishes emission limits for batch- personal information provided. For type charcoal kilns based on operational VI. Statutory and Executive Order detailed instructions on sending parameters that reflect the Best Reviews comments and additional information Available Control Technology (BACT) Under the CAA, the Administrator is on the rulemaking process, see the for this industry as of August 20, 1997. required to approve a SIP submission
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that complies with the provisions of the • Does not have Federalism specified by Executive Order 13175 (65 Act and applicable Federal regulations. implications as specified in Executive FR 67249, November 9, 2000). 42 U.S.C. 7410(k); 40 CFR 52.02(a). Order 13132 (64 FR 43255, August 10, List of Subjects in 40 CFR Part 52 Thus, in reviewing SIP submissions, the 1999); EPA’s role is to approve state choices, • Is not an economically significant Environmental protection, Air provided that they meet the criteria of regulatory action based on health or pollution control, Carbon monoxide, the CAA. Accordingly, this action safety risks subject to Executive Order Incorporation by reference, Particulate merely approves state law as meeting 13045 (62 FR 19885, April 23, 1997); matter, Volatile organic compounds. • Federal requirements and does not Is not a significant regulatory action Dated: July 30, 2021. impose additional requirements beyond subject to Executive Order 13211 (66 FR Edward H. Chu, those imposed by state law. For that 28355, May 22, 2001); • Acting Regional Administrator, Region 7. reason, this action: Is not subject to requirements of the • Is not a significant regulatory action National Technology Transfer and For the reasons stated in the subject to review by the Office of Advancement Act (NTTA) because this preamble, EPA proposes to amend 40 Management and Budget under rulemaking does not involve technical CFR part 52 as set forth below: Executive Orders 12866 (58 FR 51735, standards; and PART 52—APPROVAL AND October 4, 1993) and 13563 (76 FR 3821, • Does not provide EPA with the PROMULGATION OF January 21, 2011); discretionary authority to address, as • Does not impose an information appropriate, disproportionate human IMPLEMENTATION PLANS collection burden under the provisions health or environmental effects, using ■ practicable and legally permissible 1. The authority citation for part 52 of the Paperwork Reduction Act (44 continues to read as follows: U.S.C. 3501 et seq.); methods, under Executive Order 12898 • Is certified as not having a (59 FR 7629, February 16, 1994). Authority: 42 U.S.C. 7401 et seq. significant economic impact on a The SIP is not approved to apply on substantial number of small entities any Indian reservation land or in any Subpart AA—Missouri under the Regulatory Flexibility Act (5 other area where EPA or an Indian tribe ■ 2. In § 52.1320, the table in paragraph U.S.C. 601 et seq.); has demonstrated that a tribe has (c) is amended by revising the entry • Does not contain any unfunded jurisdiction. In those areas of Indian ‘‘10–6.330’’ to read as follows: mandate or significantly or uniquely country, the rule does not have tribal affect small governments, as described implications and will not impose § 52.1320 Identification of plan. in the Unfunded Mandates Reform Act substantial direct costs on tribal * * * * * of 1995 (Pub. L. 104–4); governments or preempt tribal law as (c) * * *
EPA-APPROVED MISSOURI REGULATIONS
State Missouri citation Title effective EPA approval date Explanation date
Missouri Department of Natural Resources
*******
Chapter 6—Air Quality Standards, Definitions, Sampling and Reference Methods, and Air Pollution Control Regulations for the State of Missouri
******* 10–6.330 ...... Restriction of Emissions From 7/30/2020 [Date of publication of the final rule in the Batch-Type Charcoal Kilns. Federal Register], [Federal Register cita- tion of the final rule].
*******
* * * * * DEPARTMENT OF HEALTH AND SUMMARY: This proposed rule proposes [FR Doc. 2021–16846 Filed 8–9–21; 8:45 am] HUMAN SERVICES to rescind the Most Favored Nation BILLING CODE 6560–50–P Model interim final rule with comment Centers for Medicare & Medicaid period that appeared in the November Services 27, 2020, Federal Register. 42 CFR Part 513 DATES: To be assured consideration, comments must be received at one of [CMS–5528–P] the addresses provided below, by RIN 0938–AT91 October 12, 2021. Most Favored Nation (MFN) Model ADDRESSES: In commenting, please refer to file code CMS–5528–P. AGENCY: Centers for Medicare & Medicaid Services (CMS), HHS. Comments, including mass comment submissions, must be submitted in one ACTION: Proposed rule.
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of the following three ways (please United States (U.S.) for most Medicare This imbalance in payment arises choose only one of the ways listed): Part B drugs with the highest Medicare because Medicare generally establishes 1. Electronically. You may submit spending far exceed prices in other the payment for separately payable electronic comments on this regulation countries.23 Specifically, drugs have Medicare Part B drugs using the to http://www.regulations.gov. Follow consistently been a major contributor to methodology in section 1847A of the the ‘‘Submit a comment’’ instructions. the overall Medicare Part B spending Social Security Act (the Act). In most 2. By regular mail. You may mail trend. Medicare Part B fee-for-service cases, this means payment is based on written comments to the following (FFS) spending for separately payable the average sales price (ASP) plus a address ONLY: Centers for Medicare & physician-administered drugs and drugs statutorily mandated 6 percent add-on. Medicaid Services, Department of furnished in a hospital outpatient Under this methodology, the Medicare Health and Human Services, Attention: department represented about 11 program does not get the benefit of the CMS–5528–P, P.O. Box 8013, Baltimore, percent of Medicare Part B FFS benefit substantial discounts provided in other MD 21244–8013. spending in 2015, but accounted for countries, because ASP is calculated Please allow sufficient time for mailed about 37 percent of the change in using only the prices that manufacturers comments to be received before the Medicare Part B FFS benefit spending charge to certain U.S.-based purchasers. close of the comment period. from 2015 to 2020.4 In addition to the ASP-based payments may also 3. By express or overnight mail. You continued growth in spending, encourage the use of more expensive may send written comments to the Medicare pays substantially more than drugs because the dollar amount of the following address ONLY: Centers for other countries for many of the highest- 6 percent add-on portion is larger for Medicare & Medicaid Services, cost Medicare Part B drugs that drugs with higher ASPs.7 Department of Health and Human beneficiaries receive in an outpatient The Most Favored Nation (MFN) Services, Attention: CMS–5528–P, Mail setting for which Medicare Part B allows Model interim final rule with comment Stop C4–26–05, 7500 Security separate payment.5 In many instances, period (85 FR 76180) 8 (hereafter, Boulevard, Baltimore, MD 21244–1850. Medicare pays more than twice as much referred to as ‘‘the November 2020 For information on viewing public for certain drugs as other countries do.6 interim final rule’’) was published in the comments, see the beginning of the Federal Register on November 27, 2020, SUPPLEMENTARY INFORMATION section. report/medicare-part-b-drugs-spending-and- and was effective the same day, with a utilization). FOR FURTHER INFORMATION CONTACT: Lara 60-day comment period. The 60-day 2 ‘‘Comparison of U.S. and International Prices comment period on the November 2020 Strawbridge, (410) 786–7400 or MFN@ for Top Medicare Part B Drugs by Total cms.hhs.gov. Expenditures’’ accessed via https://aspe.hhs.gov/ interim final rule closed on January 26, pdf-report/comparison-us-and-international-prices- 2021. The November 2020 interim final SUPPLEMENTARY INFORMATION: Inspection top-medicare-part-b-drugs-total-expenditures; El- rule established a 7-year nationwide, of Public Comments: All comments Kilani Z, Finegold K, Mulcahy A, and Bosworth A. mandatory MFN Model, under section Medicare FFS Part B and International Drug Prices: received before the close of the A Comparison of the Top 50 Drugs. Washington, 1115A of the Act, with the model comment period are available for DC: Office of the Assistant Secretary for Planning performance period beginning on viewing by the public, including any and Evaluation, U.S. Department of Health and January 1, 2021. The MFN Model would personally identifiable or confidential Human Services. November 20, 2020 (https:// aspe.hhs.gov/pdf-report/medicare-ffs-part-b-and- test an alternative way for Medicare to business information that is included in international-drug-prices). pay for certain Medicare Part B single a comment. We post all comments 3 Individual countries differ in the regulatory source drugs and biologicals (including received before the close of the processes and standards governing approval of biosimilar biologicals). For additional comment period on the following drugs and biologicals. Use of international drug information on the MFN Model, see the website as soon as possible after they prices in the MFN Model should not be interpreted to connote FDA approval or to otherwise describe November 2020 interim final rule and have been received: http:// any scientific or regulatory relationship between the MFN Model website.9 www.regulations.gov. Follow the search U.S.-approved and non-U.S.-approved products. In the November 2020 interim final instructions on that website to view 4 2020 Annual Report of the Boards of Trustees rule, Waiver of Proposed Rulemaking public comments. CMS will not post on of the Federal Hospital Insurance and Federal Supplementary Medical Insurance Trust Funds. and Delay in Effective Date, we stated Regulations.gov public comments that Accessed via: https://www.cms.gov/files/document/ that we found that there was good cause make threats to individuals or 2020-medicare-trustees-report.pdf. to waive the notice and comment institutions or suggest that the 5 ‘‘Comparison of U.S. and International Prices requirements under sections 553(b)(B) individual will take actions to harm any for Top Medicare Part B Drugs by Total Expenditures’’ accessed via https://aspe.hhs.gov/ of the Administrative Procedure Act and individual. CMS continues to encourage pdf-report/comparison-us-and-international-prices- section 1871(b)(2)(C) of the Act because individuals not to submit duplicative top-medicare-part-b-drugs-total-expenditures; El- of the particularly acute need for comments. We will post acceptable Kilani Z, Finegold K, Mulcahy A, and Bosworth A. affordable Medicare Part B drugs in the comments from multiple unique Medicare FFS Part B and International Drug Prices: A Comparison of the Top 50 Drugs. Washington, midst of the COVID–19 pandemic (85 commenters even if the content is DC: Office of the Assistant Secretary for Planning FR 76249). identical or nearly identical to other and Evaluation, U.S. Department of Health and In December 2020, while the comments. Human Services. November 20, 2020 (https:// comment period was open, four aspe.hhs.gov/pdf-report/medicare-ffs-part-b-and- lawsuits were filed related to CMS’s I. Background international-drug-prices). 6 ‘‘Comparison of U.S. and International Prices for waivers of proposed rulemaking and Increases in Part B prescription drug Top Medicare Part B Drugs by Total Expenditures’’ delay in effective date as well as other spending significantly outpace the accessed via https://aspe.hhs.gov/pdf-report/ aspects of the MFN Model and the growth in spending on other Medicare comparison-us-and-international-prices-top- medicare-part-b-drugs-total-expenditures; El-Kilani 1 7 Part B services, and prices in the Z, Finegold K, Mulcahy A, Bosworth A. Medicare MedPAC, June 2017, ‘‘Medicare Part B Drug FFS Part B and International Drug Prices: A Payment Policy Issues,’’ accessed via http:// _ 1 Nguyen X. Nguyen and Steve Sheingold. Comparison of the Top 50 Drugs. Washington, DC: medpac.gov/docs/default-source/reports/jun17 Medicare Part B Drugs: Trends in Spending and Office of the Assistant Secretary for Planning and ch2.pdf Utilization, 2006–2017. Washington, DC: Office of Evaluation, U.S. Department of Health and Human 8 Available at https://www.govinfo.gov/content/ the Assistant Secretary for Planning and Evaluation, Services. November 20, 2020 (https://aspe.hhs.gov/ pkg/FR-2020-11-27/pdf/2020-26037.pdf. U.S. Department of Health and Human Services. pdf-report/medicare-ffs-part-b-and-international- 9 Available at https://innovation.cms.gov/ November 20, 2020 (https://aspe.hhs.gov/pdf- drug-prices). innovation-models/most-favored-nation-model.
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November 2020 interim final rule: about potential impacts of the MFN opportunities to promote value-based Association of Community Cancer Model. care for our beneficiaries; to address the Centers v. Azar, No. 8:20–cv–03531 (D. high cost of Medicare Part B drugs, II. Provisions of the Proposed Md.); California Life Sciences Ass’n v. manufacturers’ pricing, and the Regulations CMS, No. 3:20–cv–08603 (N.D. Ca); resulting growth in Medicare Part B Regeneron Pharmaceuticals v. HHS, No. We received approximately 1,166 drug spending; and to modernize the 7:20–cv–10488 (S.D.N.Y.); and timely pieces of correspondence in Medicare program to improve the Community Oncology Alliance, Inc. v. response to the November 2020 interim quality and cost of care for beneficiaries. HHS, No.1:20–cv–03604 (D.D.C.). On final rule. We appreciate the comments We will continue to carefully consider December 28, 2020, the U.S. District that we received. We note that many the comments we received on the Court for the Northern District of commenters agreed with HHS about the November 2020 interim final rule as we California issued a nationwide urgency of addressing high prescription explore all options to incorporate value preliminary injunction in California Life drug prices, but nearly all of the into payments for Medicare Part B drugs Sciences, which preliminarily enjoined commenters expressed concern about and improve beneficiaries’ access to HHS from implementing the MFN beginning the model on January 1, 2021, evidence-based care. Model and the November 2020 interim including starting the model during the We invite comments on our proposal final rule. The lawsuits in the U.S. COVID–19 pandemic. Given that the to rescind and remove the regulations at District Court for the District of nationwide preliminary injunction 42 CFR part 513, which also would Maryland and the U.S. District Court for precluded implementation of the MFN withdraw the MFN Model. the District of Columbia were stayed Model on January 1, 2021, as based on the nationwide preliminary contemplated, that multiple courts III. Collection of Information injunction. On December 30, 2020, the found procedural issues with the Requirements U.S. District Court for the Southern November 2020 interim final rule, and As stated in section 1115A(d)(3) of the District of New York issued a that stakeholders expressed concern Act, Chapter 35 of title 44, United States 10 preliminary injunction in Regeneron about the model start date, we are Code, shall not apply to the testing and Pharmaceuticals v. HHS, which proposing to rescind regulations added evaluation of CMS Innovation Center preliminarily enjoined HHS from by the November 2020 interim final rule Models. However, costs incurred applying the November 2020 interim and remove the associated regulatory through information collections were ® final rule to Regeneron’s drug EYLEA text at 42 CFR part 513. We believe this described in sections III.H., III.I.b., and (aflibercept). proposed rule communicates how we VI.C.5. of the November 2020 interim On January 8, 2021, the Solicitor wish to proceed with the November final rule (85 FR 76221, 76222, and General determined not to appeal the 2020 interim final rule to the courts and 76244, respectively) . If this proposed preliminary injunction issued in the public. Since the preliminary rule is finalized, requirements related to California Life Sciences. On January 19, injunctions prevented the November the information collection described in 2021, at the parties’ request, the U.S. 2020 interim final rule from taking the November 2020 interim final rule Northern District of California stayed effect, we do not believe there would be would not continue. As such, resulting the case until at least April 23, 2021. any disruption to reliance interests or savings are included in the estimate of Subsequently, on April 26, 2021, Medicare program administration if this the impact of our proposal to withdraw another stay was granted until July 26, proposed rule were to take effect. If the MFN Model in section V.C. of this finalized, our proposal would allow us 2021. On July 29, 2021, another stay was proposed rule. Further, this proposed to take time to further consider the granted until September 27, 2021. rule does not impose information issues identified by commenters and In Regeneron Pharmaceuticals, on collection requirements, that is, February 2, 2021, the plaintiff filed a would address the November 2020 reporting, recordkeeping or third-party letter seeking leave to file a motion for interim final rule’s procedural disclosure requirements. Consequently, summary judgment, and HHS filed a deficiencies by rescinding it. We note there is no need for review by the Office letter seeking leave to file a motion for that this proposed rule (that is, our of Management and Budget under the a stay. On February 10, 2021, the U.S. proposal to effectively withdraw an authority of the Paperwork Reduction District Court for the Southern District interim final rule with comment period) Act of 1995 (44 U.S.C. 3501 et seq.). of New York granted HHS’s request and is limited to the codification of the stayed the case for 90 days (that is, November 2020 interim final rule, and IV. Response to Comments does not reflect any judgment by HHS through May 11, 2021). On May 10, Because of the large number of public regarding future policy. 2021, the stay in this case was extended comments we normally receive on for an additional 90 days, until August On July 9, 2021, President Biden Federal Register documents, we are not 9, 2021, to give HHS time to consider signed an Executive Order on Promoting able to acknowledge or respond to them how to proceed with the rule in light of Competition in the American Economy individually. We will consider all the ‘‘unanimous’’ court decisions to that, in part, directs the Secretary of comments we receive by the date and date. In its order, the court noted that HHS to take steps to lower the prices of time specified in the DATES section of HHS should ‘‘not assume that another and improve access to prescription this preamble, and, when we proceed stay will be granted,’’ as the stays gave drugs and biologicals. HHS is exploring with a subsequent document, we will HHS ‘‘a half-year to reach a conclusion respond to the comments in the regarding how to proceed[.]’’ 10 For example, commenters stated that the MFN As a result of the nationwide Model should not start during the COVID–19 preamble to that document. pandemic, and in addition that the model should preliminary injunction, the MFN Model not begin on January 1, 2021, while the public V. Regulatory Impact Analysis was not implemented on January 1, comment period for the November 2020 interim A. Statement of Need 2021, as contemplated in the November final rule was ongoing (until January 26, 2021). 2020 interim final rule. While the Further, commenters stated that CMS failed to The purpose of this proposed rule is allow MFN participants sufficient time to prepare nationwide preliminary injunction has for model start and to develop and deploy new to propose the rescission of the Most been in place, CMS considered how to systems with distributors and customers to exclude Favored Nation Model, codified by an proceed given stakeholders’ concerns model sales from ASP reporting. interim final rule with comment period
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that appeared in the November 27, 2020 policy issues arising out of legal potential impacts were estimated to Federal Register, and remove the mandates, the President’s priorities, or occur beginning January 2021 through associated regulatory text at 42 CFR part the principles set forth in the Executive December 2028, in alignment with a 513, which also would withdraw the Order. January 1, 2021 model start. However, MFN Model. A regulatory impact analysis (RIA) because the MFN Model was not must be prepared for major rules with implemented on January 1, 2021, as B. Overall Impact significant regulatory actions or with contemplated in the November 2020 We have examined the impact of this economically significant effects ($100 interim final rule, such effects have not rule as required by Executive Order million or more in any 1 year). Based on occurred. 12866 on Regulatory Planning and our estimates, OMB’s Office of Nevertheless and notwithstanding the Review (September 30, 1993), Executive Information and Regulatory Affairs has nationwide preliminary injunction, this Order 13563 on Improving Regulation determined this rulemaking is analysis uses a baseline in which the and Regulatory Review (January 18, ‘‘economically significant’’ as measured November 2020 interim final rule was 2011), the Regulatory Flexibility Act by the $100 million threshold. implemented on January 1, 2021, to (RFA) (September 19, 1980, Pub. L. 96– Accordingly, we have prepared an RIA calculate the monetized estimates of the 354), section 1102(b) of the Act, section that to the best of our ability presents effects of this proposed rule. We 202 of the Unfunded Mandates Reform the costs and benefits of the rulemaking. maintain the analytical approach Act of 1995 (March 22, 1995; Pub. L. described in the regulatory impact C. Detailed Economic Analysis 104–4), Executive Order 13132 on analysis of the November 2020 interim Federalism (August 4, 1999), and the Removing the regulatory text at 42 final rule, and for the purpose of Congressional Review Act (5 U.S.C. CFR part 513, which also would quantifying the effects of this proposed 804(2)). withdraw the MFN Model, would mean rule, assume that the regulations added Executive Orders 12866 and 13563 that the annualized/monetarized by the November 2020 interim final rule direct agencies to assess all costs and estimates of costs and transfers will be in full effect if this proposed rule benefits of available regulatory presented in the November 2020 interim is not finalized. As a result of the alternatives and, if regulation is final rule (85 FR 76235 through 76248) rescission of the regulations added by necessary, to select regulatory would not be realized. The regulatory the November 2020 interim final rule, approaches that maximize net benefits impact analysis of the November 2020 this proposed rule would, if finalized, (including potential economic, interim final rule estimated that the prevent the occurrence of the estimated environmental, public health and safety MFN Model would result in substantial costs and transfers presented in the effects, distributive impacts, and overall savings for the Medicare November 2020 interim final rule. We equity). Section 3(f) of Executive Order program, the Medicaid program, and summarize this result in Tables 1 and 2, 12866 defines a ‘‘significant regulatory beneficiaries, and that model which illustrate, inversely, the action’’ as an action that is likely to participants would experience costs monetized estimates contained in Table result in a rule: (1) Having an annual associated with complying with the 17 (85 FR 76247) and Table 18 (85 FR effect on the economy of $100 million regulations, survey completion, and 76248) of the November 2020 interim or more in any one year, or adversely potential requests for financial hardship final rule. The period covered shown in and materially affecting a sector of the exemption. Tables 1 and 2 begins January 2021 in economy, productivity, competition, In the November 2020 interim final alignment with the accounting jobs, the environment, public health or rule, we presented estimates from the statements and tables presented in the safety, or state, local or tribal CMS Office of the Actuary (OACT) (85 November 2020 interim final rule. This governments or communities (also FR 76236) and the HHS Office of the approach illustrates that this proposed referred to as ‘‘economically Assistant Secretary for Planning and rule, if finalized, would prevent the significant’’); (2) creating a serious Evaluation (ASPE) (85 FR 76240). We realization of the annualized/ inconsistency or otherwise interfering noted that there is much uncertainty monetarized estimates of costs and with an action taken or planned by around the assumptions for both the transfers that were presented in the another agency; (3) materially altering OACT and ASPE estimates, and refer November 2020 interim final rule. the budgetary impacts of entitlement readers to section VI.C. of the November Because the MFN Model was not grants, user fees, or loan programs or the 2020 interim final rule for a more implemented, readers should rights and obligations of recipients complete discussion of the estimated understand that this proposed rule does thereof; or (4) raising novel legal or impacts of the MFN Model. These not affect conditions in the past.
TABLE 1—ACCOUNTING STATEMENT: ESTIMATED IMPACTS FROM CY 2021 TO CY 2028 AS A RESULT OF PROVISIONS OF THIS PROPOSED RULE BASED ON THE OACT ESTIMATE
Units Category Estimates Discount rate Year dollar (%) Period covered
Costs: Annualized Monetized ($million/year) ...... ¥29.4 2018 7 January 2021—December 2028. ¥27.1 2018 3 January 2021—December 2028.
To Whom ...... Hospital/physicians.
Annualized Monetized ($million/year) ...... ¥0.4 2018 7 January 2021—December 2027. ¥0.4 2018 3 January 2021—December 2027.
Transfers:
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TABLE 1—ACCOUNTING STATEMENT: ESTIMATED IMPACTS FROM CY 2021 TO CY 2028 AS A RESULT OF PROVISIONS OF THIS PROPOSED RULE BASED ON THE OACT ESTIMATE—Continued
Units Category Estimates Discount rate Year dollar (%) Period covered
Annualized Monetized ($million/year) ...... 11,502.5 2018 7 January 2021—December 2027. 11,906.3 2018 3 January 2021—December 2027.
From Whom to Whom ...... Federal Government to hospitals/physicians and MA plans.
Annualized Monetized ($million/year) ...... 4,087.2 2018 7 January 2021—December 2027. 4,228.3 2018 3 January 2021—December 2027.
From Whom to Whom ...... Beneficiaries to hospitals/physicians and MA plans.
Annualized Monetized ($million/year) ...... 577.5 2018 7 January 2021—December 2027. 596.5 2018 3 January 2021—December 2027.
From Whom to Whom ...... States to hospitals/physicians and MA plans.
TABLE 2—ACCOUNTING STATEMENT: ESTIMATED IMPACTS FROM CY 2021 TO CY 2028 AS A RESULT OF THE PROVISIONS OF THIS PROPOSED RULE BASED ON THE ASPE ESTIMATE
Units Category Estimates Discount rate Year dollar (%) Period covered
Costs: Annualized Monetized ($million/year) ...... ¥29.4 2018 7 January 2021—December 2028. ¥27.1 2018 3 January 2021—December 2028.
To Whom ...... Hospital/physicians
Annualized Monetized ($million/year) ...... ¥0.4 2018 7 January 2021—December 2027. ¥0.4 2018 3 January 2021—December 2027.
Transfers: Annualized Monetized ($million/year) ...... 7,058.3 2018 7 January 2021—December 2027. 7,276.5 2018 3 January 2021—December 2027.
From Whom to Whom ...... Federal Government to hospitals/physicians and MA plans
Annualized Monetized ($million/year) ...... 4,504.9 2018 7 January 2021—December 2027. 4,638.6 2018 3 January 2021—December 2027.
From Whom to Whom ...... Beneficiaries to hospitals/physicians and MA plans
Annualized Monetized ($million/year) ...... 342.4 2018 7 January 2021—December 2027. 351.6 2018 3 January 2021—December 2027.
From Whom to Whom ...... States to hospitals/physicians and MA plans
D. Regulatory Flexibility Act (RFA) https://www.sba.gov/document/support- affected by the MFN Model if the model The RFA requires agencies to analyze -table-size-standards. The rule of thumb was implemented. We refer readers to options for regulatory relief of small used by HHS for determining whether Table 3 and Table 8 in the November entities. For purposes of the RFA, small an impact is ‘‘significant’’ is an adverse 2020 interim final rule (85 FR 76195 entities include small businesses, effect equal to 3 percent or more of total and 76219, respectively) to see the nonprofit organizations, and small annual revenues. number of entities, as well as the types governmental jurisdictions. Most This proposed rule, if finalized, of providers and suppliers, that would hospitals and most other providers and would impact the vast majority of be most likely impacted by the MFN suppliers are small entities, either by Medicare-participating providers and Model. This proposed rule proposes to nonprofit status or by having revenues suppliers that submit claims for withdraw the MFN Model, and therefore of less than $8 million to $41.5 million separately payable Medicare Part B would likely impact these same entities. in any 1 year. Individuals and states are drugs by preventing the impacts Accordingly, we have determined that a not included in the definition of a small described in the November 2020 interim Regulatory Flexibility Analysis (RFA) is entity. For details, see the Small final rule (85 FR 76246) from being required. As its measure of significant Business Administration’s ‘‘Table of realized. There are over 20,000 small economic impact on a substantial Small Business Size Standards’’ at entities that would be included or number of small entities, HHS uses a
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change in revenue of more than 3 to 5 if the MFN Model was implemented, governments, preempts State law, or percent. We do believe that this these rural entities would experience otherwise has Federalism implications. threshold will be reached by the drug payment reductions and overall As discussed in section V.C. of this requirements in this proposed rule. payment reductions similar to urban proposed rule, the financial impacts for Therefore, the Secretary has certified entities. Instead, if this proposed rule is States (that is, an estimated overall that this proposed will have a finalized, payment for submitted claims reduction in State spending) presented significant economic impact on a would be made under the applicable in the November 2020 interim final rule substantial number of small entities. Medicare payment methodology. (85 FR 76235 through 76248) would not The RFA presented in the November We welcome comments on our be realized. Since this regulation does 2020 interim final rule (85 FR 76245) estimate of significantly affected not impose any costs on State or local describes the potential impact of the providers and suppliers and the governments, preempt State law, or MFN Model, if it was implemented, on magnitude of estimated effects for this otherwise have Federalism implications, small entities. If finalized, this proposed proposed rule. the requirements of Executive Order rule would prevent those impacts from E. Unfunded Mandates Reform Act 13132 are not applicable. being realized. Specifically, the lower (UMRA) In accordance with the provisions of drug payments and alternative add-on Executive Order 12866, this proposed Section 202 of the Unfunded payments described in section III.F. of rule was reviewed by the Office of Mandates Reform Act of 1995 (UMRA) the November 2020 interim final rule Management and Budget. also requires that agencies assess would not occur. Instead, payment for Chiquita Brooks-LaSure, submitted claims would be made under anticipated costs and benefits before issuing any rule whose mandates Administrator of the Centers for the applicable Medicare payment require spending in any 1 year of $100 Medicare & Medicaid Services, methodology. This RFA, together with million in 1995 dollars, updated approved this document on July 21, the preamble, constitutes the required annually for inflation. In 2021, that 2021. analysis. threshold is approximately $158 List of Subjects for 42 CFR 513 In addition, section 1102(b) of the Act million. As discussed in section V.C. of Administrative practice and requires us to prepare an RIA if a rule this proposed rule, the financial impacts procedure, Health facilities, Medicare, may have a significant impact on the for States (that is, an estimated overall Reporting and recordkeeping operations of a substantial number of reduction in State spending) presented requirements. small rural hospitals. This analysis must in the November 2020 interim final rule conform to the provisions of section 603 (85 FR 76235 through 76248) would not PART 513—[REMOVED] of the RFA. For purposes of section be realized. This proposed rule does not 1102(b) of the Act, we define a small mandate any spending by State, local, or ■ For the reasons set forth in the rural hospital as a hospital that is tribal governments, or by the private preamble and under the authority at 5 located outside of a Metropolitan sector, and hence an UMRA analysis is U.S.C. 301, the Centers for Medicare & Statistical Area for Medicare payment not required. Medicaid Services proposes to remove regulations and has fewer than 100 42 CFR part 513. beds. Similar to urban entities, we F. Federalism estimate that this proposed rule, if Executive Order 13132 establishes Dated: August 3, 2021. finalized, would have a significant certain requirements that an agency Xavier Becerra, impact on small rural hospitals by must meet when it promulgates a Secretary, Department of Health and Human preventing the impacts described in the proposed rule (and subsequent final Services. November 2020 interim final rule (85 FR rule) that imposes substantial direct [FR Doc. 2021–16886 Filed 8–6–21; 4:15 pm] 76246) from being realized. Specifically, requirement costs on State and local BILLING CODE 4120–01–P
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Notices Federal Register Vol. 86, No. 151
Tuesday, August 10, 2021
This section of the FEDERAL REGISTER at the time of renewal (expiration date Animal and Plant Health Inspection contains documents other than rules or is 12/31/2021). Service proposed rules that are applicable to the public. Notices of hearings and investigations, Levi S. Harrell, Title: Communicable Diseases in committee meetings, agency decisions and Departmental Information Collection Horses. rulings, delegations of authority, filing of Clearance Officer. OMB Control Number: 0579–0127. Summary of Collection: The Animal petitions and applications and agency [FR Doc. 2021–16988 Filed 8–9–21; 8:45 am] statements of organization and functions are Health Protection Act (AHPA) of 2002 is BILLING CODE 3411–15–P examples of documents appearing in this the primary Federal law governing the section. protection of animal health. The law DEPARTMENT OF AGRICULTURE gives the Secretary of Agriculture broad authority to detect, control, or eradicate DEPARTMENT OF AGRICULTURE Submission for OMB Review; pests or diseases of livestock or poultry. Comment Request The Secretary may also prohibit or Submission for OMB Review; Notice of restrict import or export of any animal Request for Emergency Approval The Department of Agriculture has or related material if necessary, to submitted the following information prevent the spread of any livestock or May 13, 2021. collection requirement(s) to OMB for poultry pest or disease. The AHPA is In compliance with the requirements review and clearance under the contained in Title X, Subtitle E, of the Paperwork Reduction Act of 1995 Paperwork Reduction Act of 1995, Sections 10401–18 of Public Law 107– (PRA), the Department of Agriculture Public Law 104–13. Comments are 171, May 13, 2002, the Farm Security (USDA) has submitted a request to the requested regarding; whether the and Rural Investment Act of 2002. Office of Management and Budget collection of information is necessary Veterinary Services (VS), a program (OMB) for a six-month emergency for the proper performance of the within USDA’s Animal and Plant Health approval of the following information functions of the agency, including Inspection Service (APHIS), is collection: ICR 0596–NEW, Grant or whether the information will have responsible for administering Agreement Award Face Sheet. The practical utility; the accuracy of the regulations intended to ensure that requested approval would enable the agency’s estimate of burden including animals affected with EIA are identified collection of this information and the the validity of the methodology and through proficient and reliable testing implementation of this program while assumptions used; ways to enhance the and that appropriate reporting occurs. USDA completes the normal PRA quality, utility and clarity of the Further, regulations ensure animals approval process for ICR 0596–0217. information to be collected; and ways to testing positive are moved interstate in minimize the burden of the collection of a way that does not endanger the health Forest Service information on those who are to of the U.S. equine population. APHIS respond, including through the use of regulations at title 9, Code of Federal Title: Grant or Agreement Award Face appropriate automated, electronic, Regulations (9 CFR) 75.4 deal Sheet. mechanical, or other technological specifically with regulating the OMB Control Number: 0596–NEW. collection techniques or other forms of interstate movement of horses affected Summary of Collection: The 2018 information technology. with equine infectious anemia (EIA). VS Farm Bill expanded the ability for tribes Comments regarding this information provides guidance on approval of to enter into agreements with the Forest collection received by September 9, laboratories, diagnostic facilities, and Service to manage programs 2021 will be considered. Written research facilities. Ensuring the safe implementing the Tribal Forest comments and recommendations for the movement of these horses requires the Protection Act (‘‘638 agreements,’’ proposed information collection should use of information collection activities, pursuant to the Indian Self- be submitted within 30 days of the including an EIA laboratory test form, a Determination and Education publication of this notice on the certificate or permit for the interstate Assistance Act (Pub. L. 93–638). The following website www.reginfo.gov/ movement of an EIA reactor, a proposed information collection public/do/PRAMain. Find this supplemental investigation form if a particular information collection by approves the use of a new form needed horse tests positive for EIA, agreements, selecting ‘‘Currently under 30-day to execute these agreements. In request for hearing, and written Review—Open for Public Comments’’ or conjunction with the Intertribal Timber notification of withdrawal of approval. by using the search function. Need and Use of the Information: The Council, the Forest Service assessed the An agency may not conduct or information collected from forms, status of development of demonstration sponsor a collection of information APHIS VS 10–11, Equine Infectious project agreements under this important unless the collection of information Anemia Laboratory Test; VS 10–12, new authority and anticipates the need displays a currently valid OMB control Equine Infectious Anemia Supplemental to evaluate and execute numerous number and the agency informs Investigation; and VS 1–27, Permit for projects in the near future. It is critical potential persons who are to respond to the Movement of Restricted Animals, that the agency be able to support these the collection of information that such VS–10–15, Agreement to Conduct important economic development persons are not required to respond to Equine Infectious Anemia Testing, VS– projects in a timely fashion. the collection of information unless it 10–16, Laboratory Inspection Checklist If approved for emergency use, this displays a currently valid OMB control for Equine Infectious Anemia Testing, form will be combined with 0596–0217 number. will be used to prevent the spread of
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equine infectious anemia. Regulations Description of Respondents: Business Description of Respondents: Business also require the use an Agreement for or other for-profit; Individuals or or other for-profit and not-for-profit; Approved Livestock Facilities, Request households; Federal Government. State, Local or Tribal Government. for Hearing, Written Notification of Number of Respondents: 3,201. Number of Respondents: 9,053. Approval or Withdrawal, Review of Frequency of Responses: Reporting: Frequency of Responses: Reporting Requirements and Interview, On occasion. Memorandum of Recommendation and and Recordkeeping: On occasion. Justification, Monthly Summary Total Burden Hours: 4,358. Total Burden Hours: 322,546. Reporting, Denial or Withdrawal of Animal and Plant Health Inspection Animal and Plant Health Inspection Laboratory Approval. Without the Service information it would be impossible for Service APHIS to effectively regulate the Title: Control of Chronic Wasting Disease. Title: Infectious Salmon Anemia interstate movement of horses infected (ISA)—Payment of Indemnity. with EIA. OMB Control Number: 0579–0189. Description of Respondents: Farms; Summary of Collection: The Animal OMB Control Number: 0579–0192. Business or other for-profit; State, Local Health Protection Act (AHPA) of 2002 is Summary of Collection: The Animal and Tribal Government. the primary Federal law governing the Health Protection Act (AHPA) of 2002 is Number of Respondents: 235,018. protection of animal health. The law the primary Federal law governing the Frequency of Responses: Reporting: gives the Secretary of Agriculture broad protection of animal health. The law On occasion. authority to detect, control, and gives the Secretary of Agriculture broad Total Burden Hours: 92,610. eradicate pests or diseases of livestock authority to detect, control, or eradicate or poultry, and to pay claims arising pest or diseases of livestock or poultry. Animal and Plant Health Inspection from destruction of animals. Disease Infectious Salmon Anemia (ISA) is a Service prevention is the most effective method clinical disease resulting from infection Title: Importation of Gypsy Moth Host for maintaining a healthy animal with the ISA virus and poses a Materials from Canada. population and enhancing the Animal substantial threat to the economic OMB Control Number: 0579–0142. and Plant Health Inspection Service viability and sustainability of salmon Summary of Collection: The United (APHIS) ability to complete in exporting aquaculture in the United States and States Department of Agriculture animals and animal products. Chronic abroad. This indemnity program entails (USDA) is responsible for preventing wasting disease (CWD) is a the use of several information collection plant diseases or insect pests from transmissible spongiform activities, including completing a entering the United States, preventing encephalopathy (TSE) of elk, deer and program enrollment form as well as an the spread of pests not widely moose typified by chronic weight loss appraisal and indemnity claim form; distributed in the United States, and leading to death. The presence of CWD developing biosecurity protocols; eradicating those imported pests when disease in cervids causes significant conducting biosecurity audits; eradication is feasible. Under the Plant economic and market losses to U.S. developing site-specific ISA action Protection Act (7 U.S.C. 7701– et seq.), producers. To accelerate the control and plans; compiling fish inventories and the Secretary of Agriculture is limit the spread of this disease in the mortality reports (and recordkeeping); authorized to regulate the importation of United States, APHIS created a and disease surveillance to control ISA. plants, plant products, and other articles cooperative, voluntary Federal-State- Program participants, who may include to prevent the introduction of injurious private sector CWD Herd Certification certain aquaculture industry business plant pests. The regulations Program. The program is designed to owners, managers, site employees, and implementing this Act are contained in identify farmed or captive herds accredited veterinarians, and designated Title 7 of the Code of Federal infected with CWD and provided for the laboratories, must also assist APHIS Regulations (CFR), Part 319 (Foreign management of these herds in a way with certain disease surveillance Quarantine Notices). The Plant that reduces the risk of spreading CWD. activities. Without the information it Protection and Quarantine, a program Need and Use of the Information: would be impossible for APHIS to within USDA’s Animal and Plant Health APHIS will collect information from contain and prevent ISA outbreaks in Inspection Service (APHIS) is owners of elk, deer, and moose herds the United States. responsible for ensuring that these who choose to participate in the CWD regulations are enforced. Herd Certification program. They would Need and Use of the Information: Need and Use of the Information: need to follow program requirements for APHIS uses a form to enroll aquaculture APHIS will collect information from animal identification, testing, herd industry businesses, three others to individuals both within and outside the management, and movement of animals reimburse them for disease losses, and United States using phytosanitary into and from herds. APHIS also other information activities to document certificates, certificates of origin, a established requirements for the or conduct biosecurity, protocols, and written statement, a compliance interstate movement of cervids to audits; develop site-specific ISA action agreement and an emergency Action prevent movement of elk, deer, and plans; compile fish inventories and notice. Information collected will moose that pose a risk of spreading mortality reports (and keep records of ensure that importing foreign logs, trees, CWD. Carrying out this program will the inventories and reports); and shrubs, and other articles do not harbor entail the use of several information conduct disease surveillance. plant or insect pests such as the gypsy collection activities and three APHIS Description of Respondents: Business moth. Failing to collect this information forms. Failing to collect it would make or other for-profit. would cripple APHIS’ ability to ensure it impossible for APHIS to maintain its Number of Respondents: 13. that trees (including Christmas trees), CWD Herd Certification Program, shrubs, logs, and a variety of other items thereby hindering APHIS’ ability to Frequency of Responses: imported from Canada do not harbor prevent and control the spread of CWD Recordkeeping; Reporting: On occasion. gypsy moths. in the United States. Total Burden Hours: 549.
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Dated: August 5, 2021. Summary of Collection: The primary Number of Respondents: 11,800. Ruth Brown, objective of the National Agricultural Frequency of Responses: Once. Departmental Information Collection Statistics Service (NASS) is to collect, Total Burden Hours: 9,550. Clearance Officer. prepare and issue State and national Levi S. Harrell, estimates of crop and livestock [FR Doc. 2021–17020 Filed 8–9–21; 8:45 am] Departmental Information Collection BILLING CODE 3410–34–P production, prices, and disposition; as Clearance Officer. well as economic statistics, [FR Doc. 2021–16996 Filed 8–9–21; 8:45 am] environmental statistics related to BILLING CODE 3410–20–P DEPARTMENT OF AGRICULTURE agriculture and also to conduct the Census of Agriculture. Submission for OMB Review; The survey will collect data whether Comment Request the operator uses any of five agroforestry DEPARTMENT OF COMMERCE practices typically used for International Trade Administration August 5, 2021. conservation: Windbreaks, Silvopasture, The Department of Agriculture will Riparian Forest Buffers, Alley Cropping, [C–552–805] submit the following information as well as Forest Farming & Multi-story collection requirement(s) to OMB for Cropping. Polyethylene Retail Carrier Bags From review and clearance under the Windbreaks are linear plantings of the Socialist Republic of Vietnam: Paperwork Reduction Act of 1995, trees and shrubs designed to provide Final Results of Expedited Second Public Law 104–13 on or after the date economic, environmental and Sunset Review of the Countervailing of publication of this notice. Comments community benefits. The primary Duty Order are requested regarding: (1) Whether the purpose of most windbreaks is to slow AGENCY: Enforcement and Compliance, collection of information is necessary the wind which creates a more International Trade Administration, for the proper performance of the beneficial condition for soils, crops, Department of Commerce. functions of the agency, including livestock, wildlife and people. SUMMARY: As a result of this sunset whether the information will have Silvopasture is the deliberate integration review, the Department of Commerce practical utility; (2) the accuracy of the of trees and grazing livestock operations (Commerce) finds that revocation of the agency’s estimate of burden including on the same land. These systems are countervailing duty (CVD) order on the validity of the methodology and intensively managed for both forest polyethylene retail carrier bags (PRCBs) assumptions used; (3) ways to enhance products and forage, providing both from the Socialist Republic of Vietnam the quality, utility and clarity of the short- and long-term income sources. information to be collected; and (4) A riparian forest buffer is an area (Vietnam) would be likely to lead to ways to minimize the burden of the adjacent to a stream, lake, or wetland continuation or recurrence of collection of information on those who that contains a combination of trees, countervailable subsidies at the levels are to respond, including through the shrubs, and/or other perennial plants indicated in the ‘‘Final Results of use of appropriate automated, and is managed differently from the Review’’ section of this notice. electronic, mechanical, or other surrounding landscape, primarily to DATES: Applicable August 10, 2021. technological collection techniques or provide conservation benefits. FOR FURTHER INFORMATION CONTACT: other forms of information technology. Forest farming is the cultivation of Daniel Alexander, AD/CVD Operations, Comments regarding these high-value crops under the protection of Office VII, Enforcement and information collections are best assured a managed tree canopy. In some parts of Compliance, International Trade of having their full effect if received by the world, this is called multi-story Administration, U.S. Department of September 9, 2021. Written comments cropping and when used on a small Commerce, 1401 Constitution Avenue and recommendations for the proposed scale in the tropics it is sometimes NW, Washington, DC 20230; telephone: information collection should be called home gardening. (202) 482–4313. submitted within 30 days of the Alley cropping is defined as the SUPPLEMENTARY INFORMATION: publication of this notice on the planting of rows of trees and/or shrubs following website www.reginfo.gov/ to create alleys within which Background public/do/PRAMain. Find this agricultural or horticultural crops are On May 4, 2010, Commerce published particular information collection by produced. The trees may include its CVD order on PRCBs from Vietnam selecting ‘‘Currently under 30-day valuable hardwood veneer or lumber in the Federal Register.1 On March 31, Review—Open for Public Comments’’ or species; fruit, nut or other specialty crop 2021, Commerce published the notice of by using the search function. trees/shrubs; or desirable softwood initiation of the second sunset review of An agency may not conduct or species for wood fiber production. the Order, pursuant to section 751(c) of sponsor a collection of information Need and Use of the Information: the Tariff Act of 1930, as amended (the unless the collection of information NASS would plan and conduct the Act).2 Commerce received a notice of displays a currently valid OMB control survey and deliver access to a dataset or intent to participate from the number and the agency informs responses to approved staff from USDA- Polyethylene Retail Carrier Bag potential persons who are to respond to Forestry Service, who will publish the Committee (the Committee), an ad hoc the collection of information that such results of the survey. This project is association of U.S. producers of PRCBs, persons are not required to respond to conducted as a cooperative effort with within the deadline specified in 19 CFR the collection of information unless it the U. S. Department of Agriculture’s 351.218(d)(1)(i).3 The Committee displays a currently valid OMB control Forestry Service—National Agroforestry number. Center. Funding for this survey is being 1 See Polyethylene Retail Carrier Bags from the provided by the U.S. Department of Socialist Republic of Vietnam: Countervailing Duty National Agricultural Statistics Service Agriculture’s Forestry Service—National Order, 75 FR 23670 (May 4, 2010) (Order). (NASS) 2 See Initiation of Five-Year (Sunset) Review, 86 Agroforestry Center. FR 16701 (March 31, 2021). Title: National Agroforestry Survey. Description of Respondents: Farmers 3 See Committee’s Letter, ‘‘Five-Year (‘Sunset’) OMB Control Number: 0535–NEW. and Ranchers. Review the Countervailing Duty Order On
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claimed interested party status under Antidumping and Countervailing Duty VIII. Recommendation section 771(9)(E) of the Act, as a trade Centralized Electronic Service System [FR Doc. 2021–16961 Filed 8–9–21; 8:45 am] or business association a majority of (ACCESS). ACCESS is available to BILLING CODE 3510–DS–P whose members manufacture, produce, registered users at http:// or wholesale a domestic like product in access.trade.gov. In addition, a complete the United States and stated that each version of the Issues and Decision DEPARTMENT OF COMMERCE member of the Committee is a Memorandum can be accessed directly manufacturer of the domestic like on the internet at http:// International Trade Administration product and thus, is a domestic enforcement.trade.gov/frn/. interested party pursuant to section Final Results of Sunset Review [A–570–943, C–570–944] 771(9)(C) of the Act.4 Commerce received a substantive Pursuant to sections 751(c)(1) and Oil Country Tubular Goods From the response from the Committee 5 within 752(b) of the Act, we determine that People’s Republic of China: the 30-day deadline specified in 19 CFR revocation of the CVD order on PRCBs Preliminary Affirmative Determinations 351.218(d)(3)(i). We received no from Vietnam would be likely to lead to of Circumvention substantive responses from the continuation or recurrence of Government of Vietnam or any other countervailable subsidies at the AGENCY: Enforcement and Compliance, domestic or interested parties in this following rates: International Trade Administration, proceeding, nor was a hearing Department of Commerce. requested. Net SUMMARY: The Department of Commerce On May 21, 2021, Commerce notified countervailable Producer/exporter subsidy (Commerce) preliminarily determines the U.S. International Trade (percent) that imports of welded oil country Commission that it did not receive an tubular goods (OCTG) completed in adequate substantive response from Advance Polybag Co., Ltd ... 52.56 Brunei or the Philippines using inputs respondent interested parties.6 As a Fotai Vietnam Enterprise manufactured in the People’s Republic result, pursuant to section 751(c)(3)(B) Corp. and Fotai Enterprise of China (China) are circumventing the of the Act and 19 CFR Corporation ...... 5.28 antidumping and countervailing duty All Others ...... 5.28 351.218(e)(1)(ii)(C)(2), Commerce orders on OCTG from China. conducted an expedited (120-day) sunset review of the Order. Administrative Protective Order (APO) DATES: Applicable August 10, 2021. Scope of the Order This notice also serves as the only FOR FURTHER INFORMATION CONTACT: reminder to parties subject to an APO of Yang Jin Chun or John Drury, AD/CVD The scope of this Order covers PRCBs. their responsibility concerning the Operations Office VI, Enforcement and Imports of merchandise included within return or destruction of proprietary Compliance, International Trade the scope of this Order are currently information disclosed under APO in Administration, U.S. Department of classifiable under statistical category accordance with 19 CFR 351.305. Commerce, 1401 Constitution Avenue 3923.21.0085 of the Harmonized Tariff Timely notification of the return or NW, Washington, DC 20230; telephone: Schedule of the United States. For a destruction of APO materials or (202) 482–5760 and (202) 482–0195, complete description of the scope of the conversion to judicial protective order is respectively. Order, see the accompanying Issues and hereby requested. Failure to comply 7 SUPPLEMENTARY INFORMATION: Decision Memorandum. with the regulations and terms of an Analysis of Comments Received APO is a violation which is subject to Background sanction. All issues raised in this sunset review On November 3, 2020, Commerce self- are addressed in the Issues and Decision Notification to Interested Parties initiated these anti-circumvention Memorandum. A list of topics discussed We are issuing and publishing these inquiries to determine whether certain in the Issues and Decision final results and this notice in imports of welded OCTG completed in Memorandum is included as an accordance with sections 751(c), 752(b), Brunei or the Philippines using inputs appendix to this notice. The Issues and and 777(i)(1) of the Act, and 19 CFR manufactured in China are Decision Memorandum is a public 351.218. circumventing the antidumping and document and is on file electronically countervailing duty orders on OCTG Dated: July 23, 2021. via the Enforcement and Compliance’s from China.1 Christian Marsh, Polyethylene Retail Carrier Bags from Vietnam: Acting Assistant Secretary for Enforcement Scope of the Orders Domestic Industry Notice Of Intent To Participate and Compliance. In Sunset Review,’’ dated April 9, 2021. The products covered by the orders 4 Id. The individual members of the Committee Appendix—List of Topics Discussed in are certain OCTG, which are hollow are Hilex Poly Co., LLC and Superbag LLC. the Issues and Decision Memorandum steel products of circular cross-section, 5 See Committee’s Letter, ‘‘Five-Year (Sunset) including oil well casing and tubing, of Review of the Countervailing Duty Order On I. Summary Polyethylene Retail Carrier Bags from Vietnam: II. Background iron (other than cast iron) or steel (both Domestic Industry Substantive Response,’’ dated III. History of the Order carbon and alloy), whether seamless or April 28, 2021. IV. Scope of the Order welded, regardless of end finish. A full 6 See Commerce’s Letter, ‘‘Sunset Reviews for V. Legal Framework description of the scope of the orders is April 2021,’’ dated May 21, 2021. VI. Discussion of the Issues contained in the Preliminary Decision 7 See Memorandum, ‘‘Issues and Decision 1. Likelihood of Continuation or Memorandum for the Expedited Second Sunset Recurrence of a Countervailable Subsidy Review of the Countervailing Duty Order on 1 See Oil Country Tubular Goods from the Polyethylene Retail Carrier Bags from the Socialist 2. Net Countervailable Subsidy Rates People’s Republic of China: Self-Initiation of Anti- Republic of Vietnam,’’ dated concurrently with, and Likely To Prevail Circumvention Inquiries on the Antidumping Duty hereby adopted by, this notice (Issues and Decision 3. Nature of the Subsidies and Countervailing Duty Orders, 85 FR 71877 Memorandum). VII. Final Results of Sunset Review (November 12, 2020).
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Memorandum.2 The written description inputs in a third country, i.e., Brunei or welded OCTG from Brunei and the is dispositive. the Philippines, and exported to the Philippines.6 However, we intend to United States. implement a certification process in the Scope of the Anti-Circumvention future for any companies that may be Inquiries Suspension of Liquidation established in Brunei or the Philippines, These anti-circumvention inquiries As stated above, Commerce has made and we plan to issue draft certifications cover welded OCTG completed in preliminary affirmative findings of shortly after these preliminary Brunei or the Philippines using inputs circumvention of the antidumping and determinations of circumvention. With manufactured in China and countervailing duty orders on OCTG respect to the mandatory respondents, subsequently exported from Brunei or from China for welded OCTG completed Commerce will reconsider eligibility to the Philippines to the United States. in Brunei or the Philippines using participate in a certification process if a inputs manufactured in China and Methodology party demonstrates in a future segment subsequently exported from Brunei or of the proceeding (i.e., a changed Commerce is conducting these anti- the Philippines to the United States. circumstances review or an circumvention inquiries in accordance These preliminary circumvention administrative review) that the OCTG with section 781(b) of the Tariff Act of findings apply to welded OCTG being entered into the United States that 1930, as amended (the Act), and 19 CFR assembled or completed in Brunei or the it produces is not produced using 351.225(h). Because China is a non- Philippines using inputs manufactured Chinese inputs. Interested parties are market economy country within the in China and subsequently exported invited to comment on this issue in meaning of section 771(18) of the Act, from Brunei or the Philippines to the their case briefs. Commerce relied on surrogate values to United States. In accordance with value the purchases of Chinese hot- section 19 CFR 351.225(l)(2), Commerce Public Comment rolled steel, as discussed in section will direct CBP to suspend liquidation Commerce intends to disclose the 773(c) of the Act. For a complete and to require a cash deposit of analysis used in these preliminary description of the events that followed estimated duties on unliquidated entries findings within five days of publication the initiation of these anti- of welded OCTG completed in Brunei or of this notice. Interested parties are circumvention inquiries, see the the Philippines using inputs invited to comment on the preliminary Preliminary Decision Memorandum. A manufactured in China, subsequently determinations of these anti- list of topics included in the exported from Brunei or the Philippines circumvention inquiries. Pursuant to 19 Preliminary Decision Memorandum is to the United States, and entered, or CFR 351.309(b)(2), interested parties included as an Appendix to this notice. withdrawn from warehouse, for may submit case briefs not later than 30 The Preliminary Decision Memorandum consumption on or after November 3, days after the date of publication of this is a public document and is on file 2020, the date of initiation of these anti- notice. Rebuttal briefs, limited to issues electronically via Enforcement and circumvention inquiries. The raised in the case briefs, may not be Compliance’s Antidumping and suspension of liquidation will remain in filed later than seven days after the time Countervailing Duty Centralized effect until further notice. For entries of limit for filing case briefs.7 Pursuant to Electronic Service System (ACCESS). such merchandise produced in Brunei 19 CFR 351.309(c)(2) and (d)(2), parties ACCESS is available to registered users or the Philippines, Commerce will who submit case or rebuttal briefs in at https://access.trade.gov. In addition, a instruct CBP to require antidumping these anti-circumvention inquiries are complete version of the Preliminary duty cash deposits equal to the rate encouraged to submit with each Decision Memorandum can be accessed established for the China-wide entity, argument: (1) A statement of the issue; directly at http://enforcement.trade.gov/ i.e., 99.14 percent,3 and countervailing (2) a brief summary of the argument; frn/. duty cash deposits equal to the current and (3) a table of authorities. Pursuant to 19 CFR 351.310(c), Preliminary Determinations all-others rate, i.e., 27.08 percent.4 Welded OCTG assembled or interested parties who wish to request a As detailed in the Preliminary completed in Brunei or the Philippines hearing, limited to issues raised in the Decision Memorandum, Commerce using non-Chinese inputs is not subject case and rebuttal briefs, must submit a preliminarily determines that welded to these anti-circumvention inquiries. written request to the Assistant OCTG assembled or completed in However, because the mandatory Secretary for Enforcement and Brunei or the Philippines using inputs respondents are unable to track welded Compliance, U.S. Department of manufactured in China and OCTG to the country of origin of inputs Commerce, within 30 days after the date subsequently exported from Brunei or used in the production of welded of publication of this notice. Requests the Philippines to the United States are OCTG,5 Commerce will not implement should contain the party’s name, circumventing the antidumping and a certification process at this address, and telephone number, the countervailing duty orders on OCTG preliminary stage, and Commerce will number of participants, and a list of the from China. We therefore preliminarily require cash deposits on all entries of issues to be discussed. If a request for determine that it is appropriate to a hearing is made, Commerce intends to hold the hearing at a time and date to include this merchandise within the 3 See Oil Country Tubular Goods from the antidumping and countervailing duty People’s Republic of China: Final Results of be determined. Parties should confirm orders on OCTG from China and to Antidumping Duty Administrative Review; 2017– instruct U.S. Customs and Border 2018, 84 FR 32125, 32126 (July 5, 2019). 6 See, e.g., Diamond Sawblades and Parts Thereof Protection (CBP) to suspend entries of 4 See Oil Country Tubular Goods from the from the People’s Republic of China: Final People’s Republic of China: Notice of Court Determination of Anti-Circumvention Inquiry, 84 merchandise produced using Chinese Decision Not in Harmony With the Amended Final FR 33920, 33921 (July 16, 2019). Determination of the Countervailing Duty 7 See 19 CFR 351.309; see also 19 CFR 351.303 2 See Memorandum, ‘‘Oil Country Tubular Goods Investigation, 82 FR 25770 (June 5, 2017). (for general filing requirements); Temporary Rule from the People’s Republic of China: Decision 5 See, e.g., HLDS (B) Steel Sdn. Bhd.’s Letter, Modifying AD/CVD Service Requirements Due to Memorandum for Preliminary Affirmative ‘‘HLDSB Initial Questionnaire Response,’’ dated COVID–19, 85 FR 17006 (March 26, 2020); and Determinations of Circumvention,’’ dated March 16, 2021 at 25; and HLD Clark Steel Pipe Co., Temporary Rule Modifying AD/CVD Service concurrently with, and hereby adopted by, this Inc.’s Letter, ‘‘HLD Clark Initial Questionnaire Requirements Due to COVID–19; Extension of notice (Preliminary Decision Memorandum) at 3. Response,’’ dated March 16, 2021 at 26. Effective Period, 85 FR 41363 (July 10, 2020).
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the date and time of the hearing two IV. Scope of the Anti-Circumvention SUPPLEMENTARY INFORMATION: The days before the scheduled date of the Inquiries issuance of permits under the hearing. V. The Period of Inquiries Endangered Species Act of 1973 VI. Surrogate Country and Valuation (ESA)(16 U.S.C. 1531–1543) is based on International Trade Commission Methodology for Inputs From China a finding that such permits: (1) Are Notification VII. Statutory Framework applied for in good faith; (2) would not Consistent with section 781(e) of the VIII. Statutory Analysis IX. Other Statutory Criteria operate to the disadvantage of the ESA- Act, Commerce will notify the X. Summary of Statutory Analysis listed species which are the subject of International Trade Commission (ITC) of XI. Country-Wide Determinations the permits; and (3) are consistent with these preliminary determinations to XII. Recommendation the purposes and policies set forth in include the merchandise subject to [FR Doc. 2021–17016 Filed 8–9–21; 8:45 am] section 2 of the ESA. Authority to take these anti-circumvention inquiries BILLING CODE 3510–DS–P listed species is subject to conditions set within the antidumping and forth in the permits. Permits are issued countervailing duty orders on OCTG in accordance with and are subject to from China. Pursuant to section 781(e) DEPARTMENT OF COMMERCE the ESA and NMFS regulations (50 CFR of the Act, the ITC may request parts 222–226) governing listed marine consultations concerning Commerce’s National Oceanic and Atmospheric and anadromous species. proposed inclusion of the subject Administration merchandise. If, after consultations, the Species Covered in This Notice ITC believes that a significant injury [RTID 0648–XB289] The following listed species is issue is presented by the proposed covered in this notice: inclusion, it will have 60 days from the Endangered and Threatened Species; date of notification by Commerce to Take of Anadromous Fish Threatened Southern Oregon/ provide written advice. Northern California Coast (SONCC) AGENCY: National Marine Fisheries coho salmon (Oncorhynchus kisutch; Final Determinations Service (NMFS), National Oceanic and covered species). Atmospheric Administration (NOAA), According to section 781(f) of the Act, Permits Issued Commerce shall, to the maximum extent Commerce. practicable, make its anti-circumvention ACTION: Notice, Issuance of 14 Twelve permittees have been issued determination within 300 days from the Enhancement of Survival Permits. enhancement of survival permits upon date of the initiation of the inquiry.8 entry into the Agreement, which was SUMMARY: Due to the complicated nature of these Notice is hereby given that developed by NMFS, California anti-circumvention inquiries, we are NMFS has issued 14 enhancement of Department of Fish and Wildlife hereby extending the deadline for the survival permits (Permit Numbers (CDFW), the Shasta Watershed final determinations of these anti- 23271, 23276, 23278, 23279, 23280, Conservation Group (SWCG), and the circumvention inquiries by 50 days. 23284, 23285, 23286, 23287, 23288, permittees (Table 1). The 12 permittees Therefore, Commerce intends to issue 23289, 23290, 23291, 23434) for (Table 1) each developed site plan the final determinations of these anti- enhancement and monitoring purposes agreements for their respective circumvention inquiries to October 28, associated with the Template Safe properties (i.e., Enrolled Properties) that 2021. Harbor Agreement for Conservation of describe management activities that will These preliminary affirmative Coho Salmon in the Shasta River be implemented, including Beneficial circumvention determinations are (Agreement) and associated Site Plans Management Activities (BMAs), as published in accordance with section Agreements developed for the enrolled defined in the Agreement. The Site Plan 781(b) of the Act and 19 CFR 351.225(f). properties. Agreements, Agreement, and ADDRESSES: The Agreement, Site Plan Dated: August 4, 2021. enhancement of survival permits are Agreements, permits, and supporting Christian Marsh, expected to promote the recovery of the documents are available upon written covered species on enrolled properties Acting Assistant Secretary for Enforcement request or by appointment: California and Compliance. within the Shasta River watershed in Coastal Office, NMFS WCR, 1655 the Agreement area (see Figure 1 in the Appendix Heindon Road, Arcata, California 95521, Agreement). The Shasta River is a List of Topics Discussed in the Preliminary ph: 707–825–5171, fax: 707–825–4840. tributary to the Klamath River and is in Decision Memorandum FOR FURTHER INFORMATION CONTACT: Jim Siskiyou County, California. The I. Summary Simondet, Arcata, California (ph: 707– duration of the Agreement and the II. Background 825–5171, email: jim.simondet@ associated enhancement of survival III. Scope of the Orders noaa.gov). permits is 20 years.
TABLE 1—PERMITTEE, PERMIT NUMBER, AND ENROLLED PROPERTIES AFFILIATED WITH THE AGREEMENT
Permittee Permit number Enrolled property Expiration date
Outpost North Annex ...... 23271 Belcampo-North Annex Property, 8030 Siskiyou Blvd., Gre- February 24, 2041. nada, CA 96038. California Department of Fish 23276 Big Springs Ranch Wildlife Area, 41° 35′44.76 N 122°27′ February 25, 2041. and Wildlife. 31.52 W. Cardoza Ranch ...... 23278 Cardoza Ranch, 3710 East Louie Road, Montague, CA February 24, 2041. 96064.
8 See also 19 CFR 351.225(f)(iii)(5) (explaining ruling ‘‘normally within 300 days from the date of that Commerce will issue a final anticircumvention the initiation of the. . . inquiry’’).
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TABLE 1—PERMITTEE, PERMIT NUMBER, AND ENROLLED PROPERTIES AFFILIATED WITH THE AGREEMENT—Continued
Permittee Permit number Enrolled property Expiration date
Edson Foulke Ditch Company 23279 Edson-Foulke Point of Diversion, 41° 43′52.6 N 122°47′46.8 February 24, 2041 W. Grenada Irrigation District ...... 23280 Grenada Irrigation District ...... February 24, 2041. Point of Diversion 41° 38′ 11.56′ N 122° 29′ 22.88 W ...... 2019 Lowell L. Novy Rev- 23284 Grenada-Novy Ranch, Gazelle—19931 Old Hwy 99 S, Ga- February 24, 2041. ocable Trust. zelle, CA 96034, Grenada—2426 County Hwy A–12, Gre- nada, CA 96034. Hidden Valley Ranch ...... 23285 Hidden Valley Ranch, 13521 Big Springs Road, Montague, February 24, 2041. CA 96064. Emmerson Investments, Inc .... 23286 Hole-in-the-Ground Ranch, 11825 Big Springs Road, Mon- February 24, 2041. tague, CA 96064. Montague Water Conservation 23287 Montague Water Conservation District, N. 52°, 43′ E., ap- February 24, 2041. District. proximately 2601 feet from SW corner of Section 25, T43N, R5W, MDB&M, being within the NE1⁄4 of SW1⁄4 of said Section 25. Outpost Mole Richardson ...... 23288 Parks Creek Ranch, 25801 Old Hwy 99, Weed, CA 96094 ... February 24, 2041. Rice Livestock Company ...... 23289 Rice Livestock Company, 1730 County Highway A12, Mon- February 24, 2041. tague, CA. Emmerson Investments, Inc .... 23290 Seldom Seen Ranch, 41° 54′ 63.2 N 122° 38′ 35.7 W ...... February 24, 2041. Emmerson Investments, Inc.... 23291 Shasta Springs Ranch, 21305 Slough Road, Weed, CA February 25, 2041. 96094. NB Ranches, Inc ...... 23434 Nicoletti Ranch, 1824 DeSouza Lane, Montague, CA and February 24, 2041. 2238 DeSouza Lane, Montague, CA.
The enhancement of survival permits Agreement also contains a monitoring DEPARTMENT OF COMMERCE authorize the incidental taking of the component and an Adaptive covered species associated with routine Management Program that requires the National Oceanic and Atmospheric agricultural activities, implementation permittees to ensure compliance with Administration of BMAs, and the potential future return the terms and conditions of the of the enrolled property to the baseline Agreement, and to ensure that the [RTID 0648–XB308] or elevated baseline conditions baseline or elevated baseline conditions identified in the respective Site Plan of habitat for the covered species occur Marine Mammals and Endangered Agreement. Under the enhancement of on the enrolled properties. Results of Species survival permits, Site Plan Agreements, the monitoring efforts will be provided AGENCY: National Marine Fisheries and Agreement, the permittees specify to NMFS by the permittees in annual Service (NMFS), National Oceanic and the restoration and/or enhancement, reports for the duration of the 20-year Atmospheric Administration (NOAA), and management activities to be carried permit term. In addition to reviewing Commerce. out on the enrolled properties and a annual reports submitted by SWCG, ACTION: Notice; issuance of permits, timetable for implementing those NMFS, and CDFW will conduct a five- activities. NMFS prepared a biological permit modifications. year review to assess the effectiveness of opinion under section 7(a)(2) of the ESA the Agreement. SUMMARY: Notice is hereby given that to determine whether NMFS’ actions of permits and permit modifications have entering into the Agreement and the 14 At the end of the permit term and been issued to the following entities associated Site Plan Agreements, and Agreement, the enhancement of survival permits authorize the permittees to under the Marine Mammal Protection issuing the 14 section 10(a)(1)(A) Act (MMPA) and the Endangered incidentally take covered species enhancement of survival permits, would Species Act (ESA), as applicable. result in jeopardy to the covered species associated with a return to baseline or or destroy or adversely modify their elevated baseline conditions if desired ADDRESSES: The permits and related designated critical habitat. NMFS and in compliance with the terms and documents are available for review determined that these actions would not conditions of the permits. upon written request via email to [email protected]. result in jeopardy or destruction or Dated: August 3, 2021. adverse modification of designated FOR FURTHER INFORMATION CONTACT: critical habitat. NMFS also determined Angela Somma, Amy Hapeman (Permit No. 24334) and that the Agreement and Site Plan Chief, Endangered Species Division, Office Erin Markin (Permit Nos. 21467–02 and Agreements will result in a net of Protected Resources, National Marine 22822–02); at (301) 427–8401. Fisheries Service. conservation benefit for the covered SUPPLEMENTARY INFORMATION: Notices species and meet all required standards [FR Doc. 2021–16986 Filed 8–9–21; 8:45 am] were published in the Federal Register of NMFS’ Safe Harbor Policy (64 FR BILLING CODE 3510–22–P on the dates listed below that requests 32717; June 17, 1999). The Agreement for a permit or permit modification had and Site Plan Agreements specify been submitted by the below-named baseline or elevated baseline conditions applicants. To locate the Federal for the enrolled properties and include Register notice that announced our restoration/enhancement activities that receipt of the application and a will be completed by the permittee to complete description of the activities, go achieve the specified conditions. The to www.federalregister.gov and search
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on the permit number provided in Table 1 below.
TABLE 1—ISSUED PERMITS AND PERMIT MODIFICATIONS
Previous Federal Register no- Permit No. RTID Applicant tice Issuance date
21467–02 ...... 0648–XB053 Karen Holloway-Adkins, Ph.D., East Coast Biologists, 86 FR 26207; May 13, 2021 ...... July 2, 2021. Inc., P.O. Box 33715, Indialantic, FL 32903. 22822–02 ...... 0648–XB053 Pamela Plotkin, Ph.D., Texas Sea Grant, Texas A&M 86 FR 26207; May 13, 2021 ...... July 2, 2021. University, 797 Lamar Street, 4115 TAMU, College Station, TX 77843. 24334 ...... 0648–XA897 Alaska Department of Fish and Game, 1300 College 86 FR 11729; February 26, 2021 July 13, 2021. Road, Fairbanks, AK 99701 (Responsible Party: Lori Quakenbush).
In compliance with the National SUMMARY: In accordance with the received without change, including any Environmental Policy Act of 1969 (42 Privacy Act of 1974, the DoD is personal identifiers or contact U.S.C. 4321 et seq.), a final modifying and reissuing a current information. determination has been made that the system of records titled Enterprise FOR FURTHER INFORMATION CONTACT: Mrs. activities proposed are categorically Application and Services Forest (EASF), Jeanette M. Weathers-Jenkins, DISA excluded from the requirement to K890.15. This system of records was Privacy Officer, 6914 Cooper Ave, Fort prepare an environmental assessment or originally established by the DISA to Meade, MD 20755–7090, or by phone at environmental impact statement. collect and maintain records on the core (301) 225–8158. As required by the ESA, as applicable, active directory (AD) Infrastructure SUPPLEMENTARY INFORMATION: issuance of these permit was based on (domain controllers) for Enterprise a finding that such permits: (1) Were Services such as DoD Enterprise Email I. Background applied for in good faith; (2) will not (DEE), Identity Synchronization The DISA is modifying the K890.15 operate to the disadvantage of such Services (IdSS), and DoD Enterprise EASF system of records to allow the endangered species; and (3) are Portal Service (DEPS). It is an provision of user accounts, and to consistent with the purposes and Enterprise-wide hierarchical directory authenticate users to DoD enterprise policies set forth in Section 2 of the structure designed to employ greater Web applications (e.g., Defense ESA. centralization and standardization of Collaboration Services, Defense Authority: The requested permits network management for user data, Enterprise Portal, DEE) for non-dual have been issued under the MMPA of security, and distributed resources and persona personnel with DoD’s Personal 1972, as amended (16 U.S.C. 1361 et services across the DoD Enterprise. This Identity Verification (PIV)— seq.), the regulations governing the system of records notice (SORN) is Authentication (Auth) certificate, rather taking and importing of marine being updated to make various than DoD’s Email signing certificate. mammals (50 CFR part 216), the ESA of compliance changes as well as add Subject to public comment, the DoD 1973, as amended (16 U.S.C. 1531 et DoD’s standard routine uses. proposes to update this SORN to add seq.), and the regulations governing the DATES: This system of records is the standard DoD routine uses (routine taking, importing, and exporting of effective upon publication; however, uses A through I) and to allow for endangered and threatened species (50 comments on the Routine Uses will be additional disclosures outside DoD CFR parts 222–226), as applicable. accepted on or before September 9, related to the purpose of this system of Dated: August 5, 2021. 2021. The Routine Uses are effective at records. Additionally, the following Amy Sloan, the close of the comment period. sections of this SORN are being Acting Chief, Permits and Conservation ADDRESSES: You may submit comments, modified as follows: (1) To the Division, Office of Protected Resources, identified by docket number and title, Authority for Maintenance of the National Marine Fisheries Service. by any of the following methods: System section to update citation(s) and [FR Doc. 2021–16992 Filed 8–9–21; 8:45 am] * Federal Rulemaking Portal: https:// add additional authorities; (2) purpose BILLING CODE 3510–22–P www.regulations.gov. of the system to improve clarity; (3) to Follow the instructions for submitting the Categories of Individuals Covered by comments. the System section to expand the DEPARTMENT OF DEFENSE * Mail: DoD cannot receive written individuals covered and Categories of comments at this time due to the Records to clarify how the records relate Office of the Secretary COVID–19 pandemic. Comments should to the revised Category of Individuals; be sent electronically to the docket (4) Record Source Categories to account [Docket ID: DoD–2021–OS–0083] listed above. for Five Eyes partners and Coalition Instructions: All submissions received partners exchange in order to populate Privacy Act of 1974; System of must include the agency name and the information into the Five Eyes Records docket number for this Federal Register national directory; (5) Routine Uses to AGENCY: Defense Information Systems document. The general policy for align with DoD’s standard routine uses; Agency (DISA), Department of Defense comments and other submissions from (6) to the Administrative, Technical, (DoD). members of the public is to make these and Physical Safeguards to update the submissions available for public individual safeguards protecting the ACTION: Notice of a modified system of viewing on the internet at https:// personal information; (7) to the Record records. www.regulations.gov as they are Access Procedures section to reflect the
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need for individuals to identify the DoD Personnel Identity Protection (PIP) contact information for work and home appropriate DoD office or component to Program; DoDI 5200.46, DoD locations, U.S. government agency code, which their request should be directed; Investigative and Adjudicative service code, personnel category code, and (8) to the Contesting Records Guidance for Issuing the Common non-U.S. government agency object Procedures and Notification procedures Access Card (CAC); and DoDI 8520.03, common name, user account control, section to update the appropriate Identity Authentication for Information information technology service citation for contesting records. Systems. entitlements, Unit Identification Code Furthermore, this notice includes non- (UIC), and PKI certificate information, substantive changes to simplify the PURPOSE(S) OF THE SYSTEM: Administrative Organization Code, DoD formatting and text of the previously This system of records provides the component, DoD sub-component, Non- published notice. core active directory (AD) Infrastructure DoD agency, Directory publishing DoD SORNs have been published in (domain controllers) for Enterprise restrictions, Reserve Component Code, the Federal Register and are available Services such as DoD Enterprise Email Billet Code, Pay Grade, type of from the address in FOR FURTHER (DEE), Identity Synchronization investigation, date of investigation, and INFORMATION CONTACT or at the Defense Services (IdSS), and DoD Enterprise security clearance level. Privacy, Civil Liberties, and Portal Service (DEPS). It also: B. For VA personnel: Individual’s Transparency Division (DPCLTD) A. Supports the provision of user name, other unique identifier, primary website at https://dpcld.defense.gov/ accounts and authenticates users to DoD and other work email addresses, privacy. enterprise Web applications (e.g., administrative organization code, duty Defense Collaboration Services, Defense sub-organization code persona email II. Privacy Act Enterprise Portal, DEE) for non-dual address, email encryption certificate, Under the Privacy Act, a ‘‘system of personal personnel with DoD’s Personal driver’s license number. records’’ is a group of records under the Identity Verification (PIV)— Note: This system does not collect or control of an agency from which Authentication (Auth) certificate; maintain the individual’s Social information is retrieved by the name of B. Provides an Enterprise-wide Security Number. an individual or by some identifying hierarchical directory structure number, symbol, or other identifying designed to employ greater RECORD SOURCE CATEGORIES: particular assigned to the individual. In centralization and standardization of Records and information stored in the Privacy Act, an individual is defined network management for user data, this system of records are obtained from: as a U.S. citizen or lawful permanent security, and distributed resources and Defense Manpower Data Center resident. services across the DoD Enterprise; and (DMDC)’s Defense Eligibility Enrollment In accordance with 5 U.S.C. 552a(r) C. Supports the use of enterprise Reporting System (DEERS), Person Data and Office of Management and Budget services to establish a reliable and Repository (PDR) for DoD person and (OMB) Circular No. A–108, DPCLTD has uniform secure data portal for the person data, the DISA DoD PKI Global provided a report of this system of transmittal of shared information Directory Service (GDS) for users with records to the OMB and to Congress. between DoD and VA. PKI email certificates, Five Eyes Dated: August 5, 2021. D. To support continuous data partners, and the Coalition partners. exchange between DoD and its Coalition Aaron T. Siegel, ROUTINE USES OF RECORDS MAINTAINED IN THE Partners to enable current and future SYSTEM, INCLUDING CATEGORIES OF USERS AND Alternate OSD Federal Register Liaison information sharing capabilities that are Officer, Department of Defense. THE PURPOSES OF SUCH USES: used by the respective warfighters for In addition to those disclosures SYSTEM NAME AND NUMBER: conducting mission supporting generally permitted under 5 U.S.C. operations. Enterprise Application and Services 552a(b) of the Privacy Act of 1974, as Forest (EASF), K890.15. CATEGORIES OF INDIVIDUALS COVERED BY THE amended, these records contained SYSTEM: therein may specifically be disclosed SYSTEM CLASSIFICATION: A. DoD personnel, meaning those who outside the DoD as a routine use Unclassified. have been issued DoD CAC or a DoD pursuant to 5 U.S.C. 552a(b)(3) as SYSTEM LOCATION: Class 3 Public Key Infrastructure (PKI) follows: System locations may be obtained certificate to include civilian A. To contractors, grantees, experts, from the system manager. employees, military personnel, consultants, students, and others contractors, and other individuals performing or working on a contract, SYSTEM MANAGER(S): detailed or assigned to DoD service, grant, cooperative agreement, or Chief, Enterprise Directory Services Components. other assignment for the federal Section, Defense Information Systems B. Department of Veterans Affairs government when necessary to Agency (DISA), Services Directorate, (VA) PIV card holders identified by the accomplish an agency function related Applications Division, Infrastructure VA’s Interagency Care Coordination to this system of records. Applications Branch, 6910 Cooper Ave., Committee (IC3). B. To the appropriate Federal, State, Fort Meade, MD 20755–7090, telephone local, territorial, tribal, foreign, or CATEGORIES OF RECORDS IN THE SYSTEM: number 301–225–9201, email: international law enforcement authority disa.meade.se.list.idss-product- A. For DoD personnel: Individuals or other appropriate entity where a [email protected]. name, unique identifiers including DoD record, either alone or in conjunction ID number, other unique identifier, with other information, indicates a AUTHORITY FOR MAINTENANCE OF THE SYSTEM: Federal Agency Smart Credential violation or potential violation of law, 10 U.S.C. Chapter 8, Defense Agencies Number (FASC–N), login name, legacy whether criminal, civil, or regulatory in and Department of Defense Field login name, and persona username, nature. Activities; DoD Directive 5105.19, object class, rank, title, job title, persona C. To any component of the Defense Information Systems Agency type code (PTC), persona display name Department of Justice for the purpose of (DISA); DoD Instruction (DoDI) 1000.25, (PDN), address, email, phone, and other representing the DoD, or its
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components, officers, employees, or system of records information to DoD or 20755–0549. Signed, written requests members in pending or potential a DoD component. should include the individual’s full litigation to which the record is L. To partner Five Eyes (FVEY) name, current address, telephone pertinent. Nations to provide information pursuant number, and the name and number of D. In an appropriate proceeding to existing bilateral agreement(s) in this system of records notice. before a court, grand jury, or order to populate the information into In addition, the requester must administrative or adjudicative body or the FVEY national directory. provide a notarized statement or an official, when the DoD or other Agency unsworn declaration made in POLICIES AND PRACTICES FOR STORAGE OF representing the DoD determines that accordance with 28 U.S.C. 1746, in the RECORDS: the records are relevant and necessary to following format: the proceeding; or in an appropriate Records may be stored electronically If executed outside the United States: proceeding before an administrative or in secure facilities behind a locked door. ‘‘I declare (or certify, verify, or state) adjudicative body when the adjudicator The records may be stored on magnetic under penalty of perjury under the laws determines the records to be relevant to disc, tape, or digital media; in agency- of the United States of America that the the proceeding. owned cloud environments; or in foregoing is true and correct. Executed E. To the National Archives and vendor Cloud Service Offerings certified on (date). (Signature).’’ Records Administration for the purpose under the Federal Risk and If executed within the United States, of records management inspections Authorization Management Program its territories, possessions, or conducted under the authority of 44 (FedRAMP). commonwealths: ‘‘I declare (or certify, U.S.C. 2904 and 2906. POLICIES AND PRACTICES FOR RETRIEVAL OF verify, or state) under penalty of perjury F. To a Member of Congress or staff RECORDS: that the foregoing is true and correct. acting upon the Member’s behalf when Executed on (date). (Signature).’’ the Member or staff requests the These records are retrieved by individual name and DoD ID Number. information on behalf of, and at the CONTESTING RECORD PROCEDURES: request of, the individual who is the POLICIES AND PRACTICES FOR RETENTION AND The DoD rules for accessing records, subject of the record. DISPOSAL OF RECORDS: contesting contents, and appealing G. To appropriate agencies, entities, System’s sole function is to receive initial Component determinations are and persons when (1) the DoD suspects and integrate data from two or more contained in 32 CFR part 310, or may or confirms a breach of the system of other systems and export the resultant be obtained from the system manager. records; (2) the DoD determines as a product to yet another independent NOTIFICATION PROCEDURES: result of the suspected or confirmed system. These records are maintained as breach there is a risk of harm to temporary which may be destroyed Individuals seeking to determine individuals, the DoD (including its upon verification of successful creation whether information about themselves information systems, programs, and of the final document or file, or when is contained in this system of records operations), the Federal Government, or no longer needed for business use, should follow the instructions for national security; and (3) the disclosure whichever is later. Record Access Procedures above. made to such agencies, entities, and persons is reasonably necessary to assist ADMINISTRATIVE, TECHNICAL, AND PHYSICAL EXEMPTIONS PROMULGATED FOR THE SYSTEM: in connection with the DoD’s efforts to SAFEGUARDS: None. respond to the suspected or confirmed Access to the type and amount of data HISTORY: breach or to prevent, minimize, or is governed by privilege management remedy such harm. software and policies developed and December 8, 2010, 75 FR 76426; June H. To another Federal agency or enforced by Federal government 16, 2014, 79 FR 34299 Federal entity, when the DoD personnel. Data is protected by [FR Doc. 2021–17000 Filed 8–9–21; 8:45 am] determines that information from this repository and interfaces, including, but BILLING CODE 5001–06–P system of records is reasonably not limited to multi-layered firewalls, necessary to assist the recipient agency Secure Sockets Layer/Transport Layer or entity in (1) responding to a Security (SSL/TLS) connections, access DEPARTMENT OF ENERGY suspected or confirmed breach or (2) control lists, file system permissions, [Case Number 2021–006; EERE–2021–BT– preventing, minimizing, or remedying intrusion detection and prevention WAV–0014] the risk of harm to individuals, the systems and log monitoring. Complete recipient agency or entity (including its access to all records is restricted to and Energy Conservation Program: information systems, programs and controlled by certified system Notification of Petition for Waiver of operations), the Federal Government, or management personnel, who are RefPlus Inc. From the Department of national security, resulting from a responsible for maintaining the EASF Energy Walk-In Coolers and Walk-In suspected or confirmed breach. directory integrity and the data Freezers Test Procedure and I. To such recipients and under such confidentiality. Access to computerized Notification of Grant of Interim Waiver circumstances and procedures as are data is restricted by CAC. mandated by Federal statute or treaty. AGENCY: Office of Energy Efficiency and J. To the United States Coast Guard RECORD ACCESS PROCEDURES: Renewable Energy, Department of (USCG) to share DoD information to Individuals seeking access to their Energy. ensure it maintains a state of readiness records should follow the procedures in ACTION: Notification of petition for to function as a specialized military 32 CFR part 310. Individuals should waiver and grant of an interim waiver; Service in the Department of Navy in a address written inquiries to the Defense request for comments. time of war or national emergency. Information Systems Agency (DISA), K. To DoD-approved Coalition FOIA Service Center, Defense SUMMARY: This notification announces Partners for the purposes of routine Information Systems Agency, ATTN: receipt of and publishes a petition for mission supporting activities. In return, Headquarters FOIA Requester Service waiver and interim waiver from RefPlus, the Coalition partner may disclose Center, P.O. Box 549, Ft Meade, MD Inc. (‘‘RefPlus’’), which seeks a waiver
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for specified carbon dioxide (‘‘CO2’’) www.regulations.gov. All documents in submitter representative name (if any). direct expansion unit cooler basic the docket are listed in the If your comment is not processed models from the U.S. Department of www.regulations.gov index. However, properly because of technical Energy (‘‘DOE’’) test procedure used for some documents listed in the index, difficulties, DOE will use this determining the efficiency of walk-in such as those containing information information to contact you. If DOE cooler and walk-in freezer refrigeration that is exempt from public disclosure, cannot read your comment due to systems. DOE also gives notification of may not be publicly available. technical difficulties and cannot contact an Interim Waiver Order that requires The docket web page can be found at you for clarification, DOE may not be RefPlus to test and rate the specified https://www.regulations.gov/ able to consider your comment. CO2 direct expansion unit cooler basic docket?D=EERE-2021-BT-WAV-0014. However, your contact information models in accordance with the alternate The docket web page contains will be publicly viewable if you include test procedure set forth in the Interim instruction on how to access all it in the comment or in any documents Waiver Order. DOE solicits comments, documents, including public comments, attached to your comment. Any data, and information concerning in the docket. See the SUPPLEMENTARY information that you do not want to be RefPlus’s petition and its suggested INFORMATION section for information on publicly viewable should not be alternate test procedure so as to inform how to submit comments through included in your comment, nor in any DOE’s final decision on RefPlus’s www.regulations.gov. document attached to your comment. If waiver request. FOR FURTHER INFORMATION CONTACT: Ms. this instruction is followed, persons DATES: Written comments and Lucy deButts, U.S. Department of viewing comments will see only first information are requested and will be Energy, Office of Energy Efficiency and and last names, organization names, accepted on or before September 9, Renewable Energy, Building correspondence containing comments, 2021. Technologies Office, Mailstop EE–5B, and any documents submitted with the 1000 Independence Avenue SW, comments. ADDRESSES: Interested persons are encouraged to submit comments using Washington, DC 20585–0121. Email: Do not submit to www.regulations.gov [email protected]. the Federal eRulemaking Portal at information for which disclosure is Mr. Michael Kido, U.S. Department of www.regulations.gov. Alternatively, restricted by statute, such as trade Energy, Office of the General Counsel, interested persons may submit secrets and commercial or financial Mail Stop GC–33, Forrestal Building, information (hereinafter referred to as comments, identified by docket number 1000 Independence Avenue SW, EERE–2021–BT–WAV–0014, by any of Confidential Business Information Washington, DC 20585–0103. (‘‘CBI’’)). Comments submitted through the following methods: Telephone: (202) 586–8145. Email: 1. Federal eRulemaking Portal: www.regulations.gov cannot be claimed [email protected]. www.regulations.gov. Follow the as CBI. Comments received through the SUPPLEMENTARY INFORMATION: instructions for submitting comments. In this website will waive any CBI claims for 2. Email: to REFPLUS2021WAV0014@ notice, DOE is publishing RefPlus’s the information submitted. For ee.doe.gov. Include docket number petition for waiver in its entirety, information on submitting CBI, see the 1 EERE–2021–BT–WAV–0014 in the pursuant to 10 CFR 431.401(b)(1)(iv)). Confidential Business Information subject line of the message. DOE is also publishing the Interim section. No telefacsimiles (‘‘faxes’’) will be Waiver Order granted to RefPlus, which DOE processes submissions made accepted. For detailed instructions on serves as notification of DOE’s through www.regulations.gov before submitting comments and additional determination regarding RefPlus’s posting. Normally, comments will be information on this process, see the petition for an interim waiver, pursuant posted within a few days of being SUPPLEMENTARY INFORMATION section of to 10 CFR 431.401(e)(1)(ii). DOE invites submitted. However, if large volumes of this document. all interested parties to submit in comments are being processed Although DOE has routinely accepted writing by September 9, 2021, simultaneously, your comment may not public comment submissions through a comments and information on all be viewable for up to several weeks. variety of mechanisms, including postal aspects of the petition, including the Please keep the comment tracking mail and hand delivery/courier, the alternate test procedure. Pursuant to 10 number that www.regulations.gov Department has found it necessary to CFR 431.401(d), any person submitting provides after you have successfully make temporary modifications to the written comments to DOE must also uploaded your comment. comment submission process in light of send a copy of such comments to the Submitting comments via email. the ongoing Covid–19 pandemic. DOE is petitioner. The contact information for Comments and documents submitted currently suspending receipt of public the petitioner is Michel Lecompte, via email also will be posted to comments via postal mail and hand [email protected], 2777, Grande- www.regulations.gov. If you do not want Alle´e St-Hubert, Quebec Canada, J4T delivery/courier. If a commenter finds your personal contact information to be 2R4. that this change poses an undue publicly viewable, do not include it in Submitting comments via your comment or any accompanying hardship, please contact Appliance www.regulations.gov. The documents. Instead, provide your Standards Program staff at (202) 586– www.regulations.gov web page will contact information on a cover letter. 1445 to discuss the need for alternative require you to provide your name and Include your first and last names, email arrangements. Once the Covid–19 contact information. Your contact address, telephone number, and pandemic health emergency is resolved, information will be viewable to DOE optional mailing address. The cover DOE anticipates resuming all of its Building Technologies staff only. Your letter will not be publicly viewable as regular options for public comment contact information will not be publicly long as it does not include any submission, including postal mail and viewable except for your first and last comments. hand delivery/courier. names, organization name (if any), and Docket: The docket, which includes Include contact information each time Federal Register notices, comments, 1 The petition did not identify any of the you submit comments, data, documents, and other supporting documents/ information contained therein as confidential and other information to DOE. Faxes materials, is available for review at business information. will not be accepted.
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Comments, data, and other variety of provisions designed to model for which the waiver was information submitted to DOE improve energy efficiency for certain requested contains a design electronically should be provided in types of industrial equipment. Through characteristic that prevents testing of the PDF (preferred), Microsoft Word or amendments brought about by the basic model according to the prescribed Excel, WordPerfect, or text (ASCII) file Energy Independence and Security Act test procedures, or that the prescribed format. Provide documents that are not of 2007, Public Law 110–140, sec. 312 test procedures evaluate the basic model secured, written in English and free of (Dec. 19, 2007), this equipment includes in a manner so unrepresentative of its any defects or viruses. Documents walk-in coolers and walk-in freezers true energy consumption characteristics should not contain special characters or (collectively ‘‘walk-ins’’), the subject of as to provide materially inaccurate any form of encryption and, if possible, this Interim Waiver Order. (42 U.S.C. comparative data. 10 CFR 431.401(f)(2). they should carry the electronic 6311(1)(G)). A petitioner must include in its petition signature of the author. The energy conservation program any alternate test procedures known to Campaign form letters. Please submit under EPCA consists essentially of four the petitioner to evaluate the campaign form letters by the originating parts: (1) Testing, (2) labeling, (3) performance of the product type in a organization in batches of between 50 to Federal energy conservation standards, manner representative of the energy 500 form letters per PDF or as one form and (4) certification and enforcement consumption characteristics of the basic letter with a list of supporters’ names procedures. Relevant provisions of model. 10 CFR 431.401(b)(1)(iii). DOE compiled into one or more PDFs. This EPCA include definitions (42 U.S.C. may grant the waiver subject to reduces comment processing and 6311), energy conservation standards conditions, including adherence to posting time. (42 U.S.C. 6313), test procedures (42 alternate test procedures. 10 CFR Confidential Business Information. U.S.C. 6314), labeling provisions (42 431.401(f)(2). According to 10 CFR 1004.11, any U.S.C. 6315), and the authority to As soon as practicable after the person submitting information that he require information and reports from granting of any waiver, DOE will or she believes to be confidential and manufacturers (42 U.S.C. 6316). publish in the Federal Register a notice exempt by law from public disclosure The Federal testing requirements of proposed rulemaking to amend its should submit via email two well- consist of test procedures that regulations so as to eliminate any need marked copies: One copy of the manufacturers of covered equipment for the continuation of such waiver. 10 document marked confidential must use as the basis for: (1) Certifying CFR 431.401(l). As soon thereafter as including all the information believed to to DOE that their equipment complies practicable, DOE will publish in the be confidential, and one copy of the with the applicable energy conservation Federal Register a final rule to that document marked ‘‘non-confidential’’ standards adopted pursuant to EPCA (42 effect. Id. with the information believed to be U.S.C. 6316(a); 42 U.S.C. 6295(s)), and The waiver process also provides that confidential deleted. Submit these (2) making representations about the DOE may grant an interim waiver if it documents via email. DOE will make its efficiency of that equipment (42 U.S.C. appears likely that the underlying own determination about the 6314(d)). Similarly, DOE must use these petition for waiver will be granted and/ confidential status of the information test procedures to determine whether or if DOE determines that it would be and treat it according to its the covered equipment complies with desirable for public policy reasons to determination. relevant standards promulgated under grant immediate relief pending a It is DOE’s policy that all comments EPCA. (42 U.S.C. 6316(a); 42 U.S.C. determination on the underlying may be included in the public docket, 6295(s)). petition for waiver. 10 CFR without change and as received, Under 42 U.S.C. 6314, EPCA sets forth 431.401(e)(2). Within one year of including any personal information the criteria and procedures DOE is issuance of an interim waiver, DOE will provided in the comments (except required to follow when prescribing or either: (i) Publish in the Federal information deemed to be exempt from amending test procedures for covered Register a determination on the petition public disclosure). equipment. EPCA requires that any test for waiver; or (ii) publish in the Federal procedures prescribed or amended Case Number 2021–006 Register a new or amended test under this section must be reasonably procedure that addresses the issues Interim Waiver Order designed to produce test results which presented in the waiver. 10 CFR reflect the energy efficiency, energy use I. Background and Authority 431.401(h)(1). or estimated annual operating cost of If DOE ultimately denies the petition The Energy Policy and Conservation covered equipment during a 2 for waiver, or if the alternate test Act, as amended (‘‘EPCA’’), authorizes representative average use cycle and the U.S. Department of Energy (‘‘DOE’’) procedure specified in the interim requires that test procedures not be waiver differs from the alternate test to regulate the energy efficiency of a unduly burdensome to conduct. (42 number of consumer products and procedure specified by DOE in a U.S.C.6314(a)(2)) The test procedure for subsequent Decision and Order, DOE certain industrial equipment. (42 U.S.C. walk-in refrigeration systems is 6291–6317). Title III, Part C 3 of EPCA, will provide a period of 180 days before contained in the Code of Federal the manufacturer is required to use the Public Law 94–163 (42 U.S.C. 6291– Regulations (‘‘CFR’’) at 10 CFR part 431, 6309, as codified), added by the DOE test procedure or the alternate test subpart R, appendix C, Uniform Test procedure specified in the Decision and National Energy Conservation Policy Method for the Measurement of Net Act, Public Law 95–619, sec. 441 (Nov. Order to make representations of energy Capacity and AWEF of Walk-In Cooler efficiency. 10 CFR 431.401(i).4 When 9, 1978), established the Energy and Walk-In Freezer Refrigeration Conservation Program for Certain Systems (‘‘Appendix C’’). Industrial Equipment, which sets forth a 4 In proposing an amendment to 10 CFR Under 10 CFR 431.401, any interested 431.401(i), DOE stated that—‘‘The 180 day duration person may submit a petition for waiver was proposed because that time frame is consistent 2 All references to EPCA in this document refer from DOE’s test procedure with the EPCA provision that provides to the statute as amended through the Energy Act manufacturers 180 days from issuance of a new or of 2020, Public Law 116–260 (Dec. 27, 2020). requirements. DOE will grant a waiver amended test procedure to begin using that test 3 For editorial reasons, upon codification in the from the test procedure requirements if procedure for representation of energy efficiency.’’ U.S. Code, Part C was redesignated as Part A–1. DOE determines either that the basic Continued
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DOE amends the test procedure to stated that CO2 has a critical °F with an associated critical pressure of 8 9 address the issues presented in a temperature of 87.8 °F, and thus the 540.8 psia. However, CO2 behaves waiver, the waiver will automatically required liquid inlet saturation differently, with a critical temperature terminate on the date on which use of temperature of 105 °F and the required of 87.8 °F and an associated critical that test procedure is required to liquid inlet subcooling temperature of 9 pressure of 1,072 psia. The refrigerant demonstrate compliance. 10 CFR °F are not achievable, and that the test temperature must be somewhat higher 431.401(h)(3). conditions should be more consistent than the ambient temperature in order with typical operating conditions for a to reject refrigeration cycle heat to the II. RefPlus’s Petition for Waiver and transcritical CO booster system ambient environment. Ambient Interim Waiver 2 (RefPlus, No. 2, p. 5). temperatures greater than 87.8 °F are On June 2, 2021, DOE received 5 from The statements made by RefPlus common and the performance of many RefPlus a petition for waiver and reference the difference in refrigeration and air conditioning interim waiver from the test procedure thermodynamic properties between CO2 systems are tested using a 95 °F ambient for walk-in refrigeration systems set and other refrigerants. Many substances temperature, as indicated by the A test forth at 10 CFR part 431, subpart R, transition from a solid to a liquid to a condition in AHRI 1250–2009 Section 5. appendix C. (RefPlus, No. 1 at p. 1).6 gas at a given pressure as temperature Above the critical temperature and DOE received an updated petition for increases. For example, a pure critical pressure, the CO2 refrigerant is waiver and interim waiver from RefPlus substance like water transitions from in a supercritical state and heat is on July 12, 2021. (RefPlus, No. 2 at p. liquid to steam at a specific transferred to the environment. Since ° 1). The updated petition specifies temperature, e.g. 212 F, at atmospheric the temperature of the CO2 refrigerant additional basic models to be pressure. As heat is added during a ranges from supercritical to subcritical considered under the waiver request. liquid to gas transition, the temperature within the system, CO2 cycles are said (RefPlus, No. 2 at pp. 2–5). Pursuant to remains constant and the substance to be ‘‘transcritical.’’ 10 CFR 431.401(b)(1)(iv), DOE has coexists as both liquid and vapor. The transcritical nature of CO2 posted both petitions to the docket at, Continuing to add heat converts more of generally requires a more complex at: www.regulations.gov/docket/EERE- the liquid to vapor at a constant refrigeration cycle design to approach 2021-BT-WAV-0014 and has reproduced temperature. The reverse occurs when the efficiency of traditional refrigerants the most recent petition for waiver in heat is removed. However, the transition (i.e., R404A, R407A, R448A, etc.) during this notice.7 temperature depends on the pressure— operation in high temperature RefPlus claims that the test conditions the higher the pressure, the higher the conditions. To increase efficiency and described in Table 15 and Table 16 of transition temperature. This is a key prevent overheating, transcritical the Air-Conditioning, Heating, and principle in refrigeration systems, booster systems introduce (or use) Refrigeration Institute (‘‘AHRI’’) which operate at two pressure levels multiple stages of compression and Standard 1250–2009, Standard for associated with two temperatures. A intercooling. CO2 is cooled in the gas Performance Rating of Walk-In Coolers refrigerant absorbs heat when it is at a cooler of a transcritical booster system, and Freezers (‘‘AHRI 1250–2009’’) (for low temperature and pressure, then expands through a high-pressure walk-in refrigerator unit coolers and converting to gas and cooling the control valve and is delivered to a freezer unit coolers tested alone, surrounding space. At high temperature subcritical-pressure flash tank. In the respectively), as incorporated by and pressure, the refrigerant transitions flash tank, the refrigerant is in the Appendix C with modification, cannot to a liquid while releasing heat to the subcritical phase and the liquid and be achieved by the specified basic environment. A compressor is used to vapor phases can be separated. In a CO2 models and are not consistent with the raise a gas from low- high-pressure, and booster system, subcooled liquid operation of RefPlus’s CO2 direct a throttle (pressure reduction device) is refrigerant from the flash tank supplies expansion unit coolers. RefPlus also used to reduce the pressure once the the unit cooler via expansion valves refrigerant has been fully liquefied where the refrigerant is evaporated. The 84 FR 18414, 18416 (May 1, 2019); (See 42 U.S.C. (condensed) at high pressure. evaporated refrigerant is subsequently 6293(c)(2)). In the final rule published December All refrigerants have a ‘‘critical compressed up to gas cooler pressure to 11, 2020, stated that it was maintaining the 180-day temperature’’ and an associated ‘‘critical grace period as proposed. 85 FR 79802, 79813. As complete the cycle (Docket EERE–2021– such, were a Decision and Order issued with an pressure’’ above which liquid and vapor BT–WAV–0014, No. 5). alternate test procedure that differed from that phases cannot coexist. Above this As noted, RefPlus requests an interim required under this interim waiver, beginning 180 critical point, the refrigerant will be a waiver from the existing DOE test days following publication of the Decision and gas and its temperature will increase or Order any representations made by the petitioner procedure. DOE will review the petition must fairly disclose the results of testing in decrease as heat is added or removed. for interim waiver within 45 business accordance with the alternate test procedure For conventional refrigerants, the days of receipt of the petition. 10 CFR specified by the final Order and the applicable critical temperature is never exceeded 431.401(e)(1)(ii). If DOE does not notify requirements of 10 CFR part 429. in typical refrigeration cycles. For the applicant of the disposition of the 5 A petition submitted under 10 CFR 431.401 is example, R404A is a common considered ‘‘received’’ on the date it is received by petition for interim waiver, in writing, DOE through DOE’s established email box for refrigerant used in refrigeration systems within 45 business days of receipt of the receipt of waiver petitions or, if delivered by mail, and has a critical temperature of 161.7 petition, the interim waiver is granted on the date the waiver petition is stamped as utilizing the alternate test procedure received by DOE. 10 CFR 431.401(e)(1)(iii). 8 The test procedure specifies the unit cooler 6 A notation in the form ‘‘RefPlus, No. 1’’ refrigerant inlet condition in terms of a saturation requested in the petition. Id. DOE will identifies a written submission: (1) Made by temperature (the temperature at which it completes grant an interim waiver if it appears RefPlus; and (2) recorded in document number 1 the condensation process in a condenser) and the likely that the petition for waiver will be that is filed in the docket of this petition for waiver subcooling temperature (additional reduction in granted, and/or if DOE determines that (Docket No. EERE–2021–BT–WAV–0014) and temperature lower than the specified saturation it would be desirable for public policy available at www.regulations.gov/docket?D=EERE- temperature). For CO2, the critical temperature 2021-BT-WAV-0014. above which there cannot exist separate liquid and 7 The petition did not identify any of the gas phases is below the saturation condition 9 Absolute pressure is the pressure measured information contained therein as confidential specified in the test procedure, hence the specified relative to a complete vacuum; ‘‘psia’’ represents business information. condition cannot be achieved. the absolute pressure in pounds per square inch.
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reasons to grant immediate relief respectively, for both walk-in subcritical-pressure flash tank, where pending a determination of the petition refrigerator unit coolers and walk-in liquid and vapor phases of the for waiver. 10 CFR 431.401(e)(2). freezer unit coolers. (RefPlus, No. 2 at p. refrigerant are separated. The liquid is Based on the assertions in the 5). Additionally, RefPlus recommended then split, and the unit coolers receive petition, absent an interim waiver, the that because the subject units are used the refrigerant at the same condition, prescribed test procedure is not in transcritical CO2 booster systems, the consistent with the use of the same appropriate for RefPlus’s CO2 direct calculations in AHRI 1250–2009 section liquid inlet saturation temperature for expansion unit coolers and the test 7.9 should be used to determine Annual both the medium- and low-temperature conditions are not achievable. As Walk-in Efficiency Factor (‘‘AWEF’’) systems in RefPlus’s suggested test discussed, CO2 refrigerant has a critical and net capacity for unit coolers approach. Calculations on other external ° temperature of 87.8 F and the current matched to parallel rack systems as CO2 refrigeration system designs in the DOE test procedure calls for a liquid required under the DOE test procedure. market indicate that the 38 °F liquid inlet saturation temperature of 105 °F. (RefPlus, No. 2 at pp. 5–6). This section unit cooler inlet saturation temperature The inability to achieve test conditions of AHRI 1250–2009 is prescribed by the suggested by RefPlus is representative of for the stated basic models would result DOE test procedure for determining CO2 booster systems (Docket EERE– in economic hardship from loss of sales AWEF for all unit coolers tested alone 2021–BT–WAV–0014, No. 5). Regarding stemming from the inability of the DOE (see 10 CFR part 431, subpart R, use of the EER values in AHRI 1250– test procedure to address the operating appendix C, section 3.3.1). Finally, 2009 Table 17 to determine the conditions of RefPlus’s equipment. DOE RefPlus also recommended that AHRI representative compressor power has published decision and orders 1250–2009 Table 17, EER for Remote consumption for CO2 unit cooler granting a waiver for other equipment Commercial Refrigerated Display systems, research into the performance 10 relying on the same technology. Merchandisers and Storage Cabinets, of different configurations of CO2 III. Requested Alternate Test Procedure should be used to determine power booster systems shows that enhanced consumption of CO direct expansion CO cycles (like those used in EPCA requires that manufacturers use 2 2 unit cooler systems as required under transcritical booster systems) can match DOE test procedures when making the DOE test procedure (RefPlus, No. 2 conventional refrigerants in average representations about the energy at p. 5). annual efficiency (Docket EERE–2021– consumption and energy consumption BT–WAV–0014, No. 3). The findings costs of covered equipment. (42 U.S.C. IV. Interim Waiver Order from this research, along with the other 6314(d)). Consistency is important when collective factors previously noted, making representations about the energy DOE has reviewed RefPlus’s justify the use of the EER values in efficiency of covered equipment, application for an interim waiver, the AHRI 1250–2009 Table 17 for including when demonstrating alternate test procedure requested by determining the power consumption for compliance with applicable DOE energy RefPlus, and the websites and product CO booster system evaporators, despite conservation standards. Pursuant to 10 specification sheets for the basic models 2 these EER values being initially CFR 431.401, and after consideration of listed in RefPlus’s petition. Based on established for systems using public comments on the petition, DOE this review, the suggested alternate test conventional refrigerants. Consequently, may establish in a subsequent Decision procedure appears to allow for the DOE has determined that RefPlus’s and Order an alternate test procedure accurate measurement of the energy petition for waiver likely will be for the basic models addressed by the efficiency of the specified basic models, granted. Furthermore, DOE has Interim Waiver Order. while alleviating the testing issues RefPlus seeks to use an alternate test associated with RefPlus’s determined that it is desirable for public policy reasons to grant RefPlus procedure to test and rate specific CO2 implementation of walk-in cooler and direct expansion unit cooler basic walk-in freezer testing for these basic immediate relief pending a models. RefPlus’s suggested approach models. Review of the CO2 refrigeration determination of the petition for waiver. specifies using modified liquid inlet market confirms that the testing For the reasons stated, it is ordered saturation and liquid inlet subcooling conditions and approach suggested by that: temperatures of 38 °F and 5 °F, RefPlus would be representative for (1) RefPlus must test and rate the operation of a unit cooler used in a following RefPlus-branded, CO2 direct 10 See Notice of Decision and Order granting a transcritical CO2 booster system (Docket expansion unit cooler basic models with waiver to HTPG (Case No. 2020–009; 86 FR 14887 EERE–2021–BT–WAV–0014, No. 4). the alternate test procedure set forth in (Mar. 19, 2021)); Notice of Decision and Order Specifically, CO2 that is cooled in the paragraph (2). granting a waiver to Hussmann (Case No. 2020–010; gas cooler of a transcritical booster 86 FR 24606 (May 7, 2021)); Notice of Decision and Basic Model Numbers: Order granting a waiver to KeepRite (Case No. system expands through a high-pressure BILLING CODE 6450–01–P 2020–014; 86 FR 24603 (May 7, 2021)). control valve that delivers CO2 to a
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Basic Model Numbers:
LAA-0607-1 LAE-0577-2 LAG-0577-1 LAH-0577-1 LPA-0607-1 LPE-0577-2 LPG-0577-1 LPH-0577-1 LAA-0607-2 LAE-0577-5 LAG-0577-2 LAH-0577-2 LPA-0607-2 LPE-0577-5 LPG-0577-2 LPH-0577-2 LAA-0757-1 LAE-0727-2 LAG-0727-1 LAH-0727-1 LPA-0707-1 LPE-0677-2 LPG-0677-1 LPH-0677-1 LAA-0757-2 LAE-0727-5 LAG-0727-2 LAH-0727-2 LPA-0707-2 LPE-0677-5 LPG-0677-2 LPH-0677-2 LAA-0957-1 LAE-0907-2 LAG-0907-1 LAH-0907-1 LPA-0807-1 LPE-0767-2 LPG-0767-1 LPH-0767-1 LAA-0957-2 LAE-0907-5 LAG-0907-2 LAH-0907-2 LPA-0807-2 LPE-0767-5 LPG-0767-2 LPH-0767-2 LAA-1207-1 LAE-1147-2 LAG-1147-1 LAH-1147-1 LPA-1007-1 LPE-0957-2 LPG-0957-1 LPH-0957-1 LAA-1207-2 LAE-1147-5 LAG-1147-2 LAH-1147-2 LPA-1007-2 LPE-0957-5 LPG-0957-2 LPH-0957-2 LAA-1507-1 LAE-1437-2 LAG-1437-1 LAH-1437-1 LPA-1207-1 LPE-1157-2 LPG-1157-1 LPH-1157-1 LAA-1507-2 LAE-1437-5 LAG-1437-2 LAH-1437-2 LPA-1207-2 LPE-1157-5 LPG-1157-2 LPH-1157-2 LAA-1807-1 LAE-1707-2 LAG-1707-1 LAH-1707-1 LPA-1607-1 LPE-1527-2 LPG-1527-1 LPH-1527-1 LAA-1807-2 LAE-1707-5 LAG-1707-2 LAH-1707-2 LPA-1607-2 LPE-1527-5 LPG-1527-2 LPH-1527-2 LAA-2407-1 LAE-2307-2 LAG-2307-1 LAH-2307-1 LPA-2007-1 LPE-1907-2 LPG-1907-1 LPH-1907-1 LAA-2407-2 LAE-2307-5 LAG-2307-2 LAH-2307-2 LPA-2007-2 LPE-1907-5 LPG-1907-2 LPH-1907-2 LAA-2807-1 LAE-2707-2 LAG-2707-1 LAH-2707-1 LPA-2107-1 LPE-2007-2 LPG-2007-1 LPH-2007-1 LAA-2807-2 LAE-2707-5 LAG-2707-2 LAH-2707-2 LPA-2107-2 LPE-2007-5 LPG-2007-2 LPH-2007-2 LAA-3007-1 LAE-2867-2 LAG-2867-1 LAH-2867-1 LPA-2407-1 LPE-2307-2 LPG-2307-1 LPH-2307-1 LAA-3007-2 LAE-2867-5 LAG-2867-2 LAH-2867-2 LPA-2407-2 LPE-2307-5 LPG-2307-2 LPH-2307-2 LAA-3607-1 LAE-3437-2 LAG-3437-1 LAH-3437-1 LPA-2807-1 LPE-2707-2 LPG-2707-1 LPH-2707-1 LAA-3607-2 LAE-3437-5 LAG-3437-2 LAH-3437-2 LPA-2807-2 LPE-2707-5 LPG-2707-2 LPH-2707-2 LAA-4207-1 LAE-4007-2 LAG-4007-1 LAH-4007-1 LPA-3507-1 LPE-3347-2 LPG-3347-1 LPH-3347-1
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LAA-4207-2 LAE-4007-5 LAG-4007-2 LAH-4007-2 LPA-3507-2 LPE-3347-5 LPG-3347-2 LPH-3347-2 LAA-4607-1 LAE-4387-2 LAG-4387-1 LAH-4387-1 LPA-4207-1 LPE-4007-2 LPG-4007-1 LPH-4007-1 LAA-4607-2 LAE-4387-5 LAG-4387-2 LAH-4387-2 LPA-4207-2 LPE-4007-5 LPG-4007-2 LPH-4007-2 LSA-0457-1 LSE-0437-2 LSR-0437-1 LST-0437-1 LYA-0707-1 LYA-3607-2 LYG-0707-1 LYH-0707-1 LSA-0457-2 LSE-0437-5 LSR-0437-2 LST-0437-2 LVA-0707-2 LVA-3607-5 LVG-0707-2 LVH-0707-2 LSA-0557-1 LSE-0527-2 LSR-0527-1 LST-0527-1 LVA-0707-5 LVA-4207-1 LVG-0807-1 LVH-0807-1 LSA-0557-2 LSE-0527-5 LSR-0527-2 LST-0527-2 LVA-0807-1 LVA-4207-2 LVG-0807-2 LVH-0807-2 LSA-0657-1 LSE-0627-2 LSR-0627-1 LST-0627-1 LVA-0807-2 LVA-4207-5 LVG-0907-1 LVH-0907-1 LSA-0657-2 LSE-0627-5 LSR-0627-2 LST-0627-2 LVA-0807-5 LVE-0707-2 LVG-0907-2 LVH-0907-2 LSA-0757-1 LSE-0727-2 LSR-0727-1 LST-0727-1 LVA-0907-1 LVE-0707-5 LVG-1207-1 LVH-1207-1 LSA-0757-2 LSE-0727-5 LSR-0727-2 LST-0727-2 LVA-0907-2 LVE-0807-2 LVG-1207-2 LVH-1207-2 LSA-0927-1 LSE-0887-2 LSR-0887-1 LST-0887-1 LVA-0907-5 LVE-0807-5 LVG-1507-1 LVH-1507-1 LSA-0927-2 LSE-0887-5 LSR-0887-2 LST-0887-2 LVA-1207-1 LVE-0907-2 LVG-1507-2 LVH-1507-2 LSA-1087-1 LSE-1037-2 LSR-1037-1 LST-1037-1 LVA-1207-2 LVE-0907-5 LVG-1907-1 LVH-1907-1 LSA-1087-2 J ,SE-1017-5 LSR-1017-2 LST-1017-2 LVA-1207-5 LVE-1207-2 J ,VG-1907-2 J ,V]J. 1907-2 LSA-1307-1 LSE-1247-2 LSR-1247-1 LST-1247-1 LVA-1507-1 LVE-1207-5 LVG-2407-1 LVH-2407-1 LSA-1107-2 J ,SE-1247-5 LSR-1247-2 LST-1247-2 LVA-1507-2 LVE-1507-2 J ,VG-2407-2 J ,VJJ-2407-2 LSA-1407-1 LSE-1337-2 LSR-1337-1 LST-1337-1 LVA-1507-5 LVE-1507-5 LVG-2707-1 LVH-2707-1 LSA-1407-2 LSE-1337-5 LSR-1337-2 LST-1337-2 LVA-1907-1 LVE-1907-2 LVG-2707-2 L VII-2707-2 LSA-1607-1 LSE-1527-2 LSR-1527-1 LST-1527-1 LVA-1907-2 LVE-1907-5 LVG-3007-1 LVH-3007-1 LSA-1607-2 LSE-1527-5 LSR-1527-2 LST-1527-2 LYA-1907-5 LYE-2407-2 LYG-3007-2 LYH-3007-2 LSA-1907-1 LSE-1807-2 LSR-1807-1 LST-1807-1 LVA-2407-1 LVE-2407-5 LVG-3607-1 LVH-3607-1 LSA-1907-2 LSE-1807-5 LSR-1807-2 LST-1807-2 LYA-2407-2 LYE-2707-2 LYG-3607-2 LYH-3607-2 LSA-2307-1 LSE-2207-2 LSR-2207-1 LST-2207-1 LVA-2407-5 LVE-2707-5 LVG-4207-1 LVH-4207-1 LSA-2307-2 LSE-2207-5 LSR-2207-2 LST-2207-2 LVA-2707-1 LVE-2707-8 LVG-4207-2 LVH-4207-2 LSA-2607-1 LSE-2407-2 LSR-2407-1 LST-2407-1 LVA-2707-2 LVE-2707-9 LSA-2607-2 LSE-2407-5 LSR-2407-2 LST-2407-2 LVA-2707-5 LVE-3007-2
LSA-3207-1 LSE-3007-2 LSR-3007-1 LST-3007-1 LVA-3007-1 LVE-3007-5 LSA-3207-2 LSE-3007-5 LSR-3007-2 LST-3007-2 LVA-3007-2 LVE-3607-2 LSA-3907-1 LSE-3707-2 LSR-3707-1 LST-3707-1 LVA-3007-5 LVE-3607-5 LSA-3907-2 LSE-3707-5 LSR-3707-2 LST-3707-2 LVA-3607-1 LVE-4207-2 LVE-4207-5
EJA-02600A-5 EJE-02500A-5 EJG-02600A-5 EJII-02600A-5 EJR-02600A-5 EJT-02600A-5 EQA-04900A-5 EQE-04800A-5 EJA-02600A-9 EJE-02500A-9 EJG-02600A-9 EJH-02600A-9 EJR-02600A-9 EJT-02600A-9 EQA-04900A-9 EQE-04800A-9 EJA-03200A-5 EJE-031 00A-5 EJG-03200A-5 EJH-03200A-5 EJR-03200A-5 EJ'J'-03200A-5 EQA-05800A-5 EQE-05700A-5 EJA-03200A-9 EJE-031 00A-9 EJG-03200A-9 EJH-03200A-9 EJR-03200A-9 EJT-03200A-9 EQA-05800A-9 EQE-05700A-9 EJA-03800A-5 EJE-03700A-5 EJG-03800A-5 EJH-03800A-5 EJR-03800A-5 EJ'J'-03800A-5 EQA-06800A-5 EQE-06700A-5
EJA-03800A-9 EJE-03700A-9 EJG-03800A-9 EJH-03800A-9 EJR-03800A-9 EJT-03800A-9 EQA-06800A-9 EQE-06700A-9 EJA-05200A-5 EJE-051 00A-5 EJG-05200A-5 EJH-05200A-5 EJR-05200A-5 EJ'J'-05200A-5 EQA-09900A-5 EQE-09600A-5 EJA-05200A-9 EJE-05 I 00A-9 EJG-05200A-9 EJH-05200A-9 EJR-05200A-9 EJT-05200A-9 EQA-09900A-9 EQE-09600A-9 EJA-06300A-5 EJE-06200A-5 EJG-06300A-5 EJH-06300A-5 EJR-06300A-5 EJT-06300A-5 EQA-11600A-5 EQE-llS00A-5 EJA-06300A-9 EJE-06200A-9 EJG-06300A-9 EJH-06300A-9 EJR-06300A-9 EJT-06300A-9 EQA-l 1600A-9 EQE-l lS00A-9 EJA-07700A-5 EJE-07600A-5 EJG-07700A-5 EJH-07700A-5 EJR-07700A-5 EJT-07700A-5 EQA-13600A-5 EQE-13400A-5 EJA-07700A-9 EJE-07600A-9 EJG-07700A-9 EJH-07700A-9 EJR-07700A-9 EJT-07700A-9 EQA-13600A-9 EQE-13400A-9 EJA-09500A-5 EJE-09300A-5 EJG-09500A-5 EJH-09500A-5 EJR-09500A-5 EJT-09500A-5 EQA-l 7500A-5 EQE-l 7200A-5 EJA-09500A-9 EJE-09300A-9 EJG-09500A-9 EJH-09500A-9 EJR-09500A-9 EJT-09500A-9 EQA-l 7500A-9 EQE-17200A-9 EJA-11600A-5 EJE-11500A-5 EJG-11600A-5 EJH-l 1600A-5 EJR-11600A-5 EJT-116001\-5 EQA-20400A-5 EQE-20300A-5
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EJA-11600A-9 EJE-11500A-9 EJG-11600A-9 EJH-11600A-9 EJR-11600A-9 EJT-11600A-9 EQA-20400A-9 EQE-20300A-9 EJA-12700A-5 EJE-15300A-5 EJG-12700A-5 EJH-12700A-5 EJR-12700A-5 EJT-12700A-5 EQA-23400A-5 EQE-26800A-5 EJA-12700A-9 EJE-15300A-9 EJG-12700A-9 EJH-12700A-9 EJR-12700A-9 EJT-12700A-9 EQA-23400A-9 EQE-26800A-9 EJA-15400A-5 EJE-19000A-5 EJG-15400A-5 EJH-15400A-5 EJR-15400A-5 EJT-15400A-5 EQA-26500A-5 EQE-33700A-5 EJA-15400A-9 EJE-19000A-9 EJG-15400A-9 EJH-15400A-9 EJR-15400A-9 EJT-15400A-9 EQA-26500A-9 EQE-33700A-9 EJA-19400A-5 EJG-19400A-5 EJH-19400A-5 EJR-19400A-5 EJT-19400A-5 EQA-34200A-5 EJA-19400A-9 EJG-19400A-9 EJH-19400A-9 EJR-19400A-9 EJT-19400A-9 EQA-34200A-9 EJA-2IO00A-5 EJG-2IO00A-5 EJH-2IO00A-5 EJR-2IO00A-5 EJT-2IO00A-5 EQA-44400A-5 EJA-2IO00A-9 EJG-21000A-9 EJH-2IO00A-9 EJR-2IO00A-9 EJT-2IO00A-9 EQA-44400A-9
EQG-04900A-5 EQH-04900A-5 EQR-04900A-5 EQT-04900A-5 EKA-1400-2 EKE-2200-5 EKR-4000-5 EMA-02150-2 EQG-04900A-9 EQH-04900A-9 EQR-04900A-9 EQT-04900A-9 EKA-1600-2 EKE-2900-2 EKR-5000-2 EMA-02150-5 EQG-05800A-5 EQH-05800A-5 EQR-05800A-5 EQT-05800A-5 EKA-1800-2 EKE-2900-5 EKR-5000-5 EMA-02550-2 EQG-05800A-9 EQII-05800A-9 EQR-05800A-9 EQT-05800A-9 EKA-2100-2 EKE-3400-2 EKR-6000-2 EMA-02550-5 EQG-06800A-5 EQH-06800A-5 EQR-06800A-5 EQT-06800A-5 EKA-2100-5 EKE-3400-5 EKR-6000-5 EMA-03000-2 EQG-06800A-9 EQH-06800A-9 EQR-06800A-9 EQT-06800A-9 EKA-2400-2 EKE-4000-2 EKT-1300-2 EMA-03000-5 EQG-09900A-5 EQH-09900A-5 EQR-09900A-5 EQT-09900A-5 EKA-2400-5 EKE-4000-5 EKT-1500-2 EMA-04300-2 EQG-09900A-9 EQH-09900A-9 EQR-09900A-9 EQT-09900A-9 EKA-3000-2 EKE-5000-2 EKT-1700-2 EMA-04300-5 EQG-11600A-5 EQH-11600A-5 EQR-11600A-5 EQT-I 1600A-5 EKA-3000-5 EKE-5000-5 EKT-1700-5 EMA-05100-2 EQG-11600A-9 EQH-11600A-9 EQR-11600A-9 EQT-11600A-9 EKA-3600-2 EKE-6000-2 EKT-2000-2 EMA-05100-5 EQG-13600A-5 EQH-13600A-5 EQR-13600A-5 EQT-13600A-5 EKA-3600-5 EKE-6000-5 EKT-2000-5 EMA-06000-2 EQG-13600A-9 EQH-13600A-9 EQR-13600A-9 EQT-13600A-9 EKA-4200-2 EKR-1300-2 EKT-2200-2 EMA-06000-5 EQG-17500A-5 EQII-17500A-5 EQR-17500A-5 EQT-17500A-5 EKA-4200-5 EKR-1500-2 EKT-2200-5 EMA-07650-2 EQG-17500A-9 EQH-17500A-9 EQR-17500A-9 EQT-17500A-9 EKA-5400-2 EKR-1700-2 EKT-2900-2 EMA-07650-5 EQG-20400A-5 EQH-20400A-5 EQR-20400A-5 EQT-20400A-5 EKA-5400-5 EKR-1700-5 EKT-2900-5 EMA-09000-2 EQG-20400A-9 EQII-20400A-9 EQR-20400A-9 EQT-20400A-9 EKA-6300-2 EKR-2000-2 EKT-3400-2 EMA-09000-5 EQG-23400A-5 EQH-23400A-5 EQR-23400A-5 EQT-23400A-5 EKA-6300-5 EKR-2000-5 EKT-3400-5 EMA-10200-2 EQG-23400A-9 EQH-23400A-9 EQR-23400A-9 EQT-23400/\-9 EKE-1300-2 EKR-2200-2 EKT-4000-2 EMA-10200-5 EQG-26500A-5 EQII-26500A-5 EQR-26500A-5 EQT-26500A-5 EKE-1500-2 EKR-2200-5 EKT-4000-5 EMA-12000-2 EQG-26500A-9 EQH-26500A-9 EQR-26500A-9 EQT-26500A-9 EKE-1700-2 EKR-2900-2 EKT-5000-2 EMA-12000-5 EQG-34200A-5 EQH-34200A-5 EQR-34200A-5 EQT-34200A-5 EKE-1700-5 EKR-2900-5 EKT-5000-5 EMA-16100-5 EQG-34200A-9 EQII-34200A-9 EQR-34200A-9 EQT-34200A-9 EKE-2000-2 EKR-3400-2 EKT-6000-2 EQG-44400A-5 EQH-44400A-5 EQR-44400A-5 EQT-44400A-5 EKE-2000-5 EKR-3400-5 EKT-6000-5 EQG-44400A-9 EQH-44400A-9 EQR-44400A-9 EQT-44400A-9 EKE-2200-2 EKR-4000-2
EME-02000-2 EMF.-07200-5 EMG-04000-2 F.MG-11600-5 EMH-07200-2 F,\,fR-02900-5 F.MR-11600-2 EMT-05800-5 EME-02000-5 EME-08700-2 EMG-04000-5 EMH-02000-2 EMH-07200-5 E\.iR-04000-2 EMR-11600-5 EMT-07200-2 EME-02400-2 EME-08700-5 EMG-04800-2 EMII-02000-5 EMII-08700-2 E\.iR-04000-5 EMT-02000-2 EMT-07200-5 EME-02400-5 EME-09600-2 EMG-04800-5 EMH-02400-2 EMH-08700-5 E\.iR-04800-2 EMT-02000-5 EMT-08700-2 EME-02900-2 EME-09600-5 EMG-05800-2 EMH-02400-5 EMH-09600-2 E\.iR-04800-5 EMT-02400-2 EMT-08700-5 EME-02900-5 EME-11600-2 EMG-05800-5 EMH-02900-2 EMH-09600-5 E\.IR-05800-2 EMT-02400-5 EMT-09600-2 EME-04000-2 EME-11600-5 EMG-07200-2 EMH-02900-5 EMH-11600-2 E\.IR-05800-5 EMT-02900-2 EMT-09600-5 EME-04000-5 EMG-02000-2 EMG-07200-5 EMH-04000-2 EMH-11600-5 E\.iR-07200-2 EMT-02900-5 EMT-11600-2 EME-04800-2 EMG-02000-5 EMG-08700-2 EMH-04000-5 EMR-02000-2 E\.IR-07200-5 EMT-04000-2 EMT-11600-5 EME-04800-5 EMG-02400-2 EMG-08700-5 F.MH-04800-2 EMR-02000-5 F,\,fR-08700-2 F.MT-04000-5 EME-05800-2 EMG-02400-5 EMG-09600-2 EMH-04800-5 EMR-02400-2 E\.iR-08700-5 EMT-04800-2 EME-05800-5 EMG-02900-2 EMG-09600-5 EMH-05800-2 EMR-02400-5 E\.IR-09600-2 EMT-04800-5 EME-07200-2 EMG-02900-5 EMG-11600-2 F.MH-05800-5 EMR-02900-2 F,\,fR-09600-5 F.MT-05800-2
(2) The alternate test procedure for the paragraph (1) of this Interim Waiver cooler and walk-in freezer refrigeration RefPlus basic models identified in Order is the test procedure for walk-in systems prescribed by DOE at 10 CFR
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part 431, subpart R, appendix C for both walk-in refrigerator unit coolers In Appendix C, under section 3.1. (‘‘Appendix C’’), except that the liquid and walk-in freezer unit coolers, as General modifications: Test Conditions inlet saturation temperature test detailed below. All other requirements and Tolerances, revise section 3.1.5., to condition and liquid inlet subcooling of Appendix C and DOE’s regulations read as follows: temperature test condition shall be remain applicable. 3.1.5. Tables 15 and 16 shall be modified to 38 °F and 5 °F, respectively, modified to read as follows:
TABLE 15-REFRIGERATOR UNIT COOLER
Unit Unit cooler cooler air air entering Liquid entering relative Saturated inlet Liquid inlet Test dry-bulb, humidity, suction saturation subcooling Compressor description OF % temp, °F temp, °F temp, °F capacity Test ob.iective Off Cycle 35 <50 - - - Compressor Measure fan Fan Power Off input power during compressor off cycle. Refrigeration 35 <50 25 38 5 Compressor Determine Net Capacity On Refrigeration Suction A Capacity of Unit Cooler.
Note: Superheat to be set according to equipment specification in equipment or installation manual. If no superheat specification is given, a default superheat value of 6.5 °F shall be used. The superheat setting used in the test shall be reported as part of the standard rating.
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TABLE 16-FREEZER UNIT COOLER
Unit Unit cooler air cooler air entering Liquid Liquid entering relative Saturated inlet inlet Test dry-bulb, humidity, suction saturation subcooling Compressor Test description OF % temp, °F temp, °F temp, °F capacity objective Off Cycle -10 <50 - - - Compressor Off Measure fan Fan Power input power during compressor off cycle. Refrigeration -10 <50 -20 38 5 Compressor On Determine Capacity Net Suction A Refrigeration Capacity of !Unit Cooler. Defrost -10 Various - - - Compressor Off Test according to k<\.ppendix C Section Cl 1.
Note: Superheat to be set according to equipment specification in equipment or installation manual. If no superheat specification is given, a default superheat value of 6.5 °F shall be used. The superheat setting used in the test shall be reported as part of the standard rating.
(3) Representations. RefPlus may not determines the factual basis underlying appropriate, RefPlus may request that make representations about the energy the petition for the Interim Waiver DOE extend the scope of a waiver or an efficiency of a basic model listed in Order is incorrect, or the results from interim waiver to include additional paragraph (1) for compliance, the alternate test procedure are basic models employing the same marketing, or other purposes unless that unrepresentative of the basic model’s technology as the basic model(s) set basic model has been tested in true energy consumption characteristics. forth in the original petition consistent accordance with the provisions set forth 10 CFR 431.401(k)(1). Likewise, RefPlus with 10 CFR 431.401(g). in this alternate test procedure and such may request that DOE rescind or modify Signing Authority representations fairly disclose the the Interim Waiver Order if RefPlus results of such testing. discovers an error in the information This document of the Department of (4) This Interim Waiver Order shall provided to DOE as part of its petition, Energy was signed on August 3, 2021, remain in effect according to the determines that the interim waiver is no by Kelly Speakes-Backman, Principal provisions of 10 CFR 431.401. longer needed, or for other appropriate Deputy Assistant Secretary and Acting (5) This Interim Waiver Order is reasons. 10 CFR 431.401(k)(2). Assistant Secretary for Energy Efficiency issued on the condition that the (6) Issuance of this Interim Waiver and Renewable Energy, pursuant to statements, representations, test data, Order does not release RefPlus from the delegated authority from the Secretary and documentary materials provided by applicable requirements set forth at 10 of Energy. That document with the RefPlus are valid. If RefPlus makes any CFR part 429. original signature and date is modifications to the controls or DOE makes decisions on waivers and maintained by DOE. For administrative configurations of a basic model subject interim waivers for only those basic purposes only, and in compliance with to this Interim Waiver Order, such models specifically set out in the requirements of the Office of the Federal modifications will render the waiver petition, not future models that may be Register, the undersigned DOE Federal invalid with respect to that basic model, manufactured by the petitioner. RefPlus Register Liaison Officer has been and RefPlus will either be required to may submit a new or amended petition authorized to sign and submit the use the current Federal test method or for waiver and request for grant of document in electronic format for submit a new application for a test interim waiver, as appropriate, for publication, as an official document of procedure waiver. DOE may rescind or additional basic models of CO2 direct the Department of Energy. This modify this waiver at any time if it expansion unit coolers. Alternatively, if administrative process in no way alters
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the legal effect of this document upon Signed in Washington, DC, on August 5, provisions described in 10 CFR 431.401 publication in the Federal Register. 2021. for the following product on the Treena V. Garrett, grounds that ‘‘the basic model contains Federal Register Liaison Officer, U.S. one or more design characteristics that Department of Energy. prevent testing of the basic model according to the prescribed test Application for Interim Waiver procedures.’’
Request for Interim Waiver from a CO2 Direct Expansion Unit Coolers in DOE test procedure pursuant to Medium and Low Temperature
The design characteristics Measurement of Net Capacity and 1250–2009. Table 15 and Table 16 of constituting the grounds for the Interim AWEF of Walk-in Cooler and Walk-in AHRI 1250–2009 are as follows: Waiver Application: Freezer Refrigeration Systems specifies • Appendix C to Subpart R of Part that unit coolers tested alone use the 431—Uniform Test Method for the test procedures described in AHRI
Unit Unit cooler cooler air air entering Liquid entering relative Saturated inlet Liquid inlet Test dry-bulb, humidity, suction saturation subcooling Compressor Test description OF % temp, °F temp, °F temp, °F capacity objective Off Cycle Fan 35 <50 --- Compressor Measure fan Power Off input power during compressor of1 cycle. Refrigeration 35 <50 25 105 9 Compressor Determine Net Capacity On Refrigeration Suction A Capacity of Unit Cooler. Refrigeration 35 <50 20 105 9 Compressor Determine Net Capacity On Refrigeration Suction B Capacity of Unit Cooler.
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Unit Unit cooler cooler air air entering Liquid entering relative Saturated inlet Liquid inlet Test dry-bulb, humidity, suction saturation subcooling Compressor Test description OF % temp, °F temp, °F temp, °F capacity objective Off Cycle Fan -10 <50 --- Compressor Measure fan Power Off input power during compressor of1 cycle. Refrigeration -10 <50 -20 105 9 Compressor Determine Net Capacity On Refrigeration Suction A Capacity of Unit Cooler. Refrigeration -10 <50 -26 105 9 Compressor Determine Net Capacity On Refrigeration Suction B Capacity of Unit Cooler. Defrost -10 Various --- Compressor Test according Off to Appendix C Section C11.
• CO2 refrigerant has a critical temperature of 9 °F as specified in Table conditions for a CO2 refrigeration temperature of 87.8 °F thus the liquid 15 and Table 16 are not achievable. application inlet saturation temperature of 105 °F • The test condition values need to be and the liquid inlet subcooling more inline with typical operating
LAA-0607-1 LAE-0577-2 LAG-0577-1 LAH-0577-1 LPA-0607-1 LPE-0577-2 LPG-0577-1 LPH-0577-1
LAA-0607-2 LAE-0577-5 LAG-0577-2 LAH-0577-2 LPA-0607-2 LPE-0577-5 LPG-0577-2 LPH-0577-2
LAA-0757-1 LAE-0727-2 LAG-0727-1 LAH-0727-1 LPA-0707-1 LPE-0677-2 LPG-0677-1 LPH-0677-1
LAA-0757-2 LAE-0727-5 LAG-0727-2 LAH-0727-2 LPA-0707-2 LPE-0677-5 LPG-0677-2 LPH-0677-2
LAA-0957-1 LAE-0907-2 LAG-0907-1 LAH-0907-1 LPA-0807-1 LPE-0767-2 LPG-0767-1 LPH-0767-1
LAA-0957-2 LAE-0907-5 LAG-0907-2 LAH-0907-2 LPA-0807-2 LPE-0767-5 LPG-0767-2 LPH-0767-2
LAA-1207-1 LAE-1147-2 LAG-1147-1 LAH-1147-1 LPA-1007-1 LPE-0957-2 LPG-0957-1 LPH-0957-1
LAA-1207-2 LAE-1147-5 LAG-1147-2 LAH-1147-2 LPA-1007-2 LPE-0957-5 LPG-0957-2 LPH-0957-2
LAA-1507-1 LAE-1437-2 LAG-1437-1 LAH-1437-1 LPA-1207-1 LPE-1157-2 LPG-1157-1 LPH-1157-1
LAA-1507-2 LAE-1437-5 LAG-1437-2 LAH-1437-2 LPA-1207-2 LPE-1157-5 LPG-1157-2 LPH-1157-2
LAA-1807-1 LAE-1707-2 LAG-1707-1 LAH-1707-1 LPA-1607-1 LPE-1527-2 LPG-1527-1 LPH-1527-1
LAA-1807-2 LAE-1707-5 LAG-1707-2 LAH-1707-2 LPA-1607-2 LPE-1527-5 LPG-1527-2 LPH-1527-2
LAA-2407-1 LAE-2307-2 LAG-2307-1 LAH-2307-1 LPA-2007-1 LPE-1907-2 LPG-1907-1 LPH-1907-1
LAA-2407-2 LAE-2307-5 LAG-2307-2 LAH-2307-2 LPA-2007-2 LPE-1907-5 LPG-1907-2 LPH-1907-2
LAA-2807-1 LAE-2707-2 LAG-2707-1 LAH-2707-1 LPA-2107-1 LPE-2007-2 LPG-2007-1 LPH-2007-1
LAA-2807-2 LAE-2707-5 LAG-2707-2 LAH-2707-2 LPA-2107-2 LPE-2007-5 LPG-2007-2 LPH-2007-2
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LAA-3007-1 LAE-2867-2 LAG-2867-1 LAH-2867-1 LPA-2407-1 LPE-2307-2 LPG-2307-1 LPH-2307-1
LAA-3007-2 LAE-2867-5 LAG-2867-2 LAH-2867-2 LPA-2407-2 LPE-2307-5 LPG-2307-2 LPH-2307-2
LAA-3607-1 LAE-3437-2 LAG-3437-1 LAH-3437-1 LPA-2807-1 LPE-2707-2 LPG-2707-1 LPH-2707-1
LAA-3607-2 LAE-3437-5 LAG-3437-2 LAH-3437-2 LPA-2807-2 LPE-2707-5 LPG-2707-2 LPH-2707-2
LAA-4207-1 LAE-4007-2 LAG-4007-1 LAH-4007-1 LPA-3507-1 LPE-3347-2 LPG-3347-1 LPH-3347-1
LAA-4207-2 LAE-4007-5 LAG-4007-2 LAH-4007-2 LPA-3507-2 LPE-3347-5 LPG-3347-2 LPH-3347-2
LAA-4607-1 LAE-4387-2 LAG-4387-1 LAH-4387-1 LPA-4207-1 LPE-4007-2 LPG-4007-1 LPH-4007-1
LAA-4607-2 LAE-4387-5 LAG-4387-2 LAH-4387-2 LPA-4207-2 LPE-4007-5 LPG-4007-2 LPH-4007-2
LSA-0457-1 LSE-0437-2 LSR-0437-1 LST-0437-1 LVA-0707-1 LVA-3607-2 LVG-0707-1 LVH-0707-1
LSA-0457-2 LSE-0437-5 LSR-0437-2 LST-0437-2 LVA-0707-2 LVA-3607-5 LVG-0707-2 LVH-0707-2
LSA-0557-1 LSE-0527-2 LSR-0527-1 LST-0527-1 LVA-0707-5 LVA-4207-1 LVG-0807-1 LVH-0807-1
LSA-0557-2 LSE-0527-5 LSR-0527-2 LST-0527-2 LVA-0807-1 LVA-4207-2 LVG-0807-2 LVH-0807-2
LSA-0657-1 LSE-0627-2 LSR-0627-1 LST-0627-1 LVA-0807-2 LVA-4207-5 LVG-0907-1 LVH-0907-1
LSA-0657-2 LSE-0627-5 LSR-0627-2 LST-0627-2 LVA-0807-5 LVE-0707-2 LVG-0907-2 LVH-0907-2
LSA-0757-1 LSE-0727-2 LSR-0727-1 LST-0727-1 LVA-0907-1 LVE-0707-5 LVG-1207-1 LVH-1207-1
LSA-0757-2 LSE-0727-5 LSR-0727-2 LST-0727-2 LVA-0907-2 LVE-0807-2 LVG-1207-2 LVH-1207-2
LSA-0927-1 LSE-0887-2 LSR-0887-1 LST-0887-1 LVA-0907-5 LVE-0807-5 LVG-1507-1 LVH-1507-1
LSA-0927-2 LSE-0887-5 LSR-0887-2 LST-0887-2 LVA-1207-1 LVE-0907-2 LVG-1507-2 LVH-1507-2
LSA-1087-1 LSE-1037-2 LSR-1037-1 LST-1037-1 LVA-1207-2 LVE-0907-5 LVG-1907-1 LVH-1907-1
LSA-1087-2 LSE-1037-5 LSR-1037-2 LST-1037-2 LVA-1207-5 LVE-1207-2 LVG-1907-2 LVH-1907-2
LSA-1307-1 LSE-1247-2 LSR-1247-1 LST-1247-1 LVA-1507-1 LVE-1207-5 LVG-2407-1 LVH-2407-1
LSA-1307-2 LSE-1247-5 LSR-1247-2 LST-1247-2 LVA-1507-2 LVE-1507-2 LVG-2407-2 LVH-2407-2
LSA-1407-1 LSE-1337-2 LSR-1337-1 LST-1337-1 LVA-1507-5 LVE-1507-5 LVG-2707-1 LVH-2707-1
LSA-1407-2 LSE-1337-5 LSR-1337-2 LST-1337-2 LVA-1907-1 LVE-1907-2 LVG-2707-2 LVH-2707-2
LSA-1607-1 LSE-1527-2 LSR-1527-1 LST-1527-1 LVA-1907-2 LVE-1907-5 LVG-3007-1 LVH-3007-1
LSA-1607-2 LSE-1527-5 LSR-1527-2 LST-1527-2 LVA-1907-5 LVE-2407-2 LVG-3007-2 LVH-3007-2
LSA-1907-1 LSE-1807-2 LSR-1807-1 LST-1807-1 LVA-2407-1 LVE-2407-5 LVG-3607-1 LVH-3607-1
LSA-1907-2 LSE-1807-5 LSR-1807-2 LST-1807-2 LVA-2407-2 LVE-2707-2 LVG-3607-2 LVH-3607-2
LSA-2307-1 LSE-2207-2 LSR-2207-1 LST-2207-1 LVA-2407-5 LVE-2707-5 LVG-4207-1 LVH-4207-1
LSA-2307-2 LSE-2207-5 LSR-2207-2 LST-2207-2 LVA-2707-1 LVE-2707-8 LVG-4207-2 LVH-4207-2
LSA-2607-1 LSE-2407-2 LSR-2407-1 LST-2407-1 LVA-2707-2 LVE-2707-9
LSA-2607-2 LSE-2407-5 LSR-2407-2 LST-2407-2 LVA-2707-5 LVE-3007-2
LSA-3207-1 LSE-3007-2 LSR-3007-1 LST-3007-1 LVA-3007-1 LVE-3007-5
LSA-3207-2 LSE-3007-5 LSR-3007-2 LST-3007-2 LVA-3007-2 LVE-3607-2
LSA-3907-1 LSE-3707-2 LSR-3707-1 LST-3707-1 LVA-3007-5 LVE-3607-5
LSA-3907-2 LSE-3707-5 LSR-3707-2 LST-3707-2 LVA-3607-1 LVE-4207-2
LVE-4207-5
EJA-02600A-5 EJE-02500A-5 EJG-02600A-5 EJ H-02600A-5 EJR-02600A-5 EJT-02600A-5 EQA-04900A-5 EQE-04800A-5
EJA-02600A-9 EJE-02500A-9 EJG-02600A-9 EJ H-02600A-9 EJR-02600A-9 EJT-02600A-9 EQA-04900A-9 EQE-04800A-9
EJA-03200A-5 EJE-03100A-5 EJG-03200A-5 EJ H-03200A-5 EJR-03200A-5 EJT-03200A-5 EQA-05800A-5 EQE-05700A-5
EJA-03200A-9 EJE-03100A-9 EJG-03200A-9 EJ H-03200A-9 EJR-03200A-9 EJT-03200A-9 EQA-0SB00A-9 EQE-05700A-9
EJA-03800A-5 EJE-03700A-5 EJG-03800A-S EJ H-03800A-5 EJR-03800A-5 EJT-03800A-S EQA-06800A-5 EQE-06700A-5
EJA-03800A-9 EJE-03700A-9 EJG-03800A-9 EJ H-03800A-9 EJR-03800A-9 EJT-03800A-9 EQA-06800A-9 EQE-06700A-9
EJA-05200A-5 EJE-0SlO0A-5 EJG-05200A-S EJ H-05200A-5 EJR-05200A-5 EJT-05200A-S EQA-09900A-5 EQE-09600A-5
EJA-05200A-9 EJE-0SlO0A-9 EJG-05200A-9 EJ H-05200A-9 EJR-05200A-9 EJT-05200A-9 EQA-09900A-9 EQE-09600A-9
EJA-06300A-5 EJE-06200A-5 EJG-06300A-5 EJ H-06300A-5 EJR-06300A-5 EJT-06300A-5 EQA-11600A-5 EQE-llS00A-5
EJA-06300A-9 EJE-06200A-9 EJG-06300A-9 EJ H-06300A-9 EJR-06300A-9 EJT-06300A-9 EQA-11600A-9 EQE-llS00A-9
EJA-07700A-5 EJE-07600A-5 EJG-07700A-S EJH-07700A-5 EJR-07700A-5 EJT-07700A-5 EQA-13600A-5 EQE-13400A-5
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EJA-07700A-9 EJ E-07600A-9 EJG-07700A-9 EJH-07700A-9 EJ R-07700A-9 EJT-07700A-9 EQA-13600A-9 EQE-13400A-9
EJA-09500A-5 EJE-09300A-5 EJG-09500A-5 EJH-09500A-5 EJR-09500A-5 EJT-09500A-5 EQA-17500A-5 EQE-17200A-5
EJA-09500A-9 EJ E-09300A-9 EJG-09500A-9 EJH-09500A-9 EJR-09500A-9 EJT-09500A-9 EQA-17500A-9 EQE-17200A-9
EJA-11600A-5 EJE-11500A-5 EJG-11600A-5 EJH-11600A-5 EJR-11600A-5 EJT-11600A-5 EQA-20400A-5 EQE-20300A-5
EJA-11600A-9 EJE-llS00A-9 EJG-11600A-9 EJH-11600A-9 EJR-11600A-9 EJT-11600A-9 EQA-20400A-9 EQE-20300A-9
EJA-12700A-5 EJE-15300A-5 EJG-12700A-5 EJH-12700A-5 EJR-12700A-5 EJT-12700A-5 EQA-23400A-5 EQE-26800A-5
EJA-12700A-9 EJE-15300A-9 EJG-12700A-9 EJH-12700A-9 EJR-12700A-9 EJT-12700A-9 EQA-23400A-9 EQE-26800A-9
EJA-15400A-5 EJE-19000A-5 EJG-15400A-5 EJH-15400A-5 EJ R-15400A-5 EJT-15400A-5 EQA-26500A-5 EQE-33700A-5
EJA-15400A-9 EJE-19000A-9 EJG-15400A-9 EJH-15400A-9 EJR-15400A-9 EJT-15400A-9 EQA-26500A-9 EQE-33700A-9
EJA-19400A-5 EJG-19400A-5 EJH-19400A-5 EJR-19400A-5 EJT-19400A-5 EQA-34200A-5
EJA-19400A-9 EJG-19400A-9 EJH-19400A-9 EJR-19400A-9 EJT-19400A-9 EQA-34200A-9
EJA-21000A-5 EJG-21000A-5 EJH-21000A-5 EJR-21000A-5 EJT-21000A-5 EQA-44400A-5
EJA-21000A-9 EJG-21000A-9 EJH-21000A-9 EJ R-2 lOO0A-9 EJT-21000A-9 EQA-44400A-9
EQG-04900A-5 EQH-04900A-5 EQR-04900A-5 EQT-04900A-5 EKA-1400-2 EKE-2200-5 EKR-4000-5 EMA-02150-2
EQG-04900A-9 EQH-04900A-9 EQR-04900A-9 EQT-04900A-9 EKA-1600-2 EKE-2900-2 EKR-5000-2 EMA-02150-5
EQG-05800A-5 EQH-05800A-5 EQR-05800A-5 EQT-05800A-5 EKA-1800-2 EKE-2900-5 EKR-5000-5 EMA-02550-2
EQG-05800A-9 EQH-05800A-9 EQR-05800A-9 EQT-05800A-9 EKA-2100-2 EKE-3400-2 EKR-6000-2 EMA-02550-5
EQG-06800A-5 EQH-06800A-5 EQR-06800A-5 EQT-06800A-5 EKA-2100-5 EKE-3400-5 EKR-6000-5 EMA-03000-2
EQG-06800A-9 EQH-06800A-9 EQR-06800A-9 EQT-06800A-9 EKA-2400-2 EKE-4000-2 EKT-1300-2 EMA-03000-5
EQG-09900A-5 EQH-09900A-5 EQR-09900A-5 EQT-09900A-5 EKA-2400-5 EKE-4000-5 EKT-1500-2 EMA-04300-2
EQG-09900A-9 EQH-09900A-9 EQR-09900A-9 EQT-09900A-9 EKA-3000-2 EKE-5000-2 EKT-1700-2 EMA-04300-5
EQG-11600A-5 EQH-11600A-5 EQR-11600A-5 EQT-11600A-5 EKA-3000-5 EKE-5000-5 EKT-1700-5 EMA-05100-2
EQG-11600A-9 EQH-11600A-9 EQR-11600A-9 EQT-11600A-9 EKA-3600-2 EKE-6000-2 EKT-2000-2 EMA-05100-5
EQG-13600A-5 EQH-13600A-5 EQR-13600A-5 EQT-13600A-5 EKA-3600-5 EKE-6000-5 EKT-2000-5 EMA-06000-2
EQG-13600A-9 EQH-13600A-9 EQR-13600A-9 EQT-13600A-9 EKA-4200-2 EKR-1300-2 EKT-2200-2 EMA-06000-5
EQG-17500A-5 EQH-17500A-5 EQR-17500A-5 EQT-17500A-5 EKA-4200-5 EKR-1500-2 EKT-2200-5 EMA-07650-2
EQG-17500A-9 EQH-17500A-9 EQR-17500A-9 EQT-17500A-9 EKA-5400-2 EKR-1700-2 EKT-2900-2 EMA-07650-5
EQG-20400A-5 EQH-20400A-5 EQR-20400A-5 EQT-20400A-5 EKA-5400-5 EKR-1700-5 EKT-2900-5 EMA-09000-2
EQG-20400A-9 EQH-20400A-9 EQR-20400A-9 EQT-20400A-9 EKA-6300-2 EKR-2000-2 EKT-3400-2 EMA-09000-5
EQG-23400A-5 EQH-23400A-5 EQR-23400A-5 EQT-23400A-5 EKA-6300-5 EKR-2000-5 EKT-3400-5 EMA-10200-2
EQG-23400A-9 EQH-23400A-9 EQR-23400A-9 EQT-23400A-9 EKE-1300-2 EKR-2200-2 EKT-4000-2 EMA-10200-5
EQG-26500A-5 EQH-26500A-5 EQR-26500A-5 EQT-26500A-5 EKE-1500-2 EKR-2200-5 EKT-4000-5 EMA-12000-2
EQG-26500A-9 EQH-26500A-9 EQR-26500A-9 EQT-26500A-9 EKE-1700-2 EKR-2900-2 EKT-5000-2 EMA-12000-5
EQG-34200A-5 EQH-34200A-5 EQR-34200A-5 EQT-34200A-5 EKE-1700-5 EKR-2900-5 EKT-5000-5 EMA-16100-5
EQG-34200A-9 EQH-34200A-9 EQR-34200A-9 EQT-34200A-9 EKE-2000-2 EKR-3400-2 EKT-6000-2
EQG-44400A-5 EQH-44400A-5 EQR-44400A-5 EQT-44400A-5 EKE-2000-5 EKR-3400-5 EKT-6000-5
EQG-44400A-9 EQH-44400A-9 EQR-44400A-9 EQT-44400A-9 EKE-2200-2 EKR-4000-2
EME-02000-2 EME-07200-5 EMG-04000-2 EMG-11600-5 EMH-07200-2 EMR-02900-5 EMR-11600-2 EMT-05800-5
EME-02000-5 EME-08700-2 EMG-04000-5 EMH-02000-2 EMH-07200-5 EMR-04000-2 EMR-11600-5 EMT-07200-2
EME-02400-2 EME-08700-5 EMG-04800-2 EMH-02000-5 EMH-08700-2 EMR-04000-5 EMT-02000-2 EMT-07200-5
EME-02400-5 EME-09600-2 EMG-04800-5 EMH-02400-2 EMH-08700-5 EMR-04800-2 EMT-02000-5 EMT-08700-2
EME-02900-2 EME-09600-5 EMG-05800-2 EMH-02400-5 EMH-09600-2 EMR-04800-5 EMT-02400-2 EMT-08700-5
EME-02900-5 EME-11600-2 EMG-05800-5 EMH-02900-2 EMH-09600-5 EMR-05800-2 EMT-02400-5 EMT-09600-2
EME-04000-2 EME-11600-5 EMG-07200-2 EMH-02900-5 EMH-11600-2 EMR-05800-5 EMT-02900-2 EMT-09600-5
EME-04000-5 EMG-02000-2 EMG-07200-5 EMH-04000-2 EMH-11600-5 EMR-07200-2 EMT-02900-5 EMT-11600-2
EME-04800-2 EMG-02000-5 EMG-08700-2 EMH-04000-5 EMR-02000-2 EMR-07200-5 EMT-04000-2 EMT-11600-5
EME-04800-5 EMG-02400-2 EMG-08700-5 EMH-04800-2 EMR-02000-5 EMR-08700-2 EMT-04000-5
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EME-05800-2 EMG-02400-5 EMG-09600-2 EMH-04800-5 EMR-02400-2 EMR-08700-5 EMT-04800-2
EME-05800-5 EMG-02900-2 EMG-09600-5 EMH-05800-2 EMR-02400-5 EMR-09600-2 EMT-04800-5
EME-07200-2 EMG-02900-5 EMG-11600-2 EMH-05800-5 EMR-02900-2 EMR-09600-5 EMT-05800-2
All these basic models with brand List of manufacturers of all other basic Freezer Refrigeration Systems with name: RefPlus models marketing in the United States reference to AHRI 1250–2009 with the Specific Requirements sought to be and known to the petitioner to exception of modifying the test waived—Petitioning for a waiver and incorporate similar design conditions in Table 15 and 16 for liquid characteristics— interim waiver to exempt CO2 Direct inlet saturation temperature and liquid Expansion Unit Coolers in Medium and Manufacturer: Heatcraft Refrigeration inlet subcooling temperature as noted Products Low Temperature application from below. In addition, per Appendix C to Manufacturer: Heat Transfer Products being tested to the current test Subpart R of 431 use the calculations in Group (HTPG) AHRI 1250 section 7.9 to determine procedure. The prescribed test Manufacturer: Hussmann Corp. (Krack) AWEF and net capacity for unit coolers procedure is not appropriate for these Manufacturer: Keeprite Refrigeration matched to parallel rack systems. Use products for the reasons stated Proposed alternate test procedure previously (liquid inlet saturation 1. Utilize the test procedure as AHRI 1250 Table 17, EER for Remote temperature and liquid inlet subcooling outlined in Appendix C to Subpart R of Commercial Refrigerated Display temperature test condition values are Part 431—Uniform Test Method for the Merchandisers and Storage Cabinets to not appropriate for a transcritical CO2 Measurement of Net Capacity and determine the power consumption of booster system application). AWEF of Walk-in Cooler and Walk-in the system.
TABLE 15-REFRIGERATOR UNIT COOLER
Unit Unit cooler air cooler air entering CO2 Liquid CO2 Liquid entering relative Saturated inlet inlet Test dry-bulb, humidity, suction saturation subcooling Compressor description OF % temp, °F temp, °F temp, °F capacity Test objective
Off Cycle Fan 35 <50 --- Compressor Measure fan Power Off input power during compressor off cycle.
Refrigeration 35 <50 25 38 5 Com presser Determine Net Capacity On Refrigeration Suction A Capacity of Unit Cooler.
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TABLE 16-FREEZER UNIT COOLER
Unit Unit cooler air cooler air entering CO2 Liquid CO2 Liquid entering relative Saturated inlet inlet Test dry-bulb, humidity, suction saturation subcooling Compressor description OF % temp, °F temp, °F temp, °F capacity Test objective
Off Cycle Fan -10 <50 --- Compressor Measure fan Power Off input power during compressor off cycle.
Refrigeration -10 <50 -20 38 5 Com presser Determine Net Capacity On Refrigeration Suction A Capacity of Unit Cooler.
Defrost -10 Various --- Compressor Test according Off to Appendix C Section Cll.
Success of the application for Interim SUMMARY: The Department of Energy for the proper performance of the Waiver will: ensure that manufacturers (DOE), pursuant to the Paperwork functions of the agency, including of CO2 Direct Expansion Unit Coolers in Reduction Act of 1995, intends to whether the information shall have Medium and Low Temperature extend for three years, an information practical utility; (b) the accuracy of the application can continue to participate collection request with the Office of agency’s estimate of the burden of the in the market Management and Budget (OMB). The proposed collection of information, What economic hardship and/or purpose of this collection is to protect including the validity of the competitive disadvantage is likely to national security and other critical methodology and assumptions used; (c) result absent a favorable determination assets entrusted to the Department. ways to enhance the quality, utility, and on the Application for Interim Waiver— DATES: Comments regarding this clarity of the information to be Economic hardship will be loss of sales proposed information collection must collected; and (d) ways to minimize the due to not meeting the DOE be received on or before October 12, burden of the collection of information requirements set forth. 2021. If you anticipate difficulty in on respondents, including through the Conclusion submitting comments within that use of automated collection techniques period, contact the person listed below or other forms of information RefPlus Inc. seeks an Interim Waiver as soon as possible. technology. from DOE’s current requirement to test This information collection request CO direct expansion unit coolers. ADDRESSES: Written comments may be 2 sent to Sandra Dentinger, AU–70/E–455 contains: (1) OMB No.: 1910–1800; Request Submitted by: Germantown Building, U.S. Department (2) Information Collection Request /s/ of Energy, 1000 Independence Ave. SW, Michel Lecompte, Title: Security, Information Collections; Vice-President, Research & Development Washington, DC 20585–1290 or by (3) Type of Review: renewal; Refplus Inc. email at [email protected]. (4) Purpose: The purpose of this [FR Doc. 2021–16997 Filed 8–9–21; 8:45 am] FOR FURTHER INFORMATION CONTACT: collection is to protect national security BILLING CODE 6450–01–C Requests for additional information or and other critical assets entrusted to the copies of the information collection Department. Information collected is for instrument and instructions should be (1) Foreign Ownership, Control or DEPARTMENT OF ENERGY directed to Sandra Dentinger, AU–70/E– Influence data from bidders on DOE 455 Germantown Building, U.S. contracts requiring personnel security Agency Information Collection Department of Energy, 1000 clearances; and (2) individuals in the Extension Independence Ave SW, Washington, DC process of applying for a security 20585–1290, by email at AGENCY: Office of Environment, Health, clearance/access authorization or who [email protected] or by Safety and Security, U.S. Department of already holds one. The collections telephone at (301) 903–5139. Energy. instruments are: DOE Form 5631.18, SUPPLEMENTARY INFORMATION: Comments Security Acknowledgement; DOE F ACTION: Notice and request for are invited on: (a) Whether the extended 5631.20, Request for Visitor Access comments. collection of information is necessary Approval; DOE Form 5631.29, Security
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Termination Statement; DOE F 5631.34, DOE F 473.3 U.S. Department of Applicants: Duke Energy Progress, Data Report on Spouse/Cohabitant; DOE Energy Clearance Access Request DOE F LLC. Form 5631.5, The Conduct of Personnel 471.1, Security Incident Notification Description: Tariff Amendment: DEP- Security Interviews; DOE Form 5639.3 Report; DOE Form 472.3 Foreign American Beech ASOA—Response to Report of Security Incident/Infraction; Citizenship Acknowledgement; and Deficiency Letter to be effective 10/4/ DOE F 471.1, Security Incident DOE Form 473.2, Security Badge 2021. Notification Report; DOE Form 472.3 Request; the Atomic Energy Act of 1954, Filed Date: 8/4/21. Foreign Citizenship Acknowledgement; as amended, and by Executive Orders Accession Number: 20210804–5055. DOE Form 473.2, Security Badge 13764, 10865, and 13526. Comments Due: 5 p.m. ET 8/25/21. Request; DOE Form 473.3, U.S. Electronic Foreign Ownership, Docket Numbers: ER21–2158–001. Department of Energy Clearance Access Control or Influence (e-FOCI) System: Applicants: VETCO. Request; Influence (e-FOCI) System (SF– Executive Order 12829 (January 6, Description: Compliance filing: eTariff 328 used for entry); and the Foreign 1993); DOE O 470.4B (July 21, 2011). Filing to Comply with Order in Docket Access Central Tracking System Foreign Access Central Tracking No. ER21–712–000 Errata Filing to be (FACTS); System (FACTS): Presidential Decision effective 1/1/2021. (5) Estimated Number of Directive 61 (February 1999); DOE O Filed Date: 8/4/21. Respondents: 75,661; 142.3A (October 14, 2010). Accession Number: 20210804–5049. (6) Annual Estimated Number of Signing Authority Comments Due: 5 p.m. ET 8/25/21. Total Responses: 84,621; Docket Numbers: ER21–2605–000. (7) Annual Estimated Number of This document of the Department of Energy was signed on August 5, 2021, Applicants: esVolta, LP. Burden Hours: 13,251; Description: Petition for Limited (8) Annual Estimated Reporting and by Matthew B. Moury, Associate Under Secretary for Environment, Health, Waiver of esVolta, LP. Recordkeeping Cost Burden: $1,192,590. Filed Date: 8/4/21. Safety and Security, pursuant to Statutory Authority: Section 641 of Accession Number: 20210804–5029. delegated authority from the Secretary the Department of Energy Organization Comments Due: 5 p.m. ET 8/18/21. Act, codified at 42 U.S.C. 7251, and the of Energy. That document with the original signature and date is Docket Numbers: ER21–2606–000. following additional authorities: Applicants: Southwest Power Pool, DOE F 5631.34, Data Report on maintained by DOE. For administrative purposes only, and in compliance with Inc. Spouse/Cohabitant: Section 145(b) of Description: § 205(d) Rate Filing: 3839 the Atomic Energy Act of 1954, as requirements of the Office of the Federal Register, the undersigned DOE Federal WAPA/Western MN Municipal/MRES amended, codified at 42 U.S.C. 2165; Interconnection Agr to be effective 8/3/ Executive Order 12968 (August 2, 1995); Register Liaison Officer has been authorized to sign and submit the 2021. Executive Order 10865 (February 20, Filed Date: 8/4/21. 1960); Executive Order 10450 (April 27, document in electronic format for publication, as an official document of Accession Number: 20210804–5036. 1953); DOE O 472.2 (July 21, 2011). Comments Due: 5 p.m. ET 8/25/21. Security Incident Notification Report the Department of Energy. This Docket Numbers: ER21–2607–000. and Report of Preliminary Security administrative process in no way alters Applicants: Southern California Incident/Infraction (DOE F 471.1 and the legal effect of this document upon Edison Company. DOE F 5639.3): Executive Order 13526 publication in the Federal Register. Description: § 205(d) Rate Filing: (December 29, 2009); 32 CFR part 2001; Signed in Washington, DC, on August 5, LGIA Arica Solar, LLC Sol Catcher BESS DOE O 470.4B (July 21, 2011). 2021. Treena V. Garrett, SA No. 272 to be effective 8/5/2021. DOE F 5631.20, Request for Visitor Filed Date: 8/4/21. Access Approval: Section 145(b) of the Federal Register Liaison Officer, U.S. Department of Energy. Accession Number: 20210804–5061. Atomic Energy Act of 1954, as amended, Comments Due: 5 p.m. ET 8/25/21. codified at 42 U.S.C. 2165. [FR Doc. 2021–17015 Filed 8–9–21; 8:45 am] Docket Numbers: ER21–2608–000. DOE Form 5631.18, Security BILLING CODE 6450–01–P Acknowledgement: Section 145(b) of the Applicants: Duke Energy Progress, Atomic Energy Act of 1954, as amended, LLC. codified at 42 U.S.C. 2165; Executive DEPARTMENT OF ENERGY Description: Tariff Cancellation: Order 13526 (December 29, 2009); DEP—Notice of Cancellation of Service Executive Order 10865 (Feb. 20, 1960); Federal Energy Regulatory Agreements Nos. 175 and 176 to be Executive Order 10450 (April 27, 1953); Commission effective 10/4/2021. Filed Date: 8/4/21. DOE O 5631.2C (February 17, 1994). Combined Notice of Filings #1 DOE Form 5631.29, Security Accession Number: 20210804–5067. Termination Statement: Section 145(b) Take notice that the Commission Comments Due: 5 p.m. ET 8/25/21. of the Atomic Energy Act of 1954, as received the following electric rate Docket Numbers: ER21–2609–000. amended, codified at 42 U.S.C. 2165; filings: Applicants: Duke Energy Indiana, Executive Order 13526 (December 29, Docket Numbers: ER19–2505–006. LLC. 2009); Executive Order 10865 (Feb. 20, Applicants: Southern California Description: § 205(d) Rate Filing: 1960); Executive Order 10450 (Apr. 27, Edison Company. DEI—Peabody Facilities Relocation and 1953); 32 CFR part 2001; DOE O 472.2 Description: Compliance filing: Errata Reimbursement Agreement RS No. 274 (July 21, 2011). to Settlement Filing WDAT Energy to be effective 8/5/2021. DOE Form 5631.5, The Conduct of Storage ER19–2505–004 to be effective Filed Date: 8/4/21. Personnel Security Interviews: 10 CFR 10/30/2019. Accession Number: 20210804–5070. part 710; Executive Order 12968 (Aug. Filed Date: 8/4/21. Comments Due: 5 p.m. ET 8/25/21. 2, 1995); Executive Order 10450 (April Accession Number: 20210804–5087. Docket Numbers: ER21–2610–000. 27, 1953); DOE Order 472.2 (July 21, Comments Due: 5 p.m. ET 8/25/21. Applicants: Tri-State Generation and 2011). Docket Numbers: ER21–1955–002. Transmission Association, Inc.
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Description: Tariff Cancellation: Description: § 4(d) Rate Filing: Rockhaven Wind Project, LLC’s Notice of Cancellation of Rate Schedule Negotiated Rate Filing—July 1, 2021 application for market-based rate FERC No. 101 to be effective 8/5/2021. Ternium to be effective 8/1/2021. authority, with an accompanying rate Filed Date: 8/4/21. Filed Date: 8/2/21. tariff, noting that such application Accession Number: 20210804–5086. Accession Number: 20210802–5042. includes a request for blanket Comments Due: 5 p.m. ET 8/25/21. Comments Due: 5 p.m. ET 8/16/21. authorization, under 18 CFR part 34, of The filings are accessible in the Docket Numbers: RP21–1014–000. future issuances of securities and Commission’s eLibrary system (https:// Applicants: Rover Pipeline LLC. assumptions of liability. elibrary.ferc.gov/idmws/search/ Description: § 4(d) Rate Filing: Any person desiring to intervene or to fercgensearch.asp) by querying the Summary of Negotiated Rate Capacity protest should file with the Federal docket number. Release Agreements on 8–2–21 to be Energy Regulatory Commission, 888 Any person desiring to intervene or effective 8/1/2021. First Street NE, Washington, DC 20426, protest in any of the above proceedings Filed Date: 8/2/21. in accordance with Rules 211 and 214 must file in accordance with Rules 211 Accession Number: 20210802–5077. of the Commission’s Rules of Practice and 214 of the Commission’s Comments Due: 5 p.m. ET 8/16/21. and Procedure (18 CFR 385.211 and Regulations (18 CFR 385.211 and Docket Numbers: RP21–1015–000. 385.214). Anyone filing a motion to 385.214) on or before 5:00 p.m. Eastern Applicants: Inflection Energy LLC, intervene or protest must serve a copy time on the specified comment date. JPMorgan Chase Bank, N.A. of that document on the Applicant. Protests may be considered, but Description: Joint Petition for Limited Notice is hereby given that the intervention is necessary to become a Waiver of Capacity Release Regulations, deadline for filing protests with regard party to the proceeding. et al. of Inflection Energy LLC, et al. to the applicant’s request for blanket eFiling is encouraged. More detailed Filed Date: 8/2/21. authorization, under 18 CFR part 34, of information relating to filing Accession Number: 20210802–5167. future issuances of securities and requirements, interventions, protests, Comments Due: 5 p.m. ET 8/16/21. assumptions of liability, is August 24, service, and qualifying facilities filings The filings are accessible in the 2021. can be found at: http://www.ferc.gov/ Commission’s eLibrary system (https:// The Commission encourages docs-filing/efiling/filing-req.pdf. For elibrary.ferc.gov/idmws/search/ electronic submission of protests and other information, call (866) 208–3676 fercgensearch.asp) by querying the interventions in lieu of paper, using the (toll free). For TTY, call (202) 502–8659. docket number. FERC Online links at http:// Dated: August 4, 2021. Any person desiring to intervene or www.ferc.gov. To facilitate electronic Debbie-Anne A. Reese, protest in any of the above proceedings service, persons with internet access must file in accordance with Rules 211 who will eFile a document and/or be Deputy Secretary. and 214 of the Commission’s listed as a contact for an intervenor [FR Doc. 2021–17028 Filed 8–9–21; 8:45 am] Regulations (18 CFR 385.211 and must create and validate an BILLING CODE 6717–01–P 385.214) on or before 5:00 p.m. Eastern eRegistration account using the time on the specified comment date. eRegistration link. Select the eFiling Protests may be considered, but link to log on and submit the DEPARTMENT OF ENERGY intervention is necessary to become a intervention or protests. Federal Energy Regulatory party to the proceeding. Persons unable to file electronically Commission eFiling is encouraged. More detailed may mail similar pleadings to the information relating to filing Federal Energy Regulatory Commission, Combined Notice of Filings requirements, interventions, protests, 888 First Street NE, Washington, DC service, and qualifying facilities filings 20426. Hand delivered submissions in Take notice that the Commission has can be found at: http://www.ferc.gov/ docketed proceedings should be received the following Natural Gas docs-filing/efiling/filing-req.pdf. For delivered to Health and Human Pipeline Rate and Refund Report filings: other information, call (866) 208–3676 Services, 12225 Wilkins Avenue, Docket Numbers: RP21–1010–000. (toll free). For TTY, call (202) 502–8659. Rockville, Maryland 20852. Applicants: Equitrans, L.P. Dated: August 4, 2021. In addition to publishing the full text Description: § 4(d) Rate Filing: of this document in the Federal Negotiated Rate Capacity Release Debbie-Anne A. Reese, Deputy Secretary. Register, the Commission provides all Agreements—8/1/2021 to be effective 8/ interested persons an opportunity to [FR Doc. 2021–17026 Filed 8–9–21; 8:45 am] 1/2021. view and/or print the contents of this Filed Date: 8/2/21. BILLING CODE 6717–01–P document via the internet through the Accession Number: 20210802–5011. Commission’s Home Page (http:// Comments Due: 5 p.m. ET 8/16/21. DEPARTMENT OF ENERGY www.ferc.gov) using the ‘‘eLibrary’’ link. Docket Numbers: RP21–1012–000. Enter the docket number excluding the Applicants: Eastern Gas Transmission Federal Energy Regulatory last three digits in the docket number and Storage, Inc. Commission field to access the document. At this Description: § 4(d) Rate Filing: time, the Commission has suspended EGTS—August 2, 2021 Nonconforming [Docket No. ER21–2597–000] access to the Commission’s Public Service Agreements to be effective 10/1/ Rockhaven Wind Project, LLC; Reference Room, due to the 2021. Supplemental Notice That Initial proclamation declaring a National Filed Date: 8/2/21. Market-Based Rate Filing Includes Emergency concerning the Novel Accession Number: 20210802–5012. Coronavirus Disease (COVID–19), issued Comments Due: 5 p.m. ET 8/16/21. Request for Blanket Section 204 Authorization by the President on March 13, 2020. For Docket Numbers: RP21–1013–000. assistance, contact the Federal Energy Applicants: Enable Gas Transmission, This is a supplemental notice in the Regulatory Commission at LLC. above-referenced proceeding of [email protected] or call
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toll-free, (886) 208–3676 or TYY, (202) access to the Commission’s Public Milestone Target 502–8659. Reference Room, due to the date Dated: August 4, 2021. proclamation declaring a National Emergency concerning the Novel Commission issues draft EA October Debbie-Anne A. Reese, 2021.1 Deputy Secretary. Coronavirus Disease (COVID–19), issued Comments on EA ...... November by the President on March 13, 2020. For [FR Doc. 2021–17029 Filed 8–9–21; 8:45 am] 2021. assistance, contact the Federal Energy Modified 4(e) and Fishway January 2022. BILLING CODE 6717–01–P Regulatory Commission at Prescriptions. [email protected] or call Issue final EA ...... April 2022. DEPARTMENT OF ENERGY toll-free, (886) 208–3676 or TYY, (202) 502–8659. Any questions regarding this notice Federal Energy Regulatory may be directed to David Turner at (202) Comment Date: 5:00 p.m. Eastern 502–6091 or [email protected]. Commission Time on September 1, 2021. Dated: August 4, 2021. [Docket No. EF21–3–000] Dated: August 4, 2021. Kimberly D. Bose, Bonneville Power Administration; Debbie-Anne A. Reese, Secretary. Notice of Filing Deputy Secretary. [FR Doc. 2021–16993 Filed 8–9–21; 8:45 am] [FR Doc. 2021–17027 Filed 8–9–21; 8:45 am] BILLING CODE 6717–01–P Take notice that on August 2, 2021, BILLING CODE 6717–01–P Bonneville Power Administration submitted tariff filing: BP–22 Rate Filing DEPARTMENT OF ENERGY Part 4—Proposed FY 2022–2023 DEPARTMENT OF ENERGY Wholesale Power and Transmission Federal Energy Regulatory Rate Adjustment. Federal Energy Regulatory Commission Any person desiring to intervene or to Commission [Project No. 3063–000] protest this filing must file in accordance with Rules 211 and 214 of [Project No. 2530–057] Blackstone Hydro Associates; Notice the Commission’s Rules of Practice and of Authorization for Continued Project Procedure (18 CFR 385.211, 385.214). Brookfield White Pine Hydro LLC; Operation Protests will be considered by the Notice of Intent To Prepare an On July 31, 2019, Blackstone Hydro Commission in determining the Environmental Assessment appropriate action to be taken, but will Associates, licensee for the Central Falls Hydroelectric Project No. 3063, filed an not serve to make protestants parties to On November 20, 2020, Brookfield the proceeding. Any person wishing to Application for a Subsequent License White Pine Hydro LLC (White Pine pursuant to the Federal Power Act become a party must file a notice of Hydro) filed an application for a new intervention or motion to intervene, as (FPA) and the Commission’s regulations license for the 10.9-megawatt Hiram appropriate. Such notices, motions, or thereunder. The Central Falls Hydroelectric Project (Hiram Project) protests must be filed on or before the Hydroelectric Project is located on the (FERC No. 2530). The Hiram Project is comment date. On or before the Blackstone River, in the City of Central comment date, it is not necessary to located on the Saco River near the Falls, Providence County, Rhode Island. serve motions to intervene or protests towns of Hiram, Baldwin, Denmark, and The license for Project No. 3063 was on persons other than the Applicant. Brownfield in Oxford and Cumberland issued for a period ending July 31, 2021. The Commission strongly encourages Counties, Maine. The project does not Section 15(a)(1) of the FPA, 16 U.S.C. electronic filings of comments, protests occupy federal land. 808(a)(1), requires the Commission, at and interventions in lieu of paper using In accordance with the Commission’s the expiration of a license term, to issue the ‘‘eFiling’’ link at http:// regulations, on January 11, 2021, from year-to-year an annual license to www.ferc.gov. Persons unable to file Commission staff issued a notice that the then licensee(s) under the terms and electronically may mail similar the project was ready for environmental conditions of the prior license until a pleadings to the Federal Energy analysis (REA notice). Based on the new license is issued, or the project is Regulatory Commission, 888 First Street information in the record, including otherwise disposed of as provided in section 15 or any other applicable NE, Washington, DC 20426. Hand comments filed on the REA notice, staff section of the FPA. If the project’s prior delivered submissions in docketed does not anticipate that licensing the license waived the applicability of proceedings should be delivered to project would constitute a major federal section 15 of the FPA, then, based on Health and Human Services, 12225 action significantly affecting the quality section 9(b) of the Administrative Wilkins Avenue, Rockville, Maryland of the human environment. Therefore, Procedure Act, 5 U.S.C. 558(c), and as 20852. staff intends to prepare an In addition to publishing the full text set forth at 18 CFR 16.21(a), if the Environmental Assessment (EA) on the licensee of such project has filed an of this document in the Federal application to license the Hiram Project. Register, the Commission provides all application for a subsequent license, the The EA will be issued and circulated interested persons an opportunity to licensee may continue to operate the view and/or print the contents of this for review by all interested parties. All comments filed on the EA will be 1 The Council on Environmental Quality’s (CEQ) document via the internet through the regulations under 40 CFR 1501.10(b)(1) require that Commission’s Home Page (http:// analyzed by staff and considered in the Commission’s final licensing decision. EAs be completed within 1 year of the federal ferc.gov) using the ‘‘eLibrary’’ link. action agency’s decision to prepare an EA. This Enter the docket number excluding the The application will be processed notice establishes the Commission’s intent to according to the following schedule. prepare an EA for the Normanskill Project. last three digits in the docket number Therefore, in accordance with CEQ’s regulations, field to access the document. At this Revisions to the schedule may be made the EA must be issued within 1 year of the issuance time, the Commission has suspended as appropriate. date of this notice.
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project in accordance with the terms ADDRESSES: The webinar briefing will be to EPA. Members of the public can and conditions of the license after the conducted via webinar only and is open submit comments on matters being minor or minor part license expires, to the public. Interested persons must considered by the EFAB for until the Commission acts on its register in advance at the weblink below consideration by members as they application. If the licensee of such a to access the meeting. develop their advice and project has not filed an application for FOR FURTHER INFORMATION CONTACT: Any recommendations to EPA. a subsequent license, then it may be member of the public who wants Written Statements: Written required, pursuant to 18 CFR 16.21(b), information about the meeting may statements for the webinar should be to continue project operations until the contact Ed Chu, the Designated Federal received by August 20, 2021 so that the Commission issues someone else a Officer, via telephone/voice mail at information can be made available to license for the project or otherwise (913) 551–7333 or email to efab@ the EFAB for its consideration. Written orders disposition of the project. epa.gov. General information statements should be sent via email to If the project is subject to section 15 concerning the EFAB is available at [email protected]. Members of the public of the FPA, notice is hereby given that https://www.epa.gov/ should be aware that their personal an annual license for Project No. 3063 waterfinancecenter/efab. contact information, if included in any is issued to Blackstone Hydro SUPPLEMENTARY INFORMATION: written comments, may be posted to the Associates for a period effective August Background: The EFAB is an EPA EFAB website. Copyrighted material 1, 2021 through July 31, 2022 or until advisory committee chartered under the will not be posted without explicit the issuance of a new license for the Federal Advisory Committee Act permission of the copyright holder. Accessibility: For information on project or other disposition under the (FACA), 5 U.S.C. app. 2, to provide access or services for individuals with FPA, whichever comes first. If issuance advice and recommendations to EPA on disabilities or to request of a new license (or other disposition) innovative approaches to funding accommodations for a disability, please does not take place on or before July 31, environmental programs, projects, and register for the webinar and list any 2022, notice is hereby given that, activities. Administrative support for special requirements or pursuant to 18 CFR 16.18(c), an annual the EFAB is provided by the Water accommodations needed on the license under section 15(a)(1) of the Infrastructure and Resiliency Finance registration form at least 10 business FPA is renewed automatically without Center within EPA’s Office of Water. days prior to the meeting to allow as further order or notice by the Pursuant to FACA and EPA policy, much time as possible to process your Commission, unless the Commission notice is hereby given that the EFAB request. orders otherwise. will hold a public webinar briefing for If the project is not subject to section the following purpose: Dated: August 5, 2021. 15 of the FPA, notice is hereby given (1) The purpose of the webinar will be Andrew D. Sawyers, that Blackstone Hydro Associates is for members of the EFAB to hear from Director, Office of Wastewater Management, authorized to continue operation of the Opportunity Zones practitioners who Office of Water. Central Falls Hydroelectric Project, until work on Opportunity Zones investments [FR Doc. 2021–17030 Filed 8–9–21; 8:45 am] such time as the Commission acts on its in disadvantaged communities and are BILLING CODE 6560–50–P application for a subsequent license. willing to share their experiences to Dated: August 4, 2021. support the workgroup’s charge. The Kimberly D. Bose, webinar is open to the public, but no FEDERAL DEPOSIT INSURANCE Secretary. oral public comments will be accepted CORPORATION [FR Doc. 2021–16990 Filed 8–9–21; 8:45 am] during the briefing. Written public [OMB No. 3064–0183; –0195; –0200] BILLING CODE 6717–01–P comments relating to the Opportunity Zones Workgroup should be provided in Agency Information Collection accordance with the instructions below Activities: Proposed Information ENVIRONMENTAL PROTECTION on written statements. Collection Renewal; Comment Request AGENCY Registration for the Meeting: Register for the meeting at https:// AGENCY: Federal Deposit Insurance [FRL–8848–01–OW] www.eventbrite.com/e/us-epa- Corporation (FDIC). environmental-financial-advisory- Notice of Public Webinar Briefing ACTION: Notice and request for comment. board-opportunity-zones-panel-tickets- AGENCY: Environmental Protection 164877317495. SUMMARY: The FDIC, as part of its Agency (EPA). Availability of Meeting Materials: obligations under the Paperwork ACTION: Notice of public webinar Meeting materials (including the Reduction Act of 1995 (PRA), invites the briefing. meeting agenda and briefing materials) general public and other Federal will be available on EPA’s website at agencies to take this opportunity to SUMMARY: The Environmental Protection https://www.epa.gov/ comment on the renewal of the existing Agency (EPA)’s Environmental waterfinancecenter/efab. information collections described below Financial Advisory Board (EFAB) will Procedures for Providing Public Input: (OMB Control No. 3064–0183; –0195; hold a public webinar briefing on Public comment for consideration by and –0200). August 26, 2021. The purpose of the EPA’s federal advisory committees has a DATES: Comments must be submitted on webinar will be for an Opportunity different purpose from public comment or before October 12, 2021. Zones Practitioner Panel for the EFAB provided to EPA program offices. ADDRESSES: Interested parties are Opportunity Zones Workgroup. Due to Therefore, the process for submitting invited to submit written comments to interest from the full Board, this comments to a federal advisory the FDIC by any of the following webinar is being opened to the public. committee is different from the process methods: DATES: The webinar will be held on used to submit comments to an EPA • Agency website: https:// August 26, 2021 from 12 p.m. to 1:30 program office. Federal advisory www.fdic.gov/resources/regulations/ p.m. (Eastern Time). committees provide independent advice federal-register-publications/.
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• Email: [email protected]. Include Section 941 of Dodd-Frank requires recordkeeping requirements, that must the name and number of the collection the Board, the FDIC, the OCC be met for ABS issuances collateralized in the subject line of the message. (collectively, the ‘‘Federal banking by such loans to qualify for reduced • Mail: Manny Cabeza (202–898– agencies’’), the Commission and, in the credit risk retention; and sets forth the 3767), Regulatory Counsel, MB–3128, case of the securitization of any circumstances under which retention Federal Deposit Insurance Corporation, ‘‘residential mortgage asset,’’ together obligations may be allocated by 550 17th Street NW, Washington, DC with HUD and FHFA, to jointly sponsors to originators, including 20429. prescribe regulations that (i) require a an disclosure and monitoring • Hand Delivery: Comments may be issuer of an asset-backed security or a requirements. hand-delivered to the guard station at person who organizes and initiates an Part 373 contains several the rear of the 17th Street building asset backed securities transaction by requirements that qualify as information (located on F Street), on business days selling or transferring assets, either collections under the Paperwork between 7:00 a.m. and 5:00 p.m. directly or indirectly, including through Reduction Act of 1995 (‘‘PRA’’). The All comments should refer to the an affiliate, to the issuer (‘‘issuer or information collection requirements are relevant OMB control number. A copy organizer’’) to retain not less than five found in sections 373.4; 373.5; 373.6; of the comments may also be submitted percent of the credit risk of any asset 373.7; 373.8; 373.9; 373.10; 373.11; to the OMB desk officer for the FDIC: that the issuer or organizer, through the 373.13; 373.15; 373.16; 373.17; 373.18; Office of Information and Regulatory issuance of an asset-backed security and 373.19(g). The recordkeeping Affairs, Office of Management and (‘‘ABS’’), transfers, sells or conveys to a requirements relate primarily to (i) the Budget, New Executive Office Building, third party and (ii) prohibit an issuer or adoption and maintenance of various Washington, DC 20503. organizer from directly or indirectly policies and procedures to ensure and FOR FURTHER INFORMATION CONTACT: hedging or otherwise transferring the monitor compliance with regulatory Manny Cabeza, Regulatory Counsel, credit risk that the issuer or organizer is requirements and (ii) certifications, 202–898–3767, [email protected], MB– required to retain under section 941 and including as to the effectiveness of 3128, Federal Deposit Insurance the agencies’ implementing rules. internal supervisory controls. The Corporation, 550 17th Street NW, Exempted from the credit risk retention required disclosures for each risk Washington, DC 20429. requirements of section 941 are certain retention option are intended to provide SUPPLEMENTARY INFORMATION: Proposal types of securitization transactions, investors with material information to renew the following currently including ABS collateralized solely by concerning the sponsor’s retained approved collections of information: qualified residential mortgages interest in a securitization transaction 1. Title: Credit Risk Retention. (‘‘QRMs’’), as that term is defined in the (e.g., the amount, form and nature of the OMB Number: 3064–0183. Rule. In addition, Section 941 provides retained interest, material assumptions Form Number: None. that the agencies must permit an issuer and methodology, representations and Affected Public: Insured state or organizer to retain less than five warranties). Compliance with the nonmember banks, state savings percent of the credit risk of residential information collection requirements is institutions, insured state branches of mortgage loans, commercial real estate mandatory, responses to the information foreign banks, and any subsidiary of the (‘‘CRE’’) loans, commercial loans and collections will not be kept confidential aforementioned entities. automobile loans that are transferred, and, with the exception of the General Description of Collection: sold or conveyed through the issuance recordkeeping requirements in sections This information collection request of ABS by the issuer or organizer, if the 373.4(d), 373.5(k)(3) and 373.15(d), the comprises disclosure and recordkeeping loans meet underwriting standards Rule does not specify a mandatory requirements under the credit risk established by the Federal banking retention period for the information. retention rule issued pursuant to section agencies. Burden Estimate: 15G of the Securities Exchange Act of The FDIC implemented Section 941 of Change Is Burden Estimation 1934 (15 U.S.C. 78o–11), as added by Dodd-Frank through 12 CFR part 373 Methodology Section 941 of the Dodd-Frank Wall (the ‘‘Rule’’). The Rule defines a Street Reform and Consumer Protection securitizer as (1) The depositor of the (1) Prior Methodology 1 Act (‘‘Dodd-Frank’’). The Credit Risk asset-backed securities (if the depositor To determine the total paperwork Retention rule (‘‘the Rule’’) was jointly is not the sponsor); or (2) The sponsor burden for the requirements contained issued in 2015 by the Federal Deposit of the asset-backed securities.4 The Rule in the Credit Risk Retention Rule, FDIC Insurance Corporation (‘‘FDIC’’), the provides a menu of credit risk retention first estimated the universe of sponsors Office of the Comptroller of the options from which securitizers can that would be required to comply with Currency (‘‘OCC’’), the Federal Reserve choose and sets out the standards, the disclosure and recordkeeping Board (‘‘Board’’), the Securities and including disclosure, recordkeeping, requirements. FDIC estimated that Exchange Commission (‘‘SEC’’) and, and reporting requirements, for each approximately 270 unique sponsors with respect to the portions of the Rule option; identifies the eligibility criteria, conduct ABS offerings each year.5 This addressing the securitization of including certification and disclosure estimate was based on the average residential mortgages, the Federal requirements, that must be met for ABS number of ABS offerings from 2007 Housing Finance Agency (‘‘FHFA’’) and offerings to qualify for the QRM and through 2017 reported by the ABS the Department of Housing and Urban other exemptions; specifies the database Asset-Backed Alert for all non- 2 Development (‘‘HUD’’). The FDIC underwriting standards for CRE loans, CMBS transactions and by Commercial regulations corresponding to the Rule commercial loans and automobile loans, Mortgage Alert for all CMBS are found at 12 CFR part 373.3 as well as disclosure, certification and 5 By agreement among the agencies, the FDIC’s 1 Public Law 111–2–3, 124 Stat. 1376 (2010). substantially identical section numbers (e.g.__.01; Division of Insurance Research, in consultation 2 79 FR 77740. _.02, etc.) Rule citations herein are to FDIC’s with its counterparts at the other agencies, prepared 3 Each agency adopted the same rule text but each version of the Rule which is codified at 12 CFR part and documented the burden estimation agency’s version of its rule is codified in different 373. methodology used by all agencies in their parts of the Code of Federal Regulations with 4 12 CFR 373.2. respective ICRs.
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transactions.6 Of the 270 sponsors, the subject to disclosure and recordkeeping Retention information collection are agencies assigned 8 percent of these requirements under §§ 373.16, 373.17, based on the expertise of the OCC’s sponsors to the Board, 12 percent to and 373.18, respectively, which were subject matter experts rather than the FDIC, 13 percent to the OCC, and 67 divided proportionately among the 2015 interagency methodology.11 As a percent to the Commission.7 agencies based on the entity percentages result of these two factors, the FDIC has Next, FDIC estimated how many described above: decided to diverge from the interagency respondents keep records and make (i) 4 offerings per year for each section methodology used in 2015 and 2018 and required disclosures by estimating the for the Board (8%); instead use the new methodology proportionate amount of offerings per (ii) 6 offerings per year for each described below to estimate burden for year for each agency. The estimate was section for the FDIC (12%); this information collection. based on the average number of ABS (iii) 6 offerings per year for each offerings from 2007 through 2017. The section for the OCC (13%); (2) New Methodology agencies estimated the total number of (iv) 29 offerings per year for each Potential respondents to this annual offerings per year to be 1,400 8 section for the Commission (67%). To obtain the estimated number of information collection (IC) are FDIC- which resulted in the following: responses (equal to the number of (a) 13 offerings per year will be supervised insured depository offerings) for each option in subpart B subject to disclosure and recordkeeping institutions (‘‘IDIs’’) including state of the rule, FDIC multiplied the number requirements under § 373.11, which are nonmember banks, state savings of offerings estimated to be subject to divided equally among the four agencies institutions, insured state branches of the base risk retention requirements foreign banks, and any subsidiary of the (i.e., 3.25 offerings per year per agency); 9 (b) 110 offerings per year were (i.e., 1,158) by the sponsor percentages aforementioned entities. As of December estimated to be subject to disclosure and described above. The result was the 31, 2020, the FDIC supervised 3,227 recordkeeping requirements under number of base risk retention offerings state nonmember banks, state savings §§ 373.13 and 373.19(g), which were per year per agency. For the FDIC, this institutions, and insured state branches divided proportionately among the was calculated by multiplying 1,158 of foreign banks. Of these 3,227 IDIs, agencies based on the entity percentages offerings per year by 12 percent, which 2,382 are small for the purposes of the described above: equals 139 offerings per year. This Regulatory Flexibility Act (RFA).12 number was then divided by the (i) Nine (9) offerings per year for the Respondents to this information Board (8%); number of base risk retention options under subpart B of the rule (i.e., nine) 10 collection are FDIC-supervised IDIs that (ii) 13 offerings per year for the FDIC are securitizers of ABS. To generate a (12%); to arrive at the estimate of the number of offerings per year per agency per base universe of potential securitizers, FDIC (iii) 14 offerings per year for the OCC obtained data from Call Reports for the (13%); risk retention option. For the FDIC, this was calculated by dividing 139 offerings quarter ending on December 31 for the (iv) 74 offerings per year for the years 2018, 2019, and 2020, for all FDIC- Commission (67%). per year by nine options, resulting in 15 offerings per year per base risk retention supervised IDIs that reported a non-zero (c) 132 offerings per year were amount in either: (a) Outstanding estimated to be subject to the disclosure option. The agencies assumed that 90% of principal balance of assets sold and requirements under § 373.15, which institutions use the vertical interest securitized with servicing retained or were divided proportionately among the form of risk retention while the with recourse or other seller-provided agencies based on the entity percentages remaining 10% use the combined credit enhancements; 13 or (b) amount of described above: vertical and horizontal form of risk loans and leases held for investment, (i) 11 offerings per year for the Board retention. The burden tables above use net of allowance, and held for sale held (8%); by consolidated variable interest entities (ii) 16 offerings per year for the FDIC this allocation and of the 45 responses (VIEs).14 This search resulted in a list of (12%); attributed to § 373.4, we allocated 40 79 IDIs that were potential securitizers. (iii) 17 offerings per year for the OCC (90%) to the vertical form of risk Using this list, FDIC searched for each (13%); retention and 5 (10%) to the other two IDI’s name in FitchConnect’s repository (iv) 88 offerings per year for the options (1 response to the horizontal Commission (67%). form of risk retention and 4 responses (d) Of these 132 offerings per year, 44 to the combined vertical and horizontal 11 The supporting statement for the OCC’s 2021 renewal is titled ‘‘1557–0249 Credit Risk Retention offerings per year were estimated to be form of risk retention. FDIC believes that the burden Supporting Statement 5–18–21 1244.docx’’and can estimation methodology previously be found at https://www.reginfo.gov/public/do/ 6 Data was provided by the Securities and PRAViewDocument?ref_nbr=202101-1557-003. Exchange Commission. See SEC supporting used overestimates the number of ABS 12 The SBA defines a small banking organization statement for its information collection for the offerings by FDIC-supervised as having $600 million or less in assets, where an Credit Risk Retention rule (3235–0712) available at institutions. Furthermore, the OCC has organization’s ‘‘assets are determined by averaging https://www.reginfo.gov/public/do/ confirmed that the estimates it used for the assets reported on its four quarterly financial PRAViewDocument?ref_nbr=201803-3235-014. statements for the preceding year.’’ See 13 CFR 7 The allocation percentages among the agencies its 2021 renewal of OCC’s Credit Risk 121.201 (as amended by 84 FR 34261, effective were based on the agencies’ latest assessment of August 19, 2019). In its determination, the ‘‘SBA data as of August 13, 2018, including the 9 Estimate of 1,400 offerings per year, minus the counts the receipts, employees, or other measure of securitization activity reported by FDIC-insured estimate of the number of offerings qualifying for size of the concern whose size is at issue and all depository institutions in the June 30, 2017 an exemption under §§ 373.13, 373.15, and 19(g) as of its domestic and foreign affiliates.’’ See 13 CFR Consolidated Reports of Condition. described in (b) and (c) above (i.e. 1,400 minus (b) 121.103. Following these regulations, the FDIC uses 8 Based on ABS issuance data from Asset-Backed 110 minus (c) 132 equals 1,158). a respondent’s affiliated and acquired assets, Alert on the initial terms of offerings, supplemented 10 For purposes of this calculation, the horizontal, averaged over the preceding four quarters, to with information from Commercial Mortgage Alert. vertical, and combined horizontal and vertical risk determine whether the respondent is ‘‘small’’ for This estimate included registered offerings, retention methods under the standard risk retention the purposes of RFA. offerings made under Securities Act Rule 144A, and option (§ 373.4) are each counted as a separate 13 Schedule RC–S, item 1 on forms 031 and 041; traditional private placements. This estimate was option under subpart B of the rule. The other six Supplemental Info, item 4(a) on form 051. for offerings not exempted under §§ _.19(a)–(f) and are: § 373.5; § 373.6; § 373.7; § 373.8; § 373.9; and 14 Schedule RC–V, item 1(c) on forms 031 and _.20 of the Rule. § 373.10. 041.
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of ABS offerings (‘‘deals’’) 15 and details the estimated respondent counts §§ 373.4(a)(3); 373.6; 373.7; 373.10; compiled a list of deals for which an IDI for each of these sections: 373.11; 373.13; 373.15; 373.16; 373.17; was listed as the issuer, sponsor, (a) Two FDIC-supervised IDIs were and 373.18. It is possible that an FDIC- originator, or servicer of the offering. involved in deals in which credit risk supervised IDI or subsidiary of an FDIC- For IDIs for which deals were not found was retained through horizontal interest supervised IDI would be a respondent to on FitchConnect, the following method (§ 373.4(a)(2) Standard Risk Retention— burden items related to these sections in was followed: The queried Call Report Horizontal Interest). These two IDIs the next three years. As such, FDIC is item labeled ‘‘(a)’’ above includes assets were involved in four, three, and four using one respondent and one annual sold with recourse or other seller- such deals in 2018, 2019, and 2020, response per respondent for the provided credit enhancements, which respectively. FDIC therefore estimates disclosure and recordkeeping are outside the scope of the Credit Risk two annual respondents, with an requirements related to each of these ten Retention rule. To identify IDIs which average annual response rate of two sections to preserve the associated securitized from those that did not, a responses per respondent, for the burden estimate. $75 million threshold of year over year disclosure requirement associated with Of the seven unique institutions with growth in that item is used to identify § 373.4(a)(2) and the corresponding securitizations between 2018 and 2020, 18 new securitizations in 2018, 2019, and reporting requirement in § 373.4(d). none are considered small for the 2020, as FDIC assumes that growth of (b) Two FDIC-supervised IDIs were purposes of the RFA.21 involved in deals in which credit risk less than $75 million would be unlikely The estimated time per response was retained through vertical interest to reflect sponsorship or issuance of varies by burden item, and these (§ 373.4(a)(1) Standard Risk Retention— new term ABS offerings during that estimates are unchanged from the Vertical Interest). These two IDIs were period. This method yielded a list of 20 previous renewal which remains in line involved in 0, 0, and 13 such deals in institutions. FDIC reviewed examination with the burden estimated adopted by 2018, 2019, and 2020, respectively. records for the 20 IDIs identified as the agencies. potential securitizers to determine FDIC therefore estimates two annual respondents, with an average annual Two burden items included in the which institutions actually securitize. 2018 information collection request FDIC cross-referenced the list of response rate of two responses per respondent, for the disclosure have been removed from this renewal securitizing IDIs and the list of request. The disclosure burden related aforementioned ABS offering naming requirement associated with § 373.4(a)(1) and the corresponding to § 373.8 Fannie Mae and Freddie Mac conventions found using FitchConnect 19 was removed as FDIC has determined with Intex’s database of prospectuses.16 reporting requirement in § 373.4(d). (c) Three FDIC-supervised IDIs were that it is not possible for FDIC- From this cross-referencing, FDIC found involved in deals in which credit risk supervised IDIs or subsidiaries of FDIC- a count of deals associated with each was retained through revolving master supervised IDIs to be respondents to this deal name. Finally, FDIC determined trusts (§ 373.5 Revolving Master Trusts). burden item. The disclosure burden whether the sponsor or depositor for These three IDIs were involved in eight, related to § 373.9 Open Market each deal was an FDIC-supervised IDI or six, and zero such deals in 2018, 2019, Collateralized Loan Obligations subsidiary of an FDIC-supervised and 2020, respectively. FDIC therefore (‘‘CLOs’’) was removed because the D.C. institution by reading the prospectus of estimates three annual respondents, Circuit Court invalidated section 941 of each deal. with an average annual response rate of Dodd-Frank as it applies to CLOs.22 Once the set of deals, with two responses per respondent, for the The estimated annual burden, in corresponding FDIC-supervised disclosure requirement associated with hours, is the product of the estimated securitizers, was constructed, FDIC § 373.5 and the corresponding reporting number of respondents, number of matched each deal with the sections in requirement in § 373.5(k)(3).20 responses per respondent, and time per Part 373 that imposed one or more PRA Using the above methodology, FDIC response, as summarized in the table requirements on that deal. Most sections could not find any ABS offerings that (1) below. The total estimated annual impose both disclosure and involved an FDIC-supervised IDI or burden for this information collection is recordkeeping requirements.17 For those subsidiary of an FDIC-supervised IDI as 376 hours, a 3,075-hour reduction from sections, FDIC separately estimated the a securitizer and (2) were subject to the the 2018 burden estimate, which reflects burdens for each of the two types of PRA requirements listed in one or more the aforementioned change in PRA requirements. The following of the following ten sections: methodology.
SUMMARY OF ESTIMATED ANNUAL BURDEN
Type of burden Estimated Number of Total annual IC description (obligation to re- Frequency number of responses/ Hours per estimated spond) of response respondents respondent response burden
Disclosure Burdens
§ 373.4(a)(2) Standard Risk Reten- Disclosure (Man- On Occasion .... 2 2 5.5 22 tion—Horizontal Interest. datory).
15 http://app.fitchconnect.com, using ‘‘ABS’’, 18 4+3+4=11 total deals. 11/(3 years*2 20 8+6+0=14 total deals. 14/(3 years*3 ‘‘CMBS’’, and ‘‘RMBS’’ sections under the ‘‘Sectors’’ respondents)=1.83 responses per respondent respondents)=1.56 responses per respondent tab, last accessed on June 11, 2021. annually. annually. 16 https://www.intex.com/main/. 19 0+0+13=13 total deals. 13/(3 years*2 21 As of December 31, 2020. 22 17 With the noted exception of § 373.10 Qualified respondents)=2.17 responses per respondent The Loan Syndication and Trading Association v. Securities and Exchange Commission and Board Tender Option Bonds, which has no recordkeeping annually. of Governors of the Federal Reserve System (No. burden associated with it. 17–5004).
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SUMMARY OF ESTIMATED ANNUAL BURDEN—Continued
Type of burden Estimated Number of Total annual IC description (obligation to re- Frequency number of responses/ Hours per estimated spond) of response respondents respondent response burden
§ 373.4(a)(1) Standard Risk Reten- Disclosure (Man- On Occasion .... 2 2 2.0 8 tion—Vertical Interest. datory). § 373.4(a)(3) Standard Risk Reten- Disclosure (Man- On Occasion .... 1 1 7.5 8 tion—Combined Interest *. datory). § 373.5 Revolving Master Trusts ...... Disclosure (Man- On Occasion .... 3 2 7.0 42 datory). § 373.6 Eligible ABCP Conduits * ..... Disclosure (Man- On Occasion .... 1 1 3.0 3 datory). § 373.7 Commercial MBS * ...... Disclosure (Man- On Occasion .... 1 1 20.75 21 datory). § 373.10 Qualified Tender Option Disclosure (Man- On Occasion .... 1 1 6.0 6 Bonds *. datory). § 373.11 Allocation of Risk Reten- Disclosure (Man- On Occasion .... 1 1 2.5 3 tion to an Originator *. datory). § 373.13 Exemption for Qualified Disclosure (Man- On Occasion .... 1 1 1.25 1 Residential Mortgages *. datory). § 373.15 Exemption for Qualifying Disclosure (Man- On Occasion .... 1 1 20.0 20 Commercial Loans, Commercial datory). Real Estate and Automobile Loans *. § 373.16 Underwriting Standards for Disclosure (Man- On Occasion.... 1 1 1.25 1 Qualifying Commercial Loans *. datory). § 373.17 Underwriting Standards for Disclosure (Man- On Occasion.... 1 1 1.25 1 Qualifying Commercial Real Es- datory). tate Loans *. § 373.18 Underwriting Standards for Disclosure (Man- On Occasion .... 1 1 1.25 1 Qualifying Automobile Loans *. datory).
Disclosure Subtotal ...... 137
Recordkeeping Burdens
§ 373.4(a)(2) Standard Risk Reten- Recordkeeping On Occasion .... 2 2 0.5 2 tion—Horizontal Interest. (Mandatory). § 373.4(a)(1) Standard Risk Reten- Recordkeeping On Occasion .... 2 2 0.5 2 tion—Vertical Interest. (Mandatory). § 373.4(a)(3) Standard Risk Reten- Recordkeeping On Occasion .... 1 1 0.5 1 tion—Combined Interest *. (Mandatory). § 373.5 Revolving Master Trusts ...... Recordkeeping On Occasion .... 3 2 0.5 3 (Mandatory). § 373.6 Eligible ABCP Conduits * ..... Recordkeeping On Occasion .... 1 1 20.0 20 (Mandatory). § 373.7 Commercial MBS * ...... Recordkeeping On Occasion .... 1 1 30.0 30 (Mandatory). § 373.11 Allocation of Risk Reten- Recordkeeping On Occasion .... 1 1 20.0 20 tion to an Originator *. (Mandatory). § 373.13 Exemption for Qualified Recordkeeping On Occasion .... 1 1 40.0 40 Residential Mortgages *. (Mandatory). § 373.15 Exemption for Qualifying Recordkeeping On Occasion .... 1 1 0.5 1 Commercial Loans, Commercial (Mandatory). Real Estate and Automobile Loans *. § 373.16 Underwriting Standards for Recordkeeping On Occasion .... 1 1 40.0 40 Qualifying Commercial Loans *. (Mandatory). § 373.17 Underwriting Standards for Recordkeeping On Occasion .... 1 1 40.0 40 Qualifying Commercial Real Es- (Mandatory). tate Loans *. § 373.18 Underwriting Standards for Recordkeeping On Occasion .... 1 1 40.0 40 Qualifying Automobile Loans *. (Mandatory).
Recordkeeping Subtotal ...... 239
Total Annual Burden Hours ...... 376 Source: FDIC. * There are currently zero estimated respondents for these items however, FDIC is using 1 as a placeholder to preserve the burden estimate in case an institution becomes subject to these provisions.
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2. Title: Minimum Requirements for the total estimated burden hours for that TABLE 1—ANNUAL RATE OF TOTAL Appraisal Management Companies IC and then assign an agreed-upon share SEPARATIONS FOR THE FINANCE AND OMB Number: 3064–0195. of the burden hours to each of the INSURANCE INDUSTRY IN THE UNITED Form Number: None. regulatory agencies (FDIC, FRB, OCC, STATES—Continued Affected Public: Individuals or and FHFA).25 The FDIC’s estimated households; business or other for profit. annual burden is calculated by finding Value General Description of Collection: the product of the estimated annual Year (in %) This information collection comprises number of respondents, the estimated recordkeeping and disclosure annual number of responses per 2017 ...... 25.2 requirements under regulations issued respondent, the estimated burden hours 2018 ...... 24.2 by the Federal Deposit Insurance per response and the share of the 2019 ...... 24.6 Corporation (FDIC), jointly with the burden attributable to the FDIC. 2020 ...... 25.1 Office of the Comptroller of the Burden Estimate: Source: BLS, ‘‘Job Openings and Labor Currency (OCC), the Board of Governors Turnover Survey: Finance and Insurance’’ (Se- of the Federal Reserve System (FRB), the Estimated Number of Respondents ries ID: JTU520000000000000TSR), available National Credit Union Administration at https://www.bls.gov/data/ (accessed June 4, IC #1: Written Notice of Appraiser 2021). (NCUA), the Bureau of Consumer Removal From Network or Panel Financial Protection (CFPB), and the The number of appraisers is estimated Federal Home Finance Agency (FHFA) This IC relates to the written notice of by using the number of appraisers in (collectively, ‘‘the agencies’’) that appraiser removal from the network or 2020 as a proxy for the level of appraiser implement the minimum requirements panel pursuant to § 323.10. The number employment over the next three years.27 in Section 1473 of the Dodd-Frank Wall of respondents is estimated to be equal In 2020, the total number of appraisers Street Reform and Consumer Protection to the number of appraisers who leave was 86,000 and is similar to the annual Act (Dodd-Frank Act or the Act) to be the profession each year multiplied by average of 87,000 appraisers between applied by states 23 in the registration the estimated percentage of appraisers 2011 and 2020. Table 2 contains data on and supervision of appraisal who work for AMCs. The number of management companies (AMCs). The appraisers who leave is calculated by annual employment level for appraisers regulations also implement the adding the number of appraisers who in the U.S. between 2011 and 2020: requirement in Section 1473 of the are laid off or resign to the number of Dodd-Frank Act for states to report to appraisers that have had their licenses TABLE 2—ANNUAL LEVEL OF EMPLOY- the Appraisal Subcommittee (ASC) of revoked or surrendered. This estimation MENT FOR APPRAISERS IN THE the Federal Financial Institutions methodology is similar to the UNITED STATES Examination Council (FFIEC) the methodology used in the 2018 ICR. information required by the ASC to The number of appraisers who are Value Year (in thousands) administer the new national registry of laid off or resign each year is estimated appraisal management companies (AMC by multiplying the annual rate of ‘‘Total separations’’ by the number of 2011 ...... 88 National Registry or Registry). The 2012 ...... 93 information collection (IC) requirements appraisers for each year. Using data 2013 ...... 98 are established in Part 323 of the FDIC’s from the Bureau of Labor Statistics 2014 ...... 95 codified regulations. (BLS) for the finance and insurance 2015 ...... 76 This information collection was last industry, shown in Table 1 below, the 2016 ...... 73 approved for renewal on October 16, annual rate of ‘‘Total separations’’ in 2017 ...... 97 2018 (‘‘2018 ICR’’) with a total annual 2020 is 25.1 percent.26 The rate for 2020 2018 ...... 84 burden estimate of 421 hours. The 2018 is within the range of annual rates 2019 ...... 84 ICR contains two recordkeeping and two between 2011 and 2020 (20.4 to 26.0 2020 ...... 86 reporting IC requirements. The FDIC percent, with a median of 24.8 percent) Source: BLS, ‘‘Employed—Appraisers and notes that the ASC has issued its own and is a reasonable estimate for future assessors of real estate’’ (Series ID: regulations or guidance implementing periods. LNU02038218), available at https:// beta.bls.gov/dataViewer/view/timeseries/ the requirements from the Act related to LNU02038218 (accessed June 2, 2021). the information to be presented to the TABLE 1—ANNUAL RATE OF TOTAL ASC by the participating states, and SEPARATIONS FOR THE FINANCE AND Given the data summarized above, the submitted an IC related to this reporting INSURANCE INDUSTRY IN THE UNITED number of appraisers who are laid off or 24 requirement. Accordingly, the FDIC is STATES resign is estimated by multiplying the not taking PRA burden for the annual number of appraisers by the associated IC (previously included as × Year Value annual separation rate 86,000 25.1 ‘‘State Reporting Requirements to (in %) percent = 21,586. Appraisal Subcommittee’’) and has As stated above, respondents to this removed it from its current ICR 2011 ...... 20.4 IC also include appraisers who have submission. 2012 ...... 23.6 For each of the remaining ICs, FDIC’s 2013 ...... 26.0 their license revoked or surrendered 2014 ...... 25.0 estimation methodology is to compute each year. According to the ASC, 2015 ...... 24.5 between January 1, 2010 and December 2016 ...... 23.9 23 States include the 50 U.S. states, the District of 31, 2019, the counts of appraisers who Columbia, and the territories of Guam, Mariana have had their license revoked or Islands, Puerto Rico, and the U.S. Virgin Islands. 25 The agencies agreed to this burden-sharing surrendered are 804 and 576, See 12 CFR 323.9. methodology in 2018. 24 See OMB No. 3139–0009 and the 26 Bureau of Labor Statistics (BLS), ‘‘Job Openings accompanying Supporting Statement submitted by and Labor Turnover Survey: Finance and 27 BLS, ‘‘Employed—Appraisers and assessors of the ASC in 2021, available at https:// Insurance’’ (Series ID: JTU520000000000000TSR), real estate’’ (Series ID: LNU02038218), available at www.reginfo.gov/public/do/PRAViewICR?ref_ available at https://www.bls.gov/data/ (accessed https://beta.bls.gov/dataViewer/view/timeseries/ nbr=202102-3139-001 (accessed June 2, 2021). June 4, 2021). LNU02038218 (accessed June 2, 2021).
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respectively.28 Therefore, the annual assume that all respondents are AMCs. 323.14 requires that each state electing average over the ten-year span is 138 Thus, FDIC estimates that 2,891 to register AMCs for purposes of licenses revoked or surrendered per respondents to this IC are small for permitting AMCs to provide appraisal year.29 purposes of the RFA.33 This is likely a management services relating to covered The number of appraisal removal conservative estimate of small transactions in the state must submit to notices for AMCs is then calculated by respondents for this information the ASC certain information required adding the estimate of appraisers who collection because not all respondents under the Rule and any additional are laid off or resign to the number of to this IC are AMCs. information required by the ASC appraisers who have their licenses The estimated number of notices per concerning AMCs. Thus, this burden revoked or surrendered, and year is lower than the 2018 ICR estimate falls on the states, especially those that multiplying by the estimated percent of by 5,751 notices.34 Two factors have not developed a system to register total appraisers who work for AMCs. contributed to the drop in estimated and oversee AMCs. According to the According the Appraisal Institute, notices: First, the number of appraisers ASC there are four states (the territories approximately 81 percent of appraisers who are laid off or resign, and the of Guam, Mariana Islands, Puerto Rico, are sole proprietors, executives in a number that have had their licenses and the U.S. Virgin Islands) that have firm, or are listed as having other forms revoked or surrendered (138 and 21,586, not developed a system to register and of employment status.30 The remaining respectively) are lower than the oversee AMCs.36 Thus, the estimated 19 percent of appraisers are employees estimates in the 2018 ICR (245 and number of annual respondents for this or staff members in firms such as AMCs, 23,280); second, there is more granular burden is four. Since respondents to this appraisal services companies, or other data available to calculate the share of IC are states, none of the respondents companies. Using 19 percent as the appraisers employed by AMCs, are considered ‘‘small’’ for purposes of estimate of the percentage of appraisers appraisal services companies, or other the RFA. who work for AMCs, the estimated total companies. The most recent data from number of appraiser removal notices for the Appraisal Institute contains nine IC #3: AMC Disclosure Requirements AMCs is 4,130 notices per year, rounded separate categories for Appraiser (State-Regulated AMCs) 37 to the nearest ten.31 Thus, the estimated Employment Status, whereas the data The third information collection number of annual respondents for this available for the 2018 ICR contained relates to disclosure requirements for information collection is 4,130. The only four categories.35 Given the level of AMCs that are not federally regulated respondents to this IC are either natural aggregation available in 2018, the AMCs 38 (‘‘state-regulated AMCs’’) persons or AMCs. There are no data estimate of the share of appraisers in the pursuant to Section 323.12, which available currently on the number of 2018 ICR likely included appraisers involves information sent by AMCs to AMCs that are considered ‘‘small,’’ for who are employees or staff members in third parties, including states and the the purposes of the Regulatory a government or regulatory agency, and AMC National Registry. The disclosure Flexibility Act (RFA), and none of the individuals with employment statuses requirement for this IC includes respondents who are natural persons are such as valuation consultant, professor registration limitations/requirements. small for the purposes of the RFA. As or other academic professional, semi- According to the National Registry, a rough approximation, to estimate the retired or retired, or student. The FDIC accessed on June 2, 2021, there are number of small respondents to this IC notes that appraisers or individuals with 3,854 active AMCs, of which 3,817 are FDIC uses the percentage of insured the five employment statuses listed state-regulated AMCs.39 FDIC does not depository institutions that are small (70 above would not be subject to this IC. have the data to estimate the change in 32 percent) for purposes of the RFA, and Consequently, the share (19 percent) is the number of active state-regulated much lower than the share (42 percent) AMCs using historical information 28 Federal Financial Institution Examination used in the 2018 ICR. Council: Appraisal Subcommittee, ‘‘Annual Report because the National Registry became 2019: Appendix E Appraiser Disciplinary Actions IC #2: Develop and Maintain a State available for the states to populate in Reported by State,’’ available at https:// Licensing Program July 2018, and the states’ reporting www.asc.gov/About-the-ASC/AnnualReports.aspx characteristics vary over time.40 For the (accessed June 2, 2021). The second information collection 29 The average over the ten years is calculated as pertains to developing and maintaining 36 (1,380, or 804 + 576) divided by 10. ASC, ‘‘States’ Status on Implementation of a state licensing program for AMCs AMC Programs,’’ available at https://www.asc.gov/ 30 Appraisal Institute, ‘‘U.S. VALUATION pursuant to Section 323.14. Section National-Registries/StatesStatus.aspx (accessed PROFESSION FACT SHEET Q1 2019,’’ available at June 2, 2021). https://www.appraisalinstitute.org/ 37 file.aspx?DocumentId=2342, (accessed June 2, these regulations, the FDIC uses a covered entity’s Based on conversations between the SMEs at 2021). affiliated and acquired assets, averaged over the the FDIC, FRB, OCC, and FHFA, the current ICR splits the IC #3 from the 2018 ICR (titled ‘‘AMC 31 The estimated total number of appraiser preceding four quarters, to determine whether the removal notices for AMCs is calculated as (21,586 covered entity is ‘‘small’’ for the purposes of RFA. Reporting Requirements (State and Federal AMCs) + 138) × 19 percent, which yields 4,127.56 notices, 33 The estimated number of small respondents to (323.12 & 13(c))’’) in to two separate ICs, one each or 4,130 after rounding to the nearest ten. The this IC is calculated by multiplying the estimated for state-regulated AMCs, and federally regulated estimate is rounded to the nearest ten because 10 number of respondents (4,130) by 70 percent. AMCs. percent of the respondents will be allocated to 34 See OMB No. 3064–0195 and the 38 Section 323.9 defines a federally regulated FHFA, and OMB systems require whole number accompanying Supporting Statement submitted by AMC as ‘‘an AMC that is owned and controlled by inputs. the FDIC in 2018, available at https:// an insured depository institution, as defined in 12 32 December 31, 2020, Call Report data. The Small www.reginfo.gov/public/do/PRAViewICR?ref_ U.S.C. 1813 and regulated by [the OCC, FRB, or Business Administration (SBA) defines a small nbr=201804-3064-013 (accessed June 2, 2021). FDIC].’’ banking organization as having $600 million or less 35 The most recent data available from the 39 ASC nonpublic data, obtained as of June 3, in assets, where an organization’s ‘‘assets are Appraisal Institute includes five new categories 2021, stored under this memo’s workpapers on determined by averaging the assets reported on its (employee or staff member in a government or FDIC SharePoint. four quarterly financial statements for the preceding regulatory agency, valuation consultant, professor 40 The most recent Annual Report of the ASC year.’’ See 13 CFR 121.201 (as amended by 84 FR or other academic professional, semi-retired or notes that as of December 31, 2019, the National 34261, effective August 19, 2019). In its retired, and student), in addition to the four Registry contained 1,374 AMCs registered from 14 determination, the ‘‘SBA counts the receipts, categories that match closely to the data in the 2018 states. As of June 2, 2021, the date I accessed the employees, or other measure of size of the concern ICR (employee or staff member of a firm, sole ASC’s website, there are 40 states currently whose size is at issue and all of its domestic and proprietor of own business (no employees/ populating the National Registry. See Federal foreign affiliates.’’ See 13 CFR 121.103. Following partners), executive in a firm, and other). Financial Institution Examination Council:
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purposes of this analysis FDIC assumes available currently on the number of for this IC and assumes a frequency of the number of state-regulated AMCs to AMCs that are small. As a rough one. remain approximately the same over the approximation, FDIC uses the For IC #2, FDIC assumes the states next three years. Thus, the estimated percentage of insured depository that have currently elected not to number of annual respondents for this institutions that are small (70 percent) register and oversee AMCs could choose burden is 3,820, after rounding up to the for purposes of the RFA to estimate the to do so at any time. Since this event nearest ten.41 There are no data number of small respondents to this IC. occurs on occasion, FDIC uses ‘‘On available currently on the number of Accordingly, FDIC estimates that 27 Occasion’’ as the Frequency of Reponses AMCs that are small. As a rough respondents to this IC are small for for this IC and assumes a frequency of approximation, FDIC uses the purposes of the RFA.46 one. percentage of insured depository For IC #3 and IC #4, FDIC assumes the Estimated Number of Responses institutions that are small (70 percent) state-regulated or federally regulated for purposes of the RFA to estimate the For IC #1, FDIC assumes an AMC AMCs that are currently operating in a number of small respondents to this IC. receives one written notice from each state but have not yet registered with Using this methodology FDIC estimates appraiser 47 asking to be removed from that state could choose to do so any that 2,674 respondents to this IC are the appraiser panel, or sends one notice time. Since this event occurs on small for purposes of the RFA.42 to each appraiser removing him/her occasion, FDIC uses ‘‘On Occasion’’ as from the panel. Thus, the estimated IC #4: AMC Disclosure Requirements the Frequency of Reponses for this IC number of responses per respondent is and assumes a frequency of one. (Federally Regulated AMCs) one. The fourth information collection For IC #2, FDIC assumes that states Estimated Time per Response relates to AMC disclosure requirements without a registration and licensing The 2018 ICR estimate of the hour for federally regulated AMCs pursuant program would develop and maintain a burden per written notice of appraiser to Section 323.13(c). The disclosure single program for each state. Thus, the removal was 0.08 hours. The FDIC requirements for this IC include estimated number of responses per believes this estimate remains registration limitations/requirements as respondent is one. reasonable and appropriate for this IC well as information regarding the For IC #3 and IC #4, FDIC estimates and uses 0.08 hours as the estimated determination of the AMC National the number of responses per respondent time per response for IC #1. Registry fee. Of the 3,854 active AMCs, as the number of states that do not have The 2018 ICR estimate of the hour 37 are federally regulated AMCs.43 FDIC an AMC registration program in which burden for a state without a registration does not have the data to estimate the the average state-regulated or federally program or system to establish one was change in the number of active federally regulated AMC operates. As discussed 40 hours. The FDIC believes this regulated AMCs using historical previously, there are four states that estimate remains reasonable and information because the National currently do not have an AMC appropriate for this IC and uses 40 Registry became available for the states registration program. As noted in the hours as the estimated time per to populate in July 2018, and the states’ Supporting Statement accompanying response for IC #2. reporting characteristics vary over the 2018 ICR, a 2013 survey conducted The 2018 ICR estimate of the hour time.44 For the purposes of this analysis by the CFPB found that the average burden for a state-regulated or federally FDIC assumes the number of federally AMC operates in 19.56 states.48 Thus, regulated AMC to register in a state in regulated AMCs to remain the average state-regulated or federally which it operates was one hour. The approximately the same over the next regulated AMC operates in FDIC believes this estimate remains three years. Thus, the estimated number approximately 2 states that do not have reasonable and appropriate for IC #3 of annual respondents for this burden is AMC registration systems: (4 states/55 and IC #4 and uses one hour each as the 39, after rounding up to the nearest states) × 19.56 states = 1.422 states ∼ estimated time per response for IC #3 45 multiple of three. There are no data rounded up to 2 states. and IC #4. Frequency of Responses The estimated annual burden, in Appraisal Subcommittee, ‘‘Annual Report 2019: hours, for the four agencies (FDIC, FRB, Appendix E Appraiser Disciplinary Actions For IC #1, as discussed above, the Reported by State,’’ available at https:// OCC, and FHFA) is the product of the www.asc.gov/About-the-ASC/AnnualReports.aspx AMC receives (or sends) a written notice estimated number of respondents per (accessed June 2, 2021); and ASC, ‘‘States’ Status on in the event an appraiser no longer year allocated to each agency, the Implementation of AMC Programs,’’ available at serves on the panel. Since this event https://www.asc.gov/National-Registries/ number of responses per respondent per occurs on occasion, FDIC uses ‘‘On year, and the hours per response, as StatesStatus.aspx (accessed June 2, 2021). Occasion’’ as the Frequency of Reponses 41 The estimate is rounded to the nearest ten summarized in Tables 3 and 4 below. because 10 percent of the respondents will be For IC #1, and IC #3, the estimated allocated to FHFA, and OMB systems require whole information available from the National Registry respondents are split between the four number inputs. after 2018, when AMC registration requirements 42 The estimated number of small respondents to became effective. agencies the FDIC, FRB, OCC, and this IC is calculated by multiplying the estimated 46 The estimated number of small respondents to FHFA, at a ratio of 3:3:3:1.49 Thus, the number of respondents (3,820) by 70 percent. this IC is calculated by multiplying the estimated 43 ASC nonpublic data, obtained as of June 3, number of respondents (39) by 70 percent. 49 The assumption to divide the burden hours 2021. 47 In the event of an appraiser’s death or between the agencies is based on conversations 44 See footnote 40. incapacitation, the AMC receives notice of death or between the subject matter experts at the FDIC, 45 The estimate is rounded to the nearest multiple incapacity. See 12 CFR 323.10. FRB, OCC, and FHFA and is based on the of three because the estimated respondents will be 48 See OMB No. 3064–0195 and the approximate proportion of AMCs supervised by the allocated equally to the FDIC, FRB, and OCC, and accompanying Supporting Statement submitted by three banking agencies and evenly split among the OMB systems require whole number inputs. The the FDIC in 2018, available at https:// three banking agencies. The burden hours are aggregate estimated number of respondents for IC www.reginfo.gov/public/do/PRAViewICR?ref_ shared using the same ratio as the 2018 ICR. The #3 and IC #4 in the current ICR (state-regulated and nbr=201804-3064-013 (accessed June 2, 2021). ratio does not affect the total amount of burden federally regulated AMCs) is higher than the Additional details on the survey can be found in the imposed by the collections of information under the corresponding estimate in the 2018 ICR by 3,659. text accompanying the final rule. See Minimum joint AMC regulations, and relates only to the The increase in the number of respondents in the Requirements for Appraisal Management appropriate distribution among the rulemaking current ICR is attributable to the definitive Companies, 80 FR 32,677 (June 9, 2015). Continued
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estimated number of annual split equally amongst the four agencies regulated by the FDIC, FRB, or OCC. respondents attributable to the FDIC, which amounts to one respondent The total estimated annual burden for FRB, and OCC for IC #1, and IC #3 are each.50 For IC #4, the estimated number this information collection is 8,208 1,239, and 1,146 each, respectively. of respondents (39) is split equally hours.51 The FDIC, FRB, and OCC will Similarly, the estimated number of amongst the three banking agencies (13 each have equally-sized shares of the annual respondents attributable to the each) as Section 323.9 defines a total estimated burden, with each FHFA for IC #1, and IC #3 are 413, and federally regulated AMC as an AMC agency responsible for 2,457 hours. The 382, respectively. For IC #2, the owned and controlled by an insured FHFA is responsible for the remaining estimated number of respondents is depository institution, which is 837 hours.
TABLE 3—SUMMARY OF ESTIMATED ANNUAL BURDENS—FDIC, FRB, AND OCC SHARE [OMB No. 3064–0195]
Number of Annual IC description Type of burden Frequency Number of responses per Hours per burden (obligation to respond) of response respondents respondent response (hours)
IC #1—Written Notice of Appraiser Disclosure 52 (Mandatory) .... On occasion ... 1,239 1 0.08 99 Removal From Network or Panel (12 CFR part 323.10). IC #2—State Recordkeeping Re- Recordkeeping (Mandatory) On occasion ... 1 1 40 40 quirements (12 CFR parts 323.11(a) and 323.11(b)). IC #3—AMC Disclosure Require- Disclosure 53 (Mandatory) .... On occasion ... 1,146 2 1 2,292 ments (State-regulated AMCs) (12 CFR part 323.12). IC #4—AMC Disclosure Require- Disclosure (Mandatory) ...... On occasion ... 13 2 1 26 ments (Federally regulated AMCs) (12 CFR parts 323.12 and 323.13(c)).
Total Annual Burden Hours ...... 2,457 (FDIC, FRB, and OCC Share). Source: FDIC.
3. Title: Joint Standards for Assessing first time or respondents who choose an (OMWI) have identified several Diversity Policies and Practices. alternative method of assessing their submissions that complete the pro OMB Number: 3064–00200. diversity policies and practices. As forma form but do not provide the FDIC Form Number: 2710/05—Diversity such, this ICR revises the IC line items with any material self-assessments. Self-Assessment (paper form). to distinguish between the With the addition of these two 2710/06—Diversity Self-Assessment implementation burden incurred by first submission types, there are now five (electronic form). time respondents from the ongoing distinct submission types for this IC: Affected Public: Insured state burden incurred by returning 1. Paper Form Submissions, which are nonmember banks, and insured state respondents. This ICR also updates the DSA submissions that use the ‘‘Diversity savings associations. respondent count estimates for the other Self-Assessment of Financial Burden Estimate: FDIC is revising the line items in this IC. Finally, this ICR Institutions Regulated by the FDIC’’ burden estimates associated with this adds a line to cover the burdens of non- form and submit the form as an email information collection as a result of the material (not responsive) submissions. attachment or via the United States update of the electronic version of the In October 2020, the FDIC Postal Service; reporting form. The update will allow implemented a copy/clone feature in 2. Electronic Form (Implementation) respondents who have previously FID–SA for submissions covering the Submissions, which are DSA completed a diversity self-assessment 2020 reporting period and beyond. This submissions that utilize the online FID– (DSA) to copy and clone their previous feature allows the respondent to pre- SA application, and the financial submission. This copy/clone capability populate a new diversity self- institution has not previously submitted reduces the reporting burden for assessment with the information that a DSA; returning respondents. However, it does was previously completed and 3. Electronic Form (Ongoing) not change the burden for respondents submitted. In addition, the FDIC Office Submissions, which are DSA who fill out the electronic form for the of Minority and Women Inclusion submissions that utilize the online FID–
agencies of responsibility (under the PRA) for a OCC, and FHFA. The burden hours are shared using respondents to IC #3 and IC #4. As discussed portion of the total estimated burden. See OMB No. the same ratio as the 2018 ICR. previously, the estimated number of respondents in 2590–0013 and the accompanying Supporting 51 The estimated total annual burden hours of higher than the estimate in the 2018 ICR due to the Statement submitted by the FHFA in 2018, 8,208 is obtained by aggregating the estimated total definitive information available from the National available at https://www.reginfo.gov/public/do/ annual burden hours for the FDIC, FRB, and OCC Registry after 2018. × 52 PRAViewICR?ref_nbr=201807-2590-002 (accessed in Table 3 (7,371, or 2,457 3) with the The 2018 ICR erroneously classified IC #1 as a June 16, 2021). corresponding value for the FHFA in Table 4 (837). Recordkeeping requirement. The burden for this IC The estimated hour burden in the current ICR has been changed to a Disclosure requirement. 50 For IC #2, the assumption to divide the burden (8,208) higher than the 2018 ICR estimate by 6,763 53 The 2018 ICR erroneously classified IC #3 as a hours equally between the agencies is based on hours. The increase is predominantly driven by the Reporting requirement. The burden for this IC has conversations between the SMEs at the FDIC, FRB, increase in the aggregate estimated number of been changed to a Disclosure requirement.
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SA application and are able to use the submitted by any FDIC-regulated covering diversity activities in the copy/clone feature in FID–SA; financial institution. As such, potential reporting periods 2016–2019. 4. Free-Form Submissions, which are respondents to this IC are all FDIC- Submissions were categorized as a first- submissions that do not use the regulated financial institutions. As of time submission if no prior submission ‘‘Diversity Self-Assessment of Financial December 31, 2020, the FDIC regulates was made by the same IDI. Otherwise, Institutions Regulated by the FDIC’’ 3,227 insured depository institutions the submission was categorized as a form; and (IDIs). Of these institutions, 2,380 are repeat submission. FDIC did not 5. Non-Material Submissions, which considered small for the purposes of the categorize 2016 submissions since 2016 are pro forma submissions that do not Regulatory Flexibility Act (RFA). was the first year for which the agency provide any material self-assessments. Respondents submit a single response has submission data. A summary of Estimated Number of Respondents and per year. To estimate the number of these results is provided in Table 1 Responses respondents for this ICR, FDIC reviewed below: Responses to this information and summarized data from historical collection are voluntary and may be submissions by FDIC-regulated IDIs
TABLE 1—OMWI SUBMISSION COUNTS, BY SUBMISSION TYPE AND REPORTING PERIOD
Submission type 2016 2017 2018 2019
All submissions * ...... 95 137 133 152 All submissions, small IDIs ** ...... 17 26 26 33 First-time submissions ...... 81 42 38 First-time submissions, small IDIs ** ...... 18 13 16 Repeat submissions ...... 56 91 113 Repeat submissions, small IDIs ** ...... 8 13 17 Source: FDIC OMWI. * These counts include two financial institutions (CERTs 20399 in 2016 and 29845 in 2019) that were later found to not be regulated by the FDIC during their respective reporting periods. We include them here to align the table with other OMWI published analyses (available at https:// www.fdic.gov/about/diversity/analysisdsa.html). ** IDIs are counted as small if they meet the SBA’s definition of ‘‘small’’ for purposes of RFA as of December 31st in each reporting period.
As Table 1 shows, there were 152 Electronic Form (Implementation) and of the submission application will take total submissions in 2019, the most 130 Electronic Form (Ongoing) six minutes, or 0.1 hours. The FDIC has recent reporting year. This is an increase submissions.54 In addition, the FDIC reviewed the hourly burden estimates of approximately 20 submissions from anticipates annual counts of five Free- for Paper Submissions and for Free- the previous year. This increase is due Form Submissions and ten Non-material Form Submissions and found that the to the introduction of the online FID–SA Submissions.55 Finally, FDIC recognizes estimates from the 2020 ICR remain application and an expanded outreach that some IDIs may prefer to continue reasonable and appropriate. Finally, the effort by the FDIC to educate and providing Paper Submissions and FDIC estimates that each respondent increase awareness about the DSA. The anticipate five such submissions per will incur one hour of burden per year, FDIC expects that submission counts year. on average, to disclose a portion of its will continue to climb upwards due to Estimated Hourly Burden submission to the public, in a manner continued expanded outreach efforts as reflective of the entity’s size and other The FDIC estimates that Electronic well as the introduction of the copy/ characteristics. clone feature to facilitate responses. Form (Implementation) Submissions Based on the historical submission will take seven hours, the same burden The estimated annual burden for each counts and the expected rise in that was recorded in the Electronic submission type, in hours, is the submissions, the FDIC expects it will Form line item in the 2020 ICR. For product of the estimated number of receive 195 submissions per year with Electronic Form (Ongoing) Submissions, respondents, number of responses per the majority of these submissions using the FDIC estimates that the copy/clone respondent per year, and time per the online FID–SA application. Based feature will save respondents an average response, as summarized in Table 2 on the historical trends of first-time and of four hours per submission, for a net below. The total estimated annual repeating submissions future burden of three hours per response. For burden for this information collection is expectations, the FDIC anticipates Non-material Submissions, the FDIC 100, 106 hours, a reduction of 559 hours annual respondent counts of 45 estimates that the pro forma completion from the previously approved ICR. 56
54 Steady state averages of 25 percent for (Ongoing) submissions. For the purposes of submissions in 2017, 2018, and 2019, respectively. Electronic Form (Implementation) and 75 percent annualizing the estimated number of respondents, Based on these historical numbers and their for Electronic Form (Ongoing) submissions were it is assumed that the estimated annual count of supervisory experience, the FDIC anticipates estimated from historical submissions by FDIC- respondents for Electronic Form (Ongoing) approximately 5 Free-Form and 10 Non-material regulated IDIs covering diversity activities in 2019, Submissions includes returning Electronic Form Submissions going forward. the first reporting period for which the online submission was available, and multiplied by 175, (Implementation) Submissions from the previous 56 The average burden hour estimate across all the anticipated number of annual Electronic Form year. submission types is 4 hours and 8 minutes per submissions, to arrive at estimates of 45 Electronic 55 The FDIC found 0, 0, and 4 Free-Form response. Form (Implementation) and 130 Electronic Form submissions and 3, 3, and 12 Non-material
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TABLE 2—SUMMARY OF ESTIMATED ANNUAL BURDEN [OMB No. 3064–0006]
Information collection Number of Annual description—submission Type of burden Frequency Number of responses per Hours per burden type (obligation to respond) of response respondents respondent response (hours)
Joint Standards for Assessing Reporting (Voluntary) ..... Annual ...... 5 1 8 40 Diversity Policies and Prac- tices—Paper Form. Joint Standards for Assessing Reporting (Voluntary) ..... Annual ...... 45 1 7 315 Diversity Policies and Prac- tices—Electronic Form (Im- plementation). Joint Standards for Assessing Reporting (Voluntary) ..... Annual ...... 130 1 3 390 Diversity Policies and Prac- tices—Electronic Form (On- going). Joint Standards for Assessing Reporting (Voluntary) ..... Annual ...... 5 1 12 60 Diversity Policies and Prac- tices—Free-Form. Joint Standards for Assessing Reporting (Voluntary) ..... Annual ...... 10 1 0.1 1 Diversity Policies and Prac- tices—Non-material. Joint Standards for Assessing Disclosure (Voluntary) ... Annual ...... 195 1 1 195 Diversity Policies and Prac- tices—Public Disclosure.
Total Annual Burden ...... 1,001 (Hours):. Source: FDIC.
General Description of Collection includes Joint Standards that cover The collection of information ‘‘Practices to Promote Transparency of described above is reported to the FDIC Section 342 of the Dodd-Frank Wall Organizational Diversity and Inclusion.’’ via the form entitled ‘‘Diversity Self- Street Reform and Consumer Protection These Joint Standards contemplate that Assessment of Financial Institutions Act of 2010 (the Act) required the Office Regulated by the FDIC,’’ which can be of the Comptroller of the Currency a regulated entity is transparent about submitted in paper 58 or electronic (OCC), Board of Governors of the its diversity and inclusion activities by format.59 To facilitate DSA submissions, Federal Reserve System (Board), Federal making certain information available to the FDIC has developed the automated Deposit Insurance Corporation (FDIC), the public annually on its website or Financial Institution Diversity Self- Bureau of Consumer Financial through other appropriate Assessment (FID–SA) application. FID– Protection (CFPB), National Credit communications methods, in a manner SA provides FDIC-regulated financial Union Administration (NCUA), and reflective of the entity’s size and other institutions an easy and efficient way to Securities and Exchange Commission characteristics. The specific information electronically complete the diversity (SEC) (together, Agencies and referenced in these standards is: (a) self-assessment; work with multiple separately, Agency) each to establish an Leadership commitment to diversity users; view previous submissions; Office of Minority and Women and inclusion; (b) workforce diversity attach supporting material; and print Inclusion (OMWI) to be responsible for and employment practices; (c) progress and save in pdf format.60 all matters of the Agency relating to toward achieving diversity and diversity in management, employment, inclusion in its procurement activities; Request for Comment and (d) opportunities available at the and business activities. The Act also Comments are invited on: (a) Whether entity that promote diversity. instructed each OMWI Director to the collection of information is develop standards for assessing the In addition, the Policy Statement necessary for the proper performance of diversity policies and practices of includes Joint Standards that address the FDIC’s functions, including whether entities regulated by the Agency. The ‘‘Entities’ Self-Assessment.’’ The Joint Agencies worked together to develop Standards for Entities’ Self-Assessment 58 The paper version of the ‘‘Diversity Self- joint standards and, on June 10, 2015, envision that a regulated entity, in a Assessment of Financial Institutions Regulated by they jointly published in the Federal manner reflective of its size and other the FDIC’’ form (form number 2710/05) can be Register 57 the ‘‘Final Interagency Policy viewed at the following location: https:// characteristics, (a) conducts annually a www.fdic.gov/resources/regulations/federal- Statement Establishing Joint Standards voluntary self-assessment of its diversity register-publications/2021/2021-form-2710-05- for Assessing the Diversity Policies and policies and practices; (b) monitors and diversity-self-assessment-paper-form.pdf. Practices of Entities Regulated by the evaluates its performance under its 59 The electronic version of the ‘‘Diversity Self- Agencies’’ (Policy Statement). Assessment of Financial Institutions Regulated by diversity policies and practices on an the FDIC’’ form (form number 2710/06) can be The Policy Statement contains a ongoing basis; (c) provides information viewed at the following location: https:// ‘‘collection of information’’ within the pertaining to its self-assessment to the www.fdic.gov/resources/regulations/federal- meaning of the Paperwork Reduction OMWI Director of its primary federal register-publications/2021/2021-form-2710-06- Act of 1995 (PRA). The Policy Statement financial regulator; and (d) publishes diversity-self-assessment-screen-shots.docx. 60 As described in the FID–SA portal, available at information pertaining to its efforts with https://www.fdic.gov/about/diversity/ 57 80 FR 33016. respect to the Joint Standards. fidsaportal.html (accessed May 1, 2021).
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the information has practical utility; (b) Ann E. Misback, Secretary of the Board, A. Federal Reserve Bank of Chicago the accuracy of the estimates of the 20th Street and Constitution Avenue (Colette A. Fried, Assistant Vice burden of the information collection, NW, Washington, DC 20551–0001, not President) 230 South LaSalle Street, including the validity of the later than September 9, 2021. Chicago, Illinois 60690–1414: methodology and assumptions used; (c) A. Federal Reserve Bank of 1. Cheryl Allen, Sterling, Illinois; ways to enhance the quality, utility, and Philadelphia (William Spaniel, Senior Gregg DeVries, Byron, Illinois; and clarity of the information to be Vice President) 100 North 6th Street, Sandra K. DeVries Trust, Sandra K. collected; and (d) ways to minimize the Philadelphia, Pennsylvania 19105– Devries, as trustee, and Roger P. DeVries burden of the collection of information 1521. Comments can also be sent Trust, Roger P. DeVries, as trustee, all of on respondents, including through the electronically to Milledgeville, Illinois; as the DeVries use of automated collection techniques [email protected]: Family Control Group, a group acting in or other forms of information 1. Columbia Bank MHC and Columbia concert; and Edward M. Tyne, Kay F. technology. All comments will become Financial, Inc., both of Fair Lawn, New Tyne, and Margaret A. Tyne, all of Polo, a matter of public record. Jersey; to acquire Freehold MHC and Illinois; and Courtney Tyne, Federal Deposit Insurance Corporation. Freehold Bancorp, and indirectly Washington, DC; as the Tyne Family Dated at Washington, DC, on August 4, acquire Freehold Bank, all of Freehold, Control Group, a group acting in 2021. New Jersey, and thereby engage in concert, to acquire additional voting James P. Sheesley, operating a savings association pursuant shares of Milledgeville Bancorp, Inc., and thereby indirectly acquire voting Assistant Executive Secretary. to Section 225.28(b)(4)(ii) of Regulation Y. shares of Milledgeville State Bank, both [FR Doc. 2021–16963 Filed 8–9–21; 8:45 am] of Milledgeville, Illinois. BILLING CODE 6714–01–P Board of Governors of the Federal Reserve System, August 5, 2021. Board of Governors of the Federal Reserve Ann Misback, System, August 5, 2021. Ann Misback, FEDERAL RESERVE SYSTEM Secretary of the Board. [FR Doc. 2021–17023 Filed 8–9–21; 8:45 am] Secretary of the Board. Notice of Proposals To Engage in or BILLING CODE P [FR Doc. 2021–17022 Filed 8–9–21; 8:45 am] To Acquire Companies Engaged in BILLING CODE P Permissible Nonbanking Activities FEDERAL RESERVE SYSTEM The companies listed in this notice DEPARTMENT OF HEALTH AND have given notice under section 4 of the Change in Bank Control Notices; HUMAN SERVICES Bank Holding Company Act (12 U.S.C. Acquisitions of Shares of a Bank or 1843) (BHC Act) and Regulation Y, (12 Bank Holding Company Administration for Children and CFR part 225) to engage de novo, or to Families acquire or control voting securities or The notificants listed below have assets of a company, including the applied under the Change in Bank [CFDA Numbers: 93.581, 93.587, 93.612] companies listed below, that engages Control Act (Act) (12 U.S.C. 1817(j)) and Notice of Final Issuance on the either directly or through a subsidiary or § 225.41 of the Board’s Regulation Y (12 Administration for Native Americans other company, in a nonbanking activity CFR 225.41) to acquire shares of a bank Program Policies and Procedures that is listed in § 225.28 of Regulation Y or bank holding company. The factors (12 CFR 225.28) or that the Board has that are considered in acting on the AGENCY: Administration for Native determined by Order to be closely applications are set forth in paragraph 7 Americans, (ANA), Administration for related to banking and permissible for of the Act (12 U.S.C. 1817(j)(7)). Children and Families (ACF), bank holding companies. Unless The public portions of the Department of Health and Human otherwise noted, these activities will be applications listed below, as well as Services (HHS). conducted throughout the United States. other related filings required by the ACTION: Notice of final issuance. The public portions of the Board, if any, are available for applications listed below, as well as immediate inspection at the Federal SUMMARY: Pursuant to section 814 of the other related filings required by the Reserve Bank(s) indicated below and at Native American Programs Act of 1974 Board, if any, are available for the offices of the Board of Governors. (NAPA), as amended, ANA is required immediate inspection at the Federal This information may also be obtained to provide members of the public an Reserve Bank(s) indicated below and at on an expedited basis, upon request, by opportunity to comment on proposed the offices of the Board of Governors. contacting the appropriate Federal changes in interpretive rules and This information may also be obtained Reserve Bank and from the Board’s general statements of policy and to give on an expedited basis, upon request, by Freedom of Information Office at notice of the proposed changes no less contacting the appropriate Federal https://www.federalreserve.gov/foia/ than 30 days before such changes Reserve Bank and from the Board’s request.htm. Interested persons may become effective. On February 19, 2021, Freedom of Information Office at express their views in writing on the ANA published a Notice of Public https://www.federalreserve.gov/foia/ standards enumerated in paragraph 7 of Comment (NOPC) in the Federal request.htm. Interested persons may the Act. Register regarding its proposed express their views in writing on the Comments regarding each of these interpretive rules and general question whether the proposal complies applications must be received at the statements of policy relative to its six with the standards of section 4 of the Reserve Bank indicated or the offices of FY 2021 Funding Opportunity BHC Act. the Board of Governors, Ann E. Announcements (FOAs): Environmental Unless otherwise noted, comments Misback, Secretary of the Board, 20th Regulatory Enhancement (HHS–2021– regarding the applications must be Street and Constitution Avenue NW, ACF–ANA–NR–1907); Native American received at the Reserve Bank indicated Washington, DC 20551–0001, not later Language Preservation and or the offices of the Board of Governors, than August 25, 2021. Maintenance—Esther Martinez
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Immersion (HHS–2021–ACF–ANA–NB– and dance, and other forms of technical assistance center for 1958); Native American Language knowledge and cultural practices that clarification. Preservation and Maintenance (HHS– originate from Native communities. Comment: ANA is requiring 2021–ACF–ANA–NL–1924); Social and However, due to the variety of laws, applicants to the Esther Martinez Economic Development Strategies rights, and jurisdictions of these Immersion (EMI) language FOA to (HHS–2021–ACF–ANA–NA–1906); matters, ANA leaves this up to the submit ‘‘an official document that Social and Economic Development discretion of grantees and applicants. certifies the applicant has at least 3 Strategies—Alaska (HHS–2021–ACF– Comment: We urge ANA to years of experience in operating and ANA–NK–1902); and Social and discontinue the use of ‘‘normalized administering’’ an immersion school or Economic Strategies—Growing scoring.’’ While the intent of this language nest as required by the statute. Organizations (HHS–2021–ACF–ANA– practice is to normalize scoring across As it stands, there are very few NN–1918). This Notice of Issuance all review panels, it has had a negative immersion schools and language nests responds to the public comments impact on applications that obtain high in the United States where applicants received from the NOPC. scores in their review panels, but end could gain experience. We propose that DATES: The FY 2021 FOAs have been up with a much lower scaled score, this be modified to provide a training published, and these FOAs serve as the unjustly knocking them out of the alternative for applicants without access final notice of ANA’s proposed changes. competitive range for a funding award. to existing immersion programs. We Response: ANA may use the statistical FOR FURTHER INFORMATION CONTACT: recommend that ANA provide examples technique of ‘‘normalization’’ to convert of certifications that will be accepted. Carmelia Strickland, Director, Division raw scores from review panels to a Response: The requirement of a of Program Operations, Administration standardized scale to negate any certification by the applicant having not for Native Americans, (877) 922–9262, differences or biases in scoring less than 3 years of experience in [email protected]. behaviors among different panels and operating and administering a Native SUPPLEMENTARY INFORMATION: Pursuant numerous reviewers. The decision to American language survival school or a to section 814 of NAPA, as amended, normalize scores occurs in advance of Native American language nest is in the ANA is required to provide members of the panel session so as not to prejudice authorizing legislation of the Native the public an opportunity to comment any specific competition and that all American Programs Act for the EMI. on proposed changes in interpretive awards are made consistently across the rules and general statements of policy different funding competitions when ANA only clarified in the FOA that this and to give notice of the proposed there are three or more panels. ANA has was a requirement. In the EMI FOA, it changes no less than 30 days before left the option for using normalized states that the application should such changes become effective. scores in the FY 2021 FOAs but will include an official document signed by ANA published a NOPC (86 FR keep this comment in mind for planning the authorized representative that 10283) on February 19, 2021, with the FY 2022 competitions. certifies that the applicant has at least proposed policy and program Comment: We would like clarification 3 years of experience operating and clarifications, modifications, and about whether training and technical administering a Native American activities for the FY 2021 FOAs. The assistance information will still be language nest, Native American NOPC provided proposed clarifications, available and accessible on the websites language survival school, or any other modifications, and new text for six FY of the regional training and technical education program in which instruction 2021 FOAs. During the 30-day comment assistance providers, and that applicants is conducted in a Native American period, ANA received three responses to who do not provide a letter of intent language in accordance with Public Law the NOPC. ANA reviewed the comments will be able to access such services. 109–394 (42 U.S.C. 2991b–3(c)(7)). and determined them non-substantive Response: ANA provides technical ANA’s training and technical assistance and therefore would not require changes assistance throughout all stages of the centers are available to help applicants to the FOAs. application process, regardless of meet the requirements of the EMI FOA. The following are the public providing a letter of intent. Comment: We would like to comments received in response to the Comment: Project-specific funding commend ANA for the proposed NOPC and ANA’s responses: does not clearly define ‘‘essentially changes to the FY 2021 FOAs. We Comment: My comment is that I hope identical or similar in whole or in part.’’ appreciate the revision resulting from to have ANA implement a requirement It is not clear if the development of the Indian Community Economic that all data collected in Indian Country resources, like textbooks, would count Enhancement Act (ICEEA) of 2020, by non-Indigenous and Indigenous as ‘‘essentially identical or similar’’ which added Native community entities are collected in a manner that projects if they build on previous work development financial institutions ensures the tribe and community will and use similar project designs. (CDFIs) as eligible entities. Similarly, have ownership, guardianship, and Response: ANA has a long-standing we strongly support the new economic access to that data. policy that it will not fund projects that development legislative priorities that Response: ANA highly encourages are essentially identical or similar in will be incorporated into the program tribes to be aware of their rights to whole or in part to previously funded areas of interest for the SEDS FOA. We intellectual property rights and data projects proposed by the same encourage ANA to make it clear that sovereignty. In the past, ANA has applicant. While an applicant can have these economic development priority provided trainings at grantee meetings previously developed materials, the new points are available for applications and webinars through ANA’s training project cannot duplicate the same from existing Native CDFIs that and technical assistance centers. In materials and must address different proposed economic development addition, ANA included a statement in subjects, populations, etc. If an projects as well as from eligible all FY 2021 FOAs that encouraged applicant has concerns about whether applicants who propose to develop new applicants to educate themselves on ANA has funded them in the past for a Native CDFIs. In addition, we applaud intellectual property rights and the project ‘‘essentially identical or similar the proposed efforts to reduce the protection of ownership of Native in whole or in part,’’ ANA encourages redundancy and the number of scoring language materials, ceremonies, music them to reach out to ANA or an ANA criteria in the FY 2021 FOAs.
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Response: Thank you for your DEPARTMENT OF HEALTH AND publication of this document in the comment. The new ICEEA law does HUMAN SERVICES Federal Register. Therefore, a comment allow for the development of existing is best assured of having its full effect Native CDFIs. Therefore, should a Administration for Children and if OMB receives it within 30 days of Native CDFI submit an application that Families publication. proposes a project for any of the Submission for OMB Review; Survey ADDRESSES: Written comments and following projects: (1) The development of the National Survey of Child and recommendations for the proposed of a tribal code or courts system for Adolescent Well-Being (NSCAW) information collection should be sent purposes of economic development, Adopted Youth, Young Adults, and within 30 days of publication of this including commercial codes, training Adoptive Parents (0970–0555) notice to www.reginfo.gov/public/do/ for court personnel, (2) the development PRAMain. Find this particular of non-profit subsidiaries or other tribal AGENCY: Office of Planning, Research, information collection by selecting business structures; or ‘‘(3) the and Evaluation, Administration for ‘‘Currently under 30-day Review—Open development of a tribal master plan for Children and Families, HHS. for Public Comments’’ or by using the community and economic development ACTION: Request for public comment. search function. and infrastructure’’ and the application SUPPLEMENTARY INFORMATION: includes the economic priority area(s) in SUMMARY: The Administration for Description: Through this study, ACF the project goal, all objectives and Children and Families (ACF) at the U.S. is conducting web or telephone surveys indicators as reflected in the project’s Department of Health and Human with adopted youth, young adults, and framework, project approach, OWP, and Services (HHS) seeks approval for an adults as well as adoptive parents who outcome tracker, they will be awarded extension with no changes to a one-time were participants in the first or second study to examine familial outcomes 8 points. ANA will instruct reviewers to cohort of NSCAW (NSCAW I, II; OMB years or more after a child’s adoption provide all bonus points for #0970–0202). The surveys are designed from the child welfare system. The applications that propose an economic to collect information about instability primary objective of this study is to events (such as foster care re-entry or priority project that expands or creates estimate the prevalence of instability a Native CDFI. running away that occurred after a events that occur in families who have child’s adoption) as well as family Elizabeth Leo, adopted children who have exited the functioning, perceptions of the adoption Senior Grants Policy Specialist, Office of foster care system. The second objective relationship, and services and support Grants Policy, Administration for Children is to understand risk and protective received after adoption. Due to the and Families. factors associated with post adoption COVID–19 pandemic, initial activities to [FR Doc. 2021–16959 Filed 8–9–21; 8:45 am] instability. Office of Management and contact potential respondents were Budget (OMB) approval expires BILLING CODE 4184–34–P delayed. As a result, ACF is requesting September 30, 2021, and this request is an extension to collect data beyond the to extend approval to allow for the current OMB expiration date of completion of data collection. September 30, 2021. DATES: Comments due within 30 days of Respondents: Adopted youth, young publication. OMB must make a decision adults, adults, and their associated about the collection of information adoptive parents who participated in between 30 and 60 days after NSCAW I or II.
ANNUAL BURDEN ESTIMATES
Number of Number of responses per Average respondents respondent burden per Total burden Annual burden Instrument (total over (total over response (in hours) (in hours) request request (in hours) period) period)
Survey of NSCAW Adopted Youth, Young Adults, and Adults ...... 588 1 .5 294 294 Survey of NSCAW Adoptive Parents ...... 554 1 .5 277 277
Estimated Total Annual Burden DEPARTMENT OF HEALTH AND ACTION: Notice. Hours: 571. HUMAN SERVICES Authority: Child Abuse Prevention SUMMARY: The Food and Drug Food and Drug Administration and Treatment and Adoption Reform Administration (FDA) is publishing a Act of 1978. list of information collections that have [Docket Nos. FDA–2010–N–0190; FDA– been approved by the Office of Mary B. Jones, 2012–N–0197; FDA–2014–N–1414; and FDA–2014–N–0913] Management and Budget (OMB) under ACF/OPRE Certifying Officer. the Paperwork Reduction Act of 1995. [FR Doc. 2021–16979 Filed 8–9–21; 8:45 am] Agency Information Collection FOR FURTHER INFORMATION CONTACT: Ila BILLING CODE 4184–44–P Activities; Announcement of Office of S. Mizrachi, Office of Operations, Food Management and Budget Approvals and Drug Administration, Three White AGENCY: Food and Drug Administration, Flint North, 10A–12M, 11601 HHS. Landsdown St., North Bethesda, MD
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20852, 301–796–7726, PRAStaff@ Reduction Act of 1995 (44 U.S.C. 3507). at https://www.reginfo.gov/public/do/ fda.hhs.gov. The OMB control number and PRAMain. An Agency may not conduct expiration date of OMB approval for or sponsor, and a person is not required SUPPLEMENTARY INFORMATION: The each information collection are shown to respond to, a collection of following is a list of FDA information in table 1. Copies of the supporting information unless it displays a collections recently approved by OMB statements for the information currently valid OMB control number. under section 3507 of the Paperwork collections are available on the internet
TABLE 1—LIST OF INFORMATION COLLECTIONS APPROVED BY OMB
OMB control Date approval Title of collection number expires
Infant Formula Requirements ...... 0910–0256 5/31/2024 Shortages Data Collection ...... 0910–0491 6/30/2024 Guidance on Labeling for Natural Rubber Latex Condoms ...... 0910–0633 6/30/2024 Section 513(g) Requests for Information ...... 0910–0705 6/30/2024
Dated: August 5, 2021. FDA is establishing a docket for anyone else’s Social Security number, or Lauren K. Roth, public comment on this meeting. The confidential business information, such Acting Principal Associate Commissioner for docket number is FDA–2020–N–1648. as a manufacturing process. Please note Policy. The docket will close on September 16, that if you include your name, contact [FR Doc. 2021–17045 Filed 8–9–21; 8:45 am] 2021. Submit either electronic or information, or other information that BILLING CODE 4164–01–P written comments on this public identifies you in the body of your meeting by September 16, 2021. Please comments, that information will be note that late, untimely filed comments posted on https://www.regulations.gov. DEPARTMENT OF HEALTH AND will not be considered. Electronic • If you want to submit a comment HUMAN SERVICES comments must be submitted on or with confidential information that you before September 16, 2021. The https:// do not wish to be made available to the Food and Drug Administration www.regulations.gov electronic filing public, submit the comment as a system will accept comments until written/paper submission and in the [Docket No. FDA–2020–N–1648] 11:59 p.m. Eastern Time at the end of manner detailed (see ‘‘Written/Paper September 16, 2021. Comments received Submissions’’ and ‘‘Instructions’’). Pediatric Advisory Committee; Notice by mail/hand delivery/courier (for Written/Paper Submissions of Meeting; Establishment of a Public written/paper submissions) will be Docket; Request for Comments considered timely if they are Submit written/paper submissions as postmarked or the delivery service follows: AGENCY: Food and Drug Administration, • Mail/Hand delivery/Courier (for acceptance receipt is on or before that HHS. written/paper submissions): Dockets date. Management Staff (HFA–305), Food and ACTION: Notice; establishment of a Comments received on or before public docket; request for comments. Drug Administration, 5630 Fishers September 3, 2021, will be provided to Lane, Rm. 1061, Rockville, MD 20852. the committee. Comments received after SUMMARY: The Food and Drug • For written/paper comments that date will be taken into Administration (FDA) announces a submitted to the Dockets Management consideration by FDA. In the event that forthcoming public advisory committee Staff, FDA will post your comment, as the meeting is cancelled, FDA will meeting of the Pediatric Advisory well as any attachments, except for continue to evaluate any relevant Committee. The general function of the information submitted, marked and applications or information, and committee is to provide advice and identified, as confidential, if submitted consider any comments submitted to the recommendations to FDA on regulatory as detailed in ‘‘Instructions.’’ docket, as appropriate. issues. The meeting will be open to the Instructions: All submissions received You may submit comments as public. FDA is establishing a docket for must include the Docket No. FDA– follows: public comment on this document. 2020–N–1648 for ‘‘Pediatric Advisory Committee; Notice of Meeting; DATES: Electronic Submissions The meeting will be held on Establishment of a Public Docket; September 17, 2021, from 10 a.m. to Submit electronic comments in the Request for Comments.’’ Received 4:30 p.m. Eastern Time. following way: comments, those filed in a timely • ADDRESSES: Please note that due to the Federal eRulemaking Portal: manner (see ADDRESSES), will be placed impact of the COVID–19 pandemic, all https://www.regulations.gov. Follow the in the docket and, except for those meeting participants will be joining this instructions for submitting comments. submitted as ‘‘Confidential advisory committee meeting via an Comments submitted electronically, Submissions,’’ publicly viewable at online teleconferencing platform. including attachments, to https:// https://www.regulations.gov or at the Answers to commonly asked questions www.regulations.gov will be posted to Dockets Management Staff between 9 including information regarding special the docket unchanged. Because your a.m. and 4 p.m., Monday through accommodations due to a disability, comment will be made public, you are Friday, 240–402–7500. visitor parking, and transportation may solely responsible for ensuring that your • Confidential Submissions—To be accessed at: https://www.fda.gov/ comment does not include any submit a comment with confidential AdvisoryCommittees/ confidential information that you or a information that you do not wish to be AboutAdvisoryCommittees/ third party may not wish to be posted, made publicly available, submit your ucm408555.htm. such as medical information, your or comments only as a written/paper
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submission. You should submit two through an online teleconferencing meetings and will make every effort to copies total. One copy will include the platform. On September 17, 2021, the accommodate persons with disabilities. information you claim to be confidential Pediatric Advisory Committee (PAC) If you require accommodations due to a with a heading or cover note that states will discuss pediatric-focused safety disability, please contact Marieann Brill ‘‘THIS DOCUMENT CONTAINS reviews, as mandated by the Best (see FOR FURTHER INFORMATION CONTACT) CONFIDENTIAL INFORMATION.’’ FDA Pharmaceuticals for Children Act (Pub. at least 7 days in advance of the will review this copy, including the L. 107–109) and the Pediatric Research meeting. claimed confidential information, in its Equity Act of 2003 (Pub. L. 108–155). FDA is committed to the orderly consideration of comments. The second The PAC will meet to discuss the conduct of its advisory committee copy, which will have the claimed following product: Center for Devices meetings. Please visit our website at confidential information redacted/ and Radiological Health FLOURISHTM https://www.fda.gov/ blacked out, will be available for public Pediatric Esophageal Atresia Device AdvisoryCommittees/ viewing and posted on https:// (humanitarian device exemption). AboutAdvisoryCommittees/ www.regulations.gov. Submit both FDA intends to make background ucm111462.htm for procedures on copies to the Dockets Management Staff. material available to the public no later public conduct during advisory If you do not wish your name and than 2 business days before the meeting. committee meetings. contact information be made publicly If FDA is unable to post the background Notice of this meeting is given under available, you can provide this material on its website prior to the the Federal Advisory Committee Act (5 information on the cover sheet and not meeting, the background material will U.S.C. app. 2). be made publicly available at the in the body of your comments and you Dated: August 4, 2021. must identify the information as location of the advisory committee meeting, and the background material Lauren K. Roth, ‘‘confidential.’’ Any information marked Acting Principal Associate Commissioner for as ‘‘confidential’’ will not be disclosed will be posted on FDA’s website after the meeting. Background material is Policy. except in accordance with 21 CFR 10.20 [FR Doc. 2021–16984 Filed 8–9–21; 8:45 am] and other applicable disclosure law. For available at https://www.fda.gov/ BILLING CODE 4164–01–P more information about FDA’s posting AdvisoryCommittees/Calendar/ of comments to public dockets, see 80 default.htm. Scroll down to the appropriate advisory committee meeting FR 56469, September 18, 2015, or access DEPARTMENT OF HEALTH AND the information at: https:// link. Procedure: Interested persons may HUMAN SERVICES www.govinfo.gov/content/pkg/FR-2015- present data, information, or views, 09-18/pdf/2015-23389.pdf. Food and Drug Administration Docket: For access to the docket to orally or in writing, on issues pending before the committee. All electronic and read background documents or the [Docket No. FDA–2021–N–0834] written submissions submitted to the electronic and written/paper comments Docket (see ADDRESSES) on or before Post-Marketing Pediatric-Focused received, go to https:// September 10. 2021, will be provided to Product Safety Reviews; www.regulations.gov and insert the the committee. Oral presentations from Establishment of a Public Docket; docket number, found in brackets in the the public will be scheduled between Request for Comments heading of this document, into the approximately 11:30 a.m. and 12:30 ‘‘Search’’ box and follow the prompts AGENCY: Food and Drug Administration, p.m. Those individuals interested in and/or go to the Dockets Management HHS. making formal oral presentations should Staff, 5630 Fishers Lane, Rm. 1061, notify the contact person and submit a ACTION: Notice; establishment of a Rockville, MD 20852, 240–402–7500. brief statement of the general nature of public docket; request for comments. FOR FURTHER INFORMATION CONTACT: the evidence or arguments they wish to Marieann Brill, Office of Pediatric SUMMARY: The Food and Drug present, the names and addresses of Administration (FDA) is establishing a Therapeutics, Food and Drug proposed participants, and an Administration, 10903 New Hampshire public docket to collect comments indication of the approximate time related to the post-marketing pediatric- Ave., Bldg. 32, Rm. 5154, Silver Spring, requested to make their presentation on MD 20993–0002, 240–402–3838, focused safety reviews of products or before September 2, 2021. Time posted between September 2, 2020, and [email protected], or FDA allotted for each presentation may be Advisory Committee Information Line, September 2, 2021, on FDA’s website limited. If the number of registrants but not presented at the September 17, 1–800–741–8138 (301–443–0572 in the requesting to speak is greater than can Washington, DC area). A notice in the 2021, Pediatric Advisory Committee be reasonably accommodated during the (PAC) meeting. These reviews are Federal Register about last minute scheduled open public hearing session, modifications that impact a previously intended to be available for review and FDA may conduct a lottery to determine comment by members of the PAC, announced advisory committee meeting the speakers for the scheduled open cannot always be published quickly interested parties (such as academic public hearing session. The contact researchers, regulated industries, enough to provide timely notice. person will notify interested persons Therefore, you should always check consortia, and patient groups), and the regarding their request to speak by general public. FDA’s website at https://www.fda.gov/ September 2, 2021. DATES: Submit either electronic or AdvisoryCommittees/default.htm and Persons attending FDA’s advisory written comments by September 24, scroll down to the appropriate advisory committee meetings are advised that 2021. committee meeting link, or call the FDA is not responsible for providing advisory committee information line to access to electrical outlets. ADDRESSES: FDA is establishing a docket learn about possible modifications For press inquiries, please contact the for public comment on this document. before coming to the meeting. Office of Media Affairs at fdaoma@ The docket number is FDA–2021–N– SUPPLEMENTARY INFORMATION: Agenda: fda.hhs.gov or 301–796–4540. 0834. The docket will close on The meeting presentations will be FDA welcomes the attendance of the September 24, 2021. Submit either heard, viewed, captioned, and recorded public at its advisory committee electronic or written comments by that
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date. Please note that late, untimely Docket; Request for Comments.’’ drugs, biological products, medical comments will not be considered. Received comments, those filed in a devices, our Nation’s food supply, Electronic comments must be submitted timely manner (see ADDRESSES), will be cosmetics, and products that emit on or before September 24, 2021. The placed in the docket and, except for radiation. FDA also has responsibility https://www.regulations.gov electronic those submitted as ‘‘Confidential for regulating the manufacturing, filing system will accept comments Submissions,’’ publicly viewable at marketing, and distribution of tobacco until 11:59 p.m. Eastern Time at the end https://www.regulations.gov or at the products to protect the public health of September 24, 2021. Comments Dockets Management Staff between 9 and to reduce tobacco use by minors. received by mail/hand delivery/courier a.m. and 4 p.m., Monday through FDA is establishing a public docket, (for written/paper submissions) will be Friday, 240–402–7500. Docket No. FDA–2021–N–0834, to considered timely if they are • Confidential Submissions—To receive input on post-marketing postmarked or the delivery service submit a comment with confidential pediatric-focused safety reviews of acceptance receipt is on or before that information that you do not wish to be products posted between September 2, date. made publicly available, submit your 2020, and September 2, 2021, available You may submit comments as comments only as a written/paper on FDA’s website at https:// follows: submission. You should submit two www.fda.gov/AdvisoryCommittees/ copies total. One copy will include the CommitteesMeetingMaterials/ Electronic Submissions information you claim to be confidential PediatricAdvisoryCommittee/ Submit electronic comments in the with a heading or cover note that states ucm510701.htm but not presented at the following way: ‘‘THIS DOCUMENT CONTAINS September 17, 2021, PAC meeting. FDA • Federal eRulemaking Portal: CONFIDENTIAL INFORMATION.’’ FDA welcomes comments by members of the https://www.regulations.gov. Follow the will review this copy, including the PAC, as mandated by the Best instructions for submitting comments. claimed confidential information, in its Pharmaceuticals for Children Act (Pub. Comments submitted electronically, consideration of comments. The second L. 107–109) and the Pediatric Research including attachments, to https:// copy, which will have the claimed Equity Act of 2003 (Pub. L. 108–155), www.regulations.gov will be posted to confidential information redacted/ interested parties (such as academic the docket unchanged. Because your blacked out, will be available for public researchers, regulated industries, comment will be made public, you are viewing and posted on https:// consortia, and patient groups), and the solely responsible for ensuring that your www.regulations.gov. Submit both general public. The docket number is comment does not include any copies to the Dockets Management Staff. FDA–2021–N–0834. The docket will confidential information that you or a If you do not wish your name and open on September 3, 2021, and remain third party may not wish to be posted, contact information be made publicly open until September 24, 2021. The such as medical information, your or available, you can provide this post-marketing pediatric-focused safety anyone else’s Social Security number, or information on the cover sheet and not reviews are for the following products confidential business information, such in the body of your comments and you from the following centers at FDA: as a manufacturing process. Please note must identify the information as Center for Biologics Evaluation and that if you include your name, contact ‘‘confidential.’’ Any information marked Research information, or other information that as ‘‘confidential’’ will not be disclosed identifies you in the body of your except in accordance with 21 CFR 10.20 1. CUVITRU (immune globulin comments, that information will be and other applicable disclosure law. For subcutaneous (human), 20 percent posted on https://www.regulations.gov. solution) • more information about FDA’s posting If you want to submit a comment of comments to public dockets, see 80 2. EPICEL (cultured epidermal with confidential information that you FR 56469, September18, 2015, or access autografts) do not wish to be made available to the the information at: https:// 3. JIVI (antihemophilic factor public, submit the comment as a www.govinfo.gov/content/pkg/FR-2015- (recombinant), PEGylated-aucl) written/paper submission and in the 09-18/pdf/2015-23389.pdf. 4. T.R.U.E. TEST (thin-layer rapid use manner detailed (see ‘‘Written/Paper Docket: For access to the docket to epicutaneous patch test) Submissions’’ and ‘‘Instructions’’). read background documents or the 5. REBINYN (nonacog beta pegol (N9– Written/Paper Submissions electronic and written/paper comments GP)) received, go to https:// 6. RUBBER PANEL T.R.U.E. TEST Submit written/paper submissions as www.regulations.gov and insert the (Rubber Panel thin-layer rapid use follows: epicutaneous patch test) • Mail/Hand delivery/Courier (for docket number, found in brackets in the heading of this document, into the 7. ROTATEQ (Rotavirus vaccine, live, written/paper submissions): Dockets oral, pentavalent) Management Staff (HFA–305), Food and ‘‘Search’’ box and follow the prompts Drug Administration, 5630 Fishers and/or go to the Dockets Management Center for Drug Evaluation and Lane, Rm. 1061, Rockville, MD 20852. Staff, 5630 Fishers Lane, Rm. 1061, Research Rockville, MD 20852, 240–402–7500. • For written/paper comments 1. APTIOM (eslicarbazepine acetate) submitted to the Dockets Management FOR FURTHER INFORMATION CONTACT: 2. CIALIS (tadalafil) Staff, FDA will post your comment, as Marieann Brill, Office of the 3. COTEMPLA XR–ODT well as any attachments, except for Commissioner, Food and Drug (methylphenidate extended release information submitted, marked and Administration, 10903 New Hampshire orally disintegrating tablets) identified, as confidential, if submitted Ave., Bldg. 32, Rm. 5154, Silver Spring, 4. EMEND (fosaprepitant dimeglumine) as detailed in ‘‘Instructions.’’ MD 20993, 240–402–3838, 5. ENBREL (etanercept), ERELZI Instructions: All submissions received [email protected]. (etanercept-szzs), ETICOVO must include the Docket No. FDA– SUPPLEMENTARY INFORMATION: FDA is (etanercept-ykro) 2021–N–0834 for ‘‘Post-Marketing responsible for protecting the public 6. FASENRA (benralizumab) Pediatric-Focused Product Safety health by assuring the safety, efficacy, 7. INTELENCE (etravirine) Reviews; Establishment of a Public and security of human and veterinary 8. PEGASYS (peginterferon alfa-2a)
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9. TEKTURNA (aliskiren hemifumarate) Date: September 1–2, 2021. Name of Committee: Center for Scientific 10. VIMOVO (naproxen/esomeprazole Open: September 01, 2021, 10:30 a.m. to Review Advisory Council. magnesium) 11:30 a.m. Date: September 27, 2021. 11. VIREAD (tenofovir disoproxil Closed: September 02, 2021, 11:30 a.m. to Time: 1:00 p.m. to 4:30 p.m. fumarate) 4:30 p.m. Agenda: Provide advice to the Director, Closed: September 02, 2021, 10:30 a.m. to Center for Scientific Review (CSR), on 12. XOFLUZA (baloxavir marboxil) 3:45 p.m. matters related to planning, execution, Center for Devices and Radiological Agenda: Provide an update on Helping to conduct, support, review, evaluation, and Health End Addiction Long-Term (HEAL) Initiative receipt and referral of grant applications at projects and obtain expertise from MDWG CSR. 1. CONTEGRA PULMONARY VALVED relevant to the NIH HEAL Initiative and to Place: National Institutes of Health, CONDUIT (Humanitarian Device specific HEAL projects. Rockledge II, 6701 Rockledge Drive, Exemption (HDE)) Videocast: The open portion of the meeting Bethesda, MD 20892, (Virtual Meeting). 2. ELANA SURGICAL KIT (HDE) will be live webcast at: https:// Contact Person: Bruce Reed, Ph.D., Deputy 3. ENTERRA THERAPY SYSTEM (HDE) videocast.nih.gov/. Director, Center for Scientific Review, 4. LIPOSORBER LA–15 SYSTEM (HDE) Place: National Institutes of Health, National Institutes of Health, 6701 Rockledge 5. MEDTRONIC ACTIVA DYSTONIA Building 1, Wilson Hall, 1 Center Drive, Drive, Bethesda, MD 20892, (301) 594–9159, THERAPY (HDE) Bethesda, MD 20892 (Virtual Meeting). [email protected]. Contact Person: Rebecca G Baker, Ph.D., Information is also available on the 6. MINIMALLY INVASIVE DEFORMITY Office of the Director, National Institutes of CORRECTION (MID–C) SYSTEM Institute’s/Center’s home page: https:// Health, 1 Center Drive, Room 103A, public.csr.nih.gov/AboutCSR/Organization/ 7. PLEXIMMUNE IN–VITRO Bethesda, MD 20892, (301) 402–1994, CSRAdvisoryCouncil, where an agenda and DIAGNOSTIC TEST (HDE) [email protected]. any additional information for the meeting 8. PULSERIDER ANEURYSM NECK Any interested person may file written will be posted when available. comments with the committee by forwarding RECONSTRUCTION DEVICE (HDE) (Catalogue of Federal Domestic Assistance the statement to the Contact Person listed on 9. THE TETHER—VERTEBRAL BODY Program Nos. 93.306, Comparative Medicine; this notice. The statement should include the TETHERING SYSTEM 93.333, Clinical Research, 93.306, 93.333, name, address, telephone number and when 93.337, 93.393–93.396, 93.837–93.844, Dated: August 5, 2021. applicable, the business or professional 93.846–93.878, 93.892, 93.893, National Lauren K. Roth, affiliation of the interested person. Institutes of Health, HHS) Acting Principal Associate Commissioner for Information is also available on the Office Policy. of the Director for the NIH HEAL Initiative Dated: August 5, 2021. [FR Doc. 2021–17041 Filed 8–9–21; 8:45 am] website: https://heal.nih.gov/news where an Miguelina Perez, agenda and any additional information for BILLING CODE 4164–01–P Program Analyst, Office of Federal Advisory the meeting will be posted when available. Committee Policy. (Catalogue of Federal Domestic Assistance [FR Doc. 2021–17043 Filed 8–9–21; 8:45 am] Program Nos. 93.853, Clinical Research DEPARTMENT OF HEALTH AND BILLING CODE 4140–01–P Related to Neurological Disorders; 93.854, HUMAN SERVICES Biological Basis Research in the Neurosciences, National Institutes of Health, National Institutes of Health HHS) DEPARTMENT OF HEALTH AND HUMAN SERVICES Office of the Director, National Dated: August 5, 2021. Institutes of Health; Notice of Meeting Tyeshia M. Roberson-Curtis, National Institutes of Health Program Analyst, Office of Federal Advisory Notice is hereby given of a meeting of Committee Policy. Notice of Listing of Members of the the HEAL (Helping to End Addiction [FR Doc. 2021–17012 Filed 8–9–21; 8:45 am] National Institutes of Health’s Senior Long-Term) Multi-Disciplinary Working BILLING CODE 4140–01–P Executive Service 2021 Performance Group. Review Board (PRB) The meeting will be open to the AGENCY: National Institutes of Health, public as indicated below via NIH DEPARTMENT OF HEALTH AND HHS. Videocast. Individuals who need special HUMAN SERVICES assistance, such as sign language ACTION: Notice. interpretation or other reasonable National Institutes of Health accommodations, should notify the SUMMARY: The National Institutes of Contact Person listed below in advance Center for Scientific Review; Notice of Health (NIH) announces the persons of the meeting. Meeting who will serve on the National The meeting will be closed to the Institutes of Health’s Senior Executive public in accordance with the Pursuant to section 10(a) of the Service 2021 Performance Review provisions set forth in sections Federal Advisory Committee Act, as Board. 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., amended, notice is hereby given of a FOR FURTHER INFORMATION CONTACT: For as amended. The program documents meeting of the Center for Scientific further information about the NIH and the discussions could disclose Review Advisory Council. Performance Review Board, contact Mr. confidential trade secrets or commercial The meeting will be open to the Kha Nguyen, Director, Division of property such as patentable material, public, with attendance limited to space Senior and Scientific Executive and personal information concerning available. Individuals who plan to Management, Office of Human individuals associated with the program attend and need special assistance, such Resources, National Institutes of Health, documents, the disclosure of which as sign language interpretation or other Building 31, Room 1C31P, Bethesda, would constitute a clearly unwarranted reasonable accommodations, should Maryland 20892, telephone invasion of personal privacy. notify the Contact Person listed below 301.594.3022 (not a toll-free number), Name of Committee: HEAL Multi- in advance of the meeting. email [email protected]. Disciplinary Working Group (MDWG) URL for virtual access:—https:// SUPPLEMENTARY INFORMATION: This Meeting. videocast.nih.gov/watch=42556 action is being taken in accordance with
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Title 5, U.S.C., section 4314 (c) (4), DEPARTMENT OF HEALTH AND patent estate listed in the which requires that members of HUMAN SERVICES SUPPLEMENTARY INFORMATION section of performance review boards be this notice. This is a first notice appointed in a manner to ensure National Institutes of Health intended to apprise the public of a consistency, stability, and objectivity in change in prospective licensee of the Prospective Grant of an Exclusive performance appraisals and requires subject intellectual property rights in Patent License: Multi-Domain that notice of the appointment of an the stated field of use. individual to serve as a member be Amphipathic Helical Peptide for Use as published in the Federal Register. A Human Therapeutic in Patients With DATES: Only written comments and/or The following persons will serve on Atherosclerotic Cardiovascular applications for a license which are the NIH Performance Review Board, Disease, Including Patients received by the National Heart, Lung, which oversees the evaluation of Undergoing Cardiovascular Surgery and Blood Institute on or before August performance appraisals of NIH Senior Who Are at risk of Acute Kidney Injury 25, 2021 will be considered. Executive Service (SES) members: AGENCY: National Institutes of Health, ADDRESSES: Requests for copies of the Alfred Johnson, Chair HHS. patent application, inquiries, and Courtney Billet ACTION: Notice. Michael Gottesman comments relating to the contemplated an exclusive patent license should be Darla Hayes SUMMARY: The National Heart, Lung, and directed to: Michael Davis, J.D., Ph.D., Michael Lauer Blood Institute, an institute of the Kathleen Stephan National Institutes of Health, Senior Technology Transfer Manager, 31 Lawrence Tabak Department of Health and Human Center Drive Room 4A29, MSC2479, Dated: August 2, 2021. Services, is contemplating the grant of Bethesda, MD 20892–2479, phone Lawrence A. Tabak, an exclusive patent license to Phyxius number 301–451–9032, or Principal Deputy Director, National Institutes Therapeutics, Inc., a start-up company [email protected]. of Health. incorporated as a C corporation under SUPPLEMENTARY INFORMATION: [FR Doc. 2021–17039 Filed 8–9–21; 8:45 am] the laws of the state of Delaware, to Intellectual Property BILLING CODE 4140–01–P practice the inventions covered by the
Patent Appli- Issued Patent NIH REF No. Title cation No. Filing Date No. Issue Date
E–114–2004–0– Multi-Domain Amphipathic Helical Peptides And Meth- 60/619,392 10/15/04 ...... US–01. ods Of Their Use. E–114–2004–0– Multi-Domain Amphipathic Helical Peptides And Meth- PCT/US2005/ 10/14/05 ...... PCT–02. ods Of Their Use. E–114–2004–0– Multi-Domain Amphipathic Helical Peptides And Meth- 2005295640 10/14/05 2005295640 11/10/11 AU–03. ods Of Their Use. E–114–2004–0– Multi-Domain Amphipathic Helical Peptides And Meth- 2584048 10/14/05 2584048 08/09/16 CA–04. ods Of Their Use. E–114–2004–0– Multi-Domain Amphipathic Helical Peptides And Meth- 05815961.7 10/14/05 1812474 05/26/10 EP–05. ods Of Their Use. E–114–2004–0– Multi-Domain Amphipathic Helical Peptides And Meth- 2007–536912 10/14/05 5,091,679 09/21/12 JP–06. ods Of Their Use. E–114–2004–0– Multi-Domain Amphipathic Helical Peptides And Meth- 11/577,259 04/13/07 7,572,771 08/11/09 US–07. ods Of Their Use. E–114–2004–0– Multi-Domain Amphipathic Helical Peptides And Meth- 12/497,443 07/02/09 8,071,746 12/06/11 US–08. ods Of Their Use. E–114–2004–0– Multi-Domain Amphipathic Helical Peptides And Meth- 12/766,761 04/23/10 8,148,323 04/03/12 US–09. ods Of Their Use. E–114–2004–0– Multi-Domain Amphipathic Helical Peptides And Meth- 05815961.7 10/14/05 1812474 05/26/10 CH–11. ods Of Their Use. E–114–2004–0– Multi-Domain Amphipathic Helical Peptides And Meth- 05815961.7 10/14/05 1812474 05/26/10 DE–12. ods Of Their Use. E–114–2004–0– Multi-Domain Amphipathic Helical Peptides And Meth- 05815961.7 10/14/05 1812474 05/26/10 ES–13. ods Of Their Use. E–114–2004–0– Multi-Domain Amphipathic Helical Peptides And Meth- 05815961.7 10/14/05 1812474 05/26/10 FR–14. ods Of Their Use. E–114–2004–0– Multi-Domain Amphipathic Helical Peptides And Meth- 05815961.7 10/14/05 1812474 05/26/10 GB–15. ods Of Their Use. E–114–2004–0– Multi-Domain Amphipathic Helical Peptides And Meth- 05815961.7 10/14/05 1812474 05/26/10 IT–16. ods Of Their Use. E–114–2004–0– Multi-Domain Amphipathic Helical Peptides And Meth- 13/407,132 02/28/12 8,835,378 09/16/14 US–17. ods Of Their Use.
All U.S. and foreign patents and licensed to the Government of the atherosclerotic cardiovascular disease applications claiming priority to any United States of America. (ASCVD), including patients undergoing member of the above. The prospective exclusive license cardiovascular surgery who are at risk of The patent rights in these inventions territory may be worldwide and in fields acute kidney injury. have been assigned or exclusively of use that may be limited to use as a The patents listed above cover an human therapeutic in patients with invention directed to peptides or
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peptide analogs with multiple accordance with the Paperwork electronic version will be developed so amphipathic alpha helical domains that Reduction Act of 1995. that submitters may complete and file promote lipid efflux from cells via an DATES: Comments are encouraged and via the OIDO website. The paper version ABCA1-dependent pathway. This will be accepted until October 12, 2021. will continue to be available; it will be invention is also directed to methods of ADDRESSES: You may submit comments, noted on the form that using the paper identifying non-cytotoxic peptides that identified by docket number Docket # method may result in processing delays promote ABCA1-dependent lipid efflux DHS–2021–0037 at: for OIDO to complete data entry. from cells, and to methods of using Æ Federal rulemaking Portal: http:// This information collection does not multi-domain amphipathic alpha helical www.regulations.gov. Please follow the have an impact on small businesses or peptides or peptide analogs to treat or instructions for submitting comments. other small entities. inhibit dyslipidemic disorders. Instructions: All submissions received If this information is not collected, This notice is made in accordance must include the agency name and OIDO will not be able to accomplish its with 35 U.S.C. 209 and 37 CFR part 404. docket number Docket # DHS–2021– Congressional mandate to provide The prospective exclusive license will 0037. All comments received will be assistance to individuals who may be be royalty bearing. The prospective posted without change to http:// affected by misconduct, excessive force, exclusive license may be granted unless www.regulations.gov, including any or other violations of law or detention within fifteen (15) days from the date of personal information provided. standards. this published notice, the National Docket: For access to the docket to The assurance of confidentiality Heart, Lung, and Blood Institute read background documents or provided to the respondents for this receives written evidence and argument comments received, go to http:// information collection is based on the that establishes that the grant of the www.regulations.gov. forthcoming Privacy Impact Assessment license would not be consistent with the for the Immigration Detention SUPPLEMENTARY INFORMATION: The requirements of 35 U.S.C. 209 and 37 Ombudsman Case Management System Department of Homeland Security’s (ID–CMS) (Summer 2021). Additionally, CFR part 404. (DHS) Office of the Immigration In response to this Notice, the public the information collected is covered by Detention Ombudsman (OIDO) is an may file comments or objections. DHS/ALL–020 Department of Homeland independent office tasked with Comments and objections, other than Security Internal Affairs, April 28, 2014, resolving individual complaints from or those in the form of a license 79 FR 23361 and DHS/ALL–025 Law about individuals in immigration application, will not be treated Enforcement Authority in Support of detention regarding the potential confidentially, and may be made the Protection of Property Owned, violation of immigration detention publicly available. Occupied, or Secured by the standards or other potential misconduct. License applications submitted in Department of Homeland Security OIDO was established by Congress (Sec. response to this notice will be presumed System of Records, June 14, 2017, 82 FR 106 of the Consolidated Appropriations to contain business confidential 27274. Act, 2020, Pub. L. 116–93). Its intake information and any release of This information collection was form is intended for use by individuals information in these license constructed in compliance with wishing to submit a complaint to OIDO. applications will be made only as regulations and authorities under the Information collected will provide the required and upon a request under the purview of the DHS Privacy Office, DHS office with details about the allegations Freedom of Information Act, 5 U.S.C. OCIO, DHS Records Management, and the submitter seeks to have OIDO 552. OMB regulations regarding data address. collection, use, sharing, storage, Bruce D. Goldstein, The information collected on this information security, and retrieval of Director, Office of Technology Transfer and form will allow OIDO to identify: (1) information. Development, National Heart, Lung, and The individual submitting the There are no changes to the Blood Institute. complaint and their contact information being collected and there is [FR Doc. 2021–17011 Filed 8–9–21; 8:45 am] information; (2) the detained individual no change to the estimated burden BILLING CODE 4140–01–P who is the subject of the complaint; (3) associated with this collection. the government-owned or contracted The Office of Management and Budget facility where the individual is or was is particularly interested in comments DEPARTMENT OF HOMELAND detained and for how long; and (4) which: SECURITY relevant details about the complaint. All 1. Evaluate whether the proposed of this information will be used by collection of information is necessary [Docket Number—DHS–2021–0037] OIDO to investigate, resolve, and if for the proper performance of the Agency Information Collection appropriate, provide redress. functions of the agency, including The use of this form is the most Activities: Office of the Immigration whether the information will have efficient means for collecting and Detention Ombudsman Intake Form practical utility; processing the required data. Initially, 2. Evaluate the accuracy of the AGENCY: Department of Homeland collection will be via a paper form, agency’s estimate of the burden of the Security (DHS). which may be obtained from OIDO staff proposed collection of information, ACTION: 60-Day Notice and request for conducting routine visits in detention including the validity of the comments; Office of the Immigration facilities. The form will also be available methodology and assumptions used; Detention Ombudsman Intake Form, for download from the OIDO website. 3. Enhance the quality, utility, and 1601–0030, Extension without change. The PDF form will be able to be clarity of the information to be completed online, printed out, and collected; and SUMMARY: The Department of Homeland submitted to OIDO by email, mail, or 4. Minimize the burden of the Security, will submit the following fax, or handed to a staff member in a collection of information on those who Information Collection Request (ICR) to detention facility. are to respond, including through the the Office of Management and Budget After approval of the form described use of appropriate automated, (OMB) for review and clearance in in this supporting statement, an electronic, mechanical, or other
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technological collection techniques or PRAMain. Find this particular 49 CFR 1544.219. Eligibility is based on other forms of information technology, information collection, OMB control requirements stated in 49 CFR 1544.219. e.g., permitting electronic submissions number 1652–0034, by selecting TSA will gather information, including, of responses. ‘‘Currently under Review—Open for but not limited to, agency name and Public Comments’’ and by using the address, and name of each individual Analysis find function. who will receive the training from law Agency: Department of Homeland FOR FURTHER INFORMATION CONTACT: enforcement agencies that have Security (DHS). Christina A. Walsh, TSA PRA Officer, requested the LEOs Flying Armed Title: Office of the Immigration Information Technology (IT), TSA–11, training course. Applicant verification Detention Ombudsman Intake Form. Transportation Security Administration, ensures that only LEOs with a valid OMB Number: 1601–0030. 6595 Springfield Center Drive, need to fly armed aboard commercial Frequency: Every 3 years. Springfield, VA 20598–6011; telephone aircraft receive training. Applicants Affected Public: Members of the come from territorial, tribal, Federal, Public or non-government (571) 227–2062; email TSAPRA@ tsa.dhs.gov. municipal, county, State, and organizations. authorized railroad law enforcement Number of Respondents: 30,000. SUPPLEMENTARY INFORMATION: TSA agencies throughout the country. For Estimated Time per Respondent: 1. published a Federal Register notice, Total Burden Hours: 30,000. more information about the program, with a 60-day comment period soliciting please see https://www.tsa.gov/travel/ Robert Dorr, comments, of the following collection of law-enforcement. information on April 8, 2021, 86 FR Acting Executive Director, Business Number of Respondents: 2,000. Management Directorate. 18292. Estimated Annual Burden Hours: An [FR Doc. 2021–17002 Filed 8–9–21; 8:45 am] Comments Invited estimated 167 hours annually. BILLING CODE 9112–FL–P In accordance with the Paperwork Dated: August 5, 2021. Reduction Act of 1995 (44 U.S.C. 3501 Christina A. Walsh, et seq.), an agency may not conduct or TSA Paperwork Reduction Act Officer, DEPARTMENT OF HOMELAND sponsor, and a person is not required to Information Technology. SECURITY respond to, a collection of information [FR Doc. 2021–17007 Filed 8–9–21; 8:45 am] Transportation Security Administration unless it displays a valid OMB control BILLING CODE 9110–05–P number. The ICR documentation will be Extension of Agency Information available at http://www.reginfo.gov Collection Activity Under OMB Review: upon its submission to OMB. Therefore, DEPARTMENT OF THE INTERIOR Law Enforcement Officer Flying Armed in preparation for OMB review and Training approval of the following information Fish and Wildlife Service collection, TSA is soliciting comments AGENCY: Transportation Security [FWS–R8–NWRS–2021–N015; to— FXRS12610800000–212–FF08R04000] Administration, Homeland Security (1) Evaluate whether the proposed (DHS). information requirement is necessary for San Diego National Wildlife Refuge, ACTION: 30-Day notice. the proper performance of the functions CA; Final Comprehensive of the agency, including whether the SUMMARY: This notice announces that Conservation Plan/Environmental information will have practical utility; the Transportation Security Assessment and Finding of No (2) Evaluate the accuracy of the Administration (TSA) has forwarded the Significant Impact agency’s estimate of the burden; Information Collection Request (ICR), (3) Enhance the quality, utility, and AGENCY: Fish and Wildlife Service, Office of Management and Budget clarity of the information to be Interior. (OMB) control number 1652–0034, collected; and ACTION: Notice of availability. abstracted below to OMB for review and (4) Minimize the burden of the approval of an extension of the collection of information on those who SUMMARY: We, the U.S. Fish and currently approved collection under the are to respond, including using Wildlife Service (Service), announce the Paperwork Reduction Act (PRA). The appropriate automated, electronic, availability of a final Comprehensive ICR describes the nature of the mechanical, or other technological Conservation Plan (CCP), environmental information collection and its expected collection techniques or other forms of assessment (EA), and finding of no burden. The collection involves the information technology. significant impact (FONSI) for the San Federal Air Marshal Service (FAMS) Diego National Wildlife Refuge (Refuge) maintenance of a database of all Information Collection Requirement in California. The CCP/EA/FONSI, territorial, tribal, Federal, municipal, Title: Law Enforcement Officers prepared in accordance with the county, State, and authorized railroad Flying Armed Training. National Wildlife Refuge System law enforcement agencies that have Type of Request: Extension of a Improvement Act of 1997, and in received the Law Enforcement Officers currently approved collection. accordance with the National Flying Armed Training course. OMB Control Number: 1652–0034. Environmental Policy Act, describes DATES: Send your comments by Forms(s): N/A. how the Service will manage the Refuge September 9, 2021. A comment to OMB Affected Public: Law Enforcement for the next 15 years. Compatibility is most effective if OMB receives it Officers. determinations for five public uses are within 30 days of publication. Abstract: TSA requires territorial, also included in the final CCP. ADDRESSES: Written comments and tribal, Federal, municipal, county, State, ADDRESSES: Document Availability: You recommendations for the proposed and authorized railroad law may view or download copies of the information collection should be sent enforcement officers (LEOs) who have a final CCP and the EA/FONSI on the within 30 days of publication of this mission need to fly armed to complete Refuge’s website at https://ecos.fws.gov/ notice to www.reginfo.gov/public/do/ the LEOs Flying Armed Training under ServCat/Reference/Profile/133810.
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FOR FURTHER INFORMATION CONTACT: in accordance with the Improvement Wildlife Refuge, in accordance with the Victoria Touchstone, Refuge Planner, at Act. National Environmental Policy Act [email protected], or by Each unit of the NWRS was requirements (40 CFR 1506.6(b)). We phone at (619) 476–9150 ex 101; Dwane established for specific purposes. We completed a thorough analysis of Binns, Refuge Manager, at dwane_ use these purposes as the foundation for impacts on the human environment, [email protected]. developing and prioritizing the which we included in the draft EA that SUPPLEMENTARY INFORMATION: We management goals and objectives for accompanied the Draft CCP. This notice announce the availability of a final each refuge within the NWRS, and to is in addition to our announcement of comprehensive conservation plan, determine how the public can use each the completion of the CCP process on environmental assessment, and finding refuge. The planning process is a way the Refuge website. of no significant impact (CCP/EA/ for us to evaluate management goals and The final EA discusses the direct, objectives that will ensure the best FONSI) for San Diego National Wildlife indirect, and cumulative impacts of the possible approach to wildlife, plant, and Refuge (Refuge, or NWR), which is alternatives on biological resources, habitat conservation, while providing located in San Diego County, California. cultural resources, water quality, and for wildlife-dependent recreation The CCP/EA/FONSI, prepared under the other environmental resources. opportunities that are compatible with National Wildlife Refuge System Measures to minimize adverse each refuge’s establishing purposes and Improvement Act of 1997, and in environmental effects are identified and the mission of the NWRS. accordance with the National discussed in the final CCP/EA. Environmental Policy Act of 1969, Additional Information Martha Maciel, describes how the Service will manage The final CCP can be found at https:// Acting Regional Director, Sacramento, the Refuge for the next 15 years. ecos.fws.gov/ServCat/Reference/Profile/ California. Compatibility determinations for public 133810. The final CCP includes detailed [FR Doc. 2021–16524 Filed 8–9–21; 8:45 am] uses are also included in the final CCP. information about the planning process, BILLING CODE 4333–15–P Introduction Refuge, issues, and management alternative selected. The website also With this notice, we complete the includes an EA, prepared in accordance DEPARTMENT OF THE INTERIOR CCP process for San Diego National with the National Environmental Policy Wildlife Refuge, which we began by Act (NEPA) (43 U.S.C. 4321 et seq.). The Geological Survey publishing a notice of intent in the EA includes discussion of five [DOI–2020–0017; 212G0804MD Federal Register on May 24, 2006 (71 management alternatives. The Service’s GGHDFA3500 GF0200000 FR 29973). For more about the initial selected alternative is reflected in the GX20FA35SA40000] process and the history of the Refuge, final CCP, and also in the FONSI. see that notice. We released the draft A modified version of Alternative D Privacy Act of 1974; System of CCP and EA to the public, announcing was selected for implementation. Under Records and requesting comments in a notice of the selected alternative, we will AGENCY: United States Geological availability on June 19, 2014 (79 FR optimize species and habitat protection, Survey, Interior. 35183). The 90-day comment period with a focus on conserving listed and ended on September 17, 2014. A sensitive species and their habitats. ACTION: Rescindment of a system of summary of public comments and our Wildlife and habitat management records notice. responses are included in the final CCP. activities will also include monitoring SUMMARY: In accordance with the Background of listed and sensitive species, invasive Privacy Act of 1974, as amended, the species control, and habitat restoration. The National Wildlife Refuge System Department of the Interior (DOI) is A step-down Feral Pig Monitoring and rescinding the system of records notice Improvement Act of 1997 (16 U.S.C. Eradication Plan and an Integrated Pest 668dd–668ee), which amended the (SORN), INTERIOR/USGS–01, National Management Plan, both provided for Water Information System: NWIS. This National Wildlife Refuge System review and comment along with the Administration Act of 1966, requires the notice was maintained by the United draft CCP/EA, will also be implemented. States Geological Survey (USGS) and is Service to develop a CCP for each Existing wildlife-dependent recreational National Wildlife Refuge. The purpose no longer required as the NWIS records uses will be expanded, per available are neither stored nor retrieved by use of developing a CCP is to provide refuge funding and staffing. Following the managers with a 15-year plan for of an individual’s personal identifier. completion of a hunt plan and All records in NWIS are stored and achieving refuge purposes and processing of an opening package, contributing toward the mission of the retrieved by site identification data. As hunting in accordance with California such, NWIS does not meet the statutory National Wildlife Refuge System Department of Fish and Wildlife (NWRS), consistent with sound definition of a system of records under regulations for big game, resident small the Privacy Act. principles of fish and wildlife game, and resident and migratory management, conservation, legal upland game birds will be permitted on DATES: These changes take effect on mandates, and our policies. In addition about 160 acres in the southeastern August 10, 2021. to outlining broad management portion of Refuge. A designated ADDRESSES: You may send comments direction on conserving wildlife and multiple use trail system would be identified by docket number [DOI– their habitats, CCPs identify wildlife- established, and leashed dogs will be 2020–0017] by any of the following dependent recreational opportunities permitted on multiple use trails. methods: available to the public, including • Federal eRulemaking Portal: http:// opportunities for hunting, fishing, National Environmental Policy Act www.regulations.gov. Follow the wildlife observation, and photography, Compliance instructions for sending comments. environmental education, and We announce our decision and the • Email: [email protected]. interpretation. We will review and availability of the FONSI for the Final Include docket number [DOI–2020– update the CCP at least every 15 years CCP/EA for the San Diego National 0017] in the subject line of the message.
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• U.S. mail or hand-delivery: Teri site owner’s personal information. ACTION: Notice of intent to prepare an Barnett, Departmental Privacy Officer, Indexing in NWIS is by the site name environmental impact statement. U.S. Department of the Interior, 1849 C and number, with the site name being Street NW, Room 7112, Washington, DC the name given to the body of water and SUMMARY: The Bureau of Land 20240. the number a unique identifier assigned Management (BLM) will consider Instructions: All submissions received to that specific location (example authorizing the proposed Nevada Gold must include the agency name and Mississippi River near Bemidji, MN, Mines LLC (NGM) Goldrush Mine docket number [DOI–2020–0017]. All 05200430). To narrow searches, other Project in Lander and Eureka Counties, comments received will be posted site identification data or attributes may Nevada. without change to http:// be used to retrieve records (state/ DATES: The BLM requests comments www.regulations.gov, including any territory, regional water center, concerning the scope of the analysis and personal information provided. geographic coordinates, water body identification of relevant information, Docket: For access to the docket to type, altitude, drainage zone, depth, or studies, and analyses. All comments read background documents or aquifer code/name). Controls are in must be received by September 9, 2021. comments received, go to http:// place to ensure contact information is The Draft Environmental Impact www.regulations.gov. only accessible to authorized USGS Statement (EIS) is scheduled for You should be aware your entire personnel; it is not published or publication in December 2021, and the comment including your personally released to the public. Rescindment of Final EIS is scheduled for publication in identifiable information, such as your this notice has no adverse impact on April 2022, with a Record of Decision in address, phone number, email address, individual privacy of the site owners. May 2022. The BLM will announce or any other personal information in The affected records will continue to be dates of scoping meetings at least 15 your comment, may be made publicly maintained under their disposition days in advance of the meeting on the available at any time. While you may schedules as approved by the National BLM National ePlanning website, request to withhold your personally Archives and Records Administration. https://go.usa.gov/xsVs8. Scoping identifiable information from public This rescindment will promote the meetings will be held online. review, we cannot guarantee we will be overall streamlining and management of ADDRESSES: Send written comments to able to do so. DOI Privacy Act systems of records. Goldrush Mine EIS c/o BLM Mount FOR FURTHER INFORMATION CONTACT: Members of the public can access Lewis Field Office, 50 Bastian Road, Cozenja Berry, Associate Privacy hydrological historical data via the Battle Mountain, NV 89820. Comments Officer, Office of Enterprise Information, NWIS web page (https:// may also be sent via email to sdistel@ U.S. Geological Survey, 12201 Sunrise help.waterdata.usgs.gov/) or may blm.gov. Submit comments online at the Valley Drive, Room 4A209, Mail Stop request NWIS records under the website https://go.usa.gov/xsVs8. 159, Reston, VA 20192, privacy@ provisions of the Freedom of usgs.gov or (703) 648–7062. Information Act (https://www.usgs.gov/ FOR FURTHER INFORMATION CONTACT: SUPPLEMENTARY INFORMATION: Pursuant about/organization/science-support/ Scott Distel, Project Manager, telephone: to the provisions of the Privacy Act of foia). This notice hereby rescinds (775) 635–4093; address: 50 Bastian 1974, as amended, 5 U.S.C. 552a, DOI is INTERIOR/USGS–01, National Water Road, Battle Mountain, Nevada 89820; rescinding the INTERIOR/USGS–01, Information System: NWIS. email: [email protected]. Individuals who use telecommunication devices for the National Water Information System: SYSTEM NAME AND NUMBER: NWIS, SORN as this system of records deaf (TDD) may call the Federal Relay no longer meets the statutory definition INTERIOR/USGS–01, National Water Service (FRS) at 1–800–877–8339 under the Privacy Act. This rescindment Information System: NWIS. between 8 a.m. and 8 p.m., Eastern Time, Monday through Friday. complies with the Privacy Act of 1974, HISTORY: SUPPLEMENTARY INFORMATION: and the Office of Management and 73 FR 54425 (September 19, 2008); Budget Circular A–108, Federal Agency modification published at 74 FR 23430 Purpose and Need for the Proposed Responsibilities for Review, Reporting, (May 19, 2009). Action and Publication under the Privacy Act. An assessment of NWIS records by Teri Barnett, The BLM’s purpose for the action is the USGS Associate Privacy Officer Departmental Privacy Officer,Department of to respond to NGM’s proposal as revealed that the records contained the Interior. described in the proposed Plan of therein are not stored, maintained or [FR Doc. 2021–16978 Filed 8–9–21; 8:45 am] Operations and to analyze the retrieved by use of an individual’s BILLING CODE 4338–11–P environmental effects associated with personal identifier. The USGS Water the proponent’s Proposed Action and Mission Area utilizes NWIS to preserve alternatives to the Proposed Action. The a repository of hydrologic data that is DEPARTMENT OF THE INTERIOR National Environmental Policy Act collected as part of cooperative (NEPA) mandates that the BLM evaluate hydrologic studies nation-wide. The Bureau of Land Management the effects of the Proposed Action and records include contact information for develop alternatives when necessary to individuals or groups that own or have [LLNVB01000.L19900000.EX0000.21X.MO: lessen any effects to environmental physical control of access sites (site 4500152487] resources. The BLM’s need for the owners) where USGS collects Notice of Intent To Prepare an action is established by its groundwater data. Site owner contact Environmental Impact Statement for responsibilities under Section 302 of the information stored in NWIS includes Nevada Gold Mines LLC’s Goldrush Federal Land Policy and Management name, address, phone number, and Mine Project, Lander and Eureka Act and the BLM Surface Management when provided an email address. The Counties, Nevada Regulations at 43 CFR 3809 to respond records in NWIS are saved and retrieved to a proposed Plan of Operations and by use of the site identification data; AGENCY: Bureau of Land Management, ensure that operations prevent records cannot be retrieved by use of the Interior. unnecessary or undue degradation of
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public lands. NGM’s purpose and need operated Goldstrike or Gold Quarry off- types. For golden eagles, the Proposed is to develop the mineral resource. site processing facilities. The Proposed Action would result in the removal of Action would result in changes to the 1,094 acres of foraging habitat. Preliminary Proposed Action and Horse Canyon Mine Plan (NVN– Alternatives Additionally, eight golden eagle 066896), Horse Canyon/Cortez Unified territories occur within one mile of the NGM is proposing to construct, Exploration Project (HC/CUEP) Plan proposed Project disturbance area. (4) operate, close, and reclaim a new (NVN–066621), West Pine Valley Potential impacts to visual resources. underground mining project in the Exploration Plan (NVN–077213), and The Proposed Action would add form, Cortez Mining District. The proposed Cortez Mine Plan (NVN–067575). line, texture, and color to the existing Goldrush Mine is located approximately The Goldrush Mine would operate 24 landscape. (5) Potential impacts to air 30 miles south of Beowawe, Nevada, in hours per day, 365 days per year for quality. Modeling has determined that Lander and Eureka Counties, Nevada. approximately 24 years. The work force impacts from the Proposed Action The proposed Goldrush Mine Plan of would be approximately 570 persons, would not exceed National Ambient Air Operations boundary would encompass which includes both NGM employees Quality Standards for PM10, PM2.5, CO, approximately 19,895 acres, of which and contractors. The construction work NOX, and SO2. Total facility-wide 772 acres would be on private land force would be approximately 495 controlled by NGM and 19,123 acres on Hazardous Air Pollutants (HAP) are workers. estimated to be 1.8 tons per year (tpy), public lands administered by the BLM Reclamation of disturbed areas with 0.5 tpy of the highest single HAP, Battle Mountain District, Mount Lewis resulting from mining operations would arsenic. The facility-wide HAP Field Office and BLM Elko District, be completed in accordance with BLM emissions are within U.S. Tuscarora Field Office. The proposed and Nevada Division of Environmental Goldrush Mine would include Protection (NDEP) regulations. Environmental Protection Agency approximately 1,717 acres of new Concurrent reclamation would take (USEPA) thresholds. Greenhouse gas proposed disturbance and place where practicable and safe and emissions, including off-site ore approximately 1,037 acres of existing/ when an area is no longer needed. transport, are estimated to be 96,624 tpy authorized and reclassified disturbance, Reclamation activities at the end of CO2e. Mercury emissions are estimated for a total disturbance of approximately mining are anticipated to take to be 0.014 tpy. (6) Potential impacts to 2,754 acres. approximately 36 months. surface and groundwater resources. The proposed underground mining In addition to the No Action and the Potential impacts to seep, spring, and and surface support activities for the Proposed Action, other alternatives may stream flow may occur from proposed Goldrush Mine would include: (1) A be identified through scoping comments dewatering operations if the source of materials handling system for or through analysis. the water is connected to the regional transporting ore and waste rock from the aquifer. Dewatering operations would underground workings to the surface Summary of Expected Impacts also result in a lowering of the local and transporting aggregate and supplies The BLM has identified the following groundwater table. Sedimentation and to the underground workings and preliminary resource concerns erosion may also occur due to Project- surface backfill plant; (2) a dewatering associated with the Project: (1) related surface disturbance. (7) Potential system, including wells, pipelines and Properties of Cultural and Religious impacts to traffic. The Proposed Action pipeline corridors, a water treatment Importance (PCRI) and Native American would result in two ore hauling trucks plant (WTP), rapid infiltration basins concerns. Up to 50 National Register of per hour on the transportation route, as (RIBs), and a multi-use shop; (3) a Historic Places-eligible or unevaluated well as 89 trips each shift for employees contact water pipeline; (4) ventilation cultural properties would be physically and contractors during construction and raises; (5) a backfill aggregate paste altered, resulting in an adverse effect to up to 71 trips during operations along plant and crusher; (6) a shotcrete/ these cultural sites. Adverse impacts the transportation route. Changes in the cemented rock fill (CRF) plant; (7) two would occur to approximately 392 acres level of service at some locations along new power lines, including a 120- of the Horse Canyon PCRI. Vegetation the transportation route may occur, but kilovolt (kV) power line with two communities important to Native there would be no degrading of the level switching stations, and a 13.8-kV power American traditional values may be of service below acceptable levels. (8) line; (8) new ancillary surface facilities, impacted by the Proposed Action. (2) Potential impacts to livestock grazing. including bulk material storage, access Impacts to wildlife resources. Potential The Proposed Action would result in roads, power supply, stormwater impacts include habitat change, habitat new surface disturbance of 1,717 acres, controls, laydown and parking areas, loss, alterations to water sources, which would impact forage utilized by lighting, growth media stockpiles, fatalities as a result of collisions with livestock. Approximately 119 Animal dewatering and monitoring wells, gravel vehicles, displacement due to human Unit Months (AUMs) would be pit expansion, potable water and septic activity and disturbance, and impacted in the Carico Lake, Grass systems, dry facilities (change rooms), impediments to movement through Valley, JD, and South Buckhorn service boreholes for electrical and fuel corridors. (3) Potential impacts to BLM allotments. The 210 acres of proposed delivery, fire suppression system, water sensitive species including greater sage- exploration disturbance may result in an truck refill stations, emergency grouse and golden eagles. For greater impact ranging from 9 to 19 AUMs, helipads, fencing, and modular sage-grouse, the Proposed Action would depending on the allotment in which information technology (IT) and disturb approximately 805 acres of the activities occur. (9) Potential communications buildings; (9) dual use Priority Habitat Management Areas, 14 impacts on vegetation communities and of existing facilities within the nearby acres of General Habitat Management soil productivity. The Proposed Action Cortez Mine Plan boundary; and (10) Areas, 618 acres of Other Habitat would result in disturbance to soil and continued surface and underground Management Areas, and 79 acres of removal of vegetation on 1,717 acres. exploration activities. Non-Habitat Management Areas. (10) Potential for subsidence. In the A fleet of over-the-road haul truck and Exploration activities could result in up post-closure period, underground mine trailer units would be used for ore to 210 acres of additional disturbance to induced rock collapse may occur over transportation to either the NGM- any of the greater sage-grouse habitat open workings and result in the
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development of localized ground • Jurisdictional Delineation Report Agencies will give due consideration to deformation/subsidence type features, Concurrence: U.S. Army Corps of Tribal concerns, including impacts on which are unlikely to impact surface Engineers Indian trust assets and treaty rights and features due to the strength and • Liquefied Petroleum Gas License: potential impacts to cultural resources. thickness of the overlying rock, and any Nevada Board of the Regulation of The BLM invites Federal, State, and surface expression is anticipated to be Liquefied Petroleum Gas local agencies, along with Tribes and local to the immediate mining area and Notification of Commencement of other stakeholders that may be not propagate extensively. Additionally, Operations MSHA interested in or affected by the proposed at the end of mining, model-predicted • Permit to Appropriate Water: Nevada Goldrush Mine to participate in scoping. subsidence from dewatering may cause Division of Water Resources Agencies with regulatory authority or a four-inch contour of land with the • Permit to Operate: Nevada Division of special expertise, if eligible, may request potential for development of fissures. Minerals or be requested by the BLM to (11) Reclamation to reduce permanent • Plan of Operations/Record of participate in the development of the disturbance. Approximately 2,232 acres Decision: BLM environmental analysis as a cooperating • of total surface disturbance would be Potable Water System Permit: Nevada agency. reclaimed and would return to post- Bureau of Safe Drinking Water • Request for Identification of Potential reclamation land uses, including open Radioactive Materials License: Nevada Division of Public and Alternatives, Information, and space, grazing, dispersed recreation, and Analyses Relevant to the Proposed wildlife habitat, while 523 acres would Behavioral Health • Action remain permanently altered. Reclamation Permit and Reclamation Cost Determination: NDEP (Bureau The proposed project has the The BLM requests assistance with of Mining Regulation and potential to affect golden eagle nests and identifying potential alternatives to the Reclamation) territories; therefore, NGM has prepared Proposed Action to be considered. As • Section 401 Certification: NDEP an Eagle Conservation Plan (ECP) and alternatives should resolve a problem (Bureau of Water Pollution Control) has requested an incidental take permit with the Proposed Action, please • Septic Treatment Permit, Holding for golden eagles in the area in which indicate the purpose of the suggested Tank Permit, Sewage Disposal NGM proposes to conduct mining alternative. The BLM also requests that System Permit: NDEP (Bureau of operations. The U.S. Fish and Wildlife potential impacts that should be Water Pollution Control) analyzed be identified. Impacts should Service (USFWS) is considering the • Water Pollution Control Permit: NDEP applicant’s request for incidental take, be a result of the action; therefore, (Bureau of Mining Regulation and please identify the activity and the as allowed under the Bald and Golden Reclamation) Eagle Protection Act (Eagle Act) for the potential impact that should be purpose of resource development and Schedule for the Decision-Making analyzed. Information that reviewers recovery operations. The USFWS will Process have that would assist in the evaluate the applicant’s ECP, which development of alternatives or analysis The BLM anticipates a decision in of resources issues is also helpful. describes NGM’s request for incidental May of 2022. take authorization for impacts resulting Lead and Cooperating Agencies from their proposed mining operations. Public Scoping Process The BLM is the lead agency. The DEIS will analyze any potential This notice of intent initiates the Cooperating agencies include the effects and impacts of the proposed scoping process, which guides the USFWS, the USEPA, the Nevada project on golden eagles and may also development of the environmental Department of Wildlife, the Nevada analyze impacts and develop impact statement. Scoping meetings will Department of Transportation, and alternatives associated with the USFWS be virtual. An announcement about Eureka County. eagle take permit decision under the when and how to access the virtual Eagle Act. meetings online will be posted on the Decision Maker Anticipated Permits and Authorizations BLM’s project website. The BLM Battle Mountain District The purpose of public scoping is to Manager, Doug Furtado, is the The BLM anticipates that the identify relevant issues that will responsible official. following permits and authorizations influence the scope of the will be required for the mine: environmental analysis, including Nature of Decision To Be Made • Air Quality Operating Permit: NDEP alternatives, and guide the process for The BLM will issue a decision on the (Bureau of Air Pollution Control) developing the environmental impact proposed Plan of Operations for the • Eagle Take Permit: USFWS statement. The BLM will use and Goldrush mine project. • coordinate the NEPA public scoping to It is important that reviewers provide Explosives Permit: U.S. Bureau of help fulfill the public involvement their comments at such times and in Alcohol, Tobacco, Firearms, and requirements under the National such manner that they are useful to the Explosives Historic Preservation Act (54 U.S.C. agency’s preparation of the • General Stormwater Discharge Permit: 306108) as provided in 36 CFR environmental impact statement. NDEP (Bureau of Water Pollution 800.2(d)(3). The information about Therefore, comments should be Control) historic and cultural resources within provided prior to the close of the • Hazardous Materials Storage Permit: the area potentially affected by the comment period and should clearly Nevada Department of Public proposed action will assist the BLM in articulate the reviewer’s concerns and Safety, State Fire Marshall, and identifying and evaluating impacts to contentions. State Emergency Response such resources. Comments received in response to Commission The BLM will conduct government-to- this solicitation, including names and • Industrial Artificial Pond Permit: government consultation with Indian addresses of those who comment, will Nevada Department of Wildlife Tribes in accordance with Executive be part of the public record for this (Habitat Division) Order 13175 and other policies. proposed action. Comments submitted
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anonymously will also be accepted and While you can ask us in your comment VIRGINIA considered. to withhold your personal identifying Brunswick County Authority: 40 CFR 1501.7. information from public review, we Lawrenceville Historic District (Additional cannot guarantee that we will be able to Bradlee A. Matthews, Documentation) Roughly bounded by West do so. Acting Field Manager, Mount Lewis Field 6th Ave., Maria St., Lawrenceville Office, Battle Mountain District. Nominations submitted by State or townline, Rose Cr., and Thomas St., Lawrenceville vicinity, AD00000313 [FR Doc. 2021–17040 Filed 8–9–21; 8:45 am] Tribal Historic Preservation Officers: Nominations submitted by Federal BILLING CODE 4310–HC–P ILLINOIS Preservation Officers: The State Historic Preservation Officer Bureau County reviewed the following nominations and DEPARTMENT OF THE INTERIOR Oakland Cemetery Historic District, 1013 responded to the Federal Preservation Officer Park Ave. West, Princeton, SG100006864 within 45 days of receipt of the nominations National Park Service and supports listing the properties in the Cook County [NPS–WASO–NRNHL–DTS#–32381; National Register of Historic Places. Ravisloe Country Club, 18231 Park Ave., PPWOCRADI0, PCU00RP14.R50000] GUAM Homewood, SG100006865 Guam County National Register of Historic Places; Kankakee County Notification of Pending Nominations Da˚di Beach Japanese Bunker, Address and Related Actions Pope Brace Company Building, 197 South Restricted, Santa Rita vicinity, West Ave., Kankakee, SG100006866 SG100006869 AGENCY: National Park Service, Interior. McLean County Dobo Spring Latte Set Complex, Address ACTION: Notice. Restricted, Santa Rita vicinity, Fairview Sanatorium, 905 North Main St., SG100006870 SUMMARY: The National Park Service is Normal, SG100006867 Maulap River Complex Site, Address Restricted, Santa Rita vicinity, soliciting electronic comments on the Winnebago County significance of properties nominated SG100006871 Witwer House, 504 North 1st St., Rockford, before July 24, 2021, for listing or Authority: Section 60.13 of 36 CFR SG100006872 related actions in the National Register part 60. of Historic Places. MASSACHUSETTS Dated: July 27, 2021. DATES: Comments should be submitted Worcester County Sherry A. Frear, electronically by August 25, 2021. W.S. Reed Toy Company-Wachusett Shirt Chief, National Register of Historic Places/ ADDRESSES: Comments are encouraged Company Historic District 41–45, Summer National Historic Landmarks Program. to be submitted electronically to St., Leominster, SG100006863 [FR Doc. 2021–17010 Filed 8–9–21; 8:45 am] National_Register_Submissions@ BILLING CODE 4312–52–P nps.gov with the subject line ‘‘Public MICHIGAN Comment on
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General Counsel, U.S. International scope of the LEO and CDO. On August ACTION: Notice. Trade Commission, 500 E Street SW, 27, 2020, Koki opposed the petition. Washington, DC 20436, telephone (202) On September 16, 2020, the SUMMARY: Notice is hereby given that a 708–2310. Copies of non-confidential Commission instituted a modification complaint was filed with the U.S. documents filed in connection with this proceeding to determine whether the International Trade Commission on July investigation may be viewed on the redesigned products are covered by the 2, 2021, under section 337 of the Tariff Commission’s electronic docket (EDIS) LEO and CDO. See 85 FR 59543–44 Act of 1930, as amended, on behalf of at https://edis.usitc.gov. For help (Sept. 22, 2020); Comm’n Order (Sept. Criterion Technology, Inc. of accessing EDIS, please email 16, 2020). On October 22, 2020, the Thomaston, Georgia. A supplement was [email protected]. General Commission issued a revised filed on July 23, 2021. The complaint information concerning the Commission modification institution order that alleges violations of section 337 based may also be obtained by accessing its clarified that the presiding ALJ would upon the importation into the United internet server at https://www.usitc.gov. consider, in the first instance, any issues States, and in the sale of certain optical Hearing-impaired persons are advised regarding potentially impermissible enclosures, components thereof, and that information on this matter can be arguments raised by Kyocera in the products containing the same by reason obtained by contacting the course of the modification proceeding. of the misappropriation of trade secrets, Commission’s TDD terminal, telephone See Revised Comm’n Order (Oct. 22, the threat or effect of which is to destroy (202) 205–1810. 2020). or substantially injure a domestic industry. The complainant requests that SUPPLEMENTARY INFORMATION: The On July 2, 2021, the CALJ issued the the Commission institute an Commission instituted this investigation subject RD finding that Koki’s investigation and, after the on November 20, 2017, based on a redesigned products are not covered by investigation, issue a limited exclusion complaint filed on behalf of Kyocera the LEO and CDO. order and cease and desist orders. Senco Brands, Inc. (now known as On July 16, 2021, Kyocera submitted Kyocera Senco Industrial Tools, Inc.) comments on the RD. On July 22, 2021, ADDRESSES: The complaint, except for (‘‘Kyocera’’) of Cincinnati, Ohio. 82 FR Koki filed a response to Kyocera’s any confidential information contained 55118–19 (Nov. 20, 2017). The comments. therein, may be viewed on the complaint, as amended and Having reviewed the record and the Commission’s electronic docket (EDIS) supplemented, alleged violations of the parties’ submissions, the Commission at https://edis.usitc.gov. For help Tariff Act of 1930, as amended, 19 has determined to adopt the RD’s accessing EDIS, please email U.S.C. 1337 (‘‘section 337’’), based upon finding that the redesigned products do [email protected]. Hearing impaired the importation into the United States, not infringe claims 1, 10, and 16 of the individuals are advised that information the sale for importation, and the sale ’718 patent and thus are not covered by on this matter can be obtained by within the United States after the LEO and CDO. The Commission has contacting the Commission’s TDD importation of certain gas spring nailer issued a contemporaneous order terminal on (202) 205–1810. Persons products and components thereof by indicating that the redesigned products with mobility impairments who will reason of infringement of, inter alia, are exempt from the scope of the LEO need special assistance in gaining access claims 1, 10, and 16 of U.S. Patent Nos. and CDO. to the Commission should contact the 8,387,718 (‘‘the ’718 patent’’). The The modification proceeding is Office of the Secretary at (202) 205– complaint further alleged the existence terminated. 2000. General information concerning of a domestic industry. The The Commission vote for this the Commission may also be obtained Commission’s notice of investigation determination took place on August 4, by accessing its internet server at named Koki as a respondent. The Office 2021. https://www.usitc.gov. of Unfair Import Investigations did not The authority for the Commission’s FOR FURTHER INFORMATION CONTACT: participate in the investigation. determination is contained in section Pathenia M. Proctor, The Office of On March 5, 2020, the Commission 337 of the Tariff Act of 1930, as Unfair Import Investigations, U.S. issued its final determination finding a amended, 19 U.S.C. 1337, and in Part International Trade Commission, violation of section 337 based on 210 of the Commission’s Rules of telephone (202) 205–2560. Practice and Procedure, 19 CFR part infringement of the asserted claims of SUPPLEMENTARY INFORMATION: 210. the ’718 patent. 85 FR 14244–46 (Mar. AUTHORITY: The authority for 11, 2020). The Commission issued an By order of the Commission. institution of this investigation is LEO directed against Koki’s infringing Issued: August 4, 2021. contained in section 337 of the Tariff products, and a CDO directed against Lisa Barton, Act of 1930, as amended, 19 U.S.C. Koki. Id. On July 1, 2020, Koki filed an Secretary to the Commission. 1337, and in section 210.10 of the appeal to the U.S. Court of Appeals for [FR Doc. 2021–16976 Filed 8–9–21; 8:45 am] Commission’s Rules of Practice and the Federal Circuit, which is currently BILLING CODE 7020–02–P Procedure, 19 CFR 210.10 (2020). pending (Appeal No. 20–2050). SCOPE OF INVESTIGATION: Having On June 30, 2020, U.S. Customs and considered the complaint, the U.S. Border Protection (‘‘CBP’’) issued a INTERNATIONAL TRADE International Trade Commission, on ruling, pursuant to 19 CFR part 177, that COMMISSION August 4, 2021, ORDERED THAT— the redesigned products are outside of (1) Pursuant to subsection (b) of the scope of the LEO issued in the [Investigation No. 337–TA–1274] section 337 of the Tariff Act of 1930, as investigation. See RX–1001 (CBP Certain Optical Enclosures, amended, an investigation be instituted Ruling); CX–1017C (Ltr. Requesting CBP Components Thereof, and Products to determine whether there is a Ruling). In response, on August 17, Containing the Same; Institution of violation of subsection (a)(1)(A) of 2020, Kyocera petitioned for institution Investigation section 337 in the importation into the of a modification proceeding, requesting United States, or in the sale of certain the Commission to determine if the AGENCY: U.S. International Trade products identified in paragraph (2) by redesigned products are outside of the Commission. reason of misappropriation of trade
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secrets, the threat or effect of which is and to enter an initial determination To submit to destroy or substantially injure an and a final determination containing comments: Send them to: industry in the United States; such findings, and may result in the (2) Pursuant to section 210.10(b)(1) of issuance of an exclusion order or a cease By e-mail ...... pubcomment-ees.enrd@ the Commission’s Rules of Practice and usdoj.gov. and desist order or both directed against By mail ...... Assistant Attorney General, Procedure, 19 CFR 210.10(b)(1), the the respondent. U.S. DOJ—ENRD, P.O. plain language description of the By order of the Commission. Box 7611, Washington, accused products or category of accused D.C. 20044–7611. products, which defines the scope of the Issued: August 4, 2021. investigation, is ‘‘polycarbonate and Lisa Barton, During the public comment period, nylon optical enclosures’’; Secretary to the Commission. the consent decree may be examined (3) For the purpose of the [FR Doc. 2021–16975 Filed 8–9–21; 8:45 am] and downloaded at this Justice investigation so instituted, the following BILLING CODE 7020–02–P Department website: https:// are hereby named as parties upon which www.justice.gov/enrd/consent-decrees. this notice of investigation shall be We will provide a paper copy of the served: consent decree upon written request (a) The complainant is: DEPARTMENT OF JUSTICE and payment of reproduction costs. Criterion Technology, Inc., 101 Please mail your request and payment McIntosh Parkway, Thomaston, GA Notice of Lodging of Proposed to: Consent Decree Library, U.S. DOJ— 30289. Consent Decree Under the Clean Water ENRD, P.O. Box 7611, Washington, DC (b) The respondents are the following Act 20044–7611 entities alleged to be in violation of Please enclose a check or money order section 337, and are the parties upon On August 2, 2021, the Department of for $108.50 (25 cents per page which the complaint is to be served: Justice lodged a proposed consent reproduction cost) payable to the United Velodyne Lidar USA, Inc., 5521 Hellyer decree with the United States District States Treasury. For a paper copy Avenue, San Jose, CA 95138. Court for the Northern District of West without the appendices, the cost is Fujian Fran Optics Co., Ltd., No. 25, Virginia (Clarksburg Division) in the $12.75. Standard Workshop, Juyuanzhou, lawsuit entitled United States of Susan Akers, Jinshan Industrial District, Fuzhou, America et al. v. LPG Land & Assistant Section Chief, Environmental 350002, Fujian, China Development Corporation, No. 1:21–cv– Enforcement Section, Environment and (c) The Office of Unfair Import 33–TSK. Natural Resources Division. Investigations, U.S. International Trade The United States and the State of [FR Doc. 2021–16974 Filed 8–9–21; 8:45 am] Commission, 500 E Street SW, Suite West Virginia, by and through the West BILLING CODE 4410–15–P 401, Washington, DC 20436; and Virginia Department of Environmental (4) For the investigation so instituted, Protection, filed this lawsuit against the Chief Administrative Law Judge, LPG Land & Development Corporation DEPARTMENT OF JUSTICE U.S. International Trade Commission, (‘‘Defendant’’), pursuant to the Clean [OMB Number 1121–0336] shall designate the presiding Water Act and the West Virginia Water Administrative Law Judge. Pollution Control Act. The United States Agency Information Collection Responses to the complaint and the and West Virginia seek injunctive relief Activities; Proposed eCollection notice of investigation must be and civil penalties from the Defendant eComments Requested; Revision of a submitted by the named respondents in for violations relating to the discharge of Currently Approved Collection: Office accordance with section 210.13 of the pollutants into waters of the United for Victims of Crime Training and Commission’s Rules of Practice and States without a permit, and in violation Technical Assistance Center— Procedure, 19 CFR 210.13. Pursuant to of a permit, at the Mon Fayette Trafficking Information Management 19 CFR 201.16(e) and 210.13(a), as Industrial Park located in Morgantown, System (TIMS) amended in 85 FR 15798 (March 19, West Virginia. The proposed consent AGENCY: Office for Victims of Crime, 2020), such responses will be decree resolves these allegations by considered by the Commission if Department of Justice. requiring the Defendant to purchase received not later than 20 days after the ACTION: mitigation bank credits and pay a civil 60-Day notice. date of service by the complainant of the penalty of $125,000 (with half paid to complaint and the notice of SUMMARY: The Department of Justice the United States and the other half paid investigation. Extensions of time for (DOJ), Office of Justice Programs, Office to the State). submitting responses to the complaint for Victims of Crime, will be submitting and the notice of investigation will not The publication of this notice opens the following information collection be granted unless good cause therefor is a period for public comment on the request to the Office of Management and shown. consent decree. Comments should be Budget (OMB) for review and approval Failure of a respondent to file a timely addressed to the Assistant Attorney in accordance with the Paperwork response to each allegation in the General, Environment and Natural Reduction Act of 1995. complaint and in this notice may be Resources Division, and should refer to DATES: Comments are encouraged and deemed to constitute a waiver of the United States of America et al. v. LPG will be accepted for 60 days until right to appear and contest the Land & Development Corporation, D.J. October 12, 2021. allegations of the complaint and this Ref. Nos. 90–5–1–1–20587 & 90–5–1–1– FOR FURTHER INFORMATION CONTACT: If notice, and to authorize the 20587/1. All comments must be you have additional comments administrative law judge and the submitted no later than thirty (30) days especially on the estimated public Commission, without further notice to after the publication date of this notice. burden or associated response time, the respondent, to find the facts to be as Comments may be submitted either by suggestions, or need a copy of the alleged in the complaint and this notice email or by mail: proposed information collection
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instrument with instructions or Grantees to use this electronic tool to ADDRESSES: A copy of this ICR with additional information, please contact submit grant performance data, applicable supporting documentation; Shelby Jones Crawford, (202) 532–3611, including demographics about human including a description of the likely Program Manager, Office for Victims of trafficking victims. Since 2012, OVC has respondents, proposed frequency of Crime, Office of Justice Programs, published annual analyses of these data response, and estimated total burden Department of Justice, 810 7th Street to provide the crime victims’ field with may be obtained free by contacting Sybil NW, Washington, DC 20530. stronger evidence for practices and Felton by telephone at 202–693–3741, SUPPLEMENTARY INFORMATION: Written programs. TTY 1–877–889–5627 (these are not comments and suggestions from the 5. An estimate of the total number of toll-free numbers), or by email at public and affected agencies concerning respondents and the amount of time [email protected]. the proposed collection of information estimated for an average respondent to Submit written comments about, or are encouraged. Your comments should respond: There are approximately 60 requests for a copy of, this ICR by mail address one or more of the following OVC Services to Victims of Human or courier to the U.S. Department of four points: Trafficking Grantees per six-month Labor, Employment and Training reporting period. On average, it should —Evaluate whether the proposed Administration, Office of take each grantee one hour to seven collection of information is necessary Unemployment Insurance, Room S– hours, depending on client case load per for the proper performance of the 4520, 200 Constitution Avenue NW, reporting period, to enter information Washington, DC 20210, by email: functions of the Bureau of Justice into TIMS Online. There are two Statistics, including whether the [email protected]; or by Fax (202) reporting periods per year. 693–3975. information will have practical utility; 6. An estimate of the total public —Evaluate the accuracy of the agency’s burden (in hours) associated with the FOR FURTHER INFORMATION CONTACT: estimate of the burden of the collection: 480 hours (average 60 OVC David H. King by telephone at 202–693– proposed collection of information, grantees * average 4 hours * 2 times per 2698 (this is not a toll-free number) or including the validity of the year). by email at [email protected]. methodology and assumptions used; If additional information is required SUPPLEMENTARY INFORMATION: DOL, as —Evaluate whether and if so how the contact: Jerri Murray, Department quality, utility, and clarity of the part of continuing efforts to reduce Clearance Officer, United States paperwork and respondent burden, information to be collected can be Department of Justice, Justice enhanced; and conducts a pre-clearance consultation Management Division, Policy and program to provide the general public —Minimize the burden of the collection Planning Staff, Two Constitution of information on those who are to and Federal agencies an opportunity to Square, 145 N Street NE, 3E.405B, comment on proposed and/or respond, including through the use of Washington, DC 20530. appropriate automated, electronic, continuing collections of information mechanical, or other technological Dated: August 3, 2021 before submitting them to the Office of collection techniques or other forms Melody Braswell, Management and Budget (OMB) for final of information technology, e.g., Department Clearance Officer for PRA, U.S. approval. This program helps to ensure permitting electronic submission of Department of Justice. requested data can be provided in the responses. [FR Doc. 2021–16893 Filed 8–9–21; 8:45 am] desired format, reporting burden (time BILLING CODE 4410–18–P and financial resources) is minimized, Overview of this information collection instruments are clearly collection: understood, and the impact of collection 1. Type of Information Collection: requirements can be properly assessed. Revision of Existing Collection. DEPARTMENT OF LABOR The Noncitizen Benefit Clarification 2. The Title of the Form/Collection: Employment and Training and Other Technical Amendments Act Office for Victims of Crime Training and Administration of 1998 (Pub. L. 105–306) permanently Technical Assistance Center- Trafficking authorized the SEA program, which is a Information Management System Agency Information Collection reemployment program that helps (TIMS). Activities; Comment Request; ETA 3. The agency form number, if any, Unemployment Insurance (UI) 9161—Self Employment Assistance claimants start their own businesses. and the applicable component of the (SEA) Department sponsoring the collection: Public Law 112–96, the Middle Class NA. The applicable component within ACTION: Notice. Tax Relief and Job Creation Act of 2012 the Department of Justice is the Office (the 2012 Act), expanded the SEA SUMMARY: for Victims of Crime, in the Office of The Department of Labor’s program to provide states the Justice Programs. (DOL’s) Employment and Training opportunity to allow UI claimants 4. Affected public who will be asked Administration (ETA) is soliciting receiving Extended Benefits to or required to respond, as well as a brief comments concerning a proposed participate in the SEA program. abstract: extension for the authority to conduct Currently, five states use this Primary: OVC Grantees. the information collection request (ICR) reemployment program. Abstract: The current package for titled ETA 9161—Self Employment Section 2183(b)(1) of the 2012 Act OMB approval is designed to simplify Assistance (SEA). This comment request directs the Secretary of Labor to performance reporting for OVC grantees is part of continuing Departmental establish reporting requirements for through the OVC Trafficking efforts to reduce paperwork and States that have established SEA Information Management System respondent burden in accordance with programs, which shall include reporting (TIMS) Online system, a Web-based the Paperwork Reduction Act of 1995 on: database and reporting system for the (PRA). (A) The total number of individuals Victims of Human Trafficking Grant and DATES: Consideration will be given to all who received unemployment the Enhanced Collaborative Model written comments received by October compensation and (i) were referred to a Grant initiatives. OVC will require OVC 12, 2021. SEA program; (ii) participated in such
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program; and (iii) received an allowance proposed collection of information, information collection should be sent under such program; including the validity of the within 30 days of publication of this (B) the total amount of allowances methodology and assumptions used; notice to www.reginfo.gov/public/do/ provided to individuals participating in • Enhance the quality, utility, and PRAMain. Find this particular a SEA program; clarity of the information to be information collection by selecting (C) the total income (as determined by collected; and ‘‘Currently under 30-day Review—Open survey or other appropriate method) for • Minimize the burden of the for Public Comments’’ or by using the businesses that have been established by collection of information on those who search function. individuals participating in a SEA are to respond, including through the Comments are invited on: (1) Whether program, as well as the total number of use of appropriate automated, the collection of information is individuals employed through such electronic, mechanical, or other necessary for the proper performance of businesses; and technological collection techniques or the functions of the Department, (D) any additional information, as other forms of information technology, including whether the information will determined appropriate by the (e.g., permitting electronic submission have practical utility; (2) if the Secretary. ETA currently uses Form of responses). information will be processed and used ETA–9161 as an electronic reporting Agency: DOL–ETA. in a timely manner; (3) the accuracy of mechanism to collect this required Type of Review: Extension without the agency’s estimates of the burden and information. In addition to Public Law changes. cost of the collection of information, 112–96, collection of data is used for Title of Collection: Self Employment including the validity of the oversight of the program as authorized Assistance. methodology and assumptions used; (4) under Section 303(a)(6) of the Social Form: ETA 9161. ways to enhance the quality, utility and Security Act. Also, the code of Federal OMB Control Number: 1205–0490. clarity of the information collection; and Regulations authorizes this information Affected Public: State Workforce (5) ways to minimize the burden of the collection See 5 CFR 1320.5(a) and Agencies. collection of information on those who Estimated Number of Respondents: 1320.6. are to respond, including the use of This information collection is subject 3,105. Frequency: Quarterly. automated collection techniques or to the PRA. A Federal agency generally other forms of information technology. cannot conduct or sponsor a collection Total Estimated Annual Responses: FOR FURTHER INFORMATION CONTACT: of information, and the public is 24,820. Crystal Rennie by telephone at 202– generally not required to respond to an Estimated Average Time per 693–0456 or by email at DOL_PRA_ information collection, unless it is Response: Varies. [email protected]. approved by OMB under the PRA and Estimated Total Annual Burden displays a currently valid OMB Control Hours: 12,440 hours. SUPPLEMENTARY INFORMATION: The Number. In addition, notwithstanding Total Estimated Annual Other Cost Standard requires that when aerial lifts any other provisions of law, no person Burden: $0. are ‘‘field modified’’ for uses other than Authority: 44 U.S.C. 3506(c)(2)(A). shall generally be subject to penalty for those intended by the manufacturer, the failing to comply with a collection of Suzan LeVine, manufacturer or other equivalent entity, such as a nationally recognized testing information that does not display a Acting Assistant Secretary for Employment valid Control Number. See 5 CFR and Training, Labor. laboratory, must certify in writing that the modification is in conformity with 1320.5(a) and 1320.6. [FR Doc. 2021–16991 Filed 8–9–21; 8:45 am] all applicable provisions of ANSI Interested parties are encouraged to BILLING CODE 4510–FW–P provide comments to the contact shown A92.2–1969 and the OSHA standard in the ADDRESSES section. Comments and that the modified aerial lift is at must be written to receive DEPARTMENT OF LABOR least as safe as the equipment was consideration, and they will be before modification. Employers are to summarized and included in the request Agency Information Collection maintain the certification record and for OMB approval of the final ICR. In Activities; Submission for OMB make it available to OSHA compliance order to help ensure appropriate Review; Comment Request; Vehicle- officers. This record provides assurance consideration, comments should Mounted Elevating and Rotating Work to employers, workers, and compliance mention OMB control number 1205– Platforms Standard (Aerial Lifts) officers that the modified aerial lift is 0490. safe for use; thereby, preventing failure Submitted comments will also be a ACTION: Notice of availability; request while workers are being elevated. The matter of public record for this ICR and for comments. certification record also provides the posted on the internet, without most efficient means for the compliance SUMMARY: The Department of Labor redaction. DOL encourages commenters officers to determine that an employer is (DOL) is submitting this Occupational not to include personally identifiable complying with the Standard. For Safety and Health Administration information, confidential business data, additional substantive information (OSHA)-sponsored information or other sensitive statements/ about this ICR, see the related notice collection request (ICR) to the Office of information in any comments. published in the Federal Register on Management and Budget (OMB) for DOL is particularly interested in May 5, 2021 (86 FR 23434). review and approval in accordance with comments that: This information collection is subject • Evaluate whether the proposed the Paperwork Reduction Act of 1995 to the PRA. A Federal agency generally collection of information is necessary (PRA). Public comments on the ICR are cannot conduct or sponsor a collection for the proper performance of the invited. of information, and the public is functions of the agency, including DATES: The OMB will consider all generally not required to respond to an whether the information will have written comments that agency receives information collection, unless the OMB practical utility; on or before September 9, 2021. approves it and displays a currently • Evaluate the accuracy of the ADDRESSES: Written comments and valid OMB Control Number. In addition, agency’s estimate of the burden of the recommendations for the proposed notwithstanding any other provisions of
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law, no person shall generally be subject Associate Administrator for Human 3. Date: September 8, 2021 to penalty for failing to comply with a Exploration and Operations, NASA collection of information that does not Headquarters This video meeting will discuss display a valid OMB Control Number. Chief Information Officer, NASA applications on the topic of World See 5 CFR 1320.5(a) and 1320.6. Headquarters History, for the Digital Projects for the DOL seeks PRA authorization for this Center Director, NASA Glenn Research Public: Production Grants program, information collection for three (3) Center submitted to the Division of Public years. OMB authorization for an ICR Programs. Cheryl Parker, cannot be for more than three (3) years 4. Date: September 8, 2021 without renewal. The DOL notes that Federal Register Liaison Officer. information collection requirements [FR Doc. 2021–17017 Filed 8–9–21; 8:45 am] This video meeting will discuss submitted to the OMB for existing ICRs BILLING CODE 7510–13–P applications on the topic of Scholarly receive a month-to-month extension Communications, for the Digital while they undergo review. Humanities Advancement Grants Agency: DOL–OSHA. program, submitted to the Office of Title of Collection: Vehicle-Mounted NATIONAL FOUNDATION ON THE Digital Humanities. Elevating and Rotating Work Platforms ARTS AND THE HUMANITIES Standard (Aerial Lifts). 5. Date: September 9, 2021 OMB Control Number: 1218–0230. National Endowment for the Affected Public: Private Sector: Humanities This video meeting will discuss Businesses or other for-profits. applications on the topic of Total Estimated Number of Meeting of Humanities Panel Computation Analysis, for the Digital Humanities Advancement Grants Respondents: 1,000. AGENCY: National Endowment for the Total Estimated Number of program, submitted to the Office of Humanities; National Foundation on the Digital Humanities. Responses: 1,000. Arts and the Humanities. Total Estimated Annual Time Burden: 6. Date: September 16, 2021 17 hours. ACTION: Notice of meeting. Total Estimated Annual Other Costs SUMMARY: The National Endowment for This video meeting will discuss Burden: $0. applications on the topics of Data Authority: 44 U.S.C. 3507(a)(1)(D). the Humanities (NEH) will hold eight meetings, by videoconference, of the Visualization and Spatial Humanities, Crystal Rennie, Humanities Panel, a federal advisory for the Digital Humanities Advancement Senior PRA Analyst. committee, during September 2021. The Grants program, submitted to the Office of Digital Humanities. [FR Doc. 2021–16998 Filed 8–9–21; 8:45 am] purpose of the meetings is for panel BILLING CODE 4510–26–P review, discussion, evaluation, and 7. Date: September 20, 2021 recommendation of applications for financial assistance under the National This video meeting will discuss NATIONAL AERONAUTICS AND Foundation on the Arts and the applications on the topics of Pedagogy SPACE ADMINISTRATION Humanities Act of 1965. and Public Humanities, for the Digital DATES: See SUPPLEMENTARY INFORMATION Humanities Advancement Grants [Notice (21–054)] for meeting dates. The meetings will program, submitted to the Office of Digital Humanities. Performance Review Board, Senior open at 8:30 a.m. and will adjourn by Executive Service (SES) 5:00 p.m. on the dates specified below. 8. Date: September 22, 2021 FOR FURTHER INFORMATION CONTACT: AGENCY: National Aeronautics and Elizabeth Voyatzis, Committee This video meeting will discuss Space Administration (NASA). Management Officer, 400 7th Street SW, applications on the topics of Collections ACTION: Notice of Membership of SES Room 4060, Washington, DC 20506; and Access, for the Digital Humanities Performance Review Board. (202) 606–8322; [email protected]. Advancement Grants program, SUPPLEMENTARY INFORMATION: Pursuant submitted to the Office of Digital SUMMARY: The Civil Service Reform Act Humanities. of 1978, Public Law 95–454 (Section to section 10(a)(2) of the Federal 405) requires that appointments of Advisory Committee Act (5 U.S.C. app.), Because these meetings will include individual members to the Performance notice is hereby given of the following review of personal and/or proprietary Review Board (PRB) be published in the meetings: financial and commercial information given in confidence to the agency by Federal Register. The performance 1. Date: September 1, 2021 review function for the SES in NASA is grant applicants, the meetings will be being performed by the NASA PRB. The This video meeting will discuss closed to the public pursuant to sections following individuals are serving on the applications on the topics of Art and 552b(c)(4) and 552b(c)(6) of Title 5, Board: Literature, for the Digital Projects for the U.S.C., as amended. I have made this Public: Production Grants program, determination pursuant to the authority Performance Review Board submitted to the Division of Public granted me by the Chairman’s Chairperson, Associate Administrator, Programs. Delegation of Authority to Close Advisory Committee Meetings dated NASA Headquarters 2. Date: September 2, 2021 Deputy Associate Administrator, NASA April 15, 2016. This video meeting will discuss Headquarters Dated: August 5, 2021. Chief Human Capital Officer, NASA applications on the topics of U.S. Headquarters History and Civics, for the Digital Elizabeth Voyatzis, Associate Administrator for the Office of Projects for the Public: Production Committee Management Officer. Diversity and Equal Opportunity, Grants program, submitted to the [FR Doc. 2021–17048 Filed 8–9–21; 8:45 am] NASA Headquarters Division of Public Programs. BILLING CODE 7536–01–P
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NATIONAL FOUNDATION ON THE 5. Date: August 3, 2021 14. Date: August 6, 2021 ARTS AND THE HUMANITIES This video meeting will discuss This video meeting will discuss applications on the topics of Ancient to applications on the topics of Music, National Endowment for the Dance, and Theater, for the Fellowships Humanities Renaissance Literature and Studies, for the Fellowships grant program, grant program, submitted to the Division Meeting of Humanities Panel submitted to the Division of Research of Research Programs. Programs. 15. Date: August 6, 2021 AGENCY: National Endowment for the Humanities; National Foundation on the 6. Date: August 3, 2021 This video meeting will discuss Arts and the Humanities. This video meeting will discuss applications on the topics of American Literature and Studies, for the ACTION: Notice of meeting. applications on the topics of U.S. History, Political Science, and Fellowships grant program, submitted to the Division of Research Programs. SUMMARY: The National Endowment for Jurisprudence, for the Fellowships grant the Humanities (NEH) will hold twenty- program, submitted to the Division of 16. Date: August 6, 2021 seven meetings, by videoconference, of Research Programs. This video meeting will discuss the Humanities Panel, a federal advisory 7. Date: August 4, 2021 applications for the Humanities committee, during August 2021. The Initiatives at Colleges and Universities purpose of the meetings is for panel This video meeting will discuss grant program, submitted to the Division review, discussion, evaluation, and applications on the topics of Religious of Education Programs. recommendation of applications for Studies and American Studies, for the financial assistance under the National Fellowships grant program, submitted to 17. Date: August 9, 2021 Foundation on the Arts and the the Division of Research Programs. This video meeting—the first of two Humanities Act of 1965. 8. Date: August 4, 2021 on this date—will discuss applications DATES: See SUPPLEMENTARY INFORMATION for the Humanities Initiatives at for meeting dates. The meetings will This video meeting will discuss Hispanic-Serving Institutions grant open at 8:30 a.m. and will adjourn by applications on the topics of Film, program, submitted to the Division of 5:00 p.m. on the dates specified below. Media, Communication, and Rhetoric, Education Programs. for the Fellowships grant program, FOR FURTHER INFORMATION CONTACT: submitted to the Division of Research 18. Date: August 9, 2021 Elizabeth Voyatzis, Committee Programs. This video meeting—the second of Management Officer, 400 7th Street SW, two on this date—will discuss Room 4060, Washington, DC 20506; 9. Date: August 4, 2021 applications for the Humanities (202) 606–8322; [email protected]. This video meeting will discuss Initiatives at Hispanic-Serving SUPPLEMENTARY INFORMATION: Pursuant applications for the Humanities Institutions grant program, submitted to to section 10(a)(2) of the Federal Initiatives at Colleges and Universities the Division of Education Programs. Advisory Committee Act (5 U.S.C. app.), grant program, submitted to the Division 19. Date: August 10, 2021 notice is hereby given of the following of Education Programs. meetings: This video meeting—the first of two 10. Date: August 5, 2021 on this date—will discuss applications 1. Date: August 2, 2021 This video meeting—the first of two for the Humanities Initiatives at This video meeting will discuss on this date—will discuss applications Hispanic-Serving Institutions grant applications on the topics of Art and for the Humanities Initiatives at program, submitted to the Division of American Studies, for the Fellowships Colleges and Universities grant program, Education Programs. grant program, submitted to the Division submitted to the Division of Education 20. Date: August 10, 2021 of Research Programs. Programs. This video meeting—the second of 2. Date: August 2, 2021 11. Date: August 5, 2021 two on this date—will discuss applications for the Humanities This video meeting will discuss This video meeting—the second of Initiatives at Hispanic-Serving applications on the topics of two on this date—will discuss Institutions grant program, submitted to Comparative Literature, Literacy applications for the Humanities the Division of Education Programs. Theory, Middle Eastern Studies, and Initiatives at Colleges and Universities Migration Studies, for the Fellowships grant program, submitted to the Division 21. Date: August 11, 2021 grant program, submitted to the Division of Education Programs. This video meeting will discuss of Research Programs. 12. Date: August 5, 2021 applications for the Humanities 3. Date: August 2, 2021 Initiatives at Hispanic-Serving This video meeting will discuss Institutions grant program, submitted to This video meeting will discuss applications on the topics of Philosophy the Division of Education Programs. applications for the Humanities and Ethics, for the Fellowships grant Initiatives at Colleges and Universities program, submitted to the Division of 22. Date: August 12, 2021 grant program, submitted to the Division Research Programs. This video meeting will discuss of Education Programs. 13. Date: August 5, 2021 applications for the Humanities 4. Date: August 3, 2021 Initiatives at Community Colleges grant This video meeting will discuss program, submitted to the Division of This video meeting will discuss applications on the topics of U.S. Education Programs. applications for the Humanities History and Environmental and Science Initiatives at Colleges and Universities Studies, for the Fellowships grant 23. Date: August 13, 2021 grant program, submitted to the Division program, submitted to the Division of This video meeting will discuss of Education Programs. Research Programs. applications for the Humanities
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Initiatives at Community Colleges grant Date and Time: December 13, 2021, Purpose of Meeting: The Task Force program, submitted to the Division of 11:00 a.m. to 5:00 p.m. EDT. shall investigate the feasibility and Education Programs. Place: NSF, 2415 Eisenhower Avenue, advisability of establishing and Alexandria, VA 22314; Virtual meeting. sustaining a National Artificial 24. Date: August 16, 2021 To attend the virtual meeting, please Intelligence Research Resource; and This video meeting will discuss send your request for the virtual propose a roadmap detailing how such applications on the topic of Humanities meeting link to the following email: resource should be established and Initiatives at Historically Black Colleges [email protected]. sustained. and Universities grant program, Type of Meeting: Open. Agenda: In this meeting, the Task submitted to the Division of Education Contact Person: Brenda Williams, Force will receive readouts from Programs. National Science Foundation, 2415 working group discussions held on the topics of governance models and 25. Date: August 25, 2021 Eisenhower Avenue, Alexandria, VA 22314; Telephone: 703–292–8900; compute capabilities for a National AI This video meeting will discuss email: [email protected]. Research Resource, and discuss priority applications on the topic of Purpose of Meeting: The Task Force capabilities to incorporate into the Conservation Science, for the Research shall investigate the feasibility and resource, including curated data sets, and Development grant program, advisability of establishing and educational tools, a user-interface submitted to the Division of sustaining a National Artificial portal, and links to testing or testbed Preservation and Access. Intelligence Research Resource; and resources. The Task Force will also 26. Date: August 26, 2021 propose a roadmap detailing how such discuss the challenges and possible resource should be established and solutions to responsibly sharing This video meeting will discuss sustained. government data. applications on the topic of Digital Agenda: In this meeting, the Task Dated: August 5, 2021. Preservation, for the Research and Force will receive readouts from Crystal Robinson, Development grant program, submitted working group discussions held on the to the Division of Preservation and Committee Management Officer. topics of priority capabilities for [FR Doc. 2021–16980 Filed 8–9–21; 8:45 am] Access. inclusion in a National AI Research BILLING CODE 7555–01–P 27. Date: August 30, 2021 Resource, including data resources, user tools and resources, and testing or This video meeting will discuss testbed resources. The Task Force will applications on the topics of Race and NUCLEAR REGULATORY discuss associated requirements for the Gender Studies, for the Digital Projects COMMISSION resource in terms of security and access for the Public: Discovery Grants controls; and privacy, civil rights, and [Docket Nos. 50–268, 50–270 and 50–287; program, submitted to the Division of civil liberties. NRC–2021–0146] Public Programs. Because these meetings will include Dated: August 5, 2021. Notice of Intent To Conduct Scoping review of personal and/or proprietary Crystal Robinson, Process and Prepare Environmental financial and commercial information Committee Management Officer. Impact Statement; Duke Energy given in confidence to the agency by [FR Doc. 2021–16981 Filed 8–9–21; 8:45 am] Carolina, LLC; Duke Energy; Oconee grant applicants, the meetings will be BILLING CODE 7555–01–P Nuclear Station, Units 1, 2, and 3 closed to the public pursuant to sections 552b(c)(4) and 552b(c)(6) of Title 5, AGENCY: Nuclear Regulatory U.S.C., as amended. I have made this NATIONAL SCIENCE FOUNDATION Commission. determination pursuant to the authority ACTION: Intent to conduct scoping granted me by the Chairman’s National Artificial Intelligence process and prepare environmental Delegation of Authority to Close Research Resource Task Force; Notice impact statement; public scoping Advisory Committee Meetings dated of Meeting meeting and request for comment. April 15, 2016. In accordance with the Federal Advisory SUMMARY: The U.S. Nuclear Regulatory Dated: August 5, 2021 Committee Act (Pub., L. 92–463, as Commission (NRC) will conduct a Elizabeth Voyatzis, amended), the National Science Foundation scoping process to gather information Committee Management Officer. (NSF) announces the following meeting: necessary to prepare an environmental [FR Doc. 2021–17047 Filed 8–9–21; 8:45 am] Name and Committee Code: National impact statement (EIS) to evaluate the BILLING CODE 7536–01–P Artificial Intelligence Research Resource environmental impacts for the Task Force (84629) (Virtual). subsequent license renewal (SLR) of the Date and Time: October 25, 2021, operating licenses for Oconee Nuclear 11:00 a.m. to 5:00 p.m. EDT. Station, Units 1, 2, and 3 (ONS). The NATIONAL SCIENCE FOUNDATION Place: NSF, 2415 Eisenhower Avenue, NRC is seeking public comment on this National Artificial Intelligence Alexandria, VA 22314; Virtual meeting. action and has scheduled a public Research Resource Task Force; Notice To attend the virtual meeting, please scoping meeting that will take place as of Meeting send your request for the virtual an online webinar. meeting link to the following email: DATES: The NRC will hold a public In accordance with the Federal Advisory [email protected]. scoping meeting as an online webinar Committee Act (Pub. L. 92–463, as amended), Type of Meeting: Open. on August 25, 2021, from 2:00 p.m. to the National Science Foundation (NSF) Contact Person: Brenda Williams, 4:00 p.m. Eastern Time (ET). Submit announces the following meeting: National Science Foundation, 2415 comments on the scope of the EIS by Name and Committee Code: National Eisenhower Avenue, Alexandria, VA September 9, 2021. Comments received Artificial Intelligence Research Resource 22314; Telephone: 703–292–8900; after this date will be considered if it is Task Force (84629) (Virtual). email: [email protected]. practical to do so, but the NRC is able
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to ensure consideration only for nrc.gov. The ADAMS accession number renewed facility operating license for comments received on or before this for each document referenced in this Unit 1 expires at midnight on February date. document (if it is available in ADAMS) 6, 2033, the current renewed facility is provided the first time that it is operating license for Unit 2 expires at ADDRESSES: You may submit comments by any of the following methods; referenced. midnight on October 6, 2033, and the • Attention: The PDR, where you may however, the NRC encourages electronic current renewed facility operating examine and order copies of public comment submission through the license for Unit 3 expires at midnight on documents, is currently closed. You July 19, 2034. The SLR application was Federal Rulemaking website: may submit your request to the PDR via • Federal Rulemaking website: Go to submitted pursuant to part 54 of title 10 email at [email protected] or call 1– of the Code of Federal Regulations (10 https://regulations.gov and search for 800–397–4209 or 301–415–4737, CFR), ‘‘Requirements for Renewal of Docket ID NRC–2021–0146. Address between 8:00 a.m. and 4:00 p.m. ET, Operating Licenses for Nuclear Power questions about Docket IDs in Monday through Friday, except Federal Plants,’’ and seeks to extend the Regulations.gov to Stacy Schumann; holidays. renewed facility operating license for telephone: 301–415–0624; email: Unit 1 to midnight on February 6, 2053, [email protected]. For technical B. Submitting Comments the renewed facility operating license questions, contact the individual listed The NRC encourages electronic for Unit 2 to midnight on October 6, in the FOR FURTHER INFORMATION comment submission through the 2053, and the renewed facility operating CONTACT section of this document. Federal Rulemaking website (https:// license for Unit 3 to midnight on July • Email: Comments may be submitted www.regulations.gov). Please include 19, 2054. A notice of receipt and to the NRC electronically using the Docket ID NRC–2021–0146 in the availability of the application was email address OconeeEnvironmental@ subject line of your comment published in the Federal Register on nrc.gov. submission in order to ensure that the • June 25, 2021 (86 FR 33784). A notice Mail comments to: Office of NRC is able to make your comment of acceptance for docketing of the Administration, Mail Stop: TWFN–7– submission available to the public in application and of opportunity to A60M, U.S. Nuclear Regulatory this docket. request a hearing was published in the Commission, Washington, DC 20555– The NRC cautions you not to include Federal Register on July 28, 2021 (86 FR 0001, ATTN: Program Management, identifying or contact information that 40662) and is available on the Federal Announcements and Editing Staff. you do not want to be publicly Rulemaking website (https:// For additional direction on obtaining disclosed in your comment submission. www.regulations.gov) by searching for information and submitting comments, The NRC will post all comment Docket ID NRC–2021–0127. see ‘‘Obtaining Information and submissions at https:// Submitting Comments’’ in the www.regulations.gov as well as enter the III. Request for Comment SUPPLEMENTARY INFORMATION section of comment submissions into ADAMS. This notice informs the public of the this document. The NRC does not routinely edit NRC’s intention to conduct FOR FURTHER INFORMATION CONTACT: comment submissions to remove environmental scoping and prepare an Lance Rakovan, Office of Nuclear identifying or contact information. EIS related to the SLR application for Material Safety and Safeguards, U.S. If you are requesting or aggregating ONS, and to provide the public an Nuclear Regulatory Commission, comments from other persons for opportunity to participate in the Washington, DC 20555–0001; telephone: submission to the NRC, then you should environmental scoping process, as 301–415–2589, email: Lance.Rakovan@ inform those persons not to include defined in 10 CFR 51.29, ‘‘Scoping- nrc.gov. identifying or contact information that environmental impact statement and they do not want to be publicly supplement to environmental impact SUPPLEMENTARY INFORMATION: disclosed in their comment submission. statement.’’ I. Obtaining Information and Your request should state that the NRC The regulations in 36 CFR 800.8, Submitting Comments does not routinely edit comment ‘‘Coordination With the National submissions to remove such information Environmental Policy Act,’’ allow A. Obtaining Information before making the comment agencies to use their National Please refer to Docket ID NRC–2021– submissions available to the public or Environmental Policy Act of 1969 (42 0146 when contacting the NRC about entering the comment into ADAMS. U.S.C. 4321, et seq.) (NEPA) process to the availability of information for this fulfill the requirements of Section 106 of action. You may obtain publicly II. Discussion the National Historic Preservation Act of available information related to this By letter dated June 7, 2021 (ADAMS 1966 (54 U.S.C. 300101, et seq.) (NHPA). action by any of the following methods: Package Accession No. ML21158A193), Therefore, pursuant to 36 CFR 800.8(c), • Federal Rulemaking website: Go to Duke Energy Carolina, LLC (Duke the NRC intends to use its process and https://regulations.gov and search for Energy) submitted to the NRC an documentation required for the Docket ID NRC–2021–0146. application for subsequent license preparation of the EIS on the proposed • NRC’s Agencywide Documents renewal of Renewed Facility Operating action to comply with Section 106 of the Access and Management System License Nos. DPR–38, DPR–47, and NHPA in lieu of the procedures set forth (ADAMS): You may obtain publicly DPR–55 for ONS, Units 1, 2, and 3, at 36 CFR 800.3 through 800.6. available documents online in the respectively, for an additional 20 years In accordance with 10 CFR 51.53(c) ADAMS Public Documents collection at of operation. This submission initiated and 10 CFR 54.23, Duke Energy https://www.nrc.gov/reading-rm/ the NRC’s proposed action of submitted an environmental report (ER) adams.html. To begin the search, select determining whether to grant the SLR as part of the SLR application. The ER ‘‘Begin Web-based ADAMS Search.’’ For application. The ONS units are was prepared pursuant to 10 CFR part problems with ADAMS, please contact pressurized water reactors designed by 51, ‘‘Environmental Protection the NRC’s Public Document Room (PDR) Babcock & Wilcox and are located in Regulations for Domestic Licensing and reference staff at 1–800–397–4209, 301– Seneca, South Carolina, approximately Related Regulatory Functions,’’ and is 415–4737, or by email to pdr.resource@ 30 miles west of Greenville. The current publicly available in ADAMS under
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Package Accession No. ML21158A193. environmental analyses and the NRC’s The public scoping meeting will The ER will also be available for tentative planning and decision-making include: (1) An overview by the NRC viewing at https://www.nrc.gov/ schedule; staff of the environmental and safety reactors/operating/licensing/renewal/ g. Identify any cooperating agencies review processes, the proposed scope of subsequent-license-renewal.html. In and, as appropriate, allocate the supplement to the GEIS, and the addition, the SLR application, including assignments for preparation and proposed review schedule; and (2) the the ER, is available for public review at schedules for completing the opportunity for interested government the Seneca Branch of the Oconee supplement to the GEIS to the NRC and agencies, organizations, and individuals County Public Library, 300 E. South 2nd any cooperating agencies; and to submit comments or suggestions on Street, Seneca, SC 29678. h. Describe how the supplement to environmental issues or the proposed The NRC intends to gather the the GEIS will be prepared, including scope of the ONS SLR supplement to information necessary to prepare a any contractor assistance to be used. the GEIS. plant-specific supplement to NUREG– The NRC invites the following entities Participation in the scoping process 1437, ‘‘Generic Environmental Impact to participate in scoping: for the ONS SLR supplement to the Statement for License Renewal of a. The applicant, Duke Energy; GEIS does not entitle participants to Nuclear Plants’’ (ADAMS Package b. Any Federal agency that has become parties to the proceeding to Accession No. ML13107A023) (GEIS), jurisdiction by law or special expertise which the supplement to the GEIS related to the SLR application for with respect to any environmental relates. Matters related to participation Oconee. The NRC is required by 10 CFR impact involved or that is authorized to in any hearing are outside the scope of 51.95 to prepare a plant-specific develop and enforce relevant matters to be discussed at this public supplement to the GEIS in connection environmental standards; meeting. with the renewal of an operating c. Affected State and local Dated: August 5, 2021. license. This notice is being published government agencies, including those in accordance with NEPA and the NRC’s authorized to develop and enforce For the Nuclear Regulatory Commission. regulations at 10 CFR part 51. relevant environmental standards; Robert B. Elliott, The supplement to the GEIS will d. Any affected Indian Tribe; Chief, Environmental Review License Renewal evaluate the environmental impacts of e. Any person who requests or has Branch, Division of Rulemaking, subsequent license renewal for ONS, requested an opportunity to participate Environment, and Financial Support, Office and reasonable alternatives thereto. in the scoping process; and of Nuclear Material Safety and Safeguards. Possible alternatives to the proposed f. Any person who has petitioned or [FR Doc. 2021–17036 Filed 8–9–21; 8:45 am] action include the no action alternative intends to petition for leave to intervene BILLING CODE 7590–01–P and reasonable alternative energy under 10 CFR 2.309. sources. IV. Public Scoping Meeting As part of its environmental review, NUCLEAR REGULATORY the NRC will first conduct a scoping In accordance with 10 CFR 51.26(b), COMMISSION the scoping process for an EIS may process for the plant-specific [NRC–2021–0152] supplement to the GEIS and, as soon as include a public scoping meeting to practicable thereafter, will prepare a help identify significant issues related Monthly Notice; Applications and draft supplement to the GEIS for public to the proposed action and to determine Amendments to Facility Operating comment. Participation in this scoping the scope of issues to be addressed in Licenses and Combined Licenses process by members of the public and the EIS. Involving No Significant Hazards The NRC is announcing that it will local, State, Tribal, and Federal Considerations hold a public scoping meeting as an government agencies is encouraged. The online webinar for the ONS SLR scoping process for the supplement to AGENCY: Nuclear Regulatory supplement to the GEIS. The webinar the GEIS will be used to accomplish the Commission. will include a telephone line for following: ACTION: Monthly notice. a. Define the proposed action that is members of the public to provide to be the subject of the supplement to comments. A court reporter will SUMMARY: Pursuant to the Atomic the GEIS; transcribe all comments received during Energy Act of 1954, as amended (the b. Determine the scope of the the webinar. To be considered, Act), the U.S. Nuclear Regulatory supplement to the GEIS and identify the comments must be provided either at Commission (NRC) is publishing this significant issues to be analyzed in the transcribed public meeting or in regular monthly notice. The Act depth; writing, as discussed in the ADDRESSES requires the Commission to publish c. Identify and eliminate from section of this notice. The public notice of any amendments issued, or detailed study those issues that are scoping webinar will be held on August proposed to be issued, and grants the peripheral or are not significant or that 25, 2021, from 2:00 p.m. to 4:00 p.m. Commission the authority to issue and have been covered by prior ET. Persons interested in attending this make immediately effective any environmental review; online webinar should monitor the amendment to an operating license or d. Identify any environmental NRC’s Public Meeting Schedule website combined license, as applicable, upon a assessments and other ElSs that are at https://www.nrc.gov/pmns/mtg for determination by the Commission that being or will be prepared that are additional information, agenda for the such amendment involves no significant related to, but are not part of, the scope meeting, and access information for the hazards consideration (NSHC), of the supplement to the GEIS under webinar. Please contact Mr. Lance notwithstanding the pendency before consideration; Rakovan no later than August 18, 2021, the Commission of a request for a e. Identify other environmental if accommodations or special equipment hearing from any person. This monthly review and consultation requirements is needed to attend or to provide notice includes all amendments issued, related to the proposed action; comments, so that the NRC staff can or proposed to be issued, from July 14, f. Indicate the relationship between determine whether the request can be 2021, to July 22, 2021. The last monthly the timing of the preparation of the accommodated. notice was published on July 13, 2021.
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DATES: Comments must be filed by available in ADAMS) is provided the a new or different kind of accident from September 9, 2021. A request for a first time that it is mentioned in this any accident previously evaluated; or hearing or petitions for leave to document. (3) involve a significant reduction in a intervene must be filed by October 12, • Attention: The PDR, where you may margin of safety. 2021. examine and order copies of public The Commission is seeking public ADDRESSES: You may submit comments documents, is currently closed. You comments on these proposed by any of the following methods, may submit your request to the PDR via determinations. Any comments received however, the NRC encourages electronic email at [email protected] or call 1– within 30 days after the date of comment submission through the 800–397–4209 or 301–415–4737, publication of this notice will be Federal Rulemaking website: between 8:00 a.m. and 4:00 p.m. (ET), considered in making any final • Federal Rulemaking website: Go to Monday through Friday, except Federal determinations. https://www.regulations.gov and search holidays. Normally, the Commission will not issue the amendments until the for Docket ID NRC–2021–0152. Address B. Submitting Comments questions about Docket IDs in expiration of 60 days after the date of Regulations.gov to Stacy Schumann; The NRC encourages electronic publication of this notice. The telephone: 301–415–0624; email: comment submission through the Commission may issue any of these [email protected]. For technical Federal Rulemaking website (https:// license amendments before expiration of questions, contact the individual listed www.regulations.gov). Please include the 60-day period provided that its final Docket ID NRC–2021–0152, facility in the FOR FURTHER INFORMATION determination is that the amendment name, unit number(s), docket CONTACT section of this document. involves NSHC. In addition, the • Mail comments to: Office of number(s), application date, and Commission may issue any of these Administration, Mail Stop: TWFN–7– subject, in your comment submission. amendments prior to the expiration of A60M, U.S. Nuclear Regulatory The NRC cautions you not to include the 30-day comment period if Commission, Washington, DC 20555– identifying or contact information that circumstances change during the 30-day 0001, ATTN: Program Management, you do not want to be publicly comment period such that failure to act Announcements and Editing Staff. disclosed in your comment submission. in a timely way would result, for For additional direction on obtaining The NRC will post all comment example in derating or shutdown of the information and submitting comments, submissions at https:// facility. If the Commission takes action see ‘‘Obtaining Information and www.regulations.gov as well as enter the on any of these amendments prior to the Submitting Comments’’ in the comment submissions into ADAMS. expiration of either the comment period SUPPLEMENTARY INFORMATION section of The NRC does not routinely edit or the notice period, it will publish in this document. comment submissions to remove the Federal Register a notice of identifying or contact information. issuance. If the Commission makes a FOR FURTHER INFORMATION CONTACT: If you are requesting or aggregating final NSHC determination for any of Karen Zeleznock, Office of Nuclear comments from other persons for Reactor Regulation, U.S. Nuclear these amendments, any hearing will submission to the NRC, then you should take place after issuance. The Regulatory Commission, Washington, inform those persons not to include Commission expects that the need to DC 20555–0001, telephone: 301–415– identifying or contact information that take action on any amendment before 60 1118, email: [email protected]. they do not want to be publicly days have elapsed will occur very SUPPLEMENTARY INFORMATION: disclosed in their comment submission. infrequently. Your request should state that the NRC I. Obtaining Information and A. Opportunity To Request a Hearing Submitting Comments does not routinely edit comment submissions to remove such information and Petition for Leave To Intervene A. Obtaining Information before making the comment Within 60 days after the date of Please refer to Docket ID NRC–2021– submissions available to the public or publication of this notice, any persons 0152, facility name, unit number(s), entering the comment into ADAMS. (petitioner) whose interest may be docket number(s), application date, and affected by any of these actions may file II. Notice of Consideration of Issuance subject when contacting the NRC about a request for a hearing and petition for of Amendments to Facility Operating the availability of information for this leave to intervene (petition) with respect Licenses and Combined Licenses and action. You may obtain publicly to that action. Petitions shall be filed in Proposed No Significant Hazards available information related to this accordance with the Commission’s Consideration Determination action by any of the following methods: ‘‘Agency Rules of Practice and • Federal Rulemaking website: Go to For the facility-specific amendment Procedure’’ in 10 CFR part 2. Interested https://www.regulations.gov and search requests shown in this notice, the persons should consult a current copy for Docket ID NRC–2021–0152. Commission finds that the licensees’ of 10 CFR 2.309. The NRC’s regulations • NRC’s Agencywide Documents analyses provided, consistent with are accessible electronically from the Access and Management System section 50.91 of title 10 of the Code of NRC Library on the NRC’s website at (ADAMS): You may obtain publicly Federal Regulations (10 CFR) ‘‘Notice https://www.nrc.gov/reading-rm/doc- available documents online in the for public comment; State collections/cfr/. If a petition is filed, the ADAMS Public Documents collection at consultation,’’ are sufficient to support Commission or a presiding officer will https://www.nrc.gov/reading-rm/ the proposed determinations that these rule on the petition and, if appropriate, adams.html. To begin the search, select amendment requests involve NSHC. a notice of a hearing will be issued. ‘‘Begin Web-based ADAMS Search.’’ For Under the Commission’s regulations in As required by 10 CFR 2.309(d) the problems with ADAMS, please contact 10 CFR 50.92, operation of the facilities petition should specifically explain the the NRC’s Public Document Room (PDR) in accordance with the proposed reasons why intervention should be reference staff at 1–800–397–4209, 301– amendments would not (1) involve a permitted with particular reference to 415–4737, or by email to pdr.resource@ significant increase in the probability or the following general requirements for nrc.gov. The ADAMS accession number consequences of an accident previously standing: (1) The name, address, and for each document referenced (if it is evaluated; or (2) create the possibility of telephone number of the petitioner; (2)
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the nature of the petitioner’s right to be establish when the hearing is held. If the documents filed by an interested State, made a party to the proceeding; (3) the final determination is that the local governmental body, Federally nature and extent of the petitioner’s amendment request involves NSHC, the recognized Indian Tribe, or designated property, financial, or other interest in Commission may issue the amendment agency thereof that requests to the proceeding; and (4) the possible and make it immediately effective, participate under 10 CFR 2.315(c), must effect of any decision or order which notwithstanding the request for a be filed in accordance with 10 CFR may be entered in the proceeding on the hearing. Any hearing would take place 2.302. The E-Filing process requires petitioner’s interest. after issuance of the amendment. If the participants to submit and serve all In accordance with 10 CFR 2.309(f), final determination is that the adjudicatory documents over the the petition must also set forth the amendment request involves a internet, or in some cases, to mail copies specific contentions that the petitioner significant hazards consideration, then on electronic storage media, unless an seeks to have litigated in the any hearing held would take place exemption permitting an alternative proceeding. Each contention must before the issuance of the amendment filing method, as further discussed, is consist of a specific statement of the unless the Commission finds an granted. Detailed guidance on electronic issue of law or fact to be raised or imminent danger to the health or safety submissions is located in the Guidance controverted. In addition, the petitioner of the public, in which case it will issue for Electronic Submissions to the NRC must provide a brief explanation of the an appropriate order or rule under 10 (ADAMS Accession No. ML13031A056) bases for the contention and a concise CFR part 2. and on the NRC website at https:// statement of the alleged facts or expert A State, local governmental body, www.nrc.gov/site-help/e- opinion that support the contention and Federally recognized Indian Tribe, or submittals.html. on which the petitioner intends to rely agency thereof, may submit a petition to To comply with the procedural in proving the contention at the hearing. the Commission to participate as a party requirements of E-Filing, at least 10 The petitioner must also provide under 10 CFR 2.309(h)(1). The petition days prior to the filing deadline, the references to the specific sources and should state the nature and extent of the participant should contact the Office of documents on which the petitioner petitioner’s interest in the proceeding. the Secretary by email at intends to rely to support its position on The petition should be submitted to the [email protected], or by telephone the issue. The petition must include Commission no later than 60 days from at 301–415–1677, to (1) Request a digital sufficient information to show that a the date of publication of this notice. identification (ID) certificate, which genuine dispute exists with the The petition must be filed in accordance allows the participant (or its counsel or applicant or licensee on a material issue with the filing instructions in the representative) to digitally sign of law or fact. Contentions must be ‘‘Electronic Submissions (E-Filing)’’ submissions and access the E-Filing limited to matters within the scope of section of this document, and should system for any proceeding in which it the proceeding. The contention must be meet the requirements for petitions set is participating; and (2) advise the one that, if proven, would entitle the forth in this section, except that under Secretary that the participant will be petitioner to relief. A petitioner who 10 CFR 2.309(h)(2) a State, local submitting a petition or other fails to satisfy the requirements at 10 governmental body, or Federally adjudicatory document (even in CFR 2.309(f) with respect to at least one recognized Indian Tribe, or agency instances in which the participant, or its contention will not be permitted to thereof does not need to address the counsel or representative, already holds participate as a party. standing requirements in 10 CFR an NRC-issued digital ID certificate). Those permitted to intervene become 2.309(d) if the facility is located within Based upon this information, the parties to the proceeding, subject to any its boundaries. Alternatively, a State, Secretary will establish an electronic limitations in the order granting leave to local governmental body, Federally docket for the proceeding if the intervene. Parties have the opportunity recognized Indian Tribe, or agency Secretary has not already established an to participate fully in the conduct of the thereof may participate as a non-party electronic docket. hearing with respect to resolution of under 10 CFR 2.315(c). Information about applying for a that party’s admitted contentions, If a petition is submitted, any person digital ID certificate is available on the including the opportunity to present who is not a party to the proceeding and NRC’s public website at https:// evidence, consistent with the NRC’s is not affiliated with or represented by www.nrc.gov/site-help/e-submittals/ regulations, policies, and procedures. a party may, at the discretion of the getting-started.html. After a digital ID Petitions must be filed no later than presiding officer, be permitted to make certificate is obtained and a docket 60 days from the date of publication of a limited appearance pursuant to the created, the participant must submit this notice. Petitions and motions for provisions of 10 CFR 2.315(a). A person adjudicatory documents in Portable leave to file new or amended making a limited appearance may make Document Format. Guidance on contentions that are filed after the an oral or written statement of his or her submissions is available on the NRC’s deadline will not be entertained absent position on the issues but may not public website at https://www.nrc.gov/ a determination by the presiding officer otherwise participate in the proceeding. site-help/electronic-sub-ref-mat.html. A that the filing demonstrates good cause A limited appearance may be made at filing is considered complete at the time by satisfying the three factors in 10 CFR any session of the hearing or at any the document is submitted through the 2.309(c)(1)(i) through (iii). The petition prehearing conference, subject to the NRC’s E-Filing system. To be timely, an must be filed in accordance with the limits and conditions as may be electronic filing must be submitted to filing instructions in the ‘‘Electronic imposed by the presiding officer. Details the E-Filing system no later than 11:59 Submissions (E-Filing)’’ section of this regarding the opportunity to make a p.m. Eastern Time on the due date. document. limited appearance will be provided by Upon receipt of a transmission, the E- If a hearing is requested, and the the presiding officer if such sessions are Filing system timestamps the document Commission has not made a final scheduled. and sends the submitter an email determination on the issue of NSHC, the confirming receipt of the document. The Commission will make a final B. Electronic Submissions (E-Filing) E-Filing system also distributes an email determination on the issue of NSHC. All documents filed in NRC that provides access to the document to The final determination will serve to adjudicatory proceedings including the NRC’s Office of the General Counsel
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and any others who have advised the filing stating why there is good cause for requested not to include personal Office of the Secretary that they wish to not filing electronically and requesting privacy information such as social participate in the proceeding, so that the authorization to continue to submit security numbers, home addresses, or filer need not serve the document on documents in paper format. Such filings personal phone numbers in their filings those participants separately. Therefore, must be submitted in accordance with unless an NRC regulation or other law applicants and other participants (or 10 CFR 2.302(b)–(d). Participants filing requires submission of such their counsel or representative) must adjudicatory documents in this manner information. With respect to apply for and receive a digital ID are responsible for serving their copyrighted works, except for limited certificate before adjudicatory documents on all other participants. excerpts that serve the purpose of the documents are filed to obtain access to Participants granted an exemption adjudicatory filings and would the documents via the E-Filing system. under 10 CFR 2.302(g)(2) must still meet constitute a Fair Use application, A person filing electronically using the electronic formatting requirement in participants should not include the NRC’s adjudicatory E-Filing system 10 CFR 2.302(g)(1), unless the copyrighted materials in their may seek assistance by contacting the participant also seeks and is granted an submission. NRC’s Electronic Filing Help Desk exemption from 10 CFR 2.302(g)(1). through the ‘‘Contact Us’’ link located Documents submitted in adjudicatory The table in this notice provides the on the NRC’s public website at https:// proceedings will appear in the NRC’s plant name, docket number, date of www.nrc.gov/site-help/e- electronic hearing docket, which is application, ADAMS accession number, submittals.html, by email to publicly available at https:// and location in the application of the [email protected], or by a toll- adams.nrc.gov/ehd, unless excluded licensees’ proposed NSHC free call at 1–866–672–7640. The NRC pursuant to an order of the presiding determinations. For further details with Electronic Filing Help Desk is available officer. If you do not have an NRC- respect to these license amendment between 9 a.m. and 6 p.m., Eastern issued digital ID certificate as applications, see the applications for Time, Monday through Friday, previously described, click ‘‘cancel’’ amendment, which are available for excluding government holidays. when the link requests certificates and public inspection in ADAMS. For Participants who believe that they you will be automatically directed to the additional direction on accessing have good cause for not submitting NRC’s electronic hearing dockets where information related to this document, documents electronically must file an you will be able to access any publicly see the ‘‘Obtaining Information and exemption request, in accordance with available documents in a particular Submitting Comments’’ section of this 10 CFR 2.302(g), with their initial paper hearing docket. Participants are document.
LICENSE AMENDMENT REQUESTS
Duke Energy Carolinas, LLC; Catawba Nuclear Station, Units 1 and 2; York County, SC; Duke Energy Carolinas, LLC; McGuire Nuclear Station, Units 1 and 2; Mecklenburg County, NC; Duke Energy Carolinas, LLC; Oconee Nuclear Station, Units 1, 2, and 3; Oconee County, SC; Duke Energy Progress, LLC; H. B. Robinson Steam Electric Plant, Unit No. 2; Darlington County, SC
Docket No(s)...... 50–413, 50–414, 50–369, 50–370, 50–269, 50–270, 50–287, 50–261. Application date ...... June 9, 2021, as supplemented by letter dated July 16, 2021. ADAMS Accession No...... ML21160A008, ML21197A046. Location in Application of NSHC ...... Pages 10–12 of the Enclosure. Brief Description of Amendment(s) ...... The proposed change would delete second Completion Times from the affected Required Ac- tions contained in Technical Specifications (TSs), along with removing the example con- tained in TS Section 1.3 and adding a discussion about alternating between Conditions. These changes are consistent with NRC-approved Traveler Technical Specification Task Force (TSTF) Traveler TSTF–439, Revision 2, ‘‘Eliminate Second Completion Times Limiting Time From Discovery of Failure to Meet an LCO [Limiting Condition for Operation].’’ Proposed Determination ...... NSHC. Name of Attorney for Licensee, Mailing Address Michelle Spak, General Counsel, Duke Energy Corporation, 550 South Tryon St.—DEC45A, Charlotte, NC 28202. NRC Project Manager, Telephone Number ...... Andrew Hon, 301–415–8480.
Entergy Operations, Inc.; Arkansas Nuclear One, Unit 1; Pope County, AR
Docket No(s)...... 50–313. Application date ...... May 26, 2021. ADAMS Accession No...... ML21147A234. Location in Application of NSHC ...... Pages 26–28 of Enclosure 1. Brief Description of Amendment(s) ...... The proposed amendment would modify the licensing basis by the addition of a license condi- tion to allow for the implementation of the provisions of 10 CFR 50.69, ‘‘Risk-informed cat- egorization and treatment of structures, systems and components for nuclear power reac- tors,’’ for Arkansas Nuclear One, Unit 1. These provisions would allow adjustment of the scope of equipment subject to special treatment controls (e.g., quality assurance, testing, in- spection, condition monitoring, assessment, and evaluation). For equipment determined to be of low safety significance, alternative treatment requirements could be implemented in accordance with this regulation. Proposed Determination ...... NSHC. Name of Attorney for Licensee, Mailing Address Anna Vinson Jones, Senior Counsel, Entergy Services, Inc.,101 Constitution Avenue NW, Suite 200 East, Washington, DC 20001. NRC Project Manager, Telephone Number ...... Thomas Wengert, 301–415–4037.
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LICENSE AMENDMENT REQUESTS—Continued Entergy Operations, Inc.; Arkansas Nuclear One, Unit 2; Pope County, AR
Docket No(s)...... 50–368. Application date ...... May 26, 2021. ADAMS Accession No...... ML21147A264. Location in Application of NSHC ...... Pages 27–28 of Enclosure 1. Brief Description of Amendment(s) ...... The proposed amendment would modify the licensing basis by the addition of a license condi- tion to allow for the implementation of the provisions of 10 CFR 50.69, ‘‘Risk-informed cat- egorization and treatment of structures, systems and components for nuclear power reac- tors,’’ for Arkansas Nuclear One, Unit 2. These provisions would allow adjustment of the scope of equipment subject to special treatment controls (e.g., quality assurance, testing, in- spection, condition monitoring, assessment, and evaluation). For equipment determined to be of low safety significance, alternative treatment requirements could be implemented in accordance with this regulation. Proposed Determination ...... NSHC. Name of Attorney for Licensee, Mailing Address Anna Vinson Jones, Senior Counsel, Entergy Services, Inc.,101 Constitution Avenue NW, Suite 200 East, Washington, DC 20001. NRC Project Manager, Telephone Number ...... Thomas Wengert, 301–415–4037.
Entergy Operations, Inc.; Arkansas Nuclear One, Units 1 and 2; Pope County, AR; Entergy Operations, Inc.; Waterford Steam Electric Station, Unit 3; St. Charles Parish, LA
Docket No(s)...... 50–313, 50–368, 50–382. Application date ...... July 1, 2021. ADAMS Accession No...... ML21182A158. Location in Application of NSHC ...... Pages 3–5 of Enclosure 1. Brief Description of Amendment(s) ...... The proposed amendments would revise technical specifications (TSs) to adopt Technical Specifications Task Force (TSTF) Traveler TSTF–577, Revision 1, ‘‘Revised Frequencies for Steam Generator Tube Inspections’’ for Arkansas Nuclear One, Units 1 and 2, and Water- ford Steam Electric Station, Unit 3. The TSs related to steam generator (SG) tube inspec- tions and reporting are revised based on operating history. The proposed changes would re- vise the TSs related to SG tube inspection and reporting requirements in the administration controls section of the TSs. TSTF–577 would revise the TSs related to SG tube inspections to extend the inspection interval for thermally treated Alloy 600 and thermally treated Alloy 690 SG tubing. The NRC issued a final safety evaluation approving TSTF–577, Revision 1, on April 14, 2021 (ADAMS Package Accession No. ML21099A086). Proposed Determination ...... NSHC. Name of Attorney for Licensee, Mailing Address Anna Vinson Jones, Senior Counsel, Entergy Services, Inc.,101 Constitution Avenue NW, Suite 200 East, Washington, DC 20001. NRC Project Manager, Telephone Number ...... Siva Lingam, 301–415–1564.
Exelon Generation Company, LLC; Limerick Generating Station, Units 1 and 2; Montgomery County, PA
Docket No(s)...... 50–352, 50–353. Application date ...... March 11, 2021, as supplemented by letter dated May 5, 2021. ADAMS Accession No...... ML21070A412, ML21125A215. Location in Application of NSHC ...... Pages 20–22 of the Enclosure. Brief Description of Amendment(s) ...... The proposed amendments would modify the licensing basis by revising the license condition in Appendix C to allow the use of an alternate defense-in-depth categorization process, an alternate pressure boundary categorization process, and an alternate Seismic Tier 1 cat- egorization process to allow the implementation of risk-informed categorization and treat- ment of structures, systems and components in accordance with 10 CFR 50.69. Proposed Determination ...... NSHC. Name of Attorney for Licensee, Mailing Address Tamra Domeyer, Associate General Counsel, Exelon Generation Company, LLC, 4300 Win- field Road, Warrenville, IL 60555. NRC Project Manager, Telephone Number ...... V. Sreenivas, 301–415–2597.
Exelon Generation Company, LLC; R. E. Ginna Nuclear Power Plant; Wayne County, New York
Docket No(s)...... 50–244. Application date ...... May 20, 2021. ADAMS Accession No...... ML21140A324. Location in Application of NSHC ...... Pages 5–6 of the Enclosure. Brief Description of Amendment(s) ...... The proposed amendment would modify technical specification (TS) requirements to allow the use of Risk-Informed Completion Times in accordance with Technical Specifications Task Force (TSTF) Traveler TSTF–505, Revision 2, ‘‘Provide Risk-Informed Extended Completion Times—RITSTF [Risk-Informed TSTF] Initiative 4b’’ (ADAMS Accession No. ML18183A493). This would change the TS requirements related to Completion Times (CTs) for Required Ac- tions (Action allowed outage times) to provide the option to calculate a longer, risk-informed CT. Proposed Determination ...... NSHC. Name of Attorney for Licensee, Mailing Address Tamra Domeyer, Associate General Counsel, Exelon Generation Company, LLC, 4300 Win- field Road, Warrenville, IL 60555. NRC Project Manager, Telephone Number ...... V. Sreenivas, 301–415–2597.
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LICENSE AMENDMENT REQUESTS—Continued Exelon Generation Company, LLC; R. E. Ginna Nuclear Power Plant; Wayne County, New York
Docket No(s)...... 50–244. Application date ...... May 20, 2021. ADAMS Accession No...... ML21141A009. Location in Application of NSHC ...... Pages 29–31 of the Enclosure. Brief Description of Amendment(s) ...... The proposed amendment would modify the licensing basis, by the addition of a license condi- tion, to allow for the implementation of the provisions of 10 CFR 50.69, ‘‘Risk-informed cat- egorization and treatment of structures, systems and components for nuclear power reac- tors.’’ The provisions of 10 CFR 50.69 allow adjustment of the scope of equipment subject to special treatment controls (e.g., quality assurance, testing, inspection, condition moni- toring, assessment, and evaluation). Proposed Determination ...... NSHC. Name of Attorney for Licensee, Mailing Address Tamra Domeyer, Associate General Counsel, Exelon Generation Company, LLC, 4300 Win- field Road, Warrenville, IL 60555. NRC Project Manager, Telephone Number ...... V. Sreenivas, 301–415–2597.
PSEG Nuclear LLC; Salem Nuclear Generating Station, Units 1 and 2; Salem County, NJ
Docket No(s)...... 50–272, 50–311. Application date ...... June 17, 2021. ADAMS Accession No...... ML21173A090. Location in Application of NSHC ...... Pages 5–7 of the Enclosure. Brief Description of Amendment(s) ...... The proposed changes would revise the Salem Unit No. 2 Technical Specification (TS) Table 4.3–2 Functional Unit 8.f, ‘‘Auxiliary Feedwater—Trip of Main Feedwater Pumps,’’ Channel Functional Test surveillance frequency and the Mode in which Salem Unit No.1 TS Table 4.3–2 Functional Unit 8.f, ‘‘Auxiliary Feedwater—Trip of Main Feedwater Pumps’’ is required; and remove Salem Unit No. 2 Surveillance Requirement 4.7.1.3.4 to verify the service water spool piece is onsite. Proposed Determination ...... NSHC. Name of Attorney for Licensee, Mailing Address Jodi Varon, PSEG Services Corporation, 80 Park Plaza, T–5, Newark, NJ 07102. NRC Project Manager, Telephone Number ...... James Kim, 301–415–4125.
Southern Nuclear Operating Company, Inc.; Joseph M Farley Nuclear Plant, Units 1 and 2; Houston County, AL; Southern Nuclear Operating Company, Inc.; Vogtle Electric Generating Plant, Units 1 and 2; Burke County, GA
Docket No(s)...... 50–348, 50–364, 50–424, 50–425. Application date ...... June 9, 2021. ADAMS Accession No...... ML21160A257. Location in Application of NSHC ...... Pages E–12 through E–13 of the Enclosure. Brief Description of Amendment(s) ...... The proposed amendments would revise Technical Specification (TS) 3.1.7, ‘‘Rod Position In- dication’’; TS 3.2.1, ‘‘Heat Flux Hot Channel Factor (FQ(Z))’’; and TS 3.3.1, ‘‘Reactor Trip System (RTS) Instrumentation,’’ to allow the use of an alternate means of determining power distribution information. The proposed TS changes would allow the use of a dedi- cated on-line core power distribution monitoring system (PDMS) to perform surveillance of core thermal limits. The PDMS to be used at Joseph M. Farley Nuclear Plant, Units 1 and 2; and Vogtle Electric Generating Plant, Units 1 and 2, is the Westinghouse proprietary core analysis system called Best Estimate Analyzer for Core Operations—Nuclear. Proposed Determination ...... NSHC. Name of Attorney for Licensee, Mailing Address Millicent Ronnlund, Vice President and General Counsel, Southern Nuclear Operating Co., Inc., P.O. Box 1295, Birmingham, AL 35201–1295. NRC Project Manager, Telephone Number ...... John Lamb, 301–415–3100.
Tennessee Valley Authority; Watts Bar Nuclear Plant, Units 1 and 2; Rhea County, TN
Docket No(s)...... 50–390, 50–391. Application date ...... June 1, 2021. ADAMS Accession No...... ML21153A071. Location in Application of NSHC ...... Pages E7–E9 of the Enclosure. Brief Description of Amendment(s) ...... The proposed amendments would revise Watts Bar Nuclear Plant, Units 1 and 2, Technical Specification (TS) 3.3.6, ‘‘Containment Ventilation Isolation Instrumentation,’’ and TS 3.3.7, ‘‘Control Room Emergency Ventilation System (CREVS) Actuation Instrumentation,’’ to de- lete a redundant unit of measure associated with containment purge exhaust and control room air intake radiation monitors. Proposed Determination ...... NSHC. Name of Attorney for Licensee, Mailing Address David Fountain, Executive VP and General Counsel, Tennessee Valley Authority, 400 West Summit Hill Drive, WT 6A, Knoxville, TN 37902. NRC Project Manager, Telephone Number ...... Kimberly Green, 301–415–1627.
Wolf Creek Nuclear Operating Corporation; Wolf Creek Generating Station, Unit 1; Coffey County, KS
Docket No(s)...... 50–482. Application date ...... May 25, 2021. ADAMS Accession No...... ML21145A238. Location in Application of NSHC ...... Pages 12–13 of Attachment 1.
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LICENSE AMENDMENT REQUESTS—Continued Brief Description of Amendment(s) ...... The proposed amendment would revise the Emergency Plan related to on-shift staffing for Wolf Creek Generating Station, Unit 1. Proposed Determination ...... NSHC. Name of Attorney for Licensee, Mailing Address Thomas C. Poindexter, Morgan, Lewis and Bockius LLP, 1111 Pennsylvania Avenue NW, Washington, DC 20004–2541. NRC Project Manager, Telephone Number ...... Samson Lee, 301–415–3168.
III. Notice of Issuance of Amendments applicable, proposed NSHC special circumstances provision in 10 to Facility Operating Licenses and determination, and opportunity for a CFR 51.22(b) and has made a Combined Licenses hearing in connection with these determination based on that assessment, actions, was published in the Federal it is so indicated in the safety evaluation During the period since publication of Register as indicated in the safety for the amendment. the last monthly notice, the Commission evaluation for each amendment. For further details with respect to has issued the following amendments. Unless otherwise indicated, the each action, see the amendment and The Commission has determined for Commission has determined that these associated documents such as the each of these amendments that the amendments satisfy the criteria for Commission’s letter and safety application complies with the standards categorical exclusion in accordance evaluation, which may be obtained and requirements of the Atomic Energy with 10 CFR 51.22 ‘‘Criterion for using the ADAMS accession numbers Act of 1954, as amended (the Act), and categorical exclusion; identification of indicated in the following table. The the Commission’s rules and regulations. licensing and regulatory actions eligible safety evaluation will provide the The Commission has made appropriate for categorical exclusion or otherwise ADAMS accession numbers for the findings as required by the Act and the not requiring environmental review.’’ application for amendment and the Commission’s rules and regulations in Therefore, pursuant to 10 CFR 51.22(b), Federal Register citation for any 10 CFR chapter I, which are set forth in no environmental impact statement or environmental assessment. All of these the license amendment. environmental assessment need be items can be accessed as described in A notice of consideration of issuance prepared for these amendments. If the the ‘‘Obtaining Information and of amendment to facility operating Commission has prepared an Submitting Comments’’ section of this license or combined license, as environmental assessment under the document.
LICENSE AMENDMENT ISSUANCES
Dominion Energy South Carolina, Inc.; Virgil C. Summer Nuclear Station, Unit 1, Fairfield County, SC
Docket No(s) ...... 50–395. Amendment Date ...... June 30, 2021. ADAMS Accession No ...... ML21112A108. Amendment No(s) ...... 219. Brief Description of Amendment(s) ...... The amendment revised Technical Specification 6.9.1.11, ‘‘Core Operating Limits Report [COLR],’’ to add the Westinghouse Topical Report WCAP 16996 P A, Revision 1, ‘‘Realistic LOCA [Loss-of-Coolant Accident] Evaluation Methodology Applied to the Full Spectrum of Break Sizes (FULL SPECTRUM LOCA Methodology),’’ to the list of NRC approved analyt- ical methodologies approved for reference in the COLR. Public Comments Received as to Proposed No. NSHC (Yes/No).
Energy Harbor Nuclear Corp. and Energy Harbor Nuclear Generation LLC; Perry Nuclear Power Plant, Unit No. 1; Lake County, OH
Docket No(s) ...... 50–440. Amendment Date ...... July 12, 2021. ADAMS Accession No ...... ML21158A212. Amendment No(s) ...... 194. Brief Description of Amendment(s) ...... The amendment revised Technical Specification 3.8.3, ‘‘Diesel Fuel Oil, Lube Oil, and Starting Air,’’ by removing Surveillance Requirement 3.8.3.6 and placing it under licensee control. The changes are consistent with Technical Specifications Task Force (TSTF) Traveler TSTF 002, Revision 1, ‘‘Relocate the 10 Year Sediment Cleaning of the Fuel Oil Storage Tank to Licensee Control.’’ Public Comments Received as to Proposed No. NSHC (Yes/No).
Entergy Louisiana, LLC, and Entergy Operations, Inc.; River Bend Station, Unit 1; West Feliciana Parish, LA
Docket No(s) ...... 50–458. Amendment Date ...... July 2, 2021. ADAMS Accession No ...... ML21162A211. Amendment No(s) ...... 208. Brief Description of Amendment(s) ...... The amendment revised License Condition 2.C.(10), ‘‘Fire Protection (Section 9.5.1, SER [Safety Evaluation Report] and SSER [Supplement to Original SER] 3),’’ by replacing the current wording with standard wording from Generic Letter 86–10, ‘‘Implementation of Fire Protection Requirements,’’ and deleted Attachment 4, ‘‘Fire Protection Program Require- ments,’’ from the River Bend Station, Unit 1 Renewed Facility Operating License.
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LICENSE AMENDMENT ISSUANCES—Continued Public Comments Received as to Proposed No. NSHC (Yes/No).
Exelon Generation Company, LLC; Braidwood Station, Units 1 and 2, Will County, IL
Docket No(s) ...... 50–456, 50–457. Amendment Date ...... July 13, 2021. ADAMS Accession No ...... ML21154A046. Amendment No(s) ...... 222 (Unit 1) and 222 (Unit 2). Brief Description of Amendment(s) ...... The amendments revised Technical Specification Surveillance Requirement 3.7.9.2 to allow an ultimate heat sink temperature of less than or equal to 102.8 degrees Fahrenheit through September 30, 2021. Public Comments Received as to Proposed No. NSHC (Yes/No).
Exelon Generation Company, LLC; Clinton Power Station, Unit No. 1; DeWitt County, IL
Docket No(s) ...... 50–461. Amendment Date ...... June 28, 2021. ADAMS Accession No ...... ML21132A288. Amendment No(s) ...... 238. Brief Description of Amendment(s) ...... The amendment modified the technical specifications to permit the use of risk-informed com- pletion times in accordance with Technical Specifications Task Force (TSTF) Traveler TSTF–505, Revision 2, ‘‘Provide Risk Informed Extended Completion Times—RITSTF [Risk- Informed TSTF] Initiative 4b.’’ Public Comments Received as to Proposed No. NSHC (Yes/No).
Exelon Generation Company, LLC; LaSalle County Station, Units 1 and 2; LaSalle County, IL
Docket No(s) ...... 50–373, 50–374. Amendment Date ...... July 13, 2021. ADAMS Accession No ...... ML21158A228. Amendment No(s) ...... 250 (Unit 1) and 236 (Unit 2). Brief Description of Amendment(s) ...... The amendments modified technical specification (TS) requirements in TS 3.7.3, ‘‘Ultimate Heat Sink (UHS),’’ as follows: (1) TS 3.7.3, Condition A, was modified to remove reference to the UHS bottom elevation limit; (2) TS 3.7.3, Condition B, was deleted; (3) TS Figure 3.7.3–1 diurnal curve was modified; (4) Surveillance Requirement (SR) 3.7.3.1 was modified to correct a discrepancy in the TS and allow proper application of TS 3.7.3; (5) Sedimenta- tion Level in SR 3.7.3.2 was modified from 18 inches to 6 inches; and (6) SR 3.7.3.3 was deleted. Public Comments Received as to Proposed No. NSHC (Yes/No).
Holtec Decommissioning International, LLC; Oyster Creek Nuclear Generating Station; Forked River, NJ
Docket No(s) ...... 50–219. Amendment Date ...... June 25, 2021. ADAMS Accession No ...... ML21119A056 (Package). Amendment No(s) ...... 299. Brief Description of Amendment(s) ...... NRC issued Amendment No. 299 to Renewed Facility Operating License No. DPR–16 for the Oyster Creek Nuclear Generating Station (Oyster Creek). The amendment consisted of revi- sions to the Renewed Facility Operating License and the Permanently Defueled Technical Specifications. These changes reflected the removal of all spent nuclear fuel from the spent fuel pool and its transfer to dry cask storage within an on-site Independent Spent Fuel Stor- age Installation (ISFSI). These changes will more fully reflect the permanently shutdown sta- tus of the decommissioning facility, as well as the reduced scope of structures, systems, and components necessary to ensure plant safety now that all spent fuel has been perma- nently moved to the Oyster Creek ISFSI, an activity which was completed as of May 21, 2021 (ADAMS Accession No. ML21160A065). Public Comments Received as to Proposed No. NSHC (Yes/No).
Holtec Decommissioning International, LLC; Oyster Creek Nuclear Generating Station; Forked River, NJ
Docket No(s) ...... 50–219. Amendment Date ...... June 25, 2021. ADAMS Accession No ...... ML21159A242 (Package). Amendment No(s) ...... 300.
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LICENSE AMENDMENT ISSUANCES—Continued Brief Description of Amendment(s) ...... The NRC issued the Amendment No. 300 to Renewed Facility Operating License No. DPR–16 for the Oyster Creek Nuclear Generating Station (Oyster Creek). The amendment replaced the Oyster Creek Permanently Defueled Emergency Plan and associated Permanently Defueled Emergency Action Level (EAL) Technical Bases Document with an Independent Spent Fuel Storage Installation Only Emergency Plan and associated EAL scheme. These changes will more fully reflect the permanently shutdown status of the decommissioning fa- cility, as well as the complete removal of all fuel from the spent fuel pool and permits spe- cific reductions in the size and makeup of the Emergency Response Organization due to the elimination of the design basis accident related to the spent fuel (fuel handling accident). Public Comments Received as to Proposed No. NSHC (Yes/No).
Holtec Decommissioning International, LLC; Oyster Creek Nuclear Generating Station; Forked River, NJ
Docket No(s) ...... 50–219. Amendment Date ...... June 25, 2021. ADAMS Accession No ...... ML21176A155. Amendment No(s) ...... 301. Brief Description of Amendment(s) ...... The amendment to Renewed Facility Operating License No. DPR–16 for the Oyster Creek Nu- clear Generating Station (Oyster Creek) reflected the requirements associated with the se- curity changes set forth in the revised Oyster Creek Security Plan, Training and Qualification Plan, and Safeguards Contingency Plan (the Plan) for the independent spent fuel storage in- stallation (ISFSI) only configuration, consistent with the permanent removal of all spent fuel from the spent fuel pool which occurred on May 21, 2021. Implementation of the changes also required the installation or modification of those security structures, systems, and com- ponents necessary to support the ISFSI-only plan. Additionally, the implementation of the proposed changes required appropriate security measures to be in place during the transi- tion from the current Plan to the ISFSI-only plan. Public Comments Received as to Proposed No. NSHC (Yes/No).
NextEra Energy Point Beach, LLC; Point Beach Nuclear Plant, Units 1 and 2; Manitowoc County, WI
Docket No(s) ...... 50–266, 50–301. Amendment Date ...... July 21, 2021. ADAMS Accession No ...... ML21148A255. Amendment No(s) ...... 269 (Unit 1) and 271 (Unit 2). Brief Description of Amendment(s) ...... The amendments modified the technical specifications to implement new surveillance methods for nuclear transient heat flux hot channel factor. The new surveillance methods are applica- ble to plants using either relaxed axial offset control (RAOC) or constant axial offset control (CAOC) surveillance formulations, as described in the NRC-approved topical report WCAP– 17661–P–A, ‘‘Improved RAOC and CAOC FQ Surveillance Technical Specifications.’’ Public Comments Received as to Proposed No. NSHC (Yes/No).
Northern States Power Company; Monticello Nuclear Generating Plant; Wright County, MN
Docket No(s) ...... 50–263. Amendment Date ...... July 12, 2021. ADAMS Accession No ...... ML21148A274. Amendment No(s) ...... 206. Brief Description of Amendment(s) ...... The amendment revised technical specification requirements to permit the use of risk-informed completion times for actions to be taken when limiting conditions for operation are not met. The changes are based on Technical Specifications Task Force (TSTF) Traveler TSTF–505, Revision 2, ‘‘Provide Risk-Informed Extended Completion Times—RITSTF [Risk-Informed TSTF] Initiative 4b.’’ Public Comments Received as to Proposed No. NSHC (Yes/No).
PSEG Nuclear LLC; Salem Nuclear Generating Station, Unit Nos. 1 and 2; Salem County, NJ
Docket No(s) ...... 50–272, 50–311. Amendment Date ...... July 19, 2021. ADAMS Accession No ...... ML21110A052. Amendment No(s) ...... 337 (Unit No. 1) and 318 (Unit No. 2). Brief Description of Amendment(s) ...... The amendments replaced the current technical specification (TS) limit on the reactor coolant system (RCS) gross specific activity with a new limit on RCS noble gas specific activity. The noble gas specific activity is based on a new dose equivalent xenon-133 definition that re- placed the current E-Bar average disintegration energy definition. The proposed changes are consistent with NRC-approved Technical Specifications Task Force (TSTF) Traveler, TSTF–490, Revision 0, ‘‘Deletion of E Bar Definition and Revision to RCS Specific Activity Tech Spec.’’
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LICENSE AMENDMENT ISSUANCES—Continued Public Comments Received as to Proposed No. NSHC (Yes/No).
Southern Nuclear Operating Company, Inc.; Joseph M Farley Nuclear Plant, Units 1 and 2; Houston County, AL
Docket No(s) ...... 50–348, 50–364. Amendment Date ...... June 30, 2021. ADAMS Accession No ...... ML21137A247. Amendment No(s) ...... 233 (Unit 1) and 230 (Unit 2). Brief Description of Amendment(s) ...... The amendments modified the Joseph M. Farley Nuclear Plant, Units 1 and 2, licensing basis, by the addition of a license condition, to allow for the implementation of the provisions of 10 CFR 50.69, ‘‘Risk-informed categorization and treatment of structures, systems and compo- nents for nuclear power reactors.’’ Public Comments Received as to Proposed No. NSHC (Yes/No).
Tennessee Valley Authority; Watts Bar Nuclear Plant, Unit 2; Rhea County, TN
Docket No(s) ...... 50–391. Amendment Date ...... June 24, 2021. ADAMS Accession No ...... ML21161A239. Amendment No(s) ...... 54. Brief Description of Amendment(s) ...... The amendment revised the Watts Bar Nuclear Plant Updated Final Safety Analysis Report, for Unit 2 only, to apply a temperature adjustment to the voltage growth rate calculation used to determine the end-of-cycle distribution of indications in axial outer diameter stress corrosion cracking at tube support plates in support of the Unit 2 operational assessment for its steam generators. Public Comments Received as to Proposed No. NSHC (Yes/No).
Wolf Creek Nuclear Operating Corporation; Wolf Creek Generating Station, Unit 1; Coffey County, KS
Docket No(s) ...... 50–482. Amendment Date ...... July 20, 2021. ADAMS Accession No ...... ML21095A192. Amendment No(s) ...... 229. Brief Description of Amendment(s) ...... The amendment consisted of changes to the Renewed Facility Operating License No. NPF–42 to reflect a corporate name change for the owner licensee names for Kansas Gas and Elec- tric Company to Evergy Kansas South, Inc., and Kansas City Power & Light Company to Evergy Metro, Inc. Public Comments Received as to Proposed No. NSHC (Yes/No).
IV. Notice of Issuance of Amendment to issuance, its usual notice of either resumption of operation or of Facility Operating Licenses and consideration of issuance of increase in power output up to the Combined Licenses and Final amendment, proposed NSHC plant’s licensed power level, the Determination of No Significant determination, and opportunity for a Commission may not have had an Hazards Consideration and hearing. opportunity to provide for public Opportunity for a Hearing (Exigent For exigent circumstances, the comment on its NSHC determination. In Circumstances or Emergency Situation) Commission has either issued a Federal such case, the license amendment has Register notice providing opportunity been issued without opportunity for Since publication of the last monthly for public comment or has used local comment prior to issuance. If there has notice, the Commission has issued the media to provide notice to the public in been some time for public comment but following amendment. The Commission the area surrounding a licensee’s facility less than 30 days, the Commission may has determined for this amendment that of the licensee’s application and of the provide an opportunity for public the application for the amendment Commission’s proposed determination comment. If comments have been complies with the standards and of NSHC. The Commission has provided requested, it is so stated. In either event, requirements of the Atomic Energy Act a reasonable opportunity for the public the State has been consulted by of 1954, as amended (the Act), and the to comment, using its best efforts to telephone whenever possible. Commission’s rules and regulations. make available to the public means of Under its regulations, the Commission The Commission has made appropriate communication for the public to may issue and make an amendment findings as required by the Act and the respond quickly, and in the case of immediately effective, notwithstanding Commission’s rules and regulations in telephone comments, the comments the pendency before it of a request for 10 CFR chapter I, which are set forth in have been recorded or transcribed as a hearing from any person, in advance the license amendment. appropriate and the licensee has been of the holding and completion of any Because of exigent circumstances or informed of the public comments. required hearing, where it has emergency situation associated with the In circumstances where failure to act determined that NSHC is involved. date the amendment was needed, there in a timely way would have resulted, for The Commission has applied the was not time for the Commission to example, in derating or shutdown of a standards of 10 CFR 50.92 and has made publish, for public comment before nuclear power plant or in prevention of a final determination that the
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amendments involve NSHC. The basis CFR part 2 as discussed in section II.A For further details with respect to for this determination is contained in of this document. these actions, see the amendment and the documents related to each action. Unless otherwise indicated, the associated documents such as the Accordingly, the amendment has been Commission has determined that the Commission’s letter and safety issued and made effective as indicated. amendment satisfies the criteria for evaluation, which may be obtained For those amendments that have not categorical exclusion in accordance using the ADAMS accession numbers been previously noticed in the Federal with 10 CFR 51.22. Therefore, pursuant indicated in the following table. The Register, within 60 days after the date to 10 CFR 51.22(b), no environmental safety evaluation will provide the of publication of this notice, any impact statement or environmental ADAMS accession number(s) for the persons (petitioner) whose interest may assessment need be prepared for this application for amendment and the be affected by this action may file a amendment. If the Commission has Federal Register citation for any request for a hearing and petition for prepared an environmental assessment environmental assessment. All of these leave to intervene (petition) with respect under the special circumstances to the action. Petitions shall be filed in provision in 10 CFR 51.12(b) and has items can be accessed as described in accordance with the guidance made a determination based on that the ‘‘Obtaining Information and concerning the Commission’s ‘‘Agency assessment, it is so indicated in the Submitting Comments’’ section of this Rules of Practice and Procedure’’ in 10 safety evaluation for the amendment. document.
LICENSE AMENDMENT ISSUANCE—EXIGENT/EMERGENCY CIRCUMSTANCES
Pacific Gas and Electric Company; Diablo Canyon Power Plant, Unit 1; San Luis Obispo County, CA
Docket No(s) ...... 50–275. Amendment Date ...... July 8, 2021. ADAMS Accession No ...... ML21188A345. Amendment No(s) ...... 238. Brief Description of Amendment(s) ...... The amendment provided a new Technical Specification 3.7.8 Condition A note, to allow a one-time Completion Time of 144 hours to replace the Auxiliary Saltwater System Pump 1–1 motor during Cycle 23. Local Media Notice (Yes/No) ...... No. Public Comments Requested as to Proposed No. NSHC (Yes/No).
Dated: August 4, 2021. originally scheduled to close on August in the FOR FURTHER INFORMATION For the Nuclear Regulatory Commission. 23, 2021. The NRC has decided to CONTACT section of this document. Michael I. Dudek, extend the public comment period to For additional direction on obtaining Deputy Director, Division of Operating allow more time for members of the information and submitting comments, Reactor Licensing, Office of Nuclear Reactor public to develop and submit their see ‘‘Obtaining Information and Regulation. comments. Submitting Comments’’ in the [FR Doc. 2021–16925 Filed 8–9–21; 8:45 am] SUPPLEMENTARY INFORMATION section of DATES: The due date for comments this document. BILLING CODE 7590–01–P requested in the notice published on FOR FURTHER INFORMATION CONTACT: July 9, 2021 (86 FR 36307) is extended. Allen Fetter, Office of the Executive Submit comments by September 22, NUCLEAR REGULATORY Director for Operations, U.S. Nuclear 2021. Comments received after this date COMMISSION Regulatory Commission, Washington, will be considered if it is practical to do DC 20555–0001, telephone: 301–415– [NRC–2021–0137] so, but the NRC is able to ensure 8556, email: [email protected]. consideration only for comments Systematic Assessment for How the received on or before this date. SUPPLEMENTARY INFORMATION: NRC Addresses Environmental Justice in Its Programs, Policies, and Activities ADDRESSES: You may submit comments I. Obtaining Information and by any of the following methods: Submitting Comments AGENCY: Nuclear Regulatory • Telephone: 301–415–3875 or 800– A. Obtaining Information Commission. 882–4672. ACTION: Extension of comment period. • Please refer to Docket ID NRC–2021– Email: [email protected]. 0137 when contacting the NRC about • SUMMARY: On July 9, 2021, the U.S. Mail comments to: Office of the availability of information for this Nuclear Regulatory Commission (NRC) Administration, Mail Stop: TWFN–7– action. You may obtain publicly requested comments as part of its A60M, U.S. Nuclear Regulatory available information related to this systematic review for how NRC Commission, Washington, DC 20555– action by any of the following methods: programs, policies, and activities 0001, ATTN: Program Management, • Federal Rulemaking website: Go to address environmental justice. Announcements and Editing Staff. https://www.regulations.gov and search Specifically, the NRC requested input • Federal Rulemaking website: Go to for Docket ID NRC–2021–0137. on how the agency is addressing https://www.regulations.gov and search • NRC’s Agencywide Documents environmental justice, considering the for Docket ID NRC–2021–0137. Address Access and Management System agency’s mission and statutory questions about Docket IDs in (ADAMS): You may obtain publicly authority. The information will be used Regulations.gov to Stacy Schumann; available documents online in the to inform the agency’s assessment of telephone: 301–415–0624; email: ADAMS Public Documents collection at how it addresses environmental justice. [email protected]. For technical https://www.nrc.gov/reading-rm/ The public comment period was questions, contact the individual listed adams.html. To begin the search, select
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‘‘Begin Web-based ADAMS Search.’’ For the common defense and security and to impacts on minority and low-income problems with ADAMS, please contact protect the environment. As part of its populations that may be different from the NRC’s Public Document Room (PDR) licensing and regulatory activities, the the impacts on the general population. reference staff at 1–800–397–4209, 301– NRC conducts safety, security, and It is not a broad-ranging or even limited 415–4737, or by email to pdr.resource@ environmental reviews. review of racial or economic nrc.gov. The Staff Requirements Specifically, with respect to discrimination.’’ Id. at 52,047. Memorandum (SRM)–M210218B, environmental reviews, the National The Policy Statement also reiterates ‘‘Briefing on Equal Employment Environmental Policy Act (NEPA) of guidance on defining the geographic Opportunity, Affirmative Employment, 1969, 42 U.S.C. 4321 et seq., requires all area for environmental justice and Small Business, 10:00 a.m., Federal agencies to evaluate the impacts assessments and identifying low-income Thursday, February 18, 2021, Video of proposed major actions on the human and minority communities. Id. In Conference Meeting,’’ dated April 23, environment. As part of its addition, it explains that a scoping 2021, which provides direction to the responsibilities under NEPA, the NRC process is used to ‘‘assist the NRC in staff or this assessment, is available in considers environmental justice. ensuring that minority and low-income ADAMS under Accession No. According to the Commission, ‘‘[t]he communities, including transient ML21113A070. term ‘environmental justice’ refers to the populations, affected by the proposed • Attention: The PDR, where you may federal policy established in 1994 by action are not overlooked in assessing examine and order copies of public Executive Order 12898, which directed the potential for significant impacts documents, is currently closed. You federal agencies to identify and address unique to those communities.’’ Id. at may submit your request to the PDR via ‘disproportionately high and adverse 52,048. In performing a NEPA analysis, email at [email protected] or call 1– human health or environmental effects ‘‘published demographic data, 800–397–4209 or 301–415–4737, of its programs, policies, and activities community interviews and public input between 8:00 a.m. and 4:00 p.m. (ET), on minority and low-income through well-noticed public scoping Monday through Friday, except Federal populations.’’’ Entergy Nuclear meetings should be used in identifying holidays. Operations, Inc. (Indian Point Nuclear minority and low-income communities Generating Units 2 and 3), CLI–15–6, 81 that may be subject to adverse B. Submitting Comments NRC 340, 369 (2015). environmental impacts.’’ Id. The NRC encourages comment The NRC, as an independent agency, On April 23, 2021, in a Staff submission via email and phone. Please was requested, rather than directed, to Requirements Memorandum (ADAMS reference Docket ID NRC–2021–0137 in comply with Executive Order 12898, Accession No. ML21113A070), the your comment submission. and this Executive Orderdid not, in Commission directed the staff to The NRC cautions you not to include itself, create new substantive authority ‘‘systematically review how the agency’s identifying or contact information that for Federal agencies. In a March 31, programs, polices, and activities address you do not want to be publicly 1994, letter to President Clinton, NRC environmental justice.’’ As part of this disclosed in your comment submission. Chairman Ivan Selin indicated that the review, the Commission directed the The NRC will post comment NRC would endeavor to carry out the staff to evaluate recent Executive Orders submissions received via measures set forth in Executive Order and assess whether environmental regulations.gov at https:// 12898 and the accompanying justice is appropriately considered and www.regulations.gov as well as enter the memorandum as part of the NRC’s addressed in the agency’s programs, comment submissions into ADAMS. efforts to comply with NEPA (ADAMS policies, and activities, given the The NRC does not routinely edit Accession No. ML033210526). As noted agency’s mission. As directed, the staff comment submissions to remove in the NRC’s 1995 Environmental will consider the practices of other identifying or contact information. Justice Strategy (ADAMS Accession No. Federal, State, and Tribal agencies and If you are requesting or aggregating ML20081K602 (March 24, 1995)), evaluate whether the NRC should comments from other persons for because ‘‘the NRC is not a ‘land incorporate environmental justice submission to the NRC, then you should management’ agency, i.e., it neither beyond implementation through NEPA. inform those persons not to include sites, owns, or manages facilities or The staff will also review the adequacy identifying or contact information that properties,’’ the NRC determined that of the 2004 Policy Statement. The they do not want to be publicly Executive Order 12898 would Commission further directed the staff to disclosed in their comment submission. ‘‘primarily apply to [NRC] efforts to consider whether establishing formal Your request should state that the NRC fulfill’’ NEPA requirements as part of mechanisms to gather external does not routinely edit comment NRC’s licensing process. stakeholder input would benefit any submissions to remove such information On August 24, 2004, following public future environmental justice efforts. To before making the comment comment on a draft Policy Statement carry out the Commission’s direction, submissions available to the public or (68 FR 62642), the Commission issued the staff is seeking to engage entering the comment into ADAMS. its ‘‘Policy Statement on the Treatment stakeholders and interested persons of Environmental Justice Matters in NRC representing a broad range of II. Background Regulatory and Licensing Actions’’ (69 perspectives. This Federal Register The NRC is an independent agency FR 52040). The purpose of this Policy notice is part of this engagement effort. established by the Energy Statement was to set forth a Reorganization Act of 1974 that began ‘‘comprehensive statement of the III. Requested Information and operations in 1975 as a successor to the Commission’s policy on the treatment of Comments licensing and regulatory activities of the environmental justice matters in NRC On July 9, 2021, the NRC published Atomic Energy Commission. The NRC’s regulatory and licensing actions.’’ Id. at a notice in the Federal Register (86 FR mission is to license and regulate the 52,041. The Policy Statement explains 36307) requesting comments. The Nation’s civilian use of radioactive that the focus of an environmental comment period was originally materials to provide reasonable justice review ‘‘should be on identifying scheduled to close on August 23, 2021. assurance of adequate protection of and weighing disproportionately The NRC staff has decided to extend the public health and safety and to promote significant and adverse environmental comment period until September 13,
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2021, to allow more time for members (3) What actions could the NRC take pursuant to FINRA Rule 4524 of the public to submit their comments. to enhance consideration of (Supplemental FOCUS Information). The NRC is interested in obtaining a environmental justice in the NRC’s The proposed rule change was broad range of perspectives from programs, policies and activities and published for comment in the Federal stakeholders and interested persons. agency decision-making, considering Register on May 18, 2021.3 The The focus of this request is to gather the agency’s mission and statutory comment period closed on June 8, 2021. information to inform a systematic authority? The Commission received one comment assessment for how the NRC addresses (a) Would you recommend that NRC letter in response to the Notice.4 On environmental justice in its programs, consider any particular organization’s June 22, 2021, FINRA extended the time policies, and activities, considering the environmental justice program(s) in its period in which the Commission must agency’s mission and statutory assessment? approve the proposed rule change, authority. The NRC is particularly (b) Looking to other Federal, State, disapprove the proposed rule change, or interested in receiving input on the and Tribal agencies’ environmental institute proceedings to determine following questions: justice programs, what actions could the whether to disapprove the proposed (1) What is your understanding of NRC take to enhance consideration of rule change to August 16, 2021. On July what is meant by environmental justice environmental justice in the NRC’s 7, 2021, FINRA responded to the at the NRC? programs, policies, and activities? comment letter received in response to 5 (2) As described in the Commission’s (c) Considering recent Executive the Notice. For the reasons discussed 2004 Policy Statement on the Treatment Orders on environmental justice, what below, the Commission is approving the of Environmental Justice Matters in NRC actions could the NRC take to enhance proposed rule change. Regulatory and Licensing Actions (69 consideration of environmental justice II. Description of the Proposed Rule FR 52040), the NRC currently addresses in the NRC’s programs, policies, and Change 6 environmental justice in its NEPA activities? FINRA Rule 4524 provides in part reviews to determine if a proposed (d) Are there opportunities to expand that FINRA may require certain agency action will have consideration of environmental justice members to file supplements to the in NRC programs, policies, and disproportionately high and adverse Financial and Operational Combined activities, considering the agency’s impacts on minority and low-income Uniform Single Report (‘‘FOCUS mission? If so, what are they? communities, defined as environmental Report’’), which is filed pursuant to justice communities. Dated: August 4, 2021. Rule 17a–5 under the Exchange Act 7 (a) When the NRC is conducting For the Nuclear Regulatory Commission. and FINRA Rule 2010. These licensing and other regulatory reviews, Gregory F. Suber, supplements may include such the agency uses a variety of ways to Director, Environmental Justice Review Team, additional financial or operational gather information from stakeholders Office of the Executive Director for schedules or reports as FINRA may and interested persons on Operations. deem necessary or appropriate for the environmental impacts of the proposed [FR Doc. 2021–16970 Filed 8–9–21; 8:45 am] protection of investors or in the public agency action, such as in-person and BILLING CODE 7590–01–P interest. FINRA Rule 4524 further virtual meetings, Federal Register requires FINRA to file a proposed notices requesting input, and dialog schedule or report with the Commission with community organizations. pursuant to section 19(b) of the (i) How could the NRC expand how SECURITIES AND EXCHANGE COMMISSION Exchange Act. Pursuant to FINRA Rule it engages and gathers input? 4524, FINRA proposed to adopt a (ii) What formal tools might there be [Release No. 34–92561; File No. SR–FINRA– Supplemental Liquidity Schedule to enhance information gathering from 2021–009] (‘‘SLS’’), and Instructions thereto. stakeholders and interested persons in A FINRA member that would be NRC’s programs, policies, and Self-Regulatory Organizations; required to file the Form SLS would activities? Financial Industry Regulatory report detailed information relating to (iii) Can you describe any challenges Authority, Inc.; Order Approving a the member’s: that may affect your ability to engage Proposed Rule Change To Adopt a with the NRC on environmental justice Supplemental Liquidity Schedule, and 3 See Exchange Act Release No. 91876 (May 12, issues? Instructions Thereto, Pursuant to 2021), 86 FR 27005 (May 18, 2021) (File No. SR– FINRA–2021–009) (‘‘Notice’’). (b) How could the NRC enhance FINRA Rule 4524 (Supplemental FOCUS Information) 4 See Letter from Kevin Zambrowicz, Managing opportunities for members of Director & Associate General Counsel, the Securities environmental justice communities to August 4, 2021. Industry and Financial Markets Association participate in licensing and regulatory (‘‘SIFMA’’), dated June 8, 2021 (‘‘SIFMA Letter’’). I. Introduction 5 See Letter from Adam Arkel, Associate General activities, including the identification of Counsel, Office of General Counsel, FINRA, to impacts and other environmental justice On April 30, 2021, the Financial Vanessa Countryman, Secretary, U.S. Securities and concerns? industry Regulatory Authority Exchange Commission, dated July 7, 2021 (‘‘FINRA (c) What ways could the NRC enhance Letter’’). The FINRA Letter is available on FINRA’s (‘‘FINRA’’) filed with the Securities and website at https://www.finra.org/sites/default/files/ identification of environmental justice Exchange Commission (‘‘SEC’’ or 2021-07/sr-finra-2021-009-response-to- communities? ‘‘Commission’’), pursuant to Section comments.pdf, on the Commission’s website at (d) What has the NRC historically https://www.sec.gov/comments/sr-finra-2021-009/ 19(b)(1) of the Securities Exchange Act srfinra2021009.htm, and at the Commission’s 1 done well, or currently does well that (‘‘Exchange Act’’) and Rule 19b–4 Public Reference Room. we could do more of or expand with thereunder,2 a proposed rule change to 6 The subsequent description of the proposed rule respect to environmental justice in our adopt a Supplemental Liquidity change is substantially excerpted from FINRA’s programs, policies, and activities, Schedule, and Instructions thereto, description in the Notice. See Notice, 86 FR at including engagement efforts? In your 27005–06. 7 17 CFR 240.17a–5 (‘‘Rule 17a–5’’). Paragraph (a) view, what portions of the 2004 Policy 1 15 U.S.C. 78s(b)(1). of Rule 17a–5 requires a broker-dealer to file a Statement are effective? 2 17 CFR 240.19b–4. version of the FOCUS Report.
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• Reverse repurchase and repurchase that the SLS contain an ‘‘overlay’’ that evolve in the future. Consequently, agreements; is mapped to the 5G/6G reporting FINRA stated that it believes it would • securities borrowed and securities frameworks of the Federal Reserve not be appropriate to delay loaned; Board. According to SIFMA, this would implementation of the proposed SLS.15 • non-cash reverse repurchase and have the effect of consolidating certain Finally, FINRA stated that it believes securities borrowed transactions; reporting categories where the that the proposed timeframe for • non-cash repurchase and securities respective categories and definitions implementation of the proposed SLS set loaned transactions; align for the FINRA and the Federal forward in the Notice affords members • bank loan and other committed and Reserve Board reports, which would in sufficient time to prepare.16 uncommitted credit facilities; turn streamline the reporting process for • total available collateral in the IV. Discussion and Commission firms that are required to file with both Findings member’s custody; FINRA and the Federal Reserve Board. • margin and non-purpose loans; Firms that are not required to file with After careful review of the proposed • collateral securing margin loans; rule change, the comment letter, and • both FINRA and the Federal Reserve deposits at clearing organizations; Board would not be impacted, according FINRA’s response to the comment letter, and 12 the Commission finds that the proposal • to SIFMA. cash and securities received and In response, FINRA reiterated that the is consistent with the requirements of delivered on derivative transactions not proposed SLS is designed to improve the Exchange Act and the rules and cleared through a central clearing FINRA’s ability to monitor for events regulations thereunder that are counterparty (‘‘CCP’’). that signal an adverse change in the applicable to a national securities According to FINRA, the SLS is liquidity risk of broker-dealers that that association.17 Specifically, the tailored to apply only to members with file the schedule. FINRA also noted the Commission finds that the proposed the largest customer and counterparty extensive prior outreach and rule change is consistent with Section exposures. Unless otherwise permitted discussions that FINRA conducted 15A(b)(6) of the Exchange Act,18 which by FINRA in writing, each carrying regarding the potential burdens on requires, among other things, that the member with $25 million or more in broker-dealers that are subsidiaries of Commission determine any FINRA rule free credit balances, as defined under bank holding companies. According to to be designed to protect investors and Exchange Act Rule 15c3–3(a)(8),8 and FINRA, this consultation resulted in the the public interest. each member whose aggregate amount alignment of categories in the proposed The Commission believes that the outstanding under repurchase SLS with reporting required in the proposed SLS, which will require agreements, securities loan contracts Federal Reserve Board’s Complex certain FINRA members, subject to the and bank loans is equal to or greater Institution Liquidity Monitoring Report thresholds described above, to provide than $1 billion, as reported on the (referred to as ‘‘FR 2052a’’).13 detailed information regarding various member’s most recently filed FOCUS FINRA also stated the SLS serves an aspects of the member’s liquidity profile report, would be required to file the important regulatory purpose because will enable more effective monitoring of SLS. The SLS would be required to be access to the information that would be the liquidity risk of FINRA members by completed as of the last business day of reported on the SLS is important for the Commission and FINRA. The each month and filed within 24 FINRA to efficiently monitor on an Commission believes that regular and business days after the end of the ongoing basis the liquidity profile of its ongoing access to such information is month. A member would not need to members. FINRA stated that the important for the purpose of file the SLS for any period where the information would facilitate FINRA’s understanding the liquidity risks that member does not meet the $25 million efforts to understand and respond to member firms face, as well as or $1 billion thresholds. firms that may appear similar based on differences in liquidity risks among firms that otherwise may appear to be III. Comment Summary their balance sheets, but in fact have different liquidity risk profiles which similar based on similar characteristics As noted above, the Commission could negatively the ability to fund in the firms’ balance sheets. By enabling received one comment letter in response operations during periods of market more effective monitoring of liquidity 9 to the Notice. In its comment letter, stress or other stress events. Absent the risk, the Commission believes that the SIFMA asked that the implementation reporting set forth in the SLS, FINRA information obtained through the SLS timing of the SLS be aligned with the noted that it would need to request such will protect investors and the public implementation of the Federal Reserve information on a firm-by-firm basis as interest by providing FINRA and the Board’s ‘‘6G’’ reporting framework with the need arises, which could, according Commission with information needed to respect to the FR 2052a reports required to FINRA, result in similar or better anticipate and respond to the to be filed by FINRA member firms that potentially larger costs for some firms.14 risks that FINRA member firms may face have bank holding company affiliates,10 While acknowledging that some during market or other stress events that or that additional time be allotted for members that would be subject to the could jeopardize their ability to fund the implementation of the SLS.11 proposed SLS could face potential their operations. FINRA estimates that Additionally, noting that some of the burdens with respect to reporting between 85 and 100 broker-dealers will reporting requirements for the SLS may requirements from other regulators, be required to file Form SLS, the be duplicative of information that must FINRA stated that it would revisit the universe of broker-dealers carrying be reported to the Federal Reserve Board reporting categories in the proposed SLS customer accounts with at least $25 on FR 2052a reports, SIFMA has asked as appropriate with respect to potential million in free credit balances or with alignments of such categories with other 8 17 CFR 240.15c3–3 (‘‘Rule 15c3–3’’). reporting requirements, including the 15 Id. at 3. 9 16 See supra note 4. FR 2052a, depending on how they Id. 10 According to SIFMA, member firms are 17 In approving this rule change, the Commission expected to be working on the implementation of has considered the rule’s impact on efficiency, the Federal Reserve 6G reporting through the end 12 See SIFMA Letter at 3–4. competition, and capital formation. See 15 U.S.C. of 2022. 13 See FINRA Letter at 2. 78c(f). 11 See SIFMA Letter at 3. 14 Id. 18 15 U.S.C. 78o–3(b)(6).
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a minimum of $1 billion in repurchase than 30 days after Commission proposes to implement the fee change agreements, bank loans or securities approval, the Commission believes that effective July 28, 2021. The proposed loans outstanding. Therefore, the member firms will have sufficient time rule change is available on the Commission believes that the proposed to prepare to implement the SLS. Exchange’s website at www.nyse.com, at Form SLS is reasonably designed to Furthermore, in light of recent events the principal office of the Exchange, and apply only to those broker-dealers that connected to market volatility, which at the Commission’s Public Reference have the highest potential to adversely were discussed in the Notice,20 the Room. affect investors and the public interest Commission believes that further in a liquidity stress event. delaying implementation of the SLS will II. Self-Regulatory Organization’s Finally, the Commission believes that undermine the regulatory interest that Statement of the Purpose of, and FINRA has reasonably addressed the the Commission and FINRA have in Statutory Basis for, the Proposed Rule concerns raised by SIFMA’s comment monitoring member firms’ liquidity risk Change letter. Specifically, the Commission profiles. agrees that the SLS would serve an In its filing with the Commission, the important regulatory purpose by V. Conclusion self-regulatory organization included providing FINRA and the Commission It is therefore ordered, pursuant to statements concerning the purpose of, with information useful in evaluating a Section 19(b)(2) of the Act,21 that the and basis for, the proposed rule change member firm’s liquidity risk profile. proposed rule change (SR–FINRA– and discussed any comments it received While the Commission recognizes that 2021–009) be, and hereby is, approved. on the proposed rule change. The text there is the potential for burdens on For the Commission, by the Division of of those statements may be examined at certain member firms that are subject to Trading and Markets, pursuant to delegated the places specified in Item IV below. the regulatory reporting requirements of authority.22 The Exchange has prepared summaries, other regulators, the Commission J. Matthew DeLesDernier, set forth in sections A, B, and C below, believes that the important regulatory Assistant Secretary. of the most significant parts of such purpose served by the SLS justifies the [FR Doc. 2021–16965 Filed 8–9–21; 8:45 am] statements. potential burdens. The Commission believes that absent the SLS, FINRA and BILLING CODE 8011–01–P A. Self-Regulatory Organization’s the Commission would be required to Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule request the information supplied in the SECURITIES AND EXCHANGE Change SLS repeatedly and on a firm-by-firm COMMISSION basis in order to obtain the information 1. Purpose necessary to monitor member firms for [Release No. 34–92559; File No. SR– potential liquidity concerns. Such an NYSEAMER–2021–34] The purpose of this filing is to amend approach would not only create Self-Regulatory Organizations; NYSE the Fee Schedule to remove language regulatory inefficiency, but could also American LLC; Notice of Filing and associated with fee waivers that expired result in similar or potentially larger Immediate Effectiveness of a Proposed at the close of business on June 30, costs for firms, as FINRA noted. Rule Change To Amend the NYSE 2021. Moreover, in light of the prior American Options Fee Schedule On March 18, 2020, the Exchange outreach that FINRA has conducted including publishing an earlier version announced that it would temporarily August 4, 2021. close the Trading Floor, effective of SLS in January 2018 and revising it Pursuant to Section 19(b)(1) 1 of the in response to feedback from industry Monday, March 23, 2020, as a Securities Exchange Act of 1934 (the precautionary measure to prevent the participants,19 the Commission believes 2 3 ‘‘Act’’) and Rule 19b–4 thereunder, potential spread of COVID–19. that FINRA’s proposed approach to notice is hereby given that, on July 28, Following the temporary closure of the revisit the reporting categories in the 2021, NYSE American LLC (‘‘NYSE Trading Floor, the Exchange waived SLS with a view to potential alignments American’’ or the ‘‘Exchange’’) filed certain Floor-based fixed fees for April, of such categories with other reporting with the Securities and Exchange May, and June 2020.4 Although the requirements depending on how they Commission (the ‘‘Commission’’) the evolve would have the effect of further proposed rule change as described in Trading Floor partially reopened on minimizing the regulatory burdens on Items I, II, and III below, which Items May 26, 2020 and Floor-based open member firms subject to the SLS. have been prepared by the self- outcry activity was supported, certain Consequently, the Commission believes regulatory organization. The participants were unable to resume pre- that FINRA has appropriately addressed Commission is publishing this notice to Floor closure levels of operations. As a concerns raised in the comment letter solicit comments on the proposed rule result, the Exchange extended the fee concerning reducing the reporting costs change from interested persons. waiver through June 2021, but only for imposed by the SLS. Floor Broker firms that were unable to Finally, the Commission agrees with I. Self-Regulatory Organization’s operate at more than 50% of their March FINRA that it is not appropriate to delay Statement of the Terms of Substance of 2020 on-Floor staffing levels and for implementation of the SLS beyond the the Proposed Rule Change Market Maker firms that had vacant or timeframe set forth in the Notice. The Exchange proposes to amend the ‘‘unmanned’’ Podia for the entire month Because FINRA previously published a NYSE American Options Fee Schedule version of the SLS in 2018, and will (‘‘Fee Schedule’’). The Exchange 4 See Securities Exchange Act Release Nos. 88595 announce an effective date that will be (April 8, 2020), 85 FR 20737 (April 14, 2020) (SR– 180 days following the publication of a 20 See Notice, 86 FR at 27005. NYSEAMER–2020–25) (waiving Floor-based fixed fees); 88840 (May 8, 2020), 85 FR 28992 (May 14, 21 15 U.S.C. 78s(b)(2). Regulatory Notice published no later 2020) (SR–NYSEAMER–2020–37) (extending April 22 17 CFR 200.30–3(a)(12). 2020 fee changes through May 2020); and 89049 19 See Regulatory Notice 18–02 (January 2018) 1 15 U.S.C. 78s(b)(1). (June 11, 2020), 85 FR 36649 (June 17, 2020) (SR– (Liquidity Reporting and Notification). See also 2 15 U.S.C. 78a. NYSEAMER–2020–44) (extending April and May Notice, 86 FR at 27006. 3 17 CFR 240.19b–4. fee changes through June 2020).
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due to COVID–19 related considerations C. Self-Regulatory Organization’s internet website (http://www.sec.gov/ (the ‘‘Qualifying Firms’’).5 Statement on Comments on the rules/sro.shtml). Copies of the Because the Trading Floor continued Proposed Rule Change Received From submission, all subsequent to operate with reduced capacity, the Members, Participants, or Others amendments, all written statements with respect to the proposed rule Exchange extended the fee waivers for No written comments were solicited change that are filed with the Qualifying Firms through ‘‘the earlier of or received with respect to the proposed Commission, and all written the first full month of a full reopening rule change. communications relating to the of the Trading Floor facilities to Floor III. Date of Effectiveness of the proposed rule change between the personnel or June 2021’’. Proposed Rule Change and Timing for Commission and any person, other than As the Trading Floor re-opened Commission Action those that may be withheld from the without social distancing requirements The foregoing rule change is effective public in accordance with the for vaccinated personnel on June 25, upon filing pursuant to Section provisions of 5 U.S.C. 552, will be 2021 and the expiration date has passed, 19(b)(3)(A) 8 of the Act and available for website viewing and the Exchange is submitting this subparagraph (f)(2) of Rule 19b–4 9 printing in the Commission’s Public proposed rule change to remove the thereunder, because it establishes a due, Reference Room, 100 F Street NE, language related to the fee waivers from fee, or other charge imposed by the Washington, DC 20549 on official the Fee Schedule. Exchange. business days between the hours of At any time within 60 days of the 10:00 a.m. and 3:00 p.m. Copies of the 2. Statutory Basis filing of such proposed rule change, the filing also will be available for inspection and copying at the principal The Exchange believes that the Commission summarily may office of the Exchange. All comments proposed rule change is consistent with temporarily suspend such rule change if received will be posted without change. Section 6(b) of the Act,6 in general, and it appears to the Commission that such action is necessary or appropriate in the Persons submitting comments are furthers the objectives of Sections cautioned that we do not redact or edit 7 public interest, for the protection of 6(b)(4) and (5) of the Act, in particular, personal identifying information from because it provides for the equitable investors, or otherwise in furtherance of the purposes of the Act. If the comment submissions. You should allocation of reasonable dues, fees, and submit only information that you wish other charges among its members, Commission takes such action, the Commission shall institute proceedings to make available publicly. All issuers and other persons using its under Section 19(b)(2)(B) 10 of the Act to submissions should refer to File facilities and does not unfairly determine whether the proposed rule Number SR–NYSEAMER–2021–34, and discriminate between customers, change should be approved or should be submitted on or before issuers, brokers or dealers. disapproved. August 31, 2021. The Exchange believes that the For the Commission, by the Division of proposed modifications to the Fee IV. Solicitation of Comments Trading and Markets, pursuant to delegated Schedule to remove expired fee waivers Interested persons are invited to authority.11 that the Exchange no longer offers are submit written data, views, and J. Matthew DeLesDernier, reasonable, equitable, and not unfairly arguments concerning the foregoing, Assistant Secretary. discriminatory because the changes including whether the proposed rule [FR Doc. 2021–16964 Filed 8–9–21; 8:45 am] would provide clarity to the Fee change is consistent with the Act. BILLING CODE 8011–01–P Schedule, and do not affect any current Comments may be submitted by any of activity by any ATP Holder. the following methods: SECURITIES AND EXCHANGE Electronic Comments B. Self-Regulatory Organization’s COMMISSION Statement on Burden on Competition • Use the Commission’s internet comment form (http://www.sec.gov/ [Release No. 34–92562; File No. SR–CBOE– In accordance with Section 6(b)(8) of rules/sro.shtml); or 2021–043] the Act, the Exchange does not believe • Send an email to rule-comments@ that the proposed rule change would Self-Regulatory Organizations; Cboe sec.gov. Please include File Number SR– Exchange, Inc.; Notice of Filing and impose any burden on competition that NYSEAMER–2021–34 on the subject Immediate Effectiveness of a Proposed is not necessary or appropriate in line. Rule Change To Amend Rules 3.31, furtherance of the purposes of the Act. 3.33 and 3.34 Instead, the proposed change is meant Paper Comments to add clarity and transparency to the • Send paper comments in triplicate August 4, 2021. Fee Schedule to the benefit of all market to Secretary, Securities and Exchange Pursuant to Section 19(b)(1) of the participants that trade on the Exchange. Commission, 100 F Street NE, Securities Exchange Act of 1934 (the Washington, DC 20549–1090. ‘‘Act’’),1 and Rule 19b–4 thereunder,2 5 See Securities Exchange Act Release Nos. 89241 All submissions should refer to File notice is hereby given that on July 22, (July 7, 2020), 85 FR 42034 (July 13, 2020) (SR– Number SR–NYSEAMER–2021–34. This 2021, Cboe Exchange, Inc. (the NYSEAMER–2020–47); 89482 (August 5, 2020), 85 file number should be included on the ‘‘Exchange’’ or ‘‘Cboe Options’’) filed FR 48577 (August 11, 2020) (SR–NYSEAMER– 2020–55); 89692 (August 27, 2020), 85 FR 54611 subject line if email is used. To help the with the Securities and Exchange (September 2, 2020) (SR–NYSEAMER–2020–65); Commission process and review your Commission (the ‘‘Commission’’) the 90193 (October 15, 2020), 85 FR 67069 (October 21, comments more efficiently, please use proposed rule change as described in 2020) (SR–NYSEAMER–2020–76); 90833 (December only one method. The Commission will Items I and II below, which Items have 30, 2020), 86 FR 641 (January 6, 2021) (SR– NYSEAMER–2020–87), 91366 (March 19, 2021) 86 post all comments on the Commission’s been substantially prepared by the FR 15987 (March 25, 2021) (SR–NYSEAMER–2021– 14). 8 15 U.S.C. 78s(b)(3)(A). 11 17 CFR 200.30–3(a)(12). 6 15 U.S.C. 78f(b). 9 17 CFR 240.19b–4(f)(2). 1 15 U.S.C. 78s(b)(1). 7 15 U.S.C. 78f(b)(4) and (5). 10 15 U.S.C. 78s(b)(2)(B). 2 17 CFR 240.19b–4.
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Exchange. The Exchange filed the (a)(1) (of Rule 3.31) is required to registered only as Investment Company proposal as a ‘‘non-controversial’’ register with the Exchange as a General and Variable Contracts Representatives proposed rule change pursuant to Securities Principal, subject to certain who complete the S106 CE Program, Section 19(b)(3)(A)(iii) of the Act 3 and exceptions. More specifically, Rule pursuant to Rule 3.33(a)(3), are now Rule 19b–4(f)(6) thereunder.4 The 3.31(a)(2) provides that if a principal’s required to complete the S101 CE Commission is publishing this notice to activities include the functions of a Program, as is currently the case for all solicit comments on the proposed rule Compliance Officer, a Financial and other registered persons. Therefore, the change from interested persons. Operations Principal, a Securities Exchange proposes to update Rule Trader Principal, a Securities Trader 3.33(a)(3) to reflect this CE Program I. Self-Regulatory Organization’s Compliance Officer, or a Registered change by removing the language in Statement of the Terms of Substance of Options Principal ‘‘as specified in Rule 3.33(a)(3) that provides that the the Proposed Rule Change paragraphs (a)(3) through (a)(6) of . . . S106 is offered for persons registered The Exchange proposes to amend Rule [3.31],’’ then the principal must only as Investment Company and Rules 3.31, 3.34 and 3.33. The text of appropriately register in one or more of Variable Contracts Representatives the proposed rule change is provided in these categories. The Exchange notes while maintaining the existing language Exhibit 5. however that the aforementioned that provides that the S101 is offered for The text of the proposed rule change categories are described under all other registered persons. is available on the Exchange’s website paragraphs (a)(3) through (a)(7) 5 Proposed Rule Change to Rule 3.34 (http://www.cboe.com/AboutCBOE/ (instead of through (a)(6)) and that the CBOELegalRegulatoryHome.aspx), at Exchange inadvertently omitted to Paragraph (c) of Rule 3.34 (Electronic the Exchange’s Office of the Secretary, cross-reference subparagraph (a)(7). Filing Requirements for Uniform and at the Commission’s Public Accordingly, the Exchange proposes to Forms), currently sets forth Form U4 Reference Room. update the reference to (a)(6) to (a)(7) in filing requirements. Specifically, Rule II. Self-Regulatory Organization’s the rule text to accurately reflect the 3.34(c) provides that initial and transfer Statement of the Purpose of, and corresponding subparagraphs to the electronic Form U4 filings and any Statutory Basis for, the Proposed Rule registration categories listed under Rule amendments to the disclosure Change 3.31(a)(2)(A)(i). information on Form U4 must be based on a manually signed Form U4 provided In its filing with the Commission, the Proposed Rule Change to Rule 3.33 to the Trading Permit Holder (‘‘TPH’’) or Exchange included statements Existing Rule 3.33 (Continuing applicant for membership by the person concerning the purpose of and basis for Education for Registered Persons) on whose behalf the Form U4 is being the proposed rule change and discussed includes Regulatory Elements for filed, consistent with FINRA Rule any comments it received on the Exchange registered persons. The 1010(c). However, FINRA recently proposed rule change. The text of these Regulatory Elements are Continuing amended their Rule 1010(c) to permit statements may be examined at the Education (‘‘CE’’) programs firms to choose to rely on electronic places specified in Item IV below. The administered by the Financial Industry signatures to satisfy the signature Exchange has prepared summaries, set Regulatory Industry, Inc. (‘‘FINRA’’) and requirements when filing Form U4.7 forth in sections A, B, and C below, of consist of periodic computer-based The Exchange proposes to amend Rule the most significant aspects of such training on regulatory, compliance, 3.34 to similarly allow firms to rely on statements. ethical, and supervisory subjects, and electronic signatures when filing Form A. Self-Regulatory Organization’s sales practice standards. Pursuant to U4, consistent with FINRA Rule Statement of the Purpose of, and current Rule 3.33(a)(3), the Exchange 1010(c). Statutory Basis for, the Proposed Rule offers the following Regulatory Elements Specifically, the Exchange proposes to Change for Exchange registered persons: The amend Exchange Rule 3.34, similar to S201 for registered principals and the amendments made by FINRA, to 1. Purpose supervisors; the S106 for persons provide firms the option of filing an The Exchange proposes to amend registered only as Investment Company initial or a transfer Form U4 based on certain registration rules including (i) and Variable Contracts Representatives; a manually or an electronically signed Rule 3.31 to update an incorrect cross- and the S101 for all other registered copy of the form provided to the TPH, reference, (ii) Rule 3.33 to update a persons. The Exchange proposes to or applicant for membership, by the Regulatory Element Program reference amend Rule 3.33(a)(3), to be consistent individual on whose behalf the form is and (iii) Rule 3.34 to provide the option with FINRA’s most current CE being filed. As such, the proposed rule of filing an initial or a transfer electronic programs. Specifically, the Exchange change removes the term ‘‘manual’’ Form U4 filing and any amendments to proposes to remove the language in Rule from manual signature and the term the disclosure information on Form U4 3.33(a)(3) that provides that the S106 ‘‘manually’’ from manually signed in based on a manually or an electronically Regulatory Element CE Program is Rule 3.34(c) and in Interpretation and signed copy of the form, each as offered for persons registered only as Policy .03 to Rule 3.34.8 The proposed described below. Investment Company and Variable Contracts Representatives. In December https://www.finra.org/rules-guidance/notices/ Proposed Rule Change to Rule 3.31 2018, the content from S106 became information-notice-100218. Rule 3.31 (Registration Categories) part of the S101 Regulatory Element CE 7 See Securities Exchange Release No. 91262 currently sets forth registration Program and was retired as a stand- (March 5, 2021), 86 FR 13935 (March 11, 2021) (SR– 6 FINRA–2021–003). requirements for principal and alone program. As a result, persons 8 The proposed rule change also makes minor, representative registration categories. In nonsubstantive formatting changes, including: particular, Rule 3.31(a)(2) provides that 5 See Rule 3.31(a)(7), which describes the Adding a period at the end of the heading for Rule each principal as defined in paragraph requirements to register as a Registered Options 3.34(c), which is uniform with subparagraph Principal. headings throughout the Rulebook; and adding the 6 See FINRA Information Notice, Administrative phrase ‘‘of this Rule’’ following references to 3 15 U.S.C. 78s(b)(3)(A)(iii). Changes to the Continuing Education Regulatory subparagraph (c)(3) to provide for additional clarity 4 17 CFR 240.19b–4(f)(6). Element Programs (December 2, 2018), available at: regarding rule references.
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rule change provides TPHs, and removes impediments to and perfects an obsolete CE Program reference are applicants for membership, with an the mechanisms of a free and open merely clarifying in nature and are not opportunity to better manage market and a national market system meant to address any competitive issue. operational challenges. Particularly, the and, in general, protects investors and The proposed change relating to manual COVID–19 pandemic amplified the need the public interest, by amending an signatures is, in all material respects, to better manage operational challenges incorrect cross-reference in Rule 3.31 substantively identical to recent rule like those that arose during the and a reference to an obsolete CE changes adopted by FINRA. The pandemic 9 and that may continue to Program to reflect the current CE Exchange believes the proposed change arise in the future. The proposed rule Programs administered by FINRA. will reduce a regulatory burden for change would not require the use of a Moreover, the proposed rule change TPHs by allowing them to rely on Form particular type of technology to obtain updates the Exchange Rules to be U4 copies with an electronic signature. a valid electronic signature from the consistent with current CE Program All TPHs will have the option to rely on associated person. The Exchange requirements and is designed to protect such forms with an electronic signature believes that some firms may be unable investors by ensuring accuracy and (or continue to rely on forms with a to obtain the manual signature of clarity relating to cross references in its manual signature). Also, all persons applicants for registration resulting in a rules and regarding CE for TPHs in Rule registered only as Investment Company significant operational backlog. By 3.33. Furthermore, the proposed rule and Variable Contracts Representatives permitting these firms to rely on change provides firms with the Regulatory Element are already required electronic signatures to satisfy the flexibility to rely on electronic to complete the S101 CE Program, as signature requirements of Exchange signatures to satisfy the signature FINRA replaced S106 with S101 in Rule 3.34, the proposed rule change requirements of Rule 3.34. Specifically, 2018; the proposed rule change just may reduce or eliminate this backlog. the Exchange proposes to amend updates the Regulatory Element number For purposes of the proposed rule Exchange Rule 3.34, similar to the in the Rules accordingly. change, a valid electronic signature amendments made by FINRA, to The Exchange does not believe that would be any electronic mark that provide the option of filing an initial or the proposed rule change will impose clearly identifies the signatory and is a transfer Form U4 based on a manually any burden on intermarket competition otherwise in compliance with the or an electronically signed copy of the that is not necessary or appropriate in Electronic Signatures in Global and form provided to the TPH, or applicant furtherance of the purposes of the Act National Commerce Act (‘‘E-Sign Act’’) for membership, by the individual on because the proposed rule changes are and the guidance issued by the whose behalf the form is being filed. based upon the same changes recently Commission relating to the E-Sign Act.10 Considering the technological made to FINRA Rule 1010(c) and advancements that provide for consistent with the current Regulatory 2. Statutory Basis enhanced authentication and security of Element CE Programs administered by The Exchange believes the proposed electronic signatures, the Exchange FINRA, as well as updates an incorrect rule change is consistent with the believes that it is appropriate to amend cross-reference in the rules. Securities Exchange Act of 1934 (the Rule 3.34 to provide such flexibility. C. Self-Regulatory Organization’s ‘‘Act’’) and the rules and regulations The proposed rule change also Statement on Comments on the thereunder applicable to the Exchange addresses the ongoing public health Proposed Rule Change Received From and, in particular, the requirements of risks stemming from the outbreak of Members, Participants, or Others Section 6(b) of the Act.11 Specifically, COVID–19 and the operational the Exchange believes the proposed rule challenges that firms continue to face as The Exchange neither solicited nor change is consistent with the Section a result of pandemic repercussions.13 By received comments on the proposed 6(b)(5) 12 requirements that the rules of permitting these firms to rely on rule change. electronic signatures to satisfy the an exchange be designed to prevent III. Date of Effectiveness of the fraudulent and manipulative acts and signature requirements of Rule 3.34, the proposed rule change may reduce or Proposed Rule Change and Timing for practices, to promote just and equitable Commission Action principles of trade, to foster cooperation eliminate an operational backlog due to and coordination with persons engaged the difficulty firms may have faced in Because the foregoing proposed rule in regulating, clearing, settling, obtaining the manual signature of change does not: (i) Significantly affect processing information with respect to, applicants for registration as a result of the protection of investors or the public and facilitating transactions in the impact of the pandemic on daily interest; (ii) impose any significant securities, to remove impediments to work environments. burden on competition; and (iii) become operative for 30 days from the date on and perfect the mechanism of a free and B. Self-Regulatory Organization’s which it was filed, or such shorter time open market and a national market Statement on Burden on Competition system, and, in general, to protect as the Commission may designate, it has The Exchange does not believe that investors and the public interest. become effective pursuant to Section the proposed rule change will impose 14 In particular, the Exchange believes 19(b)(3)(A) of the Act and Rule 19b– any burden on competition that is not 15 the proposed rule change promotes just 4(f)(6) thereunder. necessary or appropriate in furtherance and equitable principles of trade and A proposed rule change filed under of the purposes of the Act. The Rule 19b–4(f)(6) normally does not Exchange does not believe that the 9 See SR–FINRA–2021–003, 86 FR at 13937 become operative for 30 days after the (noting the same in connection with the FINRA proposed rule change will impose any date of filing. However, pursuant to filing). burden on intramarket competition that Rule 19b–4(f)(6)(iii), the Commission 10 See accord Securities Exchange Act Release is not necessary or appropriate in may designate a shorter time if such No. 85282 (March 11, 2019), 84 FR 9573 (March 15, furtherance of the purposes of the Act action is consistent with the protection 2019) (Order Approving File No. SR–FINRA–2018– 040) (discussing valid electronic signatures under as the proposed rule changes to update of investors and the public interest. The existing guidance). an incorrect cross-reference and delete 11 15 U.S.C. 78f(b). 14 15 U.S.C. 78s(b)(3)(A). 12 15 U.S.C. 78f(b)(5). 13 See supra note 9. 15 17 CFR 240.19b–4(f)(6).
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Exchange has asked the Commission to Electronic Comments SECURITIES AND EXCHANGE waive the 30-day operative delay so that • COMMISSION the proposed rule change may become Use the Commission’s internet operative immediately upon filing. As comment form (http://www.sec.gov/ rules/sro.shtml); or [Release No. 34-92563; File No. SR– noted by the Exchange, correcting the NYSEARCA–2021–68] cross-reference in Rule 3.31(a)(2)(A)(i) • Send an email to rule-comments@ and updating the reference to an sec.gov. Please include File Number SR– Self-Regulatory Organizations; NYSE obsolete CE Program in Rule 3.33(a)(3) CBOE–2021–043 on the subject line. Arca, Inc.; Notice of Filing of Proposed would immediately alleviate potential Rule Change New Rule 6.91P–O confusion in connection with the Paper Comments Exchange’s publicly available rulebook. • August 4, 2021. The Exchange also states that the Send paper comments in triplicate Pursuant to Section 19(b)(1) 1 of the proposed rule changes will help ensure to Secretary, Securities and Exchange accuracy and clarity relating to cross Commission, 100 F Street NE, Securities Exchange Act of 1934 (the 2 3 references in its rules and regarding CE Washington, DC 20549–1090. ‘‘Act’’), and Rule 19b–4 thereunder, for TPHs. Additionally, the Exchange notice is hereby given that on July 23, All submissions should refer to File 2021, NYSE Arca, Inc. (‘‘NYSE Arca’’ or notes that the proposed rule change to Number SR–CBOE–2021–043. This file Exchange Rule 3.34 is based on a similar the ‘‘Exchange’’) filed with the number should be included on the Securities and Exchange Commission rule change by FINRA that has already subject line if email is used. To help the taken effect. Finally, as the Exchange (the ‘‘Commission’’) the proposed rule Commission process and review your notes above in regard to its proposed change as described in Items I, II, and rule change allowing electronic comments more efficiently, please use III below, which Items have been signatures to satisfy the signature only one method. The Commission will prepared by the self-regulatory requirements of Rule 3.34, the COVID– post all comments on the Commission’s organization. The Commission is 19 pandemic amplified the need to internet website (http://www.sec.gov/ publishing this notice to solicit better manage operational challenges rules/sro.shtml). Copies of the comments on the proposed rule change like those that arose during the submission, all subsequent from interested persons. pandemic 16 and that may continue to amendments, all written statements arise in the future. with respect to the proposed rule I. Self-Regulatory Organization’s For these reasons, the Commission change that are filed with the Statement of the Terms of Substance of believes that waiver of the 30-day Commission, and all written the Proposed Rule Change operative delay is consistent with the communications relating to the protection of investors and the public proposed rule change between the The Exchange proposes new Rule interest. Accordingly, the Commission Commission and any person, other than 6.91P–O (Electronic Complex Order hereby waives the 30-day operative those that may be withheld from the Trading) to reflect the implementation delay and designates the proposal public in accordance with the of the Exchange’s Pillar trading 17 operative upon filing. provisions of 5 U.S.C. 552, will be technology on its options market and to At any time within 60 days of the available for website viewing and make conforming amendments to Rule filing of the proposed rule change, the 6.47A–O (Order Exposure Commission summarily may printing in the Commission’s Public Reference Room, 100 F Street NE, Requirements—OX). The proposed temporarily suspend such rule change if change is available on the Exchange’s it appears to the Commission that such Washington, DC 20549 on official business days between the hours of website at www.nyse.com, at the action is necessary or appropriate in the principal office of the Exchange, and at public interest, for the protection of 10:00 a.m. and 3:00 p.m. Copies of such filing also will be available for the Commission’s Public Reference investors, or otherwise in furtherance of Room. the purposes of the Act. If the inspection and copying at the principal Commission takes such action, the office of the Exchange. All comments II. Self-Regulatory Organization’s Commission shall institute proceedings received will be posted without change. Statement of the Purpose of, and to determine whether the proposed rule Persons submitting comments are Statutory Basis for, the Proposed Rule change should be approved or cautioned that we do not redact or edit Change disapproved. personal identifying information from In its filing with the Commission, the IV. Solicitation of Comments submissions. You should submit only information that you wish to make self-regulatory organization included Interested persons are invited to available publicly. All submissions statements concerning the purpose of, submit written data, views, and should refer to File Number SR–CBOE– and basis for, the proposed rule change arguments concerning the foregoing, 2021–043 and should be submitted on and discussed any comments it received including whether the proposed rule or before August 31, 2021. on the proposed rule change. The text change is consistent with the Act. of those statements may be examined at Comments may be submitted by any of For the Commission, by the Division of the places specified in Item IV below. the following methods: Trading and Markets, pursuant to delegated The Exchange has prepared summaries, authority.18 set forth in sections A, B, and C below, 16 See supra note 9 (where FINRA noted the J. Matthew DeLesDernier, same). In that filing, FINRA also requested and the of the most significant parts of such Commission granted a waiver of the 30-day Assistant Secretary. statements. operative delay. See SR–FINRA–2021–003, 86 FR at [FR Doc. 2021–16966 Filed 8–9–21; 8:45 am] 13938–9. BILLING CODE 8011–01–P 17 For purposes only of waiving the 30-day operative delay, the Commission has considered the 1 15 U.S.C. 78s(b)(1). proposed rule change’s impact on efficiency, competition, and capital formation. See 15 U.S.C. 2 15 U.S.C. 78a. 78c(f). 18 17 CFR 200.30–3(a)(12). 3 17 CFR 240.19b–4.
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A. Self-Regulatory Organization’s Complex Order Trading, would remain preamble to Rule 6.91–O without any Statement of the Purpose of, and the unchanged and continue to apply to any substantive differences, except that Statutory Basis for, the Proposed Rule trading in symbols on the current reference to the ‘‘NYSE Arca System’’ Change system. Proposed Rule 6.91P–O would would be replaced with the term govern Electronic Complex Orders for ‘‘Exchange’’ and cross-references have 1. Purpose trading in options symbols migrated to been updated to reflect rules proposed Background the Pillar platform. in the Single-Leg Pillar Filing. The Exchange plans to transition its Similar to the Single-Leg Pillar Filing, • Proposed Rule 6.91P–O(a)(2) would options trading platform to its Pillar proposed Rule 6.91P–O would (1) use define the term ‘‘ECO Order technology platform. The Exchange’s Pillar terminology that is based on Instruction’’ to mean a request to cancel, and its national securities exchange Exchange Rule 7–E Pillar terminology cancel and replace, or modify an ECO. affiliates’ 4 (together with the Exchange, governing cash equity trading; and (2) As described further below, this concept the ‘‘NYSE Exchanges’’) cash equity introduce new functionality for relates to order processing when a series markets are currently operating on Electronic Complex Order trading. opens or reopens for trading and is Pillar. For this transition, the Exchange Finally, as discussed in the Single-Leg based on the term ‘‘order instruction’’ as proposes to use the same Pillar Pillar Filing, the Exchange will used in Rule 7.35–E(g) and proposed to technology already in operation for its announce by Trader Update when be used in Rules 6.64P–O(e) and (f), cash equity market. In doing so, the symbols are trading on the Pillar trading which (similarly) would define an Exchange will be able to offer not only platform. The Exchange intends to ‘‘order instruction’’ for options as a common specifications for connecting to transition Electronic Complex Order request to cancel, cancel and replace, or both of its cash equity and equity trading on Pillar at the same time that modify an order or quote.9 options markets, but also common single-leg trading is transitioned to • Proposed Rule 6.91P–O(a)(3) would trading functions. The Exchange plans Pillar. define the term ‘‘leg’’ or ‘‘leg market’’ to to roll out the new technology platform Proposed Rule 6.91P–O: Electronic mean each of the component option over a period of time based on a range Complex Order Trading series that comprise an ECO. This of symbols, anticipated for the fourth definition is consistent with the concept Current Rule 6.91–O (Electronic quarter of 2021. of leg markets as used in current Rule Complex Order Trading) specifies how In this regard, the Exchange recently 6.91–O(a), which defines legs as the Exchange processes Electronic filed a proposal to add new rules to individual orders and quotes in the Complex Orders submitted to the reflect how options, particularly single- Consolidated Book. The Exchange Exchange. The Exchange proposes new leg options, would trade on the believes the proposed definition would Rule 6.91P–O to establish how such Exchange once Pillar is implemented.5 add clarity regarding how the terms orders would be processed after the The current proposal sets forth how ‘‘leg’’ and ‘‘leg market’’ would be used transition to Pillar. To promote clarity Electronic Complex Orders 6 would in connection with ECO trading on and transparency, the Exchange trade on the Exchange once Pillar is Pillar. proposes to add a preamble to current implemented. As noted in the Single- • Proposed Rule 6.91P–O(a)(4) would Rule 6.91–O specifying that it would not Leg Pillar Filing, as the Exchange define the term ‘‘Complex NBBO’’ to be applicable to trading on Pillar. transitions to Pillar, certain rules would mean the derived national best bid and continue to be applicable to symbols As discussed in greater detail below, the Exchange is not proposing derived national best offer for a complex trading on the current trading platform, strategy calculated using the NBB and but would not be applicable to symbols fundamentally different functionality regarding how Electronic Complex NBO for each component leg of a that have transitioned to trading on complex strategy. This definition is Pillar.7 Consistent with the Single-Leg Orders would trade on Pillar than is currently available on the Exchange. based on current Rule 6.1A–O(a)(2)(b), Pillar Filing, proposed Rule 6.91P–O without any substantive differences. would have the same number as the However, with Pillar, the Exchange • would introduce certain new or updated Proposed Rule 6.91P–O(a)(5) would current Electronic Complex Order define the term ‘‘Complex strategy’’ to Trading rule, but with the modifier ‘‘P’’ functionality available for options trading on the Pillar platform and use mean a particular combination of leg appended to the rule number. Current components and their ratios to one Rule 6.91–O, governing Electronic Pillar terminology. Definitions. Proposed Rule 6.91P–O(a) another. The proposed definition would further provide that new complex 4 The Exchange’s national securities exchange would set forth the definitions affiliates are the New York Stock Exchange LLC applicable to trading on Pillar under the strategies can be created when the (‘‘NYSE’’), NYSE American LLC (‘‘NYSE new rule. Exchange receives either a request to American’’), NYSE National, Inc. (‘‘NYSE • Proposed Rule 6.91P–O(a)(1) would create a new complex strategy or an National’’), and NYSE Chicago, Inc. (‘‘NYSE ECO with a new complex strategy. This Chicago’’). define the term ‘‘Electronic Complex 5 See Securities Exchange Act Release No. 92304 Order’’ or ‘‘ECO’’ to mean a Complex proposed definition is new and is (June 30, 2021), 86 FR 36440 (July 9, 2021) (SR– Order as defined in proposed Rule consistent with how this concept is NYSEArca–2021–047) (‘‘Single-Leg Pillar Filing’’). 6.62P–O(f) or a Stock/Option Order or defined on other options exchanges and 6 The term ‘‘Electronic Complex Order’’ is Stock/Complex Order as defined in would promote clarity and currently defined in the preamble to Rule 6.91–O transparency.10 to mean any Complex Order, as defined in Rule proposed Rule 6.62P–O(h)(6)(A), (B), 6.62–O(e) or any Stock/Option Order or Stock/ respectively, that would be submitted Complex Order as defined in Rule 6.62–O(h) that electronically to the Exchange.8 This 9 See Single-Leg Pillar Filing (describing is entered into the NYSE Arca System (the proposed opening Auction Process rule per Rule ‘‘System’’). proposed definition is based on the 6.64P–O). 7 See Single-Leg Pillar Filing (providing that, 10 See, e.g., Cboe Exchange Inc. (‘‘Cboe’’) Rule once a symbol is trading on the Pillar trading 8 The proposed definitions of Complex Order, 5.33(a) (defining ‘‘complex strategy’’ as ‘‘a platform, a rule with the same number as a rule Stock/Option Order and Stock/Complex Order particular combination of components and their with a ‘‘P’’ modifier would no longer be operative under Pillar are set forth in proposed Rules 6.62P– ratios to one another’’ and further providing that for that symbol and the Exchange would announce O(f), (h)(6)(A), and (h)(6)(B), as described in the ‘‘[n]ew complex strategies can be created as the by Trader Update when symbols are trading on the Single-Leg Pillar Filing, and are substantially result of the receipt of a complex instrument Pillar trading platform). identical to the current definitions. Continued
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• Proposed Rule 6.91P–O(a)(6) would the additional detail about how the marketable against the COA Order.14 define the term ‘‘DBBO’’ to address DBBO would be calculated in the This definition is based in part on the situations where it is necessary to derive absence of an Exchange BBO and/or description of RFR Responses in Rule a (theoretical) bid or offer for a Away Market NBBO would promote 6.91–O(c)(5). However, unlike the particular complex strategy. As clarity and transparency. In addition, current definition, an RFR Response proposed, ‘‘DBBO’’ would mean the the Exchange believes that it is would not have a time-in-force derived best bid (‘‘DBB’’) and derived appropriate to require that the DBBO be contingency for the duration of the best offer (‘‘DBO’’) for a complex calculated within a certain amount of COA. Instead, the Exchange would strategy calculated using the Exchange the Away Market NBBO as an additional consider any ECOs received during the BBO 11 for each leg (or the Away Market protection against ECOs being executed Response Time Interval (defined below) NBBO 12 for a leg if there is no Exchange on the Exchange at prices away from the that are marketable against the COA BBO), provided that the bid (offer) price current market. Order as an RFR Response. As described used to calculate the DBBO would never Proposed Rule 6.91P–O(a)(7) would below, the Exchange proposes to define be lower (higher) than the greater of define ‘‘Complex Order Auction’’ or separately the term ‘‘ECO GTX Order,’’ $0.05 or 5% below (above) the Away ‘‘COA’’ to mean an auction of an ECO which would be more akin to the Market NBB (NBO). The proposed as set forth in proposed Rule 6.91P–O(f) current definition of RFR Response. In definition would also provide that the (discussed below). This definition is addition, the proposed definition omits DBBO would be updated as the based on the title of paragraph (c) of the current rule description that an RFR Exchange’s calculation of the Exchange current Rule 6.91–O, which sets forth Response may be entered in $0.01 BBO or Away Market NBBO, as the COA Process for ECOs without any increments or that such responses may applicable, is likewise updated. substantive differences. Proposed Rule be modified or cancelled because these Proposed Rule 6.91P–O(a)(6)(A) 6.91P–O(a)(7) would also state that the features are applicable to all ECOs and would provide further detail about how terms defined in paragraphs (a)(7)(A)– therefore not necessary to separately the DBBO would be derived in the (D) would be used for purposes of a state in connection with RFR Responses. absence of an Exchange BB (BO) or COA. Proposed Rule 6.91P–O(a)(7)(D) Away Market NBB (NBO) for a given would define the term ‘‘Response Time Proposed Rule 6.91P–O(a)(7)(A) Interval’’ to mean the period of time leg. As proposed, in such would define a ‘‘COA Order’’ to mean circumstances, the bid (offer) price used during which RFR Responses for a COA an ECO that is designated by the OTP may be entered and would provide that to calculate the DBBO would be the Holder as eligible to initiate a COA. This offer (bid) price for that leg minus (plus) the Exchange would determine and definition is based on the definition of announce by Trader Update the length ‘‘one collar value,’’ which would be (i) a ‘‘COA-eligible order’’ as set forth in $0.25 where the best offer (bid) is priced of the Response Time Interval; current Rule 6.91–O(c)(1) and (c)(1)(i), provided, however, that the duration of $1.00 or lower; or (ii) the lower of $2.50 with a difference that the proposed or 25% where the best offer (bid) is the Response Time Interval would not definition would not require that an be less than 100 milliseconds and priced above $1.00, provided however option class be designated as COA- that, per proposed Rule 6.91P– would not exceed one (1) second. This eligible because all option classes that definition is based in part on the O(a)(6)(A)(i), if the best offer is equal to trade on Pillar would be COA-eligible. or less than one collar value, the best description of Response Time Interval Proposed Rule 6.91P–O(a)(7)(B) bid price used to calculate the DBBO for in Rule 6.91–O(c)(4), with a difference would define the term ‘‘Request for that leg would be $0.01. that the Exchange proposes to reduce This proposed definition is new and Response’’ or ‘‘RFR’’ to refer to the the minimum time from 500 is based, in part, on the current message disseminated to the Exchange’s milliseconds to 100 milliseconds. While definition of Complex BBO set forth in proprietary complex data feed other option exchanges do not establish Rule 6.1A–O(a)(2)(b), as well as on how announcing that the Exchange has a minimum duration for a COA, the this concept is defined on other options received a COA Order and that a COA Exchange notes that the proposed 100 exchanges, including on NYSE has begun. As further proposed, the milliseconds minimum is consistent the American.13 The Exchange believes that definition would provide that each RFR minimum auction length for electronic- message would identify the component paired auctions on NYSE American.15 creation request or complex order for a complex series, the price, and the size and side Types of ECOs. Proposed Rule 6.91P– strategy that is not currently in the System’’); MIAX of the market of the COA Order. This O(b) would set forth the types of ECOs Options Exchange (‘‘MIAX’’) Rule 518(a)(6) (same). definition is based on the description of that would trade on Pillar. Proposed 11 The term BBO when used with respect to RFR in Rule 6.91–O(c)(3) without any Rule 6.91P–O(b)(1) would provide that options traded on the Exchange would mean ‘‘the substantive differences. The Exchange ECOs may be entered as Limit Orders or best displayed bid or best displayed offer on the Exchange.’’ See Single-Leg Pillar Filing (defining proposes a clarifying difference to make Limit Orders designated as Complex BBO in proposed Rule 1.1, which definition is clear that RFR messages would be sent Only Orders. This proposed text is substantially identical to the current definition of over the Exchange’s proprietary based on current Rule 6.91–O(b)(1), BBO in Rule 6.1A–O(a)(2)(a)). complex data feed, which is based on with a difference to provide that the 12 In the Single-Leg Pillar Filing, the Exchange proposes that the (new) term ‘‘Away Market NBBO’’ current functionality. Exchange would offer Complex Only would refer to a calculation of the NBBO that Proposed Rule 6.91P–O(a)(7)(C) Orders on Pillar. Complex Only Orders excludes the Exchange’s BBO. See Single-Leg Pillar would define the term ‘‘RFR Response’’ Filing (defining Away Market NBBO in proposed to mean any ECO received during the 14 The term ‘‘marketable’’ is defined in proposed Rule 1.1). Rule 1.1 of the Single-Leg Pillar Filing. 13 See, e.g., NYSE American Rule 900.2NY(7)(b) Response Time Interval (defined below) 15 See e.g., Cboe Rule 5.33(d)(3) (providing that (providing that the Derived BBO ‘‘is calculated that is in the same complex strategy, on Cboe ‘‘determines the duration of the Response using the BBO from the Consolidated Book for each the opposite side of the market of the Time Interval on a class-by-class basis, which may of the options series comprising a given complex COA Order that initiated the COA, and not exceed 3000 milliseconds’’); NYSE American order strategy’’); Cboe Rule 5.33(a) (defining Rule 971.1NY(c)(2)(B) (providing that for a ‘‘Synthetic Bed Bid or Offer and SBBO’’ for Customer Best Execution Auction ‘‘[t]he minimum/ complex orders as ‘‘the best bid and offer on the component if the BBO for that component is not maximum parameters for the Response Time Exchange for a complex strategy calculated using’’ available) of a complex strategy from the Simple Interval will be no less than 100 milliseconds and the ‘‘BBO for each component (or the NBBO for a Book’’). no more than one (1) second’’).
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(as described below) are based in part is consistent with the time-in-force of Æ An ECO would trade at the prices on existing functionality for PNP Plus the order (because they could not be of the leg markets (see proposed Rule orders, which likewise may trade only traded when a complex strategy is not 6.91P–O(c)(1)(B)). This proposed rule with other Electronic Complex Orders, open for trading) as well as with current would make clear that when trading with updated functionality available on functionality. with the leg markets, the components of Pillar.16 The Exchange proposes to • Proposed Rule 6.91P–O(b)(2)(B) the ECO would trade at the prices of the rename this order type in a manner would provide that an ECO designated leg markets, which is consistent with consistent with similar order types as GTX would be defined as an ‘‘ECO current functionality. For example, if available on other options exchanges GTX Order’’ and would have the there is sell interest in a leg market at and therefore this proposed order type following features: It would not be $1.00, and a leg of an ECO to buy could is not new or novel.17 displayed; it may be entered only during trade up to $1.05, the ECO would trade • Proposed Rule 6.91P–O(b)(1)(A) the Response Time Interval of a COA; it with such leg market at $1.00. This would set forth the details of a Complex must be on the opposite side of the would result in the ECO receiving price Only Order. As proposed, an ECO market as the COA Order; and it must improvement and is consistent with the designated as a Complex Only Order specify the price, size, and side of the ECO trading as the aggressing order. would trade solely with ECOs and market. As further proposed, ECO GTX • Proposed Rule 6.91P–O(c)(2) would would not trade with the leg markets; Orders may be modified or cancelled provide that when trading with another provided that, if there is displayed during the Response Time Interval and ECO, an ECO must trade at a price at or Customer interest on all legs of the any remaining size that does not trade within the DBBO and no leg of an ECO Complex Only Order, such order would with the COA Order would be cancelled may trade at a price of zero. This not trade below (above) one penny at the end of the COA. This definition provision is based in part on current ($0.01) times the smallest leg ratio is based on the description of an RFR Rule 6.91–O(a)(2), which provides that inside the DBB (DBO) containing Response in current Rule 6.91– no leg of an ECO will be executed Customer interest, which requirement O(c)(5)(A)—(C), which likewise are not outside of the Exchange BBO, and adds ensures that a Complex Only Order displayed and expire at the end of the detail about other limitations on would price improve at least a portion COA. executions based on the DBBO. This of the displayed leg markets. In such Priority and Pricing of ECOs. proposed rule, which ensures that ECOs case, a Complex Only Order would Proposed Rule 6.91P–O(c) would set would never trade through interest in remain on the Consolidated Book until forth how ECOs would be prioritized the leg markets, is consistent with it can trade with another ECO at this and priced under Pillar. As proposed, current functionality and adds clarity improved price. As noted above, the an ECO received by the Exchange that and transparency to the proposed Rule. Complex Only Order type is based in is not immediately executed (or This proposed rule is also consistent part on existing PNP Plus order cancelled) would be ranked in the with how ECOs are processed on other functionality, with updated Consolidated Book according to price- options exchanges.20 functionality based on Pillar. time priority based on the total net price • Proposed Rule 6.91P–O(c)(3) would Specifically, the Exchange would no and the time of entry of the order. This provide that an ECO may trade without longer reprice a resting Complex Only proposed rule is based on Rule 6.91– consideration of prices of the same Order and instead would restrict it from O(a)(1), without any substantive complex strategy available on other trading until it can trade at a price at or differences. The Exchange proposes a exchanges, which is based on the same inside the DBBO, as described below. non-substantive difference to refer text as contained in current Rule 6.91– • Proposed Rule 6.91P–O(b)(2) would simply to a ‘‘net price’’ rather than a O(a)(2) without any substantive set forth the time-in-force contingencies ‘‘net debit or credit price,’’ which differences. available to ECOs, which would be Day, streamlined terminology is consistent • Proposed Rule 6.91P–O(c)(4) would IOC, FOK, or GTC, as those terms are with the use of the term ‘‘net price’’ on provide that an ECO may trade in one defined in the Single-Leg Pillar Filing in other options exchanges.19 cent ($0.01) increments regardless of the proposed Rule 6.62P–O(b), and GTX Proposed Rule 6.91P–O(c) would MPV otherwise applicable to any leg of (per proposed Rule 6.91P–O(b)(2)(B) as further provide that, unless otherwise the complex strategy, which is based on described below). The proposed text is specified in this Rule, ECOs would be current Rule 6.91–O, Commentary .01 based on current Rules 6.91–O(b)(2) and processed as follows: without any substantive differences. (3), except that it adds GTX (as • Proposed Rule 6.91P–O(c)(1) would Execution of ECOs at the Open (or described below). The proposed text provide that when trading with the leg Reopening after a Trading Halt). Current also omits AON because the Exchange markets: Rule 6.91–O(a)(2)(i) sets forth how ECOs Æ would not offer AONs for ECO trading An ECO must trade at or within the are executed upon opening or reopening on Pillar. greater of $0.05 or 5% higher (lower) of trading. Proposed Rule 6.91P–O(d) • Proposed Rule 6.91P–O(b)(2)(A) than the Away Market NBO (NBB) (see would set forth details about how ECOs would provide that an ECO designated proposed Rule 6.91P–O(c)(1)(A)). This would be executed at the open or as IOC or FOK would be rejected if would be new under Pillar and operate reopen following a trading halt. entered during a pre-open state,18 which as an additional protection against ECOs With the transition to Pillar, the being executed on the Exchange at Exchange proposes new functionality 16 See Rule 6.62–O(y) (describing PNP Plus orders prices away from the current market. as ECOs that may only trade with other ECOs, but 20 See, e.g., Cboe Rule 5.33(f)(2) (setting forth which will continuously be repriced if locking or Single-Leg Pillar Filing, to mean ‘‘the period before substantially identical execution parameters for crossing the Complex BBO). a series is opened or reopened.’’ complex orders executed on Cboe, including that 17 Other options exchanges likewise offer 19 See, e.g., Cboe Rule 5.33(f)(2) (setting forth complex orders may not execute at a net price that Complex Orders that trade only with Complex parameters for the ‘‘net price’’ of complex orders would cause any component of the complex Orders. See, e.g., Cboe Rule 5.33(a) (defining traded on Cboe); Nasdaq ISE, LLC (‘‘Nasdaq ISE’’), strategy to be executed at a price of zero, or worse ‘‘Complex Only’’ order as an ECO ‘‘designate[ ] to Options 3, Section 14(c) (providing, in relevant than or equal to the Cboe SBBO when there is a execute only against complex orders in the COB part, that ‘‘[c]omplex strategies will not be executed Priority Customer at the SBBO, or would cause any and not Leg into the Simple Book’’). at prices inferior to the best net price achievable component of the complex strategy to be executed 18 The term ‘‘pre-open state’’ is defined in from the best ISE bids and offers for the individual at a price worse than the individual component proposed Rule 6.64P–O(a)(10), as described in the legs’’). prices on the Simple Book).
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regarding the ‘‘ECO Opening Auction under Pillar would instead rely on the the maximum volume of ECOs can be Process’’ on the Exchange, which would DBBO (as described below). traded within the ECO Auction Collar, be applicable both to openings and Proposed Rule 6.91P–O(d)(2)(A) the ECO Auction Price would be the reopenings following a trading halt. The would provide that an ECO received price closest to the midpoint of the ECO Exchange proposes to incorporate into during a pre-open state would not Auction Collar, or, if the midpoint falls the ECO Opening Auction Process participate in the Auction Process for within such prices, the ECO Auction certain functionality currently available the leg markets pursuant to proposed Price would be the midpoint, provided on the Exchange’s cash equity platform, Rule 6.64P–O, which is based on the that the ECO Auction Price would not which the Exchange has similarly same text (in the second sentence) of be lower (higher) than the highest proposed to include in the Auction current Rule 6.91–O(a)(2)(i)(A) without (lowest) price of an ECO to buy (sell) Process for single-leg options.21 any substantive differences. that is eligible to trade in the ECO Accordingly, proposed Rule 6.91P–O(d) Proposed Rule 6.91P–O(d)(2)(B) Opening Auction Process. The concept would use Pillar terminology relating to would provide that a complex strategy of an ECO Auction Price is based in part auctions that is based in part on Pillar created intra-day when all leg markets on the concept of ‘‘single market terminology set forth in Rule 7.35–E for are open would not be subject to an ECO clearing price’’ set forth in current Rule cash equity trading and in part on Opening Auction Process and would 6.91–O(a)(2)(i)(B). For Pillar, the proposed Rule 6.64P–O for single-leg instead trade pursuant to paragraph (e) Exchange proposes to determine the options. of the proposed Rule (discussed below) ECO Auction Price in a manner that is • Proposed Rule 6.91P–O(d)(1) would regarding the handling of ECOs during based in part on how an Indicative set forth the conditions required for the Core Trading Hours. Match Price is determined for trading of commencement of an ECO Opening Proposed Rule 6.91P–O(d)(2)(C) cash equity securities, as set forth in on Auction Process. Specifically, as would provide that the ECO Opening Rule 7.35–E(a)(8)(A), and how the proposed, the Exchange would initiate Auction Process would be used to Exchange proposes to determine the an ECO Opening Auction Process for a reopen trading in ECOs after a trading price for Auctions on Pillar for single- complex strategy only if all legs of the halt. This proposed rule is based in part leg options trading.23 complex strategy have opened or on current Rule 6.64–O(d) and makes Finally, as proposed, if the ECO reopened for trading, which text is clear that the ECO Opening Auction Auction Price would be a sub-penny based on current Rule 6.91–O(a)(2)(i)(A) Process would be applicable to price, it would be rounded to the reopenings. nearest whole penny, which text is without any substantive differences. • Proposed Rule 6.91P–O(d)(1)(A)–(C) Proposed Rule 6.91P–O(d)(3) would based on current Rule 6.91–O(a)(2)(i)(B), would set forth conditions that would describe each aspect of the ECO with a difference that the current rule prevent the opening of a complex Opening Auction Process. First, refers to the midpoint of the Complex strategy, as follows: proposed Rule 6.91P–O(d)(3)(A) would NBBO (which could be a sub-penny Æ Any leg of the complex strategy has describe the ‘‘ECO Auction Collars,’’ price) as opposed to referring to the ECO no BO or NBO; which terminology would be new for Auction Price, which would be a new Æ The bid and offer prices used to ECO trading and is based on the term Pillar term for trading ECOs. calculate the DBBO for the complex ‘‘Auction Collars’’ used in Rule 7.35–E Proposed Rule 6.91P–O(d)(3)(B)(i) strategy are locking or crossing; or for trading cash equity securities as well would provide that an ECO to buy (sell) Æ All legs of the complex strategy as in proposed Rule 6.64P–O(a)(2) for with a limit price at or above (below) include displayed Customer interest and single-leg options trading.22 the upper (lower) ECO Auction Collar the width of the DBBO is less than or As proposed, the upper (lower) price would be included in the ECO Auction equal to one penny ($0.01) times the of an ECO Auction Collar for a complex Price calculation at the price of the smallest leg ratio. strategy would be the DBO (DBB); upper (lower) ECO Auction Collar, but The proposal to detail these provided, however, that if there is ranked for participation in the ECO conditions for opening are consistent displayed Customer interest on all legs Opening (or Reopening) Auction with current functionality. The of a complex strategy, the upper (lower) Process in price-time priority based on Exchange believes that this added detail price of an ECO Auction Collar would its limit price. This proposed text is would add clarity and transparency to be one penny ($0.01) times the smallest based in part on current Rule 6.91– Exchange rules and would promote a leg ratio inside the DBO (DBB) O(a)(2)(i)(B). The proposed rule is also fair and orderly ECO Opening Auction containing Customer interest. This new based on how the Exchange processes Process. functionality on Pillar would ensure auctions for cash equity trading, as • Proposed Rule 6.91P–O(d)(2) would that ECOs trade within the DBBO and described in Rules 7.35–E(a)(10)(B) and provide that any ECOs in a complex thus avoid trading through displayed (a)(6) and how the Exchange proposes to strategy with prices that lock or cross Customer interest in the leg markets, process Auctions on Pillar for single-leg one another would be eligible to trade which the Exchange believes is options trading.24 in the ECO Opening Auction Process. consistent with fair and orderly markets Proposed Rule 6.91P–O(d)(3)(B)(ii) This proposed rule is based on current and investor protection. would provide that locking and crossing • Rule 6.91–O(a)(2)(i)(B), which provides Next, proposed Rule 6.91P– ECOs in a complex strategy would trade than an opening process will be used if O(d)(3)(B) would describe the ‘‘ECO at the ECO Auction Price. As further there are ECOs that ‘‘are marketable Auction Price.’’ As proposed, the ECO proposed, if there are no locking or against each other.’’ The Exchange Auction Price would be the price at crossing ECOs in a complex strategy at proposes a difference in Pillar not to which the maximum volume of ECOs or within the ECO Auction Collars, the require that such ECOs be ‘‘priced can be traded in an ECO Opening Exchange would open the complex within the Complex NBBO’’ because the Auction, subject to the proposed ECO strategy without a trade. This proposed proposed ECO Opening Auction Process Auction Collar. As further proposed, if there is more than one price at which 23 See Single-Leg Pillar Filing (describing 21 See Single-Leg Pillar Filing (describing proposed Rule 6.64P–O(a)(7)). proposed opening Auction Process rule per Rule 22 See Single-Leg Pillar Filing (defining Auction 24 See Single-Leg Pillar Filing (describing 6.64P–O). Collars in proposed Rule 6.64P–O(a)(2)). proposed Rules 6.64P–O(a)(7)(B)(i) and 6.64P–O(b)).
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text would be new and is based in part Process. As proposed, after the ECO in the leg markets.26 The Exchange on proposed Rule 6.64P–O(d)(2)(B) for Opening Auction, ECOs would be believes that this proposed rule would single-leg options, which describes subject to ECO Price Protection, per add clarity and transparency that ECOs when an option series could open proposed Rule 6.91P–O(g)(2) (as would not trade with orders that have without a trade.25 described below) and, if eligible to conditional instructions. • Proposed Rule 6.91P–O(d)(4) would trade, would trade as follows: • Proposed Rule 6.91P–O(e)(1)(C) describe the ‘‘ECO Order Processing Æ Proposed Rule 6.91P–O(d)(5)(A) during ECO Opening Auction Process.’’ would provide that an ECO (that is not would provide that an ECO received Because the Exchange would be using designated as a Complex Only Order) before the complex strategy was opened the same Pillar auction functionality for would be eligible to trade with the leg that did not trade in whole in the ECO ECO trading that is used for its cash markets (in full or in a permissible Opening Auction Process and that is equity market and that the Exchange is ratio), subject to certain enumerated locking or crossing other ECOs or leg proposing for single-leg options trading, exceptions set forth in proposed Rule markets in the Consolidated Book the Exchange proposes to apply existing 6.91P–O(e)(1)(C)(i)–(iii). Specifically, would trade pursuant to proposed Rule Pillar auction functionality regarding ECOs with any one of the following 6.91P–O(e) (discussed below) regarding how to process ECOs that may be complex strategies would be ineligible the handling of ECOs during Core received during the period when an to trade with the leg markets and would Trading Hours. This provision is based ECO Auction Process is ongoing. be processed as a Complex Only Order: on the (last sentence) of current Rule Accordingly, as proposed, new ECOs Æ A complex strategy with more than 6.91–O(a)(2)(i)(B) and (C), with non- and ECO Order Instructions (as defined five legs; in proposed Rule 6.91P–O(a)(2), substantive differences to use Pillar Æ a complex strategy with two legs described above) that are received when terminology. and both legs are buying or both legs are the Exchange is conducting the ECO Æ Proposed Rule 6.91P–O(d)(5)(B) selling, and both legs are calls or both Opening Auction Process for the would provide that any ECO received legs are puts; or complex strategy would be accepted but during the ECO Opening Auction would not be processed until after the Process would be processed in time Æ a complex strategy with three or conclusion of this process. As further sequence relative to one another based more legs and all legs are buying or all proposed, when the Exchange is on original entry time. This proposed legs are selling. conducting the ECO Opening Auction rule is based on both current The proposal to restrict ECOs with Process, ECO Order Instructions would functionality and how the Exchange more than five legs from trading with be processed as follows: proposes to process orders in an option the leg markets (and being treated as Æ Proposed Rule 6.91P–O(d)(4)(A) series that were received during an Complex Only Orders), per proposed would provide that an ECO Order Auction Processing Period, as described Rule 6.91P–O(e)(1)(C)(i), would be new Instruction received during the ECO in the Single-Leg Pillar Filing for functionality under Pillar and is Opening Auction Process would not be proposed Rule 6.64P–O(a)(5). designed to help Market Makers manage processed until after this process Execution of ECOs During Core risk. The Exchange currently requires concludes if it relates to an ECO that Trading Hours. Proposed Rule 6.91P– Market Makers to utilize certain risk was received before the process begins O(e) would describe how ECOs would controls for quoting to help mitigate risk and that any subsequent ECO Order be processed during Core Trading particularly during periods of market Instructions relating to such ECO would Hours. volatility, and would require Market be rejected. Æ Proposed Rule 6.91P–O(e)(1) would Makers to continue to use risk controls Proposed Rule 6.91P–O(d)(4)(B) on Pillar.27 Because the execution of a would provide that an ECO Order provide that once a complex strategy is multi-legged ECO is a single transaction, Instruction received during the ECO open for trading, an ECO received by the comprising discrete legs that must all Opening Auction Process would be Exchange would trade with the best- trade simultaneously, allowing ECOs processed on arrival if it relates to an priced contra-side interest as follows: with more than five legs to trade with order that was received during this • Proposed Rule 6.91P–O(e)(1)(A) the leg markets may allow a multi- process. would provide that if, at a price, the Proposed Rule 6.91P–O(d)(4) and sub- legged transaction to occur before a incoming ECO would be eligible to trade Market Maker’s risk settings would be paragraphs (A) and (B) are based on with the leg markets (e.g., not a triggered. This proposed limitation is both current Rule 7.35–E(g) and its sub- Complex Only Order), the leg markets designed to prevent such multi-legged paragraphs (1) and (2) and proposed would have first priority at that price transactions, which would help ensure Rule 6.64P–O(e) and its sub-paragraphs and would trade with the incoming ECO that Market Makers continue to provide (1) and (2) (as described in the Single- pursuant to proposed Rule 6.76AP–O liquidity and do not trade above their Leg Pillar Filing) with differences only before such incoming ECO would trade established risk tolerance levels. The to reference the proposed defined term with contra-side ECOs resting in the Exchange notes that this restriction is ECO Order Instruction and to refer to Consolidated Book at that price. This consistent with similar limits the ECO Opening Auction Process. The proposed text is based on current Rule Exchange believes that the proposed 6.91–O(a)(2)(ii) without any substantive 26 rule text would provide transparency differences. See Single-Leg Pillar Filing (describing regarding how ECO Order Instructions Minimum Trade Size or MTS Modifier in proposed • Proposed Rule 6.91P–O(e)(1)(B) Rule 6.62P–O(i)(3)(B)). that arrived during the ECO Opening 27 would provide that an ECO would not See Single-Leg Pillar Filing (describing the Auction Process would be processed. trade with orders in the leg markets activity-based controls with updated functionality Proposed Rule 6.91P–O(d)(5) would under Pillar that Market Makers would be required designated as AON or with an MTS describe the ‘‘Transition to continuous to use to manage risk in connection with their modifier. This proposed text would be quotes, per proposed Rule 6.40P–O(a)(3) and (b)(2)). trading’’ after the ECO Opening Auction new and is based in part on existing The proposed Pillar risk controls are substantively functionality and reflects the Exchange’s identical to the existing risk controls set forth in 25 See Single-Leg Pillar Filing (describing Rules 6.40–O(b)(2), (c)(2) and (d)(2) and proposed Rule 6.64P–O(d)(2)(B). proposed new MTS modifier for orders Commentary .04 to Rule 6.40–O.
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established on other options Proposed Rule 6.91P–O(e)(3) would O(c)(3) allows an order designated for exchanges.28 provide that ECOs that trade with the COA to reside on the Consolidated Book Proposed Rule 6.91P–O(e)(1)(C)(ii)– leg markets would be allocated pursuant unless or until such order meets the (iii), which treats ECOs with certain to Rule 6.76AP–O. This proposed rule is requisite pricing conditions to initiate a complex strategies as Complex Only based in part on current Rule 6.91– COA. The Exchange believes this Orders, is based in part on current Rule O(a)(2)(iii) without any substantive proposed change would simplify the 6.91–O(b)(4)(i)–(ii), with a difference differences. COA process. that currently, such so-called Execution of ECOs During a COA. Finally, as proposed, once a COA is ‘‘directional strategies’’ are rejected. The Proposed Rule 6.91P–O(f) would initiated, the Exchange would proposed handling under Pillar would describe how ECOs would trade during disseminate a Request for Response be less restrictive than the current rule a COA. The COA Process is currently message, the Response Time Interval because such strategies would not be described in Rule 6.91–O(c). Under would begin and, during such interval, rejected and is consistent with the Pillar, the Exchange proposes to the Exchange would accept RFR treatment of such complex strategies on simplify the COA process, including by Responses, including GTX ECO Orders. other options exchanges.29 As with the relying on the current DBBO for pricing, This proposed text is based on current proposal to restrict ECOs with more allowing a COA Order to initiate a COA functionality set forth in Rule 6.91–O(c), than five legs trading with the leg only on arrival, and streamlining the with non-substantive differences to use markets, this proposed restriction is also rule text describing the circumstances Pillar terminology, including using the designed to ensure that Market Maker that would cause an early end to a COA. new Pillar term for GTX ECO Orders. risk settings would not be bypassed. As proposed, a COA Order received Proposed Rule 6.91P–O(f)(2) would Because ECOs with directional when a complex strategy is open for describe the ‘‘Pricing of a COA.’’ As strategies are typically geared towards trading would initiate a COA only on proposed, a COA Order to buy (sell) an aggressive directional capture of arrival, subject to proposed Rule 6.91P– would initiate a COA at its limit price, volatility, such ECOs can represent O(f)(1) (described below). As further unless its limit price locks or crosses the significantly more risk than trading any proposed, a COA Order would be DBO (DBB), in which case it would one of the legs in isolation. As such, rejected if entered during a pre-open initiate a COA at a price equal to one because Market Maker risk settings are state or if entered during Core Trading penny ($0.01) times the smallest leg only triggered after the entire ECO Hours with a time-in-force of FOK or ratio inside the DBO (DBB) (the ‘‘COA package has traded, the Exchange GTX. This proposed order handling is initiation price’’). This proposed believes this proposed rule change based in part on current Rule 6.91– functionality utilizes the new concept of would help ensure fair and orderly O(c)(1)(ii), which requires that COA a DBBO, is consistent with current Orders be submitted during Core functionality (that relies on markets by preventing such orders Trading Hours. The proposed rejection substantively similar concept of trading with the leg markets, which of such orders during a pre-open state Complex BBO), and ensures (consistent would minimize risk to Market Makers. would be new under Pillar and is with current functionality) that interest Proposed Rule 6.91P–O(e)(2) would consistent with the Exchange’s on the leg markets maintain priority. provide that any ECO or portion thereof proposed functionality that a COA • Proposed Rule 6.91P–O(f)(2)(A) that does not trade immediately when it Order would initiate a COA only on would provide that prior to initiating a is received by the Exchange and that is arrival. In addition, the proposal would COA, a COA Order to buy (sell) would designated either Day or GTC would be clarify that COA Orders designated as trade with any ECO to sell (buy) that is ranked in the Consolidated Book FOK or GTX would be rejected, even if priced equal to or below (above) one pursuant to proposed paragraph (c) of submitted during Core Trading Hours, is penny ($0.01) times the smallest leg this Rule (regarding the priority of based on current functionality and this ratio inside the DBO (DBB) (i.e., priced ECOs), which is based on current Rule addition would add further detail and better than the leg markets) and any 6.91–O(a)(2)(iii), except that it adds clarification to the rule text. Finally, as unexecuted portion of such COA Order details regarding the time-in-force further proposed, only one COA may be would initiate a COA. This proposed modifier of the ECO, which adds clarity conducted at a time in a complex rule is based on current Rule 6.91– and transparency to the proposed Rule. strategy, which is identical to text in O(a)(2) with a difference to use the As further proposed, the Exchange current Rule 6.91–O(c)(3). Pillar concept of DBBO rather than refer would evaluate trading opportunities for Proposed Rule 6.91P–O(f)(1) would to the contra-side Complex BBO. a resting ECO when the leg markets describe the conditions required for the • Proposed Rule 6.91P–O(f)(2)(B) comprising a complex strategy update, ‘‘Initiation of a COA.’’ As proposed, to would provide that a COA Order would provided that during periods of high initiate a COA, the limit price of the not be eligible to trade with the leg message volumes, such evaluation may COA Order to buy (sell) must be higher markets until after the COA ends, which be reduced to no less than ten times per (lower) than the best-priced, same-side added detail, while not explicitly stated one (1) second. The Exchange believes ECOs resting on the Consolidated Book in the current rule, is consistent with that this proposed rule promotes and equal to or higher (lower) than the current functionality described in Rules transparency of the frequency with midpoint of the DBBO. This proposed 6.91–O(c)(7)(A) and (B) that only RFR which the Exchange would be text is based in part on current Rule Responses (i.e., GTX orders) and ECOs evaluating the leg markets for updates. 6.91–O(c)(3)(i), with a difference to add will be allocated in a COA and that the a new ‘‘midpoint of the DBBO’’ COA Order would not trade with the leg 28 See e.g., Cboe Rule 5.33(g) (providing the ECOs requirement, which is designed to markets until after the COA allocations. may be restricted from trading with the leg markets • if such ECO has more than a maximum number of facilitate price improvement Proposed Rule 6.91P–O(f)(3) would legs, which maximum the Exchange determines on opportunities for the COA Order. As set forth the conditions that would a class-by-class basis and may be two, three, or further proposed, a COA Order that does result in the ‘‘Early End to a COA’’ (i.e., four). not satisfy these pricing parameters a COA ending prior to the expiration of 29 See, e.g., Nasdaq ISE Options 3, Section 14(d)(3)(A)–(B) (proving that ECOs with these would not initiate a COA and would be the Response Time Interval). Currently, complex strategies may trade only with other processed as an ECO. This would be as described in Rule 6.91–O(c)(3), the ECOs). new under Pillar, as current Rule 6.91– Exchange takes a snapshot of the
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Complex BBO at the start of a COA and price-time priority, which would align inconsistent with just and equitable uses that snapshot as the basis for the allocation of ECOs in a COA with principles of trade. determining whether to end a COA standard processing of ECOs. ECO Risk Checks. Proposed Rule early. Under Pillar, the Exchange would Proposed Rule 6.91P–O(f)(4)(A) 6.91P–O(g) would describe the ‘‘ECO no longer use a snapshot of the Complex would provide that RFR Responses to Risk Checks,’’ which are designed to BBO as the basis for determining sell (buy) would trade in price-time help OTP Holders and OTP Firms to whether to end a COA early but would priority with a COA Order to buy (sell); effectively manage risk when trading instead rely on the DBBO (not initial provided, however, that if there is ECOs. Current Commentaries .03, .05, snapshot), which is updated as market displayed Customer interest on all legs and .06 of Rule 6.91–O set forth the conditions change (including during the of the DBB (DBO), RFR Responses to sell existing risk checks for ECOs. With the Response Time Interval).30 The (buy) would not trade below (above) one transition to Pillar, the Exchange Exchange proposes a COA would end penny ($0.01) times the smallest leg proposes to modify and enhance its early under the following conditions: ratio inside the DBB (DBO). This existing risk checks for ECOs, as Æ Proposed Rule 6.91P–O(f)(3)(A) proposed rule would ensure that the follows: would provide that a COA would end COA Order would not trade at a worse • Proposed Rule 6.91P–O(g)(1) would early if the Exchange receives an price than the leg markets and would set forth the ‘‘Complex Strategy Limit.’’ incoming ECO or COA Order to buy price improve at least a portion of the As proposed, the Exchange would (sell) in the same complex strategy that interest in the leg markets. The establish a limit on the maximum is priced higher (lower) than the proposed text is based in part on current number of new complex strategies that initiating COA Order to buy (sell), Rule 6.91–O(c)(7)(A) insofar as it may be requested to be created per which proposed text is based on current ensures that the COA Order would trade MPID, which limit would be announced Rule 6.91–O(c)(6)(B)(i) without any with the best-priced RFR Responses by Trader Update.31 As further substantive differences. Æ received in the COA and differs proposed, when an MPID reaches the Proposed Rule 6.91P–O(f)(3)(B) substantively because, as discussed limit on the maximum number of new would provide that a COA would end above, the COA Order would trade with complex strategies, the Exchange would early if the Exchange receives an RFR RFR Responses in price-time priority reject all requests to create new complex Response that crosses the same-side (and not Size Pro Rata). strategies from that MPID for the rest of DBBO, which proposed text is based on Proposed Rule 6.91P–O(f)(4)(B) would the trading day. In addition, and current Rule 6.91–O(c)(6)(A)(i), except provide that after COA allocations notwithstanding the established (as noted above) it refers to the DBBO pursuant to paragraph (f)(4)(A) of this Complex Strategy Limit, the Exchange rather than the ‘‘initial Complex BBO.’’ proposes that it may reject a request to Æ Proposed Rule 6.91P–O(f)(3)(C) proposed Rule, any unexecuted balance create a new complex strategy from any would provide that a COA would end of a COA Order (including COA Orders MPID whenever the Exchange early if the leg markets update causing designated as IOC) would be eligible to determines it is necessary in the the same-side DBBO to lock or cross (i) trade with any contra-side interest, any RFR Response(s) or (ii) if no RFR including the leg markets unless the interests of a fair and orderly market. Responses have been received, the best- COA Order is designated or treated as a This is new functionality proposed priced, contra-side ECOs. This proposed Complex Only Order. This proposed under Pillar but is conceptually similar rule is based in part on current Rule text is based on existing functionality to the Complex Order Table Cap (the 6.91–O(c)(6)(C)(i), with differences to and makes explicit that a COA Order ‘‘Cap’’), set forth in Commentary .03 to use Pillar terminology. would trade solely with complex Rule 6.91–O, which Cap (like the Æ Proposed Rule 6.91P–O(f)(3)(D) interest (and not the leg markets) during Complex Strategy Limit) is a system would provide that a COA would end a COA. This proposed rule is designed protection tool that enables the early if the leg markets update causing to provide clarity and transparency that Exchange to limit the number of the contra-side DBBO to lock or cross the remaining balance of a COA Order complex strategies available on the the COA initiation price. This proposed would be eligible to trade with the leg Exchange, which in turn improves the rule is based in part on current Rule markets after the COA ends. efficiency of the ECO process and helps 6.91–O(c)(6)(C)(ii), except that it would Proposed Rule 6.91P–O(f)(4)(C) would maintain a fair and orderly market. The refer to the DBBO and the COA provide that after a COA Order trades Exchange also notes that other options initiation price, which would be new pursuant to proposed Rule 6.91P– exchanges likewise impose a limit on 32 concepts under Pillar. O(f)(4)(B), any unexecuted balance of a new complex order strategies. • Proposed Rule 6.91P–O(f)(4) would COA Order would be processed as an set forth the ‘‘Allocation of COA ECO pursuant to paragraph (e) of this 31 The Exchange has proposed to add the Orders’’ after a COA either ends early or Rule. The proposed text is based on definition of MPID to proposed Rule 1.1, which would refer to ‘‘the identification number(s) after the expiration of the Response current Rule 6.91–O(c)(7)(B) without assigned to the orders and quotes of a single ETP Time Interval. Current Rule 6.91– any substantive differences. Holder, OTP Holder, or OTP Firm for the execution O(c)(7)(A) sets forth that the COA- Proposed Rule 6.91P–O(f)(5) would and clearing of trades on the Exchange by that eligible orders are allocated against the set forth ‘‘Prohibited Conduct related to permit holder. An ETP Holder, OTP Holder, or OTP Firm may obtain multiple MPIDs and each such best-priced interest received in the COA COAs,’’ and is based on current MPID may be associated with one or more sub- at each price on a ‘‘Size Pro-Rata Basis,’’ Commentary .04 to Rule 6.91–O without identifiers of that MPID.’’ See Single-Leg Pillar as that concept is defined in Rule 6.75– any substantive differences, and would Filing. O(f)(6). Under Pillar, the allocation of provide that a pattern or practice of 32 See, e.g., Cboe Rule 5.33 (providing, in its definition of ‘‘complex strategy’’ that Cboe ‘‘may the COA Order would be based on submitting unrelated orders that cause a limit the number of new complex strategies that COA to conclude early would be may be in the [Cboe] System at a particular time’’) 30 As discussed infra regarding proposed Rule deemed conduct inconsistent with just and MIAX Rule 518(a)(6) (providing, in its 6.91P–O(a)(6) and the definition of the Derived and equitable principles of trade and definition of ‘‘complex strategy’’ that MIAX ‘‘may BBO, ‘‘the DBBO would be updated as the limit the number of new complex strategies that Exchange’s calculation of the Exchange BBO or that dissemination of information may be in the System at a particular time and will Away Market NBBO, as applicable, is likewise related to COA Orders to third parties communicate this limitation to Members via updated’’). would also be deemed as conduct Regulatory Circular’’).
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• Proposed Rule 6.91P–O(g)(2) would evaluated for ECO Price Protection after As further proposed, there would be set forth the ECO Price Protection. The the ECO Opening Auction Process no Reference Price for an ECO if there existing ECO ‘‘Price Protection Filter’’ is concludes.37 The Exchange has is no NBBO for any leg of such ECO (i.e., set forth in Commentary .05 to current proposed similar functionality for the Exchange would not calculate a Rule 6.91–O (the ‘‘ECO Filter’’). The single-leg options.38 Complex NBB (NBO)), which text is proposed ‘‘ECO Price Protection’’ on Æ Proposed Rule 6.91P–O(g)(2)(A)(iii) based on current Rule 6.91–O, Pillar would work similarly to how the would provide that an ECO resting on Commentary .05(c), except that the current ECO price protection the Consolidated Book before a trading proposed rule would not reference mechanism functions on the Exchange halt would be reevaluated for ECO Price OPRA because, as further proposed, for because an ECO would be rejected if it Protection after the ECO Opening purposes of determining a Reference is priced a specified percentage away Auction Process concludes. The Price, the Exchange would not use an from the contra-side Complex NBB or Exchange has proposed similar adjusted NBBO (i.e., such NBBO is NBO.33 However, on Pillar, the functionality for single-leg options.39 implicitly reliant on information from Exchange proposes to use new Æ Proposed Rule 6.91P–O(g)(2)(A)(iv) OPRA).43 The Exchange notes that using thresholds and reference prices, which would provide that Cross Orders (per an unadjusted NBBO to calculate the would not only simplify the existing proposed Rule 6.62P–O(g)) and ECOs Reference Price is based on how Limit price check, but it would also align the entered on the Trading Floor would not Order Price Protection currently proposed functionality with the be subject to ECO Price Protection. The functions on the Exchange’s cash equity proposed ‘‘Limit Order Price Exchange has proposed similar market, as described in Rule 7.31– Protection’’ for single-leg interest, thus functionality for single-leg options.40 E(a)(2)(B) and is also consistent with the adding uniformity to Exchange rules.34 Æ Proposed Rule 6.91P–O(g)(2)(A)(v) proposed operation of the Limit Order Proposed Rule 6.91P–O(g)(2)(A) would provide that ECO Price Price Protection for single-leg options.44 would provide that each trading day, an Protection would not be applied if there Proposed Rule 6.91P–O(g)(2)(C) ECO to buy (sell) would be rejected or is no Reference Price for an ECO. The would set forth the ‘‘Specified cancelled (if resting) if it is priced a Exchange has proposed similar Threshold’’ used in connection with the Specified Threshold equal to or above functionality for single-leg options.41 ECO Price Protection. As proposed, the (below) the Reference Price (as Proposed Rule 6.91P–O(g)(2)(B) Specified Threshold for calculating ECO described below), rounded down to the would specify the ‘‘Reference Price’’ Price Protection would be $1.00, unless nearest penny ($0.01), subject to used in connection with the ECO Price determined otherwise by the Exchange proposed paragraphs (g)(2)(A)(i)–(v) of Protection. As proposed, the Reference and announced to OTP Holders and the Rule as described below. Because Price for calculating ECO Price OTP Firms by Trader Update. ECO Price Protection would be applied Protection for an ECO to buy (sell) The Exchange believes that the each trading day, an ECO designated would be the Complex NBO (NBB), proposed Specified Threshold of $1.00 GTC would be re-evaluated for ECO provided that, immediately following an simplifies how the Reference Price Price Protection on each day that it is ECO Opening Auction Process, the would be calculated as compared to the eligible to trade and would be cancelled Reference Price would be the ECO calculations currently specified in if the limit price is equal to or through Auction Price or, if none, the Complex Commentary .05 to Rule 6.91–O. In the Specified Threshold. In addition, NBO (NBB). The Exchange believes that addition, consistent with Commentary the rounding feature is based on how adjusting the Reference Price for ECO .05(d), the Exchange proposes that the Limit Order Price Protection is Price Protection immediately following Specified Threshold could change, calculated on the Exchange’s cash an ECO Opening Auction would ensure subject to announcing the changes by equity market if it is not within the MPV that the most up-to-date price would be Trader Update. Providing flexibility in for the security, as described in the last used to assess whether to cancel an ECO Exchange rules regarding how the sentence of Rule 7.31–E(a)(2)(B), and is that was received during a pre-open Specified Threshold would be set is consistent with the proposed operation state, including during a Trading Halt. consistent with the rules of other of the single-leg ‘‘Limit Order Price The Exchange notes this functionality is options exchanges as well as the Protection’’ functionality for options.35 consistent with the proposed operation proposed functionality for the single-leg Æ Proposed Rule 6.91P–O(g)(2)(A)(i) of the Limit Order Price Protection for Limit Order Price Protection feature.45 would provide that an ECO that arrives single-leg options.42 when a complex strategy is open for 43 See Single-Leg Pillar Filing (discussion trading would be evaluated for ECO 37 See discussion infra regarding proposed Rule regarding the proposed definition of ‘‘NBBO’’ in 6.91P–O(d), which describes the ECO Opening proposed Rule 1.1 describing that the ‘‘NBBO’’ for Price Protection on arrival. The Auction Process (or Reopening after a Trading Halt) purposes of options trading would mean the Exchange has proposed similar as well as the concepts of ECO Auction Collars and national best bid or offer and that ‘‘[u]nless functionality for single-leg options.36 ECO Auction Price. otherwise specified, the Exchange may adjust its Æ Proposed Rule 6.91P–O(g)(2)(A)(ii) 38 See Single-Leg Pillar Filing (discussion calculation of the NBBO based on information regarding proposed Rule 6.62P–O(a)(3)(A)(ii)). about orders it sends to Away Markets, execution would provide that an ECO received reports received from those Away Markets, and 39 See Single-Leg Pillar Filing (discussion certain orders received by the Exchange.’’ The during a pre-open state would be regarding proposed Rule 6.62P–O(a)(3)(A)(iii)). Exchange further proposes that the term ‘‘Away 40 See Single-Leg Pillar Filing (discussion 33 Market NBBO’’ refers to a calculation of the NBBO As noted above, the Exchange proposes to regarding proposed Rule 6.62P–O(a)(3)(A) that excludes the Exchange’s BBO’’). define the Complex NBBO as the derived national excluding Cross Orders). 44 References to the NBBO, NBB, and NBO in best bid and derived national best offer for a 41 See Single-Leg Pillar Filing (discussion Rule 7.31–E refer to using a determination of the complex strategy calculated using the NBB and regarding proposed Rule 6.62P–O(a)(3)(A)). national best bid and offer that has not been NBO for each component leg of a complex strategy. 42 See Single-Leg Pillar Filing (discussion adjusted. See Single-Leg Pillar Filing (describing See proposed Rule 6.91P–O(a)(4). regarding proposed Rule 6.62P–O(a)(3)(A) use of unadjusted NBBO for single-leg Limit Order 34 See Single-Leg Pillar Filing (proposed Rule describing that the Reference Price for Limit Order Price Protection in proposed Rule 6.62P–O(a)(3)(B)). 6.62P(a)(3) sets forth the Limit Order Price Price Protection would be adjusted immediately 45 See, e.g., Cboe Rule 5.34(b)(6) (describing the Protection Filter applicable to Limit Orders and following an Auction would ensure that the most ‘‘Drill-Through Protection’’ and that Cboe quotes). up-to-date price would be used to assess whether ‘‘determines a default buffer amount on a class-by- 35 See id. to cancel a Limit Order that was received during a class basis). See Single-Leg Pillar Filing (describing 36 See Single-Leg Pillar Filing (discussion pre-open state or would be reevaluated after a use of Trader Update to modify Specified regarding proposed Rule 6.62P–O(a)(3)(A)(i)). Trading Halt Auction). Thresholds in proposed Rule 6.62P–O (a)(3)(C)).
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• Proposed Rule 6.91P–O(g)(3) would sender would receive (pay) a net amendments to Rule 6.47A–O, regarding set forth the ‘‘Complex Strategy premium (proposed Rule 6.91P– order exposure, to add a cross-reference Protections.’’ The proposed protections O(g)(3)(B)(i)); and (ii) an ECO for a to new Pillar Rule 6.91P–O. This are based on current Rule 6.91–O, vertical spread to buy a higher (lower) proposed amendment would extend the Commentary .06, which are referred to strike put and sell a lower (higher) strike exemption from the order exposure as the ‘‘Debit/Credit Reasonability put and the ECO sender would receive requirements to COAs on Pillar.46 The Checks.’’ The Exchange believes this (pay) a net premium (proposed Rule Exchange also proposes to modify the name change is appropriate because it 6.91P–O(g)(3)(B)(ii)). The proposed reference to ‘‘Complex Order Auction more accurately conveys that the check strategy protections for vertical spreads Process (‘COA’)’’ to simply ‘‘Complex applies solely to certain complex are based on current Rule 6.91–O, Order Auction (‘COA’)’’ (i.e., removing strategies and because (as discussed Commentary .06(a)(2), except that, as the word Process) consistent with how above), the Exchange proposes to refer noted above, the proposed Rule is this concept is defined in proposed Rule simply to a ‘‘net price’’ as opposed to written from the standpoint of the 6.91P–O(a)(7). the ‘‘total net debit or credit price.’’ The expectation of the ECO sender as * * * * * proposed Pillar Complex Strategy opposed to reviewing total net debit or As discussed above, because of the Protections would function similarly to credit price of the strategy. technology changes associated with the the current Debit/Credit Reasonability Proposed Rule 6.91P–O(g)(3)(C) migration to the Pillar trading platform, Checks because erroneously priced would provide for the rejection of subject to approval of the Single-Leg erroneously-priced ‘‘Calendar spreads,’’ incoming ECOs would be rejected. Pillar Filing as well as this proposed which are defined as consisting of a leg However, rather than to refer to rule change, the Exchange will to sell a call (put) option and a leg to specified debit or credit amounts as a announce by Trader Update when rules buy a call (put) option in the same way to determine whether a given with a ‘‘P’’ modifier will become option class at the same strike price but strategy is erroneously priced, the operative and for which symbols. The with different expirations. As proposed, proposed rule would instead focus on Exchange believes that keeping existing the Exchange would reject as the expectation of the order sender and rules on the rulebook pending the full erroneously-priced: (i) An ECO for a what would result if the ECO were not migration of Pillar will reduce rejected. calendar spread to buy a call leg with a confusion because it will ensure that the As proposed, to protect an OTP shorter (longer) expiration while selling rules governing trading on the Holder or OTP Firm that sends an ECO a call leg with a longer (shorter) (each an ‘‘ECO sender’’) with the expiration and the ECO sender would Exchange’s current system will continue expectation that it would receive (or pay (receive) a net premium (proposed to be available pending the full pay) a net premium but has priced the Rule 6.91P–O(g)(3)(C)(i)); and (ii) an migration to Pillar. ECO such that the ECO sender would ECO for a calendar spread to buy a put 2. Statutory Basis instead pay (or receive) a net premium, leg with a shorter (longer) expiration The proposed rule change is the Exchange would reject any ECO that while selling a put leg with a longer consistent with Section 6(b) of the is comprised of the erroneously-priced (shorter) expiration and the ECO sender Securities Exchange Act of 1934 (the complex strategies as set forth in would pay (receive) a net premium ‘‘Act’’),47 in general, and furthers the proposed Rule 6.91P–O(g)(3)(A)–(C) and (proposed Rule 6.91P–O(g)(3)(C)(ii)). 48 described below. The proposed strategy protections for objectives of Section 6(b)(5), in Proposed Rule 6.91P–O(g)(3)(A) calendar spreads are based on current particular, because it is designed to would provide that ‘‘’All buy’ or ‘all Rule 6.91–O, Commentary .06(a)(3), prevent fraudulent and manipulative sell’ strategies’’ would be rejected as except that, as noted above, the acts and practices, to promote just and erroneously-priced if it is an ECO for a proposed Rule is written from the equitable principles of trade, to foster complex strategy where all legs are to standpoint of the expectation of the ECO cooperation and coordination with buy (sell) and it is entered at a price less sender as opposed to reviewing the total persons engaged in facilitating than one penny ($0.01) times the sum of net debit or credit price of the strategy. transactions in securities, to remove the number of options in the ratio of The Exchange has also not retained impediments to, and perfect the each leg of such strategy (e.g., a complex discretion to disable the strategy mechanism of, a free and open market strategy to buy (sell) 2 calls and buy protections for calendar spreads (as and a national market system and, in (sell) 1 put with a price less than $0.03). contained in Commentary .06(a)(3)(i) of general, to protect investors and the The proposed text is based on Rule the current Rule) because since adopting public interest. The Exchange believes 6.91–O, Commentary .06(a)(1), with no this provision in 2017, the Exchange has that proposed Rule 6.91P–O to support substantive differences, except that the never exercised this discretion and electronic complex trading on Pillar Exchange has streamlined the text and therefore has determined that such would remove impediments to and set forth the minimum price (i.e., $0.03) discretion is no longer needed. perfect the mechanism of a free and for any ‘‘all buy’’ or ‘‘all sell’’ strategies. Proposed Rule 6.91P–O(g)(3)(D) open market and a national market Proposed Rule 6.91P–O(g)(3)(B) would provide that any ECO that is not system because the proposed rule would would provide for the rejection of rejected by the complex strategy promote transparency in Exchange rules erroneously-priced ‘‘Vertical spreads,’’ protections would still be subject to the by using consistent terminology which are defined as complex strategies Price Protection Filter, per paragraph governing trading on both the that consists of a leg to sell a call (put) (g)(2) of this Rule, which proposed text Exchange’s cash equity and options option and a leg to buy a call (put) is based on Rule 6.91–O, Commentary Pillar trading platforms, thereby option in the same option class with the .06(b) without any substantive ensuring that members, regulators, and same expiration but at different strike difference. prices. As proposed, the Exchange 46 See proposed Rule 6.47A–O(iii). Consistent would reject as erroneously-priced: (i) Rule 6.47A–O: Order Exposure with the Single-Leg Pillar Filing, the Exchange also Requirements—OX proposes to replace reference to ‘‘OX’’ with ‘‘the An ECO for a vertical spread to buy a Exchange.’’ See id. (preamble). lower (higher) strike call and sell a The Exchange also proposes 47 15 U.S.C. 78f(b). higher (lower) strike call and the ECO conforming, non-substantive 48 15 U.S.C. 78f(b)(5).
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the public can more easily navigate the transparency by consolidating existing or time-in-force modifiers on Pillar and Exchange’s rulebook and better defined terms related to electronic believes that the non-substantive understand how options trading is complex trading into one section of the differences to use Pillar terminology to conducted on the Exchange. proposed rule. The Exchange believes describe the available ECO order types The Exchange believes that adding that the proposed non-substantive would promote transparency and clarity new Rule 6.91P–O with the modifier amendments to those terms currently in Exchange rules. The Exchange ‘‘P’’ to denote that this rule would be defined in Rule 6.91–O would promote believes that the proposed Complex operative for the Pillar trading platform clarity and transparency by using Pillar Only Order is not novel because it is would remove impediments to and terminology. The Exchange further based in part on the existing PNP Plus perfect the mechanism of a free and believes consolidating defined terms in order functionality as both order types open market and a national market proposed Rule 6.91P–O(a) would make only interact with other ECOs. The system by providing transparency of the proposed rule more transparent and proposed functionality on Pillar is also which rules would govern trading once easier to navigate. based on how such orders function on a symbol has been migrated to the Pillar The Exchange believes that the other options exchanges.50 In addition, platform. The Exchange similarly proposed new definition of DBBO (and the proposed ECO GTX Order uses believes that adding a preamble to related terms of DBB and DBO) would Pillar terminology to describe what is current Rule 6.91–O stating that it further remove impediments to and referred to as an ‘‘RFR Response’’ in the would not be applicable to trading on perfect the mechanism of a free and current rules, and therefore is not novel. Pillar would remove impediments to open market and a national market The Exchange believes that proposed and perfect the mechanism of a free and system because it would promote clarity new Rule 6.91P–O(c), and open market and a national market and transparency to market participants subparagraphs (2), (3), and (4), would system because it would promote regarding how the DBBO would be remove impediments to and perfect the transparency regarding which rules calculated under Pillar. The proposed mechanism of a free and open market would govern trading on the Exchange definition is not novel and is based in and a national market system because during and after the transition to Pillar. part on similarly defined terms used on the proposed rules would set forth a The Exchange believes that NYSE American and Cboe. In addition, price-time priority model for Pillar and incorporating Pillar functionality the Exchange believes that setting forth pricing requirements for ECO trading currently available on the Exchange’s additional definitions in proposed Rule that are substantively the same as the cash equity market (and recently 6.91P–O(a), including those that are Exchange’s current price-time priority proposed for single-leg options),49 for used on other options exchanges (e.g., model and pricing requirements as set trading of electronic complex orders on ‘‘complex strategy’’) and clarifying forth in Rule 6.91–O(a)(1) and its options market in proposed Rule terms (e.g., ‘‘leg’’ and ‘‘leg markets’’), Commentaries .01 and .02(i) to Rule 6.91P–O would remove impediments to would remove impediments to and 6.91–O. The Exchange believes that and perfect the mechanism of a free and perfect the mechanism of a free and proposed Rule 6.91P–O(c)(1) and open market and a national market open market and a national market subparagraphs (A) and (B) would system because the Exchange would be system because it would promote clarity remove impediments to and perfect the able to offer consistent functionality and transparency to market participants mechanism of a free and open market across both its options and cash equity regarding electronic complex trading and a national market system because trading platforms, adapted as applicable under Pillar. Finally, the proposed they would promote transparency and for trading of electronic complex orders. definition of ‘‘ECO Order Instruction’’ clarity in Exchange rules regarding how Accordingly, with the transition to would remove impediments to and ECOs would trade with the leg markets. Pillar, the Exchange will be able to offer perfect the mechanism of a free and additional features to its OTP Holders open market and a national market Execution of ECOs at the Open (or and OTP Firms that are currently system because it would incorporate for Reopening After a Trading Halt) available only on the Exchange’s cash ECOs existing Pillar order handling The Exchange believes that proposed equity platform (and recently proposed functionality in an auction that is Rule 6.91P–O(d) regarding the ECO to be available for single-leg options currently available on the Exchange’s Opening Auction Process would remove trading). For similar reasons, the cash equity platform, as described in impediments to and perfect the Exchange believes that using Pillar Rule 7.35–E(g) and is proposed for mechanism of a free and open market terminology for the proposed new rule options trading in proposed Rule 6.64P– and a national market system because would remove impediments to and O(e) and its sub-paragraphs (1) and (2) the proposed rule maintains the perfect the mechanism of a free and (as described in the Single-Leg Pillar fundamentals of an auction process that open market and a national market Filing). The Exchange similarly the Exchange currently uses for ECOs, system because it would promote proposes this functionality for the ECO as described in Rule 6.91–O(a)(2)(i)(B), consistency in the Exchange’s rules Opening Auction Process, with non- while at the same time enhancing the across both its options and cash equity substantive differences only to use an process by incorporating Pillar auction platforms. ECO-specific defined term and to refer functionality that is currently available to the ECO Opening Auction Process. on the Exchange’s cash equity platform, Definitions, Types of ECOs and Priority The Exchange believes that the and Pricing of ECOs as described in Rule 7.35–E as well as proposed types of ECOs available per proposed for single-leg options in The Exchange believes that the Rule 6.91P–O(b) would remove proposed Rule 6.64P–O. For example, proposed definitions in Rule 6.91P–O(a) impediments to and perfect the the Exchange proposes to use Pillar would remove impediments to and mechanism of a free and open market functionality to determine how to price perfect the mechanism of a free and and a national market system because it an ECO Opening Auction Process, as open market and a national market would describe the ECOs and time-in- described in proposed Rule 6.91P– system because the proposed changes force modifiers that would be available are designed to promote clarity and on Pillar, as well as specifying 50 See supra note 17 (citing Cboe Rule 5.33(a) additional ECO types. The Exchange is regarding similar Complex Only order 49 See generally the Single-Leg Pillar Filing. not proposing any new ECO order types functionality).
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O(d)(3), including using proposed ‘‘ECO execution of ECOs during Core Trading In addition, the Exchange further Auction Collars’’ and an ‘‘ECO Auction Hours, would remove impediments to believes that the proposed changes to Price,’’ which would promote and perfect the mechanism of a free and the COA process on Pillar that either transparency to market participants. The open market and a national market differ from current functionality or that Exchange also proposes to process ECOs system because the proposed would be new would remove received during an ECO Opening functionality would incorporate the impediments to and perfect the Auction Process, as described in Exchange’s existing price-time priority mechanism of a free and open market proposed Rule 6.91P–O(d)(4), and model for trading ECOs, including and national market system because: transition to continuous trading providing that the leg markets would • Requiring that a COA Order initiate following an ECO Opening Auction have priority at a price. The Exchange a COA on arrival, else [sic] be treated as Process, as described in proposed Rule believes that it would remove a standard ECO, is new under Pillar and 6.91P–O(d)(5), in a manner similar to impediments to and perfect the would provide OTP Holders and OTP how the Exchange’s cash equity market mechanism of a free and open market Firms with a higher level of processes orders that are received and national market system for ECOs transparency and determinism of when during an Auction Processing Period not to trade with orders in the leg a COA Order could initiate a COA. and transitions to continuous trading markets designated AON or with an • Making explicit that COA Orders following a cash equity Trading Halt MTS modifier (as described in the may only execute with ECOs (and not Auction, which the Exchange also Single-Leg Pillar Filing), because both the leg markets) until after the COA proposes for single-leg options in orders types are conditional. The ends is designed to make clear that proposed Rule 6.64P–O. The Exchange Exchange further believes that it would ECOs have priority during a COA. believes that using similar functionality remove impediments to and perfect the • Streamlining the rule text that for different types of auctions would mechanism of a free and open market would describe the market events that promote consistency across the and a national market system for ECOs would cause an early end to a COA Exchange’s options and cash equity to trade as Complex Only Orders (rather under Pillar would simplify the COA trading platforms. Because the Exchange than be rejected as they would under process and would provide OTP would be harnessing Pillar technology current rules) if they have a complex Holders and OTP Firms with a higher to support the ECO Opening Auction strategy that could result in a Market level of transparency and determinism Process for electronic complex options Maker breaching their established risk regarding the handling of COA Orders. trading, the Exchange believes that settings.51 This proposed process is also structuring proposed Rule 6.91P–O(d) consistent with the treatment of similar ECO Risk Checks based on Rule 7.35–E and proposed ECOs on other options markets.52 The The Exchange believes that proposed Rule 6.64P–O would promote Exchange further believes that it would Rule 6.91P–O(g), setting forth ECO Risk transparency in the Exchange’s trading remove impediments to and perfect the Checks, would remove impediments to rules. mechanism of a free and open market and perfect the mechanism of a free and The Exchange further believes that the and a national market system to specify open market and a national market proposed Rules 6.91P–O(d)(1) and (2), the frequency with which the Exchange system and promote just and equitable which describe when the Exchange would evaluate trading opportunities for principles of trade because the proposed would initiate an ECO Opening Auction an ECO with the leg markets update functionality would incorporate existing Process and which ECOs would be because it would promote clarity and risk controls, without any substantive eligible to trade in that process, would transparency in Exchange rules. differences. The Exchange further remove impediments to and perfect the Execution of ECOs During a COA believes that the proposed changes to mechanism of a free and open market ECO Risk Checks on Pillar that either The Exchange believes that proposed and a national market system because differ from current functionality or Rule 6.91P–O(f), setting forth the they would provide clarity and would be new would remove execution of ECOs during a COA, would transparency of the conditions required impediments to and perfect the remove impediments to and perfect the before the Exchange would initiate an mechanism of a free and open market mechanism of a free and open market ECO Opening Auction Process. The and national market system because: and a national market system and Exchange further believes that those • The Exchange believes that the new promote just and equitable principles of conditions are not novel and are based Complex Strategy Limit (which is on existing conditions specified in Rule trade because the proposed conceptually similar to the Complex 6.91–O(a)(2)(i)(A) and (B), with functionality would both incorporate Order Table Cap under the current Rule) additional specificity designed to existing functionality to provide that would operate as a system protection promote clarity and transparency. COA Orders would trade solely with tool that enables the Exchange to limit Accordingly, the Exchange believes that other ECOs (and not the leg markets) the number of complex strategies the ECO Opening Auction Process for during the auction and that a COA available on the Exchange, which in ECOs trading on Pillar would remove Auction would be allocated on price- turn would improve the efficiency of the impediments to and perfect the time priority, which is consistent with ECO process and helps maintain a fair mechanism of a free and open market the Exchange’s priority scheme. The and orderly market. The proposed limits and a national market system because Exchange believes the proposed rule are not novel and are based on limits the proposed process is based on the would add clarity and transparency to imposed by other options exchanges on current opening process, including that OTP Holders and OTP Firms utilizing new complex order strategies.53 orders would be matched based on the COA process. • The proposed ECO Price Protection price-time priority at a price at which on Pillar would work similarly to how the maximum volume can be traded. 51 See discussion infra regarding rationale for proposed Rule 6.91P–O(e) to restrict certain ECOs the current ECO price protection Execution of ECOs During Core Trading from executing as a package and bypassing Market Hours Maker risk settings. 53 See supra note 32 (citing Cboe Rule 5.33(a) and 52 See supra notes 28 and 29 (citing to Cboe Rule MIAX Rule 518(a)(6) regarding each exchange’s The Exchange believes that proposed 5.33(g) and Nasdaq ISE Options 3, Section ability to limit the number of new complex Rule 6.91P–O(e), setting forth the 14(d)(3)(A)–(B) regarding similar functionality. strategies in their systems at any particular time).
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mechanism functions on the Exchange B. Self-Regulatory Organization’s (A) By order approve or disapprove because an ECO would be rejected if it Statement on Burden on Competition the proposed rule change, or is priced a specified percentage away The Exchange does not believe that (B) institute proceedings to determine from the contra-side Complex NBB or whether the proposed rule change 54 the proposed rule change will impose NBO. The Exchange believes that the any burden on competition that is not should be disapproved. proposed differences on Pillar, to use necessary or appropriate in furtherance new thresholds and reference prices, IV. Solicitation of Comments of the purposes of the Act. The would not only simplify the existing Exchange operates in a competitive Interested persons are invited to price check, but it would also align the market and regularly competes with submit written data, views, and proposed functionality with the other options exchanges for order flow. arguments concerning the foregoing, proposed ‘‘Limit Order Price The Exchange believes that the including whether the proposed rule Protection’’ for single-leg interest, thus transition to Pillar for trading of ECOs change is consistent with the Act. adding uniformity to Exchange rules.55 on its options trading platform would Comments may be submitted by any of • The proposed Pillar Complex the following methods: Strategy Protections would function promote competition among options similarly to the current Debit/Credit exchanges by offering a low-latency, Electronic Comments deterministic trading platform. The Reasonability Checks because • Use the Commission’s internet proposed rule changes would support erroneously priced incoming ECOs comment form (http://www.sec.gov/ that inter-market competition by would be rejected. The Exchange rules/sro.shtml); or believes that the non-substantive allowing the Exchange to offer • additional functionality to its OTP Send an email to rule-comments@ differences to focus on the expectation sec.gov. Please include File Number SR– of the ECO sender and what would Holders and OTP Firms, thereby potentially attracting additional order NYSEARCA–2021–68 on the subject result if the ECO were not rejected line. rather than refer to specified debit or flow to the Exchange. Otherwise, the credit amounts as a way to determine proposed changes are not designed to Paper Comments address any competitive issues, but whether a given strategy is erroneously • Send paper comments in triplicate rather to amend the Exchange’s rules priced would remove impediments to to Secretary, Securities and Exchange relating to trading of ECOs to support and perfect the mechanism of a free and Commission, 100 F Street NE, the transition to Pillar. As discussed in open market system because it would Washington, DC 20549–1090. promote clarity and transparency in detail above, with this rule filing, the Exchange rules. Exchange is not proposing to change its All submissions should refer to File core functionality regarding the Number SR–NYSEARCA–2021–68. This Rule 6.47A–O treatment of ECOs. Rather, the Exchange file number should be included on the The Exchange believes that the believes that the proposed rule changes subject line if email is used. To help the proposed non-substantive change to would promote consistent use of Commission process and review your Rule 6.47A–O to update references to terminology to support options (both comments more efficiently, please use ‘‘COA’’ (versus COA Process) and ‘‘the single-leg and complex) and cash equity only one method. The Commission will Exchange,’’ to delete reference to ‘‘OX,’’ trading on the Exchange, making the post all comments on the Commission’s and add the reference to Rule 6.91P–O Exchange’s rules easier to navigate. The internet website (http://www.sec.gov/ would remove impediments to and Exchange does not believe that the rules/sro.shtml). Copies of the perfect the mechanism of a free and proposed rule changes would raise any submission, all subsequent open market and a national market intra-market competition as the amendments, all written statements system and, in general, protect investors proposed rule changes would be with respect to the proposed rule and the public interest because the applicable to all OTP Holders and OTP change that are filed with the proposed conforming changes would Firms, and reflects the Exchange’s Commission, and all written add clarity, transparency and existing treatment of ECOs, without communications relating to the consistency to the Exchange’s rules. The proposing any material substantive proposed rule change between the Exchange believes that market changes. Commission and any person, other than participants would benefit from the those that may be withheld from the increased clarity, thereby reducing C. Self-Regulatory Organization’s public in accordance with the potential confusion. Similarly, the Statement on Comments on the provisions of 5 U.S.C. 552, will be Exchange believes that adding a cross- Proposed Rule Change Received From available for website viewing and reference to proposed Rule 6.91P–O Members, Participants, or Others printing in the Commission’s Public would remove impediments to and No written comments were solicited Reference Room, 100 F Street NE, perfect the mechanism of a free and or received with respect to the proposed Washington, DC 20549, on official open market and a national market rule change. business days between the hours of system because it would promote clarity 10:00 a.m. and 3:00 p.m. Copies of the and transparency of which Pillar rules III. Date of Effectiveness of the filing also will be available for would be eligible for the exception Proposed Rule Change and Timing for inspection and copying at the principal specified in that Rule. Commission Action office of the Exchange. All comments Within 45 days of the date of received will be posted without change. 54 As noted above, the Exchange proposes to publication of this notice in the Federal Persons submitting comments are define the Complex NBBO as the derived national Register or up to 90 days (i) as the cautioned that we do not redact or edit best bid and derived national best offer for a complex strategy calculated using the NBB and Commission may designate if it finds personal identifying information from NBO for each component leg of a complex strategy. such longer period to be appropriate comment submissions. You should See proposed Rule 6.91P–O(a)(4). and publishes its reasons for so finding submit only information that you wish 55 See Single-Leg Pillar Filing (proposed Rule or (ii) as to which the self-regulatory to make available publicly. All 6.62P(a)(3) sets forth the Limit Order Price Protection Filter applicable to Limit Orders and organization consents, the Commission submissions should refer to File quotes). will: Number SR–NYSEARCA–2021–68, and
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should be submitted on or before DEPARTMENT OF STATE identified in the report submitted August 31, 2021. pursuant to Section 2(a) of the Act: For the Commission, by the Division of [Public Notice 11493] Asa’ib Ahl al-Haq (AAH) (Iraq) and Trading and Markets, pursuant to delegated any successor, sub-unit, or subsidiary authority.56 Imposition of Nonproliferation thereof; Measures Against Foreign Persons, J. Matthew DeLesDernier, Including a Ban on U.S. Government Kata’ib Hezbollah (Iraq) and any Assistant Secretary. Procurement successor, sub-unit, or subsidiary [FR Doc. 2021–16967 Filed 8–9–21; 8:45 am] thereof; AGENCY BILLING CODE 8011–01–P : Bureau of International Asia-Invest LLC (Russia) and any Security and Nonproliferation, successor, sub-unit, or subsidiary Department of State. thereof; ACTION: Notice. Charter Green Light Moscow (CGLM) DEPARTMENT OF STATE SUMMARY: A determination has been (Russia) and any successor, sub-unit, or made that a number of foreign persons subsidiary thereof; [Public Notice: 11491] have engaged in activities that warrant NPP Pulsar LLC (Russia) and any the imposition of measures pursuant to successor, sub-unit, or subsidiary Foreign Affairs Policy Board Charter Section 3 of the Iran, North Korea, and thereof; Renewal Syria Nonproliferation Act. The Act Ayman Al Sabbagh Trading (Syria) provides for penalties on foreign entities and any successor, sub-unit, or ACTION: Notice of renewal of the charter and individuals for the transfer to or subsidiary thereof; of the Foreign Affairs Policy Board. acquisition from Iran since January 1, Lebanese Hizballah (Syria) and any 1999; the transfer to or acquisition from successor, sub-unit, or subsidiary SUMMARY: Pursuant to the Federal Syria since January 1, 2005; or the thereof; Advisory Committee Act, the transfer to or acquisition from North Department of State hereby provides Korea since January 1, 2006, of goods, Wael Issa Trading Establishment notice of the renewal of the charter of services, or technology controlled under (Syria) and any successor, sub-unit, or the Foreign Affairs Policy Board (‘‘the multilateral control lists (Missile subsidiary thereof. Board’’). The Foreign Affairs Policy Technology Control Regime, Australia Accordingly, pursuant to Section 3 of Board provides the Secretary of State Group, Chemical Weapons Convention, the Act, the following measures are with advice, feedback, and perspectives Nuclear Suppliers Group, Wassenaar imposed on these persons: from a diverse array of experts to Arrangement) or otherwise having the 1. No department or agency of the advance the Department’s mission and potential to make a material U.S. government may procure or enter help root American foreign policy in the contribution to the development of into any contract for the procurement of needs and aspirations of the American weapons of mass destruction (WMD) or any goods, technology, or services from people. The Board’s activities are cruise or ballistic missile systems. The these foreign persons, except to the advisory only. latter category includes (a) items of the extent that the Secretary of State same kind as those on multilateral lists otherwise may determine; FOR FURTHER INFORMATION CONTACT: but falling below the control list Designated Federal Officer Jennifer R. parameters when it is determined that 2. No department or agency of the Littlejohn in the Office of Policy such items have the potential of making U.S. government may provide any Planning, U.S. Department of State, at a material contribution to WMD or assistance to these foreign persons, and email: [email protected]. cruise or ballistic missile systems, (b) these persons shall not be eligible to items on U.S. national control lists for participate in any assistance program of SUPPLEMENTARY INFORMATION: The Board WMD/missile reasons that are not on the U.S. government, except to the is established under the general multilateral lists, and (c) other items extent that the Secretary of State authority of the Secretary of State and with the potential of making such a otherwise may determine; the Department of State as set forth in material contribution when added 3. No U.S. government sales to these Title 22 of the United States Code, in through case-by-case decisions. foreign persons of any item on the particular Section 2656 of that Title and DATES: July 29, 2021. United States Munitions List are consistent with the Federal Advisory FOR FURTHER INFORMATION CONTACT: permitted, and all sales to these persons Committee Act. On general issues: Pam Durham, Office of of any defense articles, defense services, Authority: 5 U.S.C. Appendix, 41 CFR Missile, Biological, and Chemical or design and construction services 102–3.65. Nonproliferation, Bureau of under the Arms Export Control Act are terminated; and Salman Ahmed, International Security and Nonproliferation, Department of State, 4. No new individual licenses shall be Director, Office of Policy Planning, Telephone (202) 647–4930. For U.S. granted for the transfer to these foreign Department of State. Government procurement ban issues: persons of items the export of which is [FR Doc. 2021–16987 Filed 8–9–21; 8:45 am] Eric Moore, Office of the Procurement controlled under the Export Control BILLING CODE 4710–10–P Executive, Department of State, Reform Act of 2018 or the Export Telephone: (703) 875–4079. Administration Regulations, and any SUPPLEMENTARY INFORMATION: On July existing such licenses are suspended. 29, 2021, the U.S. Government applied These measures shall be implemented the measures authorized in Section 3 of by the responsible departments and the Iran, North Korea, and Syria agencies of the U.S. government and Nonproliferation Act (Pub. L. 109–353) will remain in place for two years from 56 17 CFR 200.30–3(a)(12). against the following foreign persons the effective date, except to the extent
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that the Secretary of State may Commerce Commission (ICC) as a DEPARTMENT OF TRANSPORTATION subsequently determine otherwise. working group to facilitate private- Federal Aviation Administration Choo S. Kang, sector solutions and provide recommendations to the ICC (and now Acting Assistant Secretary for International [Docket No. FAA–2021–0678] Security and Nonproliferation. the Surface Transportation Board Agency Information Collection [FR Doc. 2021–16971 Filed 8–9–21; 8:45 am] (Board)) on matters affecting rail grain Activities: Requests for Comments; BILLING CODE 4710–25–P car availability and transportation. Nat’l Grain Car Supply—Conference of Clearance of a Renewed Approval of Interested Parties, EP 519 (ICC served Information Collection: Part 135— Jan. 7, 1994). Operating Requirements: Commuter SURFACE TRANSPORTATION BOARD and On-Demand Operations and Rules The general purpose of this meeting is Release of Waybill Data Governing Persons on Board such to discuss rail carrier preparedness to Aircraft The Surface Transportation Board has transport the 2021 grain harvest. Agenda received a request from Neville Peterson items include the following: Remarks by AGENCY: Federal Aviation LLP on behalf of Trinity Industries, Inc. NGCC Chair Jarad Farmer, Board Administration (FAA), Transportation (WB21–53—8/4/21) for permission to Chairman Martin J. Oberman, Board (DOT). use select data from the Board’s 2019 Vice Chairman and NGCC Co-Chair ACTION: Notice and request for Masked Carload Waybill Sample. A Robert E. Primus, and Board Members comments. copy of this request may be obtained Ann D. Begeman, Patrick J. Fuchs, and SUMMARY: In accordance with the from the Board’s website under docket Michelle A. Schultz; reports by member Paperwork Reduction Act of 1995, FAA no. WB21–53. groups on expectations for the The waybill sample contains invites public comments about our upcoming harvest, domestic and foreign intention to request the Office of confidential railroad and shipper data; markets, the supply of rail cars, and rail therefore, if any parties object to these Management and Budget (OMB) service; and market and industry approval to renew an information requests, they should file their updates. The full agenda will be posted objections with the Director of the collection. The collection involves on the Board’s website at https:// Board’s Office of Economics within 14 requirements for Air Carrier/ calendar days of the date of this notice. prod.stb.gov/resources/stakeholder- Commercial Operators. This collection The rules for release of waybill data are committees/grain-car-council. involves both recordkeeping and codified at 49 CFR 1244.9. The meeting will be conducted recording requirements for Air Carrier/ Contact: Alexander Dusenberry, (202) pursuant to the Federal Advisory Commercial Operators. The information 245–0319. Committee Act, 5 U.S.C. app. 2; Federal to be collected shows compliance with Advisory Committee Management, 41 the requirements of the Air Carrier’s Jeffrey Herzig, Certificate. Clearance Clerk. CFR part 102–3; the NGCC charter; and Board procedures. DATES: Written comments should be [FR Doc. 2021–17042 Filed 8–9–21; 8:45 am] submitted by October 12, 2021. BILLING CODE 4915–01–P Public Attendance: This meeting is open to the public via Zoom, but ADDRESSES: Please send written members of the public who wish to comments: SURFACE TRANSPORTATION BOARD attend this meeting must register in By Electronic Docket: www.regulations.gov (Enter docket [Docket No. EP 519 (Sub-No. 4)] advance of the meeting. The registration link is provided on the Board’s website number into search field). By mail: Sandra Ray, 1187 Thorn Run Notice of National Grain Car Council at https://prod.stb.gov/resources/ Meeting Road, Suite 200, Coraopolis, PA 15108. stakeholder-committees/grain-car- By fax: 412–239–3063. council. Registrations will be accepted AGENCY: Surface Transportation Board. FOR FURTHER INFORMATION CONTACT: on a space-available basis. ACTION: Notice of National Grain Car Sandra Ray by email at: Sandra.ray@ Council meeting. Public Comments: Members of the faa.gov; phone: 412–329–3088. public may submit written comments to SUPPLEMENTARY INFORMATION: Title 49 SUMMARY: Notice is hereby given of a the NGCC at any time. Comments U.S.C., section 44702 authorizes meeting of the National Grain Car should be addressed to Michael Small, issuance of air carrier operating Council (NGCC), pursuant to the Federal Designated Federal Officer for the certificates. 14 CFR part 135 prescribes Advisory Committee Act. NGCC, at [email protected]. Any requirement for Air Carrier/Commercial DATES: The meeting will be held on further communications about this Operators. The information to be Thursday, August 26, 2021, beginning at meeting will be announced through the collected shows compliance and 1:00 p.m. (CDT), and is expected to Board’s website, www.stb.gov. applicant eligibility. conclude at 5:00 p.m. (CDT). Decided: August 4, 2021. Public Comments Invited: You are ADDRESSES: The meeting will be held asked to comment on any aspect of this virtually via Zoom. See Supplementary By the Board, Scott M. Zimmerman, Acting information collection, including (a) Information for registration details. Director, Office of Proceedings. Whether the proposed collection of FOR FURTHER INFORMATION CONTACT: Kenyatta Clay, information is necessary for FAA’s Michael Small at (202) 245–0381 or Clearance Clerk. performance; (b) the accuracy of the [email protected]. Assistance for [FR Doc. 2021–16983 Filed 8–9–21; 8:45 am] estimated burden; (c) ways for FAA to the hearing impaired is available BILLING CODE 4915–01–P enhance the quality, utility and clarity through the Federal Relay Service at of the information collection; and (d) (800) 877–8339. ways that the burden could be SUPPLEMENTARY INFORMATION: The NGCC minimized without reducing the quality was established by the Interstate of the collected information. The agency
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will summarize and/or include your October 8, 2021. A detailed agenda will II. Agenda comments in the request for OMB’s be posted on the Task Force’s website, _ At the meeting, the agenda will cover clearance of this information collection. at https://www.faa.gov/regulations the following topics: OMB Control Number: 2120–0039. policies/rulemaking/committees/ • Welcome/Opening Remarks Title: Part 135—Operating documents/index.cfm/committee/ • Requirements: Commuter and on- browse/committeeID/797, 15 days in Approval of Previous Meeting Minutes Demand Operations and Rules advance of the meeting. • Governing Persons on Board such Subcommittee Presentations DATES: The meeting will be held on • Aircraft. Review of Action Items October 8, 2021, from 9:00 a.m.–3:30 • Form Numbers: N/A. Closing Remarks Type of Review: Renewal of an p.m. Eastern Daylight Time. Requests A detailed agenda will be posted on information collection. for accommodations to a disability must the YIATF internet website address Background: Title 49 U.S.C., section be received by September 29, 2021. listed in the ADDRESSES section at least 44702 authorizes issuance of air carrier Requests to submit written materials to 15 days in advance of the meeting. operating certificates. 14 CFR part 135 be reviewed during the meeting must be Copies of the meeting minutes will also prescribes requirement for Air Carrier/ received no later than September 29, be available on the YIATF internet Commercial Operators. Each operator 2021. website. which seeks to obtain, or is in ADDRESSES: The meeting will be held III. Public Participation possession of, an air carrier or FAA virtually. Members of the public who The meeting will be open to the operating certificate must comply with wish to observe the virtual meeting may public and livestreamed. Members of the requirements of 14 CFR part 135 in access the event live on the FAA’s the public who wish to observe the order to maintain data which is used to Twitter, Facebook and YouTube virtual meeting can access the determine if the carrier is operating in channels. For copies of meeting minutes livestream on the FAA social media accordance with minimum safety along with all other information, please platforms listed in the ADDRESSES standards. Air carrier and commercial visit the YIATF internet website at section on the day of the event. operator certification is completed in https://www.faa.gov/regulations_ The U.S. Department of accordance with 14 CFR part 119. Part policies/rulemaking/committees/ Transportation is committed to 135 contains operations and documents/index.cfm/committee/ providing equal access to this meeting maintenance requirements. browse/committeeID/797. Respondents: Approximately 1,903 for all participants. If you need operators. FOR FURTHER INFORMATION CONTACT: Ms. alternative formats or services because Frequency: As required by regulation. Aliah Duckett, Federal Aviation of a disability, such as sign language, Estimated Average Burden per Administration, by email at interpretation, or other ancillary aids, Response: Varies per requirement. [email protected] or phone please contact the person listed in the Estimated Total Annual Burden: at 202–267–8361. Any committee- FOR FURTHER INFORMATION CONTACT 1,356,461 Hours. related request should be sent to the section. person listed in this section. The FAA is not accepting oral Issued in Washington, DC on August 4, presentations at this meeting due to 2021. SUPPLEMENTARY INFORMATION: time constraints. However, the public Sandra L. Ray, I. Background may present written statements to the Aviation Safety Inspector, AFS–260. Task Force by providing a copy to the [FR Doc. 2021–16958 Filed 8–9–21; 8:45 am] The FAA established the Task Force Designated Federal Officer via the email BILLING CODE 4910–13–P by charter on October 3, 2019, under listed in the FOR FURTHER INFORMATION Public Law 115–254. The Task Force is CONTACT section. required by statute to develop and DEPARTMENT OF TRANSPORTATION provide independent recommendations Issued in Washington, DC. and strategies to the FAA Administrator Angela O. Anderson, Federal Aviation Administration to: (1) Facilitate and encourage high Director, Regulatory Support Division, Office school students in the United States to of Rulemaking, Federal Aviation Rescheduling of Meeting of the Youth enroll in and complete career and Administration. Access to American Jobs in Aviation technical education courses, including [FR Doc. 2021–16989 Filed 8–9–21; 8:45 am] Task Force science, technology, engineering, and BILLING CODE 4910–13–P AGENCY: Federal Aviation mathematics (STEM), that will prepare Administration (FAA), Department of them to pursue a course of study related Transportation. to an aviation career at an institution of DEPARTMENT OF TRANSPORTATION higher education, a community college, ACTION: Notice of new date and time for Pipeline and Hazardous Materials or trade school; (2) facilitate and public meeting, previously scheduled Safety Administration for September 13, 2021, 9:00 a.m.–3:30 encourage these students to enroll in a p.m. EDT. course of study related to an aviation [Docket No. PHMSA–2021–0055 (Notice No. career, including aviation 2021–06)] SUMMARY: The Federal Aviation manufacturing, engineering and Administration has rescheduled the maintenance, at an institution of higher Hazardous Materials: Information virtual meeting of the Youth Access to education, including a community Collection Activities American Jobs in Aviation Task Force college or trade school; and (3) identify AGENCY: Pipeline and Hazardous (YIATF) previously scheduled for and develop pathways for students to Materials Safety Administration September 13, 2021. The meeting secure registered apprenticeships, (PHMSA), Transportation (DOT). notice, published in the Federal workforce development programs, or ACTION: Notice and request for Register on July 7, 2021, is being careers in the aviation industry of the comments. reissued and will now be held on United States.
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SUMMARY: In accordance with the current reporting levels or adjustments (3) Applications for Special Permit: Paperwork Reduction Act of 1995, this based on changes in proposed or final Any person applying for a special notice announces that the Information rules published since the information permit must include the citation of the Collection Requests (ICRs) discussed collections were last approved. The specific regulation from which the below will be forwarded to the Office of following information is provided for applicant seeks relief; specification of Management and Budget for renewal each information collection: (1) Title of the proposed mode or modes of and extension. These ICRs describe the the information collection, including transportation; detailed description of nature of the information collections former title if a change is being made; the proposed special permit (e.g., and their expected burdens. (2) OMB control number; (3) summary alternative packaging, test, procedure, or DATES: Interested persons are invited to of the information collection activity; (4) activity), including as appropriate, submit comments on or before description of affected public; (5) written descriptions, drawings, flow September 9, 2021. estimate of total annual reporting and charts, plans and other supporting recordkeeping burden; and (6) documents, etc. Under this OMB control ADDRESSES: Written comments and frequency of collection. PHMSA will number, applicants may apply for a new recommendations for the proposed request a 3-year term of approval for special permit, renew or modify an information collection should be sent each information collection activity and existing special permit, or request party within 30 days of publication of this will publish a notice in the Federal status to a special permit. These notice to www.reginfo.gov/public/do/ Register upon OMB’s approval. procedures can be found in part 107, PRAMain. Find this particular A notice and request for comments subpart B of the HMR. information collection by selecting with a 60-day comment period on these (4) Applications for Preemption ‘‘Currently under 30-day Review—Open ICRs was published in the Federal Determination: With the exception of for Public Comments’’ or by using the Register on May 18, 2021, [86 FR 27009] highway routing matters covered under search function. under Docket No. PHMSA–2021–0055 49 U.S.C. 5125(c), any person directly We invite comments on: (1) Whether (Notice No. 2021–04). PHMSA did not affected by any requirement of a state, the proposed collection of information receive any comments in response to political subdivision, or Native is necessary for the proper performance this notice. American tribe may apply to the Chief of the functions of the Department, PHMSA requests comments on the Counsel for a determination whether including whether the information will following information collections: that requirement is preempted by have practical utility; (2) the accuracy of Title: Rulemaking, Special Permits, § 107.202(a), (b), or (c). The application the Department’s estimate of the burden and Preemption Requirements. must include the text of the state, of the proposed information collection; OMB Control Number: 2137–0051. political subdivision, or Native (3) ways to enhance the quality, utility, Summary: This information collection American tribe requirement for which and clarity of the information to be applies to procedures for requesting the determination is sought; specify collected; and (4) ways to minimize the changes, exceptions, and other each requirement of the federal burden of the collection of information determinations in relation to the HMR. hazardous materials transportation law, on respondents, including the use of Specific areas covered in this regulations issued under the federal automated collection techniques or information collection include part 105, hazardous material transportation law, other forms of information technology. subparts A and B, ‘‘Hazardous Materials or hazardous material transportation Docket: For access to the dockets to Program Definitions and General security regulations or directives issued read background documents or Procedures’’; part 106, subpart B, by the Secretary of Homeland Security comments received, go to http:// ‘‘Participating in the Rulemaking with which the applicant seeks the www.regulations.gov. Process’’; part 107, subpart B, ‘‘Special state, political subdivision, or Native Permits’’; and part 107, subpart C, FOR FURTHER INFORMATION CONTACT: American tribe requirement to be Steven Andrews or Shelby Geller, ‘‘Preemption.’’ The Federal hazardous compared; explain why the applicant Standards and Rulemaking Division, materials transportation law directs the believes the state, political subdivision, (202) 366–8553, [email protected], Secretary of Transportation to prescribe or Native American tribe requirement Pipeline and Hazardous Materials Safety regulations for the safe transportation of should or should not be preempted Administration, U.S. Department of hazardous materials in commerce. under the standards of § 107.202; and Transportation, 1200 New Jersey PHMSA is authorized to accept state how the applicant is affected by Avenue SE, Washington, DC 20590– petitions for rulemaking and appeals, as the state, political subdivision, or Native 0001. well as applications for special permits, American tribe requirement. preemption determinations, and waivers (5) Waivers of Preemption: With the SUPPLEMENTARY INFORMATION: Section of preemption. The types of information exception of requirements preempted 1320.8(d), title 5, Code of Federal collected include: under 49 U.S.C. 5125(c), any person Regulations (CFR) requires PHMSA to (1) Petitions for Rulemaking: Any may apply to the Chief Counsel for a provide interested members of the person may petition PHMSA to add, waiver of preemption with respect to public and affected agencies an amend, or delete a regulation in parts any requirement that: (1) The state, opportunity to comment on information 110, 130, 171 through 180, or may political subdivision thereof, or Native collection and recordkeeping requests. petition the Office of the Chief Counsel American tribe acknowledges to be This notice identifies information to add, amend, or delete a regulation in preempted under the federal hazardous collection requests that PHMSA will be parts 105, 106, or 107. Petitions materials transportation law, or (2) has submitting to the Office of Management submitted to PHMSA are required to been determined by a court of and Budget (OMB) for renewal and contain information as specified in competent jurisdiction to be so extension. These information § 106.100 of the HMR. preempted. The Chief Counsel may collections are contained in 49 CFR (2) Appeals: Except as provided in waive preemption with respect to such 171.6 of the Hazardous Materials § 106.40(e), any person may submit an requirement upon a determination that Regulations (HMR; 49 CFR parts 171– appeal to our actions in accordance with such requirement affords an equal or 180). PHMSA has revised burden the Appeals procedures found in greater level of protection to the public estimates where appropriate to reflect §§ 106.110 through 106.130. than is afforded by the requirements of
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the federal hazardous materials and for reconsideration of rulemakings whether the requested relief provides transportation law or the regulations are covered in subpart B of part 106. for a comparable level of safety as issued thereunder, and does not Applications for special permits, provided by the HMR. Additionally, unreasonably burden commerce. preemption, determinations, and PHMSA uses information from The information collected under these waivers of preemption are covered preemption procedures to determine application procedures is used in the under subparts B and C of part 107. whether a requirement of a state, review process by PHMSA in Rulemaking procedures help PHMSA political subdivision, or Indian tribe is determining the merits of the petitions determine whether a regulatory change preempted under 49 U.S.C. 5125, or for rulemakings and for reconsideration is necessary, is consistent with public regulations issued thereunder, or of rulemakings, as well as applications interest, and maintains a level of safety whether a waiver of preemption should for special permits, preemption equal to or superior to that of current be issued. The following information determinations, and waivers of regulations. Special permit procedures collections and their burdens are preemption to the HMR. The procedures provide the information required for associated with this OMB Control governing these petitions for rulemaking analytical purposes to determine Number:
Annual Annual Time per Annual Information collection respondents responses response burden hours
Petition for Rulemaking ...... 20 20 8 hours ...... 160 New Special Permit Application ...... 168 168 7 hours ...... 1,176 Party Status Special Permit Application ...... 576 576 1.5 hours ...... 864 Renewal Special Permit Application ...... 936 936 1.5 hours ...... 1,404 Modification Special Permit Application ...... 132 132 1 hour ...... 132 Special Permit Application—Recordkeeping ...... 1,852 1,852 6 minutes ...... 185 Designated Agent for Special Permit Application ...... 100 100 2 hours ...... 200 Confidential Handling for Special Permit Application ...... 31 31 15 minutes ..... 7.75 Preemption ...... 2 2 60 hours ...... 120 Preemption Reconsideration ...... 1 1 30 hours ...... 30
Affected Public: Shippers, carriers, Summary: Provisions in if the travel time will exceed the safe packaging manufacturers, and other § 177.840(a)(2) specify certain safety travel time. These requirements are affected entities. procedures and documentation intended to ensure a high level of safety Annual Reporting and Recordkeeping requirements for drivers of motor when transporting flammable Burden: vehicles transporting flammable cryogenics due to their extreme Number of Respondents: 3,818. cryogenic liquids. This information flammability and high compression Total Annual Responses: 3,818. allows the driver to take appropriate ratio when in a liquid state. The Total Annual Burden Hours: 4,278.75. remedial actions to prevent a following information collections and Frequency of Collection: On occasion. catastrophic release of the flammable their burdens are associated with this Title: Flammable Cryogenic Liquids. cryogenics should the temperature of OMB Control Number: OMB Control Number: 2137–0542. the material begin to rise excessively or
Annual Annual Time per Annual Information collection respondents responses response burden hours
Flammable Cryogenic Liquids ...... 175 18,200 3.5 minutes .... 1,062 Flammable Cryogenic Liquids—Recordkeeping ...... 175 18,200 30 seconds .... 152
Affected Public: Carriers of cryogenic Title: Response Plans for Shipments amended by the Oil Pollution Act of materials. of Oil. 1990 (33 U.S.C. 1251 et seq.), PHMSA Annual Reporting and Recordkeeping OMB Control Number: 2137–0591. issued regulations in 49 CFR part 130 Burden: Summary: In recent years, several that require preparation of basic written Number of Respondents: 350. major oil discharges damaged the spill response plans. The following Total Annual Responses: 36,400. marine environment of the United information collections and their Total Annual Burden Hours: 1,214. States. Under authority of the Federal burdens are associated with this OMB Frequency of Collection: On occasion. Water Pollution Control Act, as Control Number:
Annual Annual Time per Annual Information collection respondents responses response burden hours
Basic Written Response Plan—New Plans ...... 80 80 33 hours ...... 2,640 Basic Written Response Plan—Updating Plans ...... 7,920 7,920 1 hour ...... 7,920
Affected Public: Carriers that Number of Respondents: 8,000. Title: Requirements for United transport oil in bulk, by motor vehicle Total Annual Responses: 8,000. Nations (UN) Cylinders. or rail. OMB Control Number: 2137–0621. Total Annual Burden Hours: 10,560. Annual Reporting and Recordkeeping Summary: This information collection Burden: Frequency of Collection: On occasion. and recordkeeping burden is the result
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of efforts to amend the HMR to adopt receptacles, reduces the need for special required to maintain a set of the standards for the design, construction, permits, and facilitates international approved drawings and calculations for maintenance, and use of cylinders and commerce in the transportation of each design it reviews and a copy of multiple-element gas containers compressed gases. Information each initial design type approval (MEGCs) based on the standards collection requirements address certificate approved by the Associate contained in the UN Recommendations domestic and international Administrator for the Office of on the Transport of Dangerous Goods. manufacturers of cylinders that request Hazardous Materials Safety for not less Aligning the HMR with the UN approval by the approval agency for than 20 years. The following Recommendations promotes flexibility, cylinder design types. The approval information collections and their permits the use of technological process for each cylinder design type burdens are associated with this OMB advances for the manufacture of the includes review, filing, and Control Number: pressure receptacles, provides for a recordkeeping of the approval broader selection of pressure application. The approval agency is
Total Total Time per Total Information collection respondents responses response burden hours
UN Pressure Receptacle Approval—New Request ...... 35 35 6 hours ...... 210 UN Pressure Receptacle Approval—Modified Request ...... 100 100 6 hours ...... 600 UN Pressure Receptacle Approval—Recordkeeping ...... 75 75 6 minutes ...... 7.5
Affected Public: Fillers, owners, users, The purpose of the Committee is to Dated: August 5, 2021. and retesters of UN cylinders. advise the Secretary of Veterans Affairs Jelessa M. Burney, Annual Reporting and Recordkeeping on matters related to: The need of Federal Advisory Committee Management Burden: Veterans’ families, caregivers and Officer. Number of Respondents: 210. survivors across all generations, [FR Doc. 2021–17005 Filed 8–9–21; 8:45 am] Total Annual Responses: 210. relationships and Veterans status; the BILLING CODE P Total Annual Burden Hours: 817.5. use of VA care, benefits and memorial Frequency of Collection: On occasion. services by Veterans’ families, Issued in Washington, DC, on August 4, caregivers and survivors, and DEPARTMENT OF VETERANS 2021, under authority delegated in 49 CFR opportunities for improvements to the AFFAIRS 1.97. experience using such services; VA William A. Quade, policies, regulations and administrative Solicitation of Nomination for Deputy Associate Administrator of Hazardous requirements related to the transition of Appointment to the Advisory Materials Safety, Pipeline and Hazardous Servicemembers from the Department of Committee on the Readjustment of Materials Safety Administration. Defense (DoD) to enrollment in VA that Veterans [FR Doc. 2021–16994 Filed 8–9–21; 8:45 am] impact Veterans’ families, caregivers ACTION: Notice. BILLING CODE 4910–60–P and survivors; and factors that influence access to, quality of and accountability SUMMARY: The Department of Veterans for services, benefits and memorial Affairs (VA), Readjustment Counseling DEPARTMENT OF VETERANS services for Veterans’ families, Service (RCS), is seeking nominations of AFFAIRS caregivers and survivors. qualified candidates to be considered On September 23, 2021, the agenda for appointment as a member of the Veterans’ Family, Caregiver and will include opening remarks from the Advisory Committee on the Survivor Advisory Committee, Notice Committee Chair and the Chief Veterans Readjustment of Veterans (‘‘the of Meeting Experience Officer. There will be Committee’’) for the 2022 membership The Department of Veterans Affairs presentations from the subcommittee cycle. (VA) gives notice under the Federal chairs on proposed recommendations DATES: Nominations for membership on Advisory Committee Act (FACA), 5 for the Secretary. the Committee must be received by U.S.C. App. 2, that the Veterans’ Family, Individuals wishing to share September 12, 2021, no later than 4:00 Caregiver, and Survivor Advisory information with the Committee should p.m., eastern standard time. Packages Committee will meet virtually on contact the VEO Federal Advisory received after this time will not be September 23, 2021. The meeting Committee Team at [email protected] considered for the current membership session will begin and end as follows: to submit a 1–2 page summary of their cycle. comments for inclusion in the official ADDRESSES: All nomination packages Date Time meeting record before September 22, should be sent to the VA Readjustment September 23, 1:00 p.m. to 4:00 p.m. 2021 at 5:00 pm (EST). Due to the time Counseling Service, by email 2021. EST. limitations of virtual meetings, public (recommended) or mail. Please see comments will be submitted prior to the contact information below: VA The meeting is open to the public and meeting and distributed to the Readjustment Counseling Service will be conducted using Microsoft Committee before the designated (10RCS), Department of Veterans Teams. Please email [email protected] meeting time on September 23, 2021. Affairs, 810 Vermont Ave. NW, for an invitation link prior to September Any member of the public seeking Washington, DC 20420, 22, 2021 or dial-in by phone (for audio additional information should contact [email protected]. only) 1–872–701–0185, United States, Betty Moseley Brown (Designated FOR FURTHER INFORMATION CONTACT: Chicago (Toll), Conference ID: 864 046 Federal Official) Betty.MoseleyBrown@ Richard Barbato or Kevin Swallow, 788#. va.gov or 210–392–2505. Readjustment Counseling Service
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(10RCS), Department of Veterans civic or professional achievement; and currently engaged in; the military Affairs, 810 Vermont Ave. NW, have experience with the provision of branch affiliation and timeframe of Washington, DC 20420, Telephone (734) Veterans benefits and services by VA. military service (if applicable). To 222–4319. The membership will include: (1) promote inclusion and demographic SUPPLEMENTARY INFORMATION: In Individuals from a wide variety of balance of membership, please include carrying out the duties set forth, the geographic areas and ethnic as much information related to the Committee responsibilities include, but backgrounds; (2) individuals from nominee’s race, national origin, are not limited to providing a Veterans service organizations; (3) disability status, or any other factors Congressionally-mandated report to the individuals with combat experience; that may give the individual a diverse Secretary each year, which includes: and (4) women. perspective on Veteran readjustment (1) An assessment of the needs of In addition to the criteria above, VA Veterans. Finally, the cover letter must Veterans with respect to readjustment to seeks— include the nominee’s complete contact civilian life; (1) diversity in professional and information (name, address, email (2) A review of the programs and personal qualifications; address, and phone number); and a activities of the Department designed to (2) experience in military service and statement confirming that she/he is not meet such needs; and military deployments (please identify a Federally-registered lobbyist. The (3) Such recommendations (including Branch of Service and Rank); resume should show professional and/ recommendations for administrative (3) current work with Veterans; or work experience, and Veterans and legislative action) as the Committee (4) committee subject matter service involvement—especially service considers appropriate. expertise; and that involves combat Veterans’ and (5) experience working in large and The Committee may also submit to Active Duty service members’ issues. complex organizations. the Secretary such other reports and Self-nominations are acceptable. Any The Committee meets at least two recommendations as the Committee letters of nomination from organizations times annually, which may include a considers appropriate. Management and or other individuals must accompany site visit to a VA field location. In support services for the Committee are the package, when it is submitted. provided by the VA Readjustment accordance with Federal Travel Regulation, VA will cover travel Letters of nomination submitted without Counseling Service (RCS). a complete nomination package will not Authority: The Committee was expenses—to include per diem—for all be considered. Do not submit a package, established in accordance with 38 members of the Committee, for any without the nominee’s consent or U.S.C. 545 and operates under the travel associated with official awareness. Nominations must state that provisions of the Federal Advisory Committee duties. A copy of the the nominee is willing to serve as a Committee Act, as amended, 5 U.S.C. Committee’s most resent charter and a App. 2. In accordance with 38 U.S.C. list of the current membership can be member of the Committee and appears 545, the Committee advises the found at https://www.va.gov/ to have no conflict of interest that Secretary on the provision by VA of ADVISORY/Advisory_Committee_on_ would preclude membership. benefits and services to assist Veterans the_Readjusment_of_Veterans_ The Department makes every effort to in the readjustment to civilian life. In Statutory.asp. An ethics review is ensure that the membership of its carrying out this duty, the Committee conducted for each selected nominee. advisory committees is fairly balanced, shall take into special account the needs In accordance with recently revised in terms of points of view represented. of Veterans who served in combat guidance regarding the ban on lobbyists In the review process, consideration is theaters of operation. In accordance serving as members of advisory boards given to nominees’ potential to address with the Statute and the Committee’s and commissions, Federally-registered the Committee’s demographic needs current charter, the majority of the lobbyists are prohibited from serving on (regional representation, race/ethnicity membership ship consist on non- Federal advisory committees in an representation, professional expertise, Federal employees appointed by the individual capacity. Additional war era service, gender, former enlisted Secretary from the general public, information regarding this issue can be or officer status, branch of service, etc.). serving as special government found at www.federalregister.gov/ Other considerations to promote a employees. articles/2014/08/13/2014-19140/ balanced membership include longevity The Secretary appoints Committee revised-guidance-on-appointment-of- of military service, significant members and determines the length of lobbyists-to-federal-advisory- deployment experience, ability to terms in which the Committee members committees-boardsand-commissions. handle complex issues, experience serve. A term of service for any member Requirements for Nomination running large organizations, and ability may not exceed 2 years. However, the Submission: Nomination packages (one to contribute to the gender-specific Secretary can reappoint members for nomination per nominator) must be health care and benefits needs of combat additional terms. Each year, there are typed (12-point font) and include: (1) A Veterans and Active Duty service several vacancies on the Committee, as cover letter from the nominee, and (2) members. a current resume that is no more than members’ terms expire. Dated: August 5, 2021. Membership Criteria: The Committee four pages in length. The cover letter is currently composed of 12 members. must summarize: The nominees’ interest Jelessa M. Burney, By statute, Committee consists of in serving on the committee and Federal Advisory Committee Management members appointed by the Secretary contributions she/he can make to the Officer. from the general public, including work of the committee; any relevant [FR Doc. 2021–17003 Filed 8–9–21; 8:45 am] individuals who have demonstrated Veterans service activities she/he is BILLING CODE 8320–01–P
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Vol. 86 Tuesday, No. 151 August 10, 2021
Part II
Environmental Protection Agency
40 CFR Parts 86 and 600 Revised 2023 and Later Model Year Light-Duty Vehicle Greenhouse Gas Emissions Standards; Proposed Rule
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ENVIRONMENTAL PROTECTION Comments: Written comments must further information on EPA Docket AGENCY be received on or before September 27, Center services and the current status, 2021. please visit us online at https:// 40 CFR Parts 86 and 600 Public Hearing: EPA plans to hold a www.epa.gov/dockets. [EPA–HQ–OAR–2021–0208; FRL 8469–02– virtual public hearing on August 25, EPA plans to hold a virtual public OAR] 2021. An additional session may be held hearing for this rulemaking. Please refer on August 26th if necessary to to the separate Federal Register notice RIN 2060–AV13 accommodate the number of testifiers issued by EPA for public hearing details. The hearing notice is available Revised 2023 and Later Model Year that sign-up to testify. Please refer to the separate Federal Register notice issued at https://www.epa.gov/regulations- Light-Duty Vehicle Greenhouse Gas emissions-vehicles-and-engines/ Emissions Standards by EPA for public hearing details. The hearing notice is available at https:// proposed-rule-revise-existing-national- AGENCY: Environmental Protection www.epa.gov/regulations-emissions- ghg-emissions. Agency (EPA). vehicles-and-engines/proposed-rule- FOR FURTHER INFORMATION CONTACT: Tad ACTION: Proposed rule. revise-existing-national-ghg-emissions. Wysor, Office of Transportation and Air ADDRESSES: You may send comments, Quality, Assessment and Standards SUMMARY: The Environmental Protection identified by Docket ID No. EPA–HQ– Division (ASD), Environmental Agency (EPA) is proposing to revise the OAR–2021–0208, by any of the Protection Agency, 2000 Traverwood greenhouse gas (GHG) emissions following methods: Drive, Ann Arbor, MI 48105; telephone standards for light-duty vehicles for • Federal eRulemaking Portal: number: (734) 214–4332; email address: 2023 and later model years to make the https://www.regulations.gov/ (our [email protected]. standards more stringent. On January preferred method). Follow the online SUPPLEMENTARY INFORMATION: 20, 2021, President Biden issued instructions for submitting comments. A. Public Participation Executive Order 13990 ‘‘Protecting • Email: [email protected]. Public Health and the Environment and Include Docket ID No. EPA–HQ–OAR– Written Comments Restoring Science To Tackle the Climate 2021–0208 in the subject line of the EPA will keep the comment period Crisis’’ directing EPA to consider message. open until September 27, 2021. All whether to propose suspending, • Mail: U.S. Environmental information will be available for revising, or rescinding the standards Protection Agency, EPA Docket Center, inspection at the EPA Air Docket No. previously revised under the ‘‘The Safer OAR, Docket EPA–HQ–OAR–2021– EPA–HQ–OAR–2021–0208. Submit Affordable Fuel-Efficient (SAFE) 0208, Mail Code 28221T, 1200 your comments, identified by Docket ID Vehicles Rule for Model Years 2021– Pennsylvania Avenue NW, Washington, No. EPA–HQ–OAR–2021–0208, at 2026 Passenger Cars and Light Trucks,’’ DC 20460. https://www.regulations.gov (our promulgated in April 2020. The SAFE • Hand Delivery or Courier (by preferred method), or the other methods rule significantly weakened the scheduled appointment only): EPA identified in the ADDRESSES section. standards established in 2012, which in Docket Center, WJC West Building, Once submitted, comments cannot be part set GHG standards for model years Room 3334, 1301 Constitution Avenue edited or removed from the docket. EPA 2021–25. EPA believes that in light of NW, Washington, DC 20004. The Docket may publish any comment received to the significant contribution of light-duty Center’s hours of operations are 8:30 its public docket. Do not submit to vehicles to transportation sector GHG a.m.–4:30 p.m., Monday–Friday (except EPA’s docket at https:// emissions, standards more stringent Federal Holidays). www.regulations.gov any information than those relaxed in the SAFE rule are Instructions: All submissions received you consider to be Confidential appropriate under the Clean Air Act. must include the Docket ID No. EPA– Business Information (CBI) or other EPA is proposing to revise the GHG HQ–OAR–2021–0208 for this information whose disclosure is standards to be more stringent than the rulemaking. Comments received may be restricted by statute. Multimedia SAFE rule standards in each model year posted without change to https:// submissions (audio, video, etc.) must be from 2023 through 2026. EPA is also www.regulations.gov/, including any accompanied by a written comment. proposing to include several flexibilities personal information provided. For The written comment is considered the to incentivize the production and sale of detailed instructions on sending official comment and should include vehicles with zero and near-zero comments and additional information discussion of all points you wish to emissions technology to reduce on the rulemaking process, see the make. EPA will generally not consider compliance costs and to address the ‘‘Public Participation’’ heading of the comments or comment contents located lead time of the proposed standards. In SUPPLEMENTARY INFORMATION section of outside of the primary submission (i.e., addition, EPA is proposing some this document. Out of an abundance of on the web, cloud, or other file sharing technical amendments to clarify and caution for members of the public and system). For additional submission streamline our regulations. Compliance our staff, the EPA Docket Center and methods, the full EPA public comment with the proposed standards would be Reading Room are closed to the public, policy, information about CBI or feasible at reasonable costs to with limited exceptions, to reduce the multimedia submissions, and general manufacturers. The proposed revised risk of transmitting COVID–19. Our guidance on making effective standards would result in significant Docket Center staff will continue to comments, please visit https:// benefits for public health and welfare, provide remote customer service via www.epa.gov/dockets/commenting-epa- primarily through substantial reductions email, phone, and webform. We dockets. in both GHG emissions and fuel encourage the public to submit EPA is temporarily suspending its consumption and associated fuel costs comments via https:// Docket Center and Reading Room for paid by drivers, and the benefits of the www.regulations.gov/ or email, as there public visitors, with limited exceptions, proposed standards would be far in may be a delay in processing mail. Hand to reduce the risk of transmitting excess of costs. deliveries and couriers may be received COVID–19. Our Docket Center staff will DATES: by scheduled appointment only. For continue to provide remote customer
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service via email, phone, and webform. so that we can respond rapidly as revise-existing-national-ghg-emissions. We encourage the public to submit conditions change regarding COVID–19. Please also refer to this website for any comments via https:// Virtual Public Hearing updates regarding the hearings. EPA www.regulations.gov/ as there may be a does not intend to publish additional delay in processing mail. Hand EPA plans to hold a virtual public documents in the Federal Register deliveries or couriers will be received hearing on August 25, 2021. An announcing updates. by scheduled appointment only. For additional session will be held on further information and updates on EPA August 26th if necessary, to B. Does this action apply to me? Docket Center services, please visit us accommodate the number of testifiers online at https://www.epa.gov/dockets. that sign-up to testify. Please refer to the This action affects companies that EPA continues to carefully and separate Federal Register notice issued manufacture or sell passenger continuously monitor information from by EPA for public hearing details. The automobiles (passenger cars) and non- the Centers for Disease Control and hearing notice is available at https:// passenger automobiles (light trucks) as Prevention (CDC), local area health www.epa.gov/regulations-emissions- defined in 49 CFR part 523. Regulated departments, and our Federal partners vehicles-and-engines/proposed-rule- categories and entities include:
Category NAICS Examples of potentially regulated entities codes A
Industry ...... 336111 Motor Vehicle Manufacturers. 336112 Industry ...... 811111 Commercial Importers of Vehicles and Vehicle Components. 811112 811198 423110 Industry ...... 335312 Alternative Fuel Vehicle Converters. 811198 A North American Industry Classification System (NAICS).
This list is not intended to be 3. Summary of the Proposal’s Costs and D. How did EPA consider the two exhaustive, but rather provides a guide Benefits Compared to the Alternatives alternatives in choosing the proposed regarding entities likely to be regulated II. EPA Proposal for MY 2023–2026 Light- program? by this action. To determine whether Duty Vehicle GHG Standards IV. How would this proposal reduce GHG A. Proposed Model Year 2023–2026 GHG particular activities may be regulated by emissions and their associated effects? Standards for Light-Duty Vehicles, Light- A. Impact on GHG Emissions this action, you should carefully Duty Trucks, and Medium Duty B. Climate Change Impacts From GHG examine the regulations. You may direct Passenger Vehicles Emissions questions regarding the applicability of 1. What fleet-wide emissions levels C. Global Climate Impacts and Benefits this action to the person listed in FOR correspond to the CO2 standards? Associated With the Proposal’s GHG FURTHER INFORMATION CONTACT. 2. What are the proposed CO2 attribute- Emissions Reductions based standards? Table of Contents V. How would the proposal impact non-GHG 3. EPA’s Statutory Authority Under the emissions and their associated effects? I. Executive Summary CAA A. Impact on Non-GHG Emissions 4. Averaging, Banking, and Trading A. Purpose of This Proposed Rule and B. Health and Environmental Effects Provisions for CO Standards Legal Authority 2 Associated With Exposure to Non-GHG 5. Certification, Compliance, and 1. Proposal for Near-Term Standards Pollutants Impacted by the Proposed Enforcement Through Model Year 2026 Standards 2. Why does EPA believe the proposed 6. On-Board Diagnostics Program Updates 7. Stakeholder Engagement C. Air Quality Impacts of Non-GHG standards are appropriate under the Pollutants CAA? 8. How do EPA’s proposed standards relate to NHTSA’s CAFE proposal and to VI. Basis for the Proposed GHG Standards 3. Future Longer-Term Action to Further Under CAA Section 202(a) Reduce Light-Duty Vehicle Emissions in California’s GHG program? B. Additional Manufacturer Compliance A. Consideration of Technological 2027 and Beyond Feasibility and Lead Time B. Summary of Proposed Light-Duty Flexibilities 1. Technological Readiness of the Auto Vehicle GHG Program 1. Multiplier Incentives for Advanced Industry in Meeting Revised GHG 1. Proposed Revised GHG Emissions Technology Vehicles Standards 2. Advanced Technology Incentives for Standards 2. Proposed Compliance Incentives and Full-Size Pickups 2. Opportunities Provided Through Credits Flexibilities 3. Off-Cycle Technology Credits and Incentives Provisions C. Analytical Support for the Proposed 4. Air Conditioning System Credits B. Consideration of Vehicle Costs of Revised Standards 5. Natural Gas Vehicles Technical Compliance 1. Summary of Analyses for This Proposed Correction C. Consideration of Impacts on Consumers Rule C. What alternatives is EPA considering? D. Consideration of Emissions of GHGs and 2. History of Similar Analyses III. Technical Assessment of the Proposed Other Air Pollutants D. Summary of Costs and Benefits of the CO2 Standards E. Consideration of Energy, Safety and Proposed Program A. What approach did EPA use in Other Factors E. How has EPA considered environmental analyzing potential standards? F. Balancing of Factors Under CAA 202(a) justice in this proposal? B. Projected Compliance Costs and VII. What are the estimated cost, economic, F. Affordability and Equity Technology Penetrations and other impacts of the proposal? G. What alternatives is EPA considering? 1. GHG Targets and Compliance Levels A. Conceptual Framework for Evaluating 1. Description of the Alternatives 2. Projected Compliance Costs per Vehicle Consumer Impacts 2. Summary of Costs and Benefits of the 3. Technology Penetration Rates B. Vehicle Sales Impacts Alternatives C. Are the proposed standards feasible? C. Changes in Fuel Consumption
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D. Greenhouse Gas Emission Reduction forth below] within the time frame GHG emissions reductions and public Benefits specified.’’ health and welfare benefits than the E. Non-Greenhouse Gas Health Impacts ‘‘Establishing Ambitious, Job-Creating Fuel existing program. In developing this F. Energy Security Impacts Economy Standards: . . . ‘The Safer proposal, EPA has conducted outreach G. Impacts of Additional Driving Affordable Fuel-Efficient (SAFE) Vehicles H. Safety Considerations in Establishing Rule for Model Years 2021–2026 Passenger with a wide range of interested GHG Standards Cars and Light Trucks,’ 85 FR 24174 (April stakeholders, including labor unions, I. Summary of Costs and Benefits 30, 2020), by July 2021. . . . In considering States, and industry as provided in E.O. J. Impacts on Consumers of Vehicle Costs whether to propose suspending, revising, or 13990, and we will continue to engage and Fuel Savings rescinding the latter rule, the agency should with these and other stakeholders as K. Employment Impacts consider the views of representatives from part of our regulatory development L. Environmental Justice labor unions, States, and industry.’’ process. 1. GHG Impacts This proposal is limited to MYs 2023– 2. Non-GHG Impacts The proposed program would revise M. Affordability and Equity Impacts the light-duty vehicle GHG standards 2026, given lead time considerations VIII. Statutory and Executive Order Reviews previously revised by the SAFE rule and under the CAA, which is consistent A. Executive Order 12866: ‘‘Regulatory would build upon earlier EPA actions with E.O. 13990’s direction to review Planning and Review and Executive and supporting analyses that established the SAFE rule standards. We have Order 13563: Improving Regulation and or maintained stringent light-duty designed the proposed program based Regulatory Review’’ vehicle GHG emissions standards. For on our assessment that the proposed B. Paperwork Reduction Act standards are reasonable and C. Regulatory Flexibility Act example, in 2012, EPA issued a final rule establishing light-duty vehicle GHG appropriate and will achieve a D. Unfunded Mandates Reform Act significant level of GHG reductions for E. Executive Order 13132: ‘‘Federalism’’ standards for model years (MYs) 2017– F. Executive Order 13175: ‘‘Consultation 2025,2 which were supported in MYs 2023–2026 vehicles, with the and Coordination With Indian Tribal analyses accounting for compliance expectation that a future, longer-term Governments’’ costs, lead time and other relevant program for MYs 2027 and later will G. Executive Order 13045: ‘‘Protection of factors.3 That rule and its analyses also build upon these near-term standards. Children From Environmental Health accounted for the development and EPA has set previous light-duty Risks and Safety Risks’’ vehicle GHG emission standards in joint availability of advanced GHG emission- H. Executive Order 13211: ‘‘Energy Effects’’ rulemakings where NHTSA also reducing technologies for gasoline- I. National Technology Transfer and established CAFE standards. EPA has fueled vehicles, which demonstrated Advancement Act concluded that it is not necessary at this that the standards were appropriate J. Executive Order 12898: ‘‘Federal Actions time for this EPA proposal to be done To Address Environmental Justice in under section 202(a) of the CAA.4 This in a joint action with NHTSA. EPA has Minority Populations and Low-Income proposed rule provides additional coordinated with NHTSA, both on a Populations’’ analysis that takes into consideration bilateral level as well as through the IX. Statutory Provisions and Legal Authority updated data and recent developments. interagency review of the EPA proposal Auto manufacturers are currently I. Executive Summary led by the Office of Management and implementing an increasing array of Budget. A. Purpose of This Proposed Rule and advanced gasoline vehicle GHG Legal Authority emission-reducing technologies at a 2. Why does EPA believe the proposed 1. Proposal for Near-Term Standards rapid pace throughout their vehicle standards are appropriate under the Through Model Year 2026 fleets. Vehicle electrification CAA? The Environmental Protection Agency technologies are also advancing rapidly, EPA is proposing to revise GHG (EPA) is proposing to revise existing as battery costs have continued to emissions standards for passenger cars national greenhouse gas (GHG) decline, and automakers have and light trucks under its authority in emissions standards for passenger cars announced an increasing diversity and section 202(a) of the CAA. Section and light trucks under section 202(a) of volume of zero-emission vehicle 202(a) requires EPA to establish the Clean Air Act (CAA), 42 U.S.C. models. Meanwhile, in 2019, several standards for emissions of pollutants 7521(a). Section 202(a) requires EPA to auto manufacturers voluntarily entered from new motor vehicles which, in the establish standards for emissions of air into agreements with the State of Administrator’s judgment, cause or pollutants from new motor vehicles California to comply with GHG contribute to air pollution which may which, in the Administrator’s judgment, emission reduction targets through MY reasonably be anticipated to endanger cause or contribute to air pollution 2026 across their national vehicle fleets public health or welfare. Standards which may reasonably be anticipated to (the ‘‘California Framework under section 202(a) take effect ‘‘after endanger public health or welfare. Agreements’’) that are more stringent such period as the Administrator finds This proposal also responds to than the EPA standards as revised by necessary to permit the development Executive Order (E.O.) 13990, the SAFE rule. These developments and application of the requisite ‘‘Protecting Public Health and the further support EPA’s decision to technology, giving appropriate Environment and Restoring Science To reconsider and propose revising the consideration to the cost of compliance Tackle the Climate Crisis’’ (Jan. 20, existing EPA standards to be more within such period.’’ Thus, in 2021), which directs EPA to consider stringent, particularly in light of factors establishing or revising section 202(a) taking the action proposed in this indicating that more stringent near-term standards designed to reduce air notice: 1 standards are feasible at reasonable cost pollution that endangers public health and would achieve significantly greater and welfare, EPA also must consider ‘‘[T]he head of the relevant agency, as appropriate and consistent with applicable issues of technological feasibility, 2 EPA’s model year emission standards also apply compliance cost, and lead time. EPA law, shall consider publishing for notice and in subsequent model years, unless revised, e.g., MY comment a proposed rule suspending, 2025 standards issued in the 2012 rule also applied also may consider other factors and in revising, or rescinding the agency action[s set to MY 2026 and beyond. previous light-duty vehicle GHG 3 77 FR 62624, October 15, 2012. standards rulemakings has considered 1 86 FR 7037, January 25, 2021. 4 Id. the impacts of potential GHG standards
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on the auto industry, fuel savings by When considering similar cost 3. Future Longer-Term Action To consumers, oil conservation, energy estimates in the SAFE rule, EPA Further Reduce Light-Duty Vehicle security and other energy impacts, as identified some factors, primarily costs Emissions in 2027 and Beyond well as other relevant considerations to manufacturers and upfront costs to Addressing the climate crisis will such as safety. consumers, as favoring reductions in require substantial reductions in GHG As we describe in greater detail stringency of the then-existing emissions from the transportation below, EPA has carefully considered the standards, and other factors, such as sector. The transportation sector is the technological feasibility and cost of the reduced emissions that endanger public largest U.S. source of GHG emissions, proposed standards and the available health and welfare and reduced representing 29 percent of total GHG lead time for manufacturers to comply operating costs for consumers, as emissions.6 Within the transportation with them, including existing and favoring increased stringency (or a sector, light-duty vehicles are the largest proposed flexibilities designed to lower degree of reduced stringency). In contributor, at 58 percent, and thus facilitate compliance during the MYs balancing these factors in the SAFE rule, comprise 17 percent of total U.S. GHG 7 2023–2026 timeframe. Based on our EPA placed greater weight on the former emissions. GHG emissions have analysis, we believe that the proposed factors, and thereby decided to make significant impacts on public health and standards, combined with proposed EPA’s GHG standards significantly less welfare as evidenced by the well- flexibilities that address lead time stringent. But the purpose of adopting documented scientific record and as set considerations resulting from forth in EPA’s Endangerment and Cause standards under CAA section 202 is to relaxations in standards revised in the or Contribute Findings under Section address air pollution that may SAFE rule, are appropriate and justified 202(a) of the CAA.8 Additionally, major under section 202(a) of the CAA. Our reasonably be anticipated to endanger scientific assessments continue to be updated analysis for this proposal, as public health and welfare. Indeed, released that further advance our well as our earlier analyses of similar reducing air pollution has traditionally understanding of the climate system and standards, supports the conclusion that been the focus of such standards. EPA the impacts that GHGs have on public the proposed standards are has reconsidered how costs, lead time health and welfare both for current and technologically feasible for the model and other factors were weighed in the future generations, as discussed in years covered (MYs 2023–2026) and that SAFE rule and is reaching a different Section IV.B, making it clear that the costs of compliance for conclusion as to the appropriate continued emission reductions in the manufacturers would be reasonable. The stringency of GHG standards. In light of light-duty vehicle sector are needed proposed standards would result in the statutory purpose of section 202, the beyond the model years covered by the greater reductions in GHG emissions, as Administrator is placing greater weight standards proposed today. well as reductions in emissions of some on the emission reductions and This proposed action therefore serves criteria pollutants and air toxics, resulting public health and welfare as a critical building block for a resulting in significant benefits for benefits, as well as the savings in comprehensive, multipollutant longer- public health and welfare. We also show vehicle operating costs for consumers, term regulatory program implementing that the proposal would result in and proposing significantly more EPA’s statutory authority under the reduced vehicle operating costs for stringent standards for MYs 2023–2026 CAA. We are at a pivotal moment in the consumers and that the benefits of the compared to the standards established history of the light-duty transportation proposed program would significantly by the SAFE rule. As discussed in sector—a shift to zero-emission vehicle exceed the costs. Section III.A, the proposed standards technologies is already underway, and it EPA has significantly updated its take into consideration both the updated presents a strong potential for dramatic reductions in GHG and criteria pollutant analysis for this rule. As discussed analysis for this rule and past EPA further below, we have updated a emissions over the longer term. Major analyses conducted for similar GHG number of key inputs, such as, for automakers as well as many global standards. We are revising decisions example, certain technology costs and jurisdictions and U.S. states have made in the SAFE final rule in penetrations, to ensure they are up to announced plans to shift the light-duty date. Notably, the results of this updated accordance with Supreme Court fleet toward zero-emissions technology, analysis are generally in agreement with decisions affirming that agencies are as detailed below. EPA anticipates that prior analyses, including those free to reconsider and revise their prior the design of a future, longer-term conducted for the SAFE rule. In decisions where they provide a program beyond 2026 will incorporate particular, the costs that have been reasonable explanation for their revised accelerating advances in zero-emission estimated for manufacturers to meet decisions.5 In this rulemaking, the technologies. standards of a similar stringency to the agency is changing its 2020 position and A proliferation of recent proposed standards have been roughly restoring its previous approach by announcements from automakers consistent since EPA first estimated proposing to find, in light of the signals a rapidly growing shift in them in 2012. That is, although statutory purposes of the Clean Air Act investment away from internal- manufacturers have less lead time and in particular of section 202(a), that combustion technologies and toward before these standards would be it is more appropriate to place greater high levels of electrification. These implemented than with previous weight on the magnitude and benefits of automaker announcements are rulemakings, the significant progress reducing emissions that endanger public supported by continued advances in that has been made in implementing health and welfare, while continuing to automotive electrification technologies, advanced gasoline technologies in the consider compliance costs, lead time and further driven by the need to fleet (as well as advances in electric and and other relevant factors. hybrid vehicle technology) since 2012 6 Inventory of U.S. Greenhouse Gas Emissions and Sinks: 1990–2019 (EPA–430–R–21–005, means the proposed standards can be published April 2021). achieved at roughly the same cost as 5 See, e.g., Encino Motorcars, LLC v. Navarro, 136 7 7 Ibid. previous estimates, and additional lead S. Ct. 2117, 2125 (2016); FCC v. Fox Television 8 74 FR 66496, December 15, 2009; 81 FR 54422, time is unnecessary. Stations, Inc., 556 U.S. 502, 515 (2009). August 15, 2016.
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compete in a global market as other goals and investments have been Massachusetts 27 and New York 28 are countries implement aggressive zero- coupled with a rapidly increasing also poised to adopt similar targets and emission transportation policies. For availability of plug-in vehicle models in requirements to take effect by 2035. example, in January 2021, General the U.S.19 For example, the number of Several other states may adopt similar Motors announced plans to become all-electric vehicle (EV) and plug-in provisions by 2050 as members of the carbon neutral by 2040, including an hybrid electric vehicle (PHEV) models International Zero-Emission Vehicle effort to shift its light-duty vehicles available for sale in the U.S. more than Alliance.29 Globally, at least 12 entirely to zero-emissions by 2035.9 In doubled from about 24 in MY 2015 to countries, as well as numerous local March 2021, Volvo announced plans to about 60 in MY 2021, with offerings in jurisdictions, have announced similar make only electric cars by 2030,10 and a growing range of vehicle segments.20 goals to shift all new passenger car sales Volkswagen announced that it expects Recent model announcements indicate to zero-emission vehicles in the coming half of its U.S. sales will be all-electric that this number will increase to more years, including Norway (2025); the by 2030.11 In April 2021, Honda than 80 models by MY 2023, with many Netherlands, Denmark, Iceland, Ireland, announced a full electrification plan to more expected to reach production Sweden, and Slovenia (2030); Canada take effect by 2040, with 40 percent of before the end of the decade.21 Many of and the United Kingdom (2035); France North American sales expected to be the zero-emission vehicles already on and Spain (2040); and Costa Rica fully electric or fuel cell vehicles by the market today cost less to drive than (2050).30 31 Together, these countries 22 23 2030, 80 percent by 2035 and 100 conventional vehicles, offer represent approximately 13 percent of 12 24 percent by 2040. In May 2021, Ford improved performance and handling, the global market for passenger cars,32 announced that they expect 40 percent and can be charged at a growing in addition to that represented by the 25 of their global sales will be all-electric network of public chargers as well as aforementioned U.S. states and other 13 by 2030. In June 2021, Fiat announced at home. global jurisdictions. a move to all electric vehicles by 2030, At the same time, an increasing and in July 2021 its parent corporation number of global jurisdictions and U.S. EPA recognizes that in addition to Stellantis announced an intensified states plan to take actions to shift the substantially reducing GHG emissions, a focus on electrification across all of its light-duty fleet toward zero-emissions longer-term rulemaking could also brands.14 15 Also in July 2021, Mercedes- technology. In 2020, California address criteria pollutant and air toxics Benz announced that all of its new announced an intention to require emissions from the new light-duty architectures would be electric-only increasing volumes of zero-emission vehicle fleet—especially important from 2025, with plans to become ready vehicles to meet the goal that, by 2035, considerations during the transition to to go all-electric by 2030 where all new light-duty vehicles sold in the zero-emission vehicles. EPA expects possible.16 state be zero-emission vehicles.26 that a future longer-term rulemaking These announcements and others like will take critical steps to continue the them continue a pattern over the past Update, Manufacturer Commitments to Future trajectory of transportation emission several years of many manufacturers Electric Mobility in the U.S. and Worldwide,’’ April reductions needed to protect public taking steps to aggressively pursue zero- 2021. health and welfare. Achieving this 18 emission technologies, introduce a wide International Council on Clean Transportation, trajectory with the help of increased ‘‘The end of the road? An overview of combustion- range of zero-emission vehicle models, engine car phase-out announcements across fleet penetration of zero-emission and reduce their reliance on the Europe,’’ May 10, 2020. vehicles would bring with it other internal-combustion engine in various 19 Muratori et al., ‘‘The rise of electric vehicles— advantages as well, such as potentially markets around the globe.17 18 These 2020 status and future expectations,’’ Progress in large reductions in roadway pollution Energy v3n2 (2021), March 25, 2021. Accessed July 15, 2021 at https://iopscience.iop.org/article/ and noise in overburdened 9 General Motors, ‘‘General Motors, the Largest 10.1088/2516–1083/abe0ad. communities, and potentially support U.S. Automaker, Plans to be Carbon Neutral by 20 Fueleconomy.gov, 2015 Fuel Economy Guide for the future development of vehicle-to- 2040,’’ Press Release, January 28, 2021. and 2021 Fuel Economy Guide. 10 Volvo Car Group, ‘‘Volvo Cars to be fully grid services that could become a key 21 Environmental Defense Fund and M.J. Bradley electric by 2030,’’ Press Release, March 2, 2021. enabler for increased utilization of & Associates, ‘‘Electric Vehicle Market Status— 11 Volkswagen Newsroom, ‘‘Strategy update at Update, Manufacturer Commitments to Future Volkswagen: The transformation to electromobility Electric Mobility in the U.S. and Worldwide,’’ April Against Climate Change,’’ Press Release, September was only the beginning,’’ March 5, 2021. Accessed 2021. 23, 2020. June 15, 2021 at https://www.volkswagen- 22 27 Commonwealth of Massachusetts, ‘‘Request for newsroom.com/en/stories/strategy-update-at- Department of Energy Vehicle Technologies volkswagen-the-transformation-to-electromobility- Office, Transportation Analysis Fact of the Week Comment on Clean Energy and Climate Plan for was-only-the-beginning-6875. #1186, ‘‘The National Average Cost of Fuel for an 2030,’’ December 30, 2020. 28 12 Honda News Room, ‘‘Summary of Honda Electric Vehicle is about 60% Less than for a New York State Senate, Senate Bill S2758, Global CEO Inaugural Press Conference,’’ April 23, Gasoline Vehicle,’’ May 17, 2021. 2021–2022 Legislative Session. January 25, 2021. 2021. Accessed June 15, 2021 at https:// 23 Department of Energy Vehicle Technologies 29 ZEV Alliance, ‘‘International ZEV Alliance global.honda/newsroom/news/2021/ Office, Transportation Analysis Fact of the Week Announcement,’’ Dec. 3, 2015. Accessed on July 16, c210423eng.html. #1190, ‘‘Battery-Electric Vehicles Have Lower 2021 at http://www.zevalliance.org/international- 13 Ford Motor Company, ‘‘Superior Value From Scheduled Maintenance Costs than Other Light- zev-alliance-announcement/. EVs, Commercial Business, Connected Services is Duty Vehicles,’’ June 14, 2021. 30 International Council on Clean Transportation, Strategic Focus of Today’s ‘Delivering Ford+’ 24 Consumer Reports, ‘‘Electric Cars 101: The ‘‘Update on the global transition to electric vehicles Capital Markets Day,’’ Press Release, May 26, 2021. Answers to All Your EV Questions,’’ November 5, through 2019,’’ July 2020. 14 Stellantis, ‘‘World Environment Day 2021— 2020. Accessed June 8, 2021 at https:// 31 Reuters, ‘‘Canada to ban sale of new fuel- Comparing Visions: Olivier Francois and Stefano www.consumerreports.org/hybrids-evs/electric-cars- powered cars and light trucks from 2035,’’ June 29, Boeri, in Conversation to Rewrite the Future of 101-the-answers-to-all-your-ev-questions/. 2021. Accessed July 1, 2021 from https:// Cities,’’ Press Release, June 4, 2021. 25 Department of Energy Alternative Fuels Data www.reuters.com/world/americas/canada-ban-sale- 15 Stellantis, ‘‘Stellantis Intensifies Electrification Center, Electric Vehicle Charging Station Locations. new-fuel-powered-cars-light-trucks-2035-2021-06- While Targeting Sustainable Double-Digit Adjusted Accessed on May 19, 2021 at https:// 29/. Operating Income Margins in the Mid-Term,’’ Press afdc.energy.gov/fuels/electricity_locations.html#/ 32 International Council on Clean Transportation, Release, July 8, 2021. find/nearest?fuel=ELEC. ‘‘Growing momentum: Global overview of 16 Mercedes-Benz, ‘‘Mercedes-Benz prepares to go 26 State of California Office of the Governor, government targets for phasing out new internal all-electric,’’ Press Release, July 22, 2021. ‘‘Governor Newsom Announces California Will combustion engine vehicles,’’ posted 11 November 17 Environmental Defense Fund and M.J. Bradley Phase Out Gasoline-Powered Cars & Drastically 2020, accessed April 28, 2021 at https://theicct.org/ & Associates, ‘‘Electric Vehicle Market Status— Reduce Demand for Fossil Fuel in California’s Fight blog/staff/global-ice-phaseout-nov2020.
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variable renewable energy sources, such MYs 2021 and 2022, which we are not We project that during the four-year 33 as wind and solar, across the grid. proposing to revise. ramping up of the stringency of the CO2 In our design and analyses of the standards, the proposed standards could B. Summary of Proposed Light-Duty proposed program and our overall be met with gradually increasing sales Vehicle GHG Program updated assessment of feasibility, EPA of plug-in electric vehicles in the U.S., EPA is proposing revised GHG also took into account the decade-long up to about 8 percent market share standards that would begin in MY 2023 light-duty vehicle GHG emission (including both electric vehicles (EVs) and increase in stringency year over reduction program in which the auto and plug-in hybrid electric vehicles year through MY 2026. EPA proposes to industry has introduced a wide lineup (PHEVs)) by MY 2026. Given that EVs increase the stringency of the standards of ever more fuel-efficient, GHG- and PHEVs represented about 2 percent from the average roughly 1.5 percent reducing technologies. The of the new vehicle market in MY 2019,34 year-over-year stringency increase of the technological achievements already this would represent a significant relaxed SAFE standards to a nearly 10 developed and applied to vehicles increase in penetration of these vehicles percent proposed stringency increase in within the current new vehicle fleet will but one that we believe is reasonable MY 2023, followed by a nearly 5 percent enable the industry to achieve the given automaker announcements on proposed stringency increase in each proposed standards even without the increasing EV and PHEV production. MY from 2024 through 2026. EPA development of new technologies We note later in this preamble in the believes the 10 percent proposed beyond those already widely available. discussion of the alternative levels of increase in stringency in MY 2023 is Furthermore, in light of the design cycle stringency that EPA is considering, that appropriate given the technological timing for vehicles, EPA has basis to there may be the potential for higher investments industry has continued to expect that the vehicles that automakers levels of EV penetration by MY 2026, make beyond what would be required to will be selling during the first years of which could enable EPA to consider a meet the SAFE rule revised standards, the proposed MY 2023–26 program more stringent standard for MY 2026. such as improvements being made in were already designed before the less As described elsewhere in this response to the California Framework stringent SAFE standards were recently preamble, we believe that, in Agreements, as well as the compliance adopted. Further support that the conjunction with the proposed flexibilities built into the program. Also, technologies needed to meet the standards, the limited but focused as discussed in Section I.G below, EPA proposed standards do not need to be incentives and flexibilities that we are requests comment on standards for MY developed, but are already widely proposing would support automakers’ 2026 that would result in fleet average available and in use on vehicles, can be acceleration of their introduction and target levels that are in the range of 5– found in the fact that five vehicle sales of advanced technologies, 10 g/mile lower (i.e., more stringent) manufacturers, representing about a including zero and near-zero-emission than the levels proposed. This request third of U.S. auto sales, agreed in 2019 technologies. for comments is in keeping with the with the State of California that their additional lead time available for this nationwide fleets would meet GHG 1. Proposed Revised GHG Emissions out-year compared to MYs 2023–2025, emission reduction targets more Standards and because EPA may determine that it stringent than the applicable EPA i. Proposed Revised CO2 Targets is appropriate, particularly in light of standards beginning in model year 2021. As with EPA’s previous light-duty the accelerating transition to electrified The fact that five automakers GHG programs, EPA is proposing vehicles, to require additional voluntarily entered into the California footprint-based standards curves for reductions in this time frame. The Framework Agreements also supports both passenger cars and trucks. Each proposed standards would achieve the feasibility of meeting standards at manufacturer would have a unique significant GHG and other emission least as stringent as the emission standard for the passenger cars category reductions and related public health reduction targets under the California and another for the truck category 35 for and welfare benefits, while providing Framework, which we describe in detail each MY based on the sales-weighted consumers with lower operating costs later in this preamble. We describe 36 footprint-based CO2 targets of the resulting from significant fuel savings. additional details of the proposal below vehicles produced in that MY. Figure 1 Our analysis described in this notice and in later sections of the preamble as shows EPA’s proposed standards, demonstrates that the proposed well as in the Draft Regulatory Impact expressed as average fleetwide GHG standards are appropriate under section Analysis (DRIA). We also describe and emissions targets (cars and trucks 202(a) of the CAA, considering costs, analyze both less stringent and more combined), projected through MY 2026. technological feasibility, available lead stringent alternatives, consistent with For comparison, the figure also shows time, and other factors. The proposed OMB Circular A–4. the corresponding targets for the SAFE trajectory of increasing stringency from Although most automakers have final rulemaking (FRM) and the 2012 MYs 2023 to 2026 takes into account the launched ambitious plans to develop FRM. The projected fleet targets for this credit-based emissions averaging, and produce increasing numbers of proposed rule increase in stringency in banking and trading flexibilities of the zero- and near-zero-emission vehicles, current program as well as additional EPA recognizes that during the near- 34 ‘‘The 2020 EPA Automotive Trends Report, flexibility provisions that we are term timeframe of the proposed Greenhouse Gas Emissions, Fuel Economy, and proposing to ease the transition to more standards through MY 2026, the new Technology since 1975,’’ EPA–420–R–21–003, stringent standards. EPA also took into vehicle fleet likely will continue to January 2021, p. 52. account manufacturers’ ability to consist primarily of gasoline-fueled 35 Passenger cars include cars and smaller cross- overs and SUVs, while the truck category includes generate credits against the existing vehicles. In this preamble and in the larger cross-overs and SUVs, minivans, and pickup standards relaxed in the SAFE rule for DRIA, we provide our analyses trucks. supporting our assessment that the 36 Because compliance is based on the full range 33 Department of Energy Electricity Advisory proposed standards for MYs 2023 of vehicles in a manufacturer’s car and truck fleets, Committee, ‘‘Enhancing Grid Resilience with through 2026 would be achievable with lower-emitting vehicles compensating for Integrated Storage from Electric Vehicles: higher-emitting vehicles, the emission levels of Recommendations for the U.S. Department of primarily through the application of specific vehicles within the fleet are referred to as Energy,’’ June 25, 2018. advanced gasoline vehicle technologies. targets, rather than standards.
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MY 2023 by about 10 percent (from the proposed MY 2026 standards would taking into consideration projected fleet existing SAFE rule standards in MY then remain in place for all subsequent mix and footprints for each 2022), followed by stringency increases MYs, unless and until they are revised manufacturer’s fleet in each model year. thereafter of nearly 5 percent year over in a subsequent rulemaking. Table 1 Table 2 presents projected industry fleet year from MY 2024 through MY 2026. presents the estimates of EPA’s average year-over-year percent Also, as discussed in Section I.G, EPA proposed standards presented in Figure reductions comparing the existing requests comment on standards for MY 1, again in terms of the projected overall standards under the SAFE rule and the 2026 that would result in fleet average industry fleetwide CO2-equivalent proposed revised standards. See Section target levels that are in the range of emission compliance target levels. The II.A below for a full discussion of the 5–10 g/mile lower (i.e., more stringent) industry fleet-wide estimates in Table 1 proposed standards and presentations of than the levels proposed. As with all are projections based on modeling that the footprint standards curves. EPA vehicle emissions standards, the EPA conducted for the proposed rule, BILLING CODE 6560–50–P
240 --2012 FRM
230 ••• SAFE FRM
-Proposal 220
210 OJ E - 200 ~ "' 0u 190
180
170 EPA requests comment on a 5 to 10 g/mi greater stringency for the proposal in MY2026
2020 2021 2022 2023 2024 2025 2026 2027 Model Year
Figure 1 EPA Proposed Industry Fleet-Wide COi Compliance Targets, Compared to 2012 and SAFE Rules,
grams/mile, MYs 2021-2026
BILLING CODE 6560–50–C
TABLE 1—PROJECTED INDUSTRY FLEET-WIDE CO2 COMPLIANCE TARGETS FOR MYS 2023–2026 [grams/mi]
2022 * 2023 2024 2025 2026**
Cars ...... 180 165 157 149 142 Trucks ...... 260 232 221 210 199 Combined Cars and Trucks ...... 220 199 189 180 171 * SAFE rule targets included for reference. ** EPA is also requesting comment on MY 2026 standards that would result in fleet average levels that are 5–10 g/mile more stringent than the levels shown. The combined car/truck CO2 targets are a function of assumed car/truck shares. For this illustration, we assume an approximately 50/50% split in MYs 2023–2026. See DRIA Chapter 2 for detail.
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TABLE 2—PROJECTED INDUSTRY FLEET AVERAGE TARGET YEAR-OVER-YEAR PERCENT REDUCTIONS
SAFE rule Proposal Cars Trucks Combined Cars Trucks Combined % % % % % %
2023 ...... 1.7 1.5 1.6 8.3 10.8 9.8 2024 ...... 1.1 1.2 1.2 4.8 4.7 4.7 2025 ...... 2.3 2.0 2.2 5.1 5.0 4.9 2026 * ...... 1.8 1.6 1.7 4.7 5.2 5.0 * The percentages shown do not include EPA’s request for comments on MY 2026 standards that are 5–10 g/mile more stringent than proposed.
2. Proposed Compliance Incentives and vehicles, fuel cell vehicles, plug-in cap from 10 g/mile to 15 g/mile. EPA is Flexibilities hybrids (ending after MY 2021) also proposing to remove the multiplier • Multiplier incentives for natural gas incentives for natural gas fueled The existing GHG program fueled vehicles (MY 2021–2026) vehicles for MYs 2023–2026. We established in the 2010 and 2012 rules • Full-size pick-up incentives for summarize these proposals below and included several key flexibilities, such hybridization or performance provide details in Sections II.B and II.C as credit programs and technology improvements equivalent to below. incentives that are discussed further in hybridization (ending after MY 2021) this proposal where EPA is requesting The GHG program includes existing comment or proposing modifications.37 EPA is proposing a targeted set of provisions initially established in the These include: extended or additional compliance 2010 rule, which set the MY 2012–2016 flexibilities and incentives that we GHG standards, for how credits may be • Credit Averaging, Banking, and believe are appropriate given the used within the program. These Trading (ABT) including credit carry- stringency and lead time of the averaging, banking, and trading (ABT) forward, credit carry-back, proposed standards. We are proposing provisions include credit carry-forward, transferring credits between a four types of flexibilities/incentives, in credit carry-back (also called deficit manufacturer’s car and truck fleets, addition to flexibilities/incentives that carry-forward), credit transfers (within a and credit trading between already will be available for these MYs manufacturer), and credit trading manufacturers (MY 2012 and later) under EPA’s existing regulations: (1) A (across manufacturers). These ABT • Off-cycle credits for GHG emissions limited extension of carry-forward provisions define how credits may be reductions not captured on the test credits generated in MYs 2016 through used and are integral to the program. procedures used for fleet average 2020; (2) an extension of the advanced The current program limits credit carry- compliance with the footprint-based technology vehicle multiplier credits for forward to 5 years. EPA is proposing a standards (MY 2012 and later) MYs 2022 through 2025 with a limited extension of credit carry- • Air conditioning credits for system cumulative credit cap; (3) restoration of forward for credits generated in MYs efficiency improvements and reduced the 2012 rule’s full-size pickup truck 2016 through 2020. The proposal would refrigerant leakage or use of low incentives for strong hybrids or similar change the credit carry-forward time global warming potential refrigerants performance-based credit for MYs 2022 limitation for MY 2016 credits from five (MY 2012 and later) through 2025 (provisions which were to seven years and the carry-forward • Multiplier incentives for advanced removed in the SAFE rule); and (4) an limit for MYs 2017–2020 from 5 to 6 technology vehicles including electric increase of the off-cycle credits menu years, as shown in Table 3 below.
TABLE 3—EPA PROPOSED EXTENSION OF CREDIT CARRY-FORWARD PROVISIONS
MYs credits are valid under EPA’s proposed extension MY credits are banked 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
2016 ...... x x x x x + + ...... 2017 ...... x x x x x + ...... 2018 ...... x x x x x + ...... 2019 ...... x x x x x + ...... 2020 ...... x x x x x + 2021 ...... x x x x x x = Current program. + = Proposed additional years.
The existing GHG program also strong hybridization or technologies MYs 2022 through 2025. When EPA includes temporary incentives through providing similar emissions reductions established these incentives in the 2012 MY 2021 that encourage the use of to hybrid technology. The full-size rule, EPA recognized that they would advanced technologies such as electric, pickup incentives originally were reduce the effective stringency of the hybrid, and fuel cell vehicles, as well as available through MY 2025, but the standards, but believed that it was incentives for full-size pickups using SAFE rule removed these incentives for worthwhile to have a limited near-term
37 See 75 FR 25324, May 7, 2010 and 77 FR 62624, Oct. 15, 2012.
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loss of emissions reduction benefits to C. Analytical Support for the Proposed changes in emissions and fuel increase the potential for far greater Revised Standards consumption to calculate expected net economic impacts from these changes. emissions reduction and technology 1. Summary of Analyses for This 38 Key economic inputs include: The diffusion benefits in the longer term. Proposed Rule EPA believed that the temporary social costs of GHGs; measures of health regulatory incentives would help bring All of EPA’s analyses of the national impacts from changes in criteria low emission technologies to market light-duty vehicle GHG program over pollutant emissions; a value for the more quickly than in the absence of the past decade have been built on the vehicle miles traveled ‘‘rebound effect;’’ incentives.39 With these same goals in same overall framework and produce estimates of energy security impacts of mind for this program, EPA is proposing the same types of results. Section III.A changes in fuel consumption; and costs below explains this common EPA multiplier incentives from MY 2022 associated with crashes, noise, and framework in more detail. In summary, though MY 2025 with a cap on congestion from additional rebound it includes the following primary multiplier credits and to reinstate the driving. elements: Our overall analytical approach full-size pickup incentives removed generates key results for the following from the program by the SAFE rule. i. Analyzing Issues of Feasibility, Costs, metrics: Incremental costs per vehicle These proposed incentives are intended and Lead Time (industry-wide averages and by as a temporary measure supporting the As with our earlier analyses, EPA manufacturer); total vehicle technology transition to zero-emission vehicles and used a model to simulate the decision costs for the auto industry; GHG to provide additional flexibility in process of auto manufacturers in emissions reductions and criteria meeting the MY 2023–2026 proposed choosing among the emission reduction pollutant emissions reductions; standards, as further discussed in technologies available to incorporate in penetration of key GHG-reducing Section II.B.1. vehicles across their fleets. The models technologies across the fleet; consumer EPA is also proposing to remove the take into account both the projected fuel savings; oil reductions; and net extended multiplier incentives added by costs of established and newer societal costs and benefits. We discuss the SAFE rule from the GHG program technologies and the relative ability of these analyses in Sections III, IV, V, and after MY 2022. EPA is proposing to end each of these technologies to reduce VII below as well as in the DRIA. GHG emissions. This process identifies multipliers for NGVs in this manner 2. History of Similar Analyses because NGVs are not a near-zero potential pathways for manufacturers to emissions technology and EPA believes comply with a given set of GHG At several points during the past multipliers are no longer necessary or standards. EPA then estimates projected decade, EPA has performed detailed appropriate for these vehicles. Any NGV average and total costs for analyses to evaluate the technological multiplier credits generated in MY 2022 manufacturers to produce these vehicles feasibility, as well as to project program would be included under the proposed to meet the standards under evaluation costs and benefits, of the national light- multiplier cap. during the model years covered by the duty vehicle GHG emissions control analysis. program. Although the purposes of The current program also includes In addition to projecting the these analyses varied, and EPA used credits for real-world emissions technological capabilities of the somewhat different modeling reductions not reflected on the test industry and estimating compliance approaches and tools, in each case these cycles used for measuring CO2 costs for each of the four affected model analyses included assessments of the emissions for compliance with the fleet years (MYs 2023–2026), EPA has program in the later years of the average standards. There are credits for considered the role of the averaging, standards, i.e., MYs 2022 through 2025 using technologies that reduce GHG banking, and trading system that has or 2026. As we describe in more detail emissions that aren’t captured on EPA been available and extensively used by in Chapter 1 of the DRIA, EPA tests (‘‘off-cycle’’ technologies) and the industry since the beginning of the performed similar analyses in support of improvements to air conditioning light-duty vehicle GHG program in the 2011 proposal and 2012 final rule systems that increase efficiency and model year 2012. Our analysis of the establishing the original MY 2017–2025 reduce refrigerant leakage. These credit current and anticipated near-future light-duty vehicle GHG standards; in opportunities do not sunset under the usage of the GHG credit mechanisms 2016–January 2017 in support of the existing regulations, remaining a part of (III.B.2 below) reinforces the trends we Midterm Evaluation process and the program through MY 2026 and identified in our other analyses showing Determination concerning the MY beyond unless the program is changed widespread technological advancement 2022–2025 standards; and in 2018 by regulatory action. EPA is proposing in the industry at reasonable per-vehicle during the development of the SAFE to modify an aspect of the off-cycle costs. Together, these analyses support proposed rule. credits program to provide additional EPA’s conclusion under section 202(a) It is notable that, although each opportunities for manufacturers to of the CAA that technologically feasible analysis is based on projections from the generate credits by increasing the pre- pathways are available at reasonable then-available fleet data forward to defined menu credit cap from 10 to 15 costs for automakers to comply with the model years 2025 or 2026, the results of g/mile. EPA is also proposing to modify proposed standards during each of the each of these earlier analyses, as well as some of the regulatory definitions that four model years. We discuss these the updated analysis we have performed are used to determine whether a analyses and their results further in for our proposed standards, have all technology is eligible for the menu Section III below. produced very similar results in several credits. EPA is not proposing changes to key metrics. For example, the estimated ii. Analyzing the Projected Impacts of the air conditioning credits elements of projected cost to manufacturers to the Proposed Program the program. implement similar standards in 2025– We also estimate the GHG and non- 2026 has remained fairly consistent 38 See Tables III–2 and III–3, 77 FR 62772, GHG emission impacts (tailpipe and since 2012. Thus, while we believe the October 15, 2012. upstream) of the proposed standards. updated analysis presented in the DRIA 39 77 FR 62812, October 15, 2012. EPA then builds on the estimated provides strong support for the
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feasibility and appropriateness of the costs, fuel savings, and benefits. The security externalities caused by U.S. proposed program, the consistent results results presented here project the petroleum consumption and imports, from the earlier analyses further monetized environmental and economic the value of certain particulate matter- reinforce the robustness of our impacts associated with the proposed related health benefits (including conclusions. standards during each calendar year premature mortality), the value of through 2050. The proposal also would additional driving attributed to the D. Summary of Costs and Benefits of the have significant benefits for consumers, rebound effect, and the value of reduced Proposed Program as the fuel savings for American drivers refueling time needed to fill a more fuel- EPA estimates that this proposal would total $120 to $250 billion through efficient vehicle. The analysis also would result in significant present-value 2050. With these fuel savings, includes estimates of economic impacts net benefits of $86 billion to $140 consumers would benefit from reduced stemming from additional vehicle use, billion (annualized net benefits of $4.2 operating costs over the vehicle lifetime. such as the economic damages caused billion to $7.3 billion)—that is, the total The benefits include climate-related by crashes, congestion, and noise (from benefits far exceed the total costs of the economic benefits from reducing increased rebound driving). See the program. Table 4 below summarizes emissions of GHGs that contribute to DRIA for more information regarding EPA’s estimates of total discounted climate change, reductions in energy these estimates.
TABLE 4—MONETIZED DISCOUNTED COSTS, BENEFITS, AND NET BENEFITS OF THE PROPOSED PROGRAM FOR CALENDAR YEARS THROUGH 2050 [Billions of 2018 dollars] abcde
Present value Annualized value 3% 7% 3% 7% Discount rate Discount rate Discount rate Discount rate
Costs ...... $240 $150 $12 $12 Fuel Savings ...... 250 120 13 9.9 Benefits ...... 130 110 6.9 6.3 Net Benefits ...... 140 86 7.3 4.2 Notes: a Values rounded to two significant figures; totals may not sum due to rounding. Present and annualized values are based on the stream of an- nual calendar year costs and benefits included in the analysis (2021–2050) and discounted back to year 2021. b Climate benefits are based on reductions in CO2, CH4 and N2O emissions and are calculated using four different estimates of the social cost of each greenhouse gas (SC–GHG model average at 2.5%, 3%, and 5% discount rates; 95th percentile at 3% discount rate), which each in- crease over time. In this table, we show the benefits associated with the average SC–GHGs at a 3% discount rate but the Agency does not have a single central SC–GHG point estimate. We emphasize the importance and value of considering the benefits calculated using all four SC–GHG estimates and present them later in this preamble. As discussed in Chapter 3.3 of the DRIA, a consideration of climate benefits calculated using discount rates below 3 percent, including 2 percent and lower, is also warranted when discounting intergenerational impacts. c The same discount rate used to discount the value of damages from future GHG emissions (SC–GHGs at 5, 3, and 2.5 percent) is used to calculate the present and annualized values of climate benefits for internal consistency, while all other costs and benefits are discounted at either 3% or 7%. d Net benefits reflect the fuel savings plus benefits minus costs. e Non-GHG impacts associated with the standards presented here do not include the full complement of health and environmental effects that, if quantified and monetized, would increase the total monetized benefits. Instead, the non-GHG benefits are based on benefit-per-ton values that reflect only human health impacts associated with reductions in PM2.5 exposure.
A second way to present the net vehicles projected to be sold in MYs MY2026 levels beyond MY2026 in any benefits of the proposal is using a 2023–2026. The estimated results scenario. At both a 3% and 7% discount vehicle MY lifetime basis. Table 5 and presented here project the monetized rate all model years show substantial Table 6 summarize EPA’s estimates of environmental and economic impacts fuel savings and net benefits. total discounted costs, fuel savings, and associated with the proposed standards. benefits through the full lifetime of Note that standards continue at their
TABLE 5—GHG ANALYSIS OF LIFETIME COSTS & BENEFITS TO MEET THE PROPOSED MYS 2023–2026 GHG STANDARDS, 3% DISCOUNT RATE [For vehicles produced in MY 2023–2026]abcd [Billions of 2018$]
MY Costs Fuel savings Benefits Net benefits
Present values
2023 ...... $4.8 $3.6 $1.9 $0.68 2024 ...... 5.9 7 3.6 4.7 2025 ...... 6.7 8.6 4.4 6.2 2026 ...... 8.1 13 7.2 12
Sum ...... 26 33 17 24
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TABLE 5—GHG ANALYSIS OF LIFETIME COSTS & BENEFITS TO MEET THE PROPOSED MYS 2023–2026 GHG STANDARDS, 3% DISCOUNT RATE—Continued [For vehicles produced in MY 2023–2026]abcd [Billions of 2018$]
MY Costs Fuel savings Benefits Net benefits
Annualized values
2023 ...... 0.21 0.16 0.08 0.029 2024 ...... 0.26 0.3 0.16 0.2 2025 ...... 0.29 0.37 0.19 0.27 2026 ...... 0.35 0.58 0.31 0.54
Sum ...... 1.1 1.4 0.74 1 Notes: a The lifetime costs and benefits of each MY vehicle are discounted back to 2021. b Climate benefits are based on reductions in CO2, CH4 and N2O emissions and are calculated using four different estimates of the social cost of each greenhouse gas (SC–GHG model average at 2.5%, 3%, and 5% discount rates; 95th percentile at 3% discount rate), which each in- crease over time. In this table, we show the benefits associated with the average SC–GHGs at a 3% discount rate, but the Agency does not have a single central SC–GHG point estimate. We emphasize the importance and value of considering the benefits calculated using all four SC– GHG estimates and present them later in this preamble. As discussed in Chapter 3.3 of the DRIA, a consideration of climate benefits calculated using discount rates below 3 percent, including 2 percent and lower, is also warranted when discounting intergenerational impacts. c The same discount rate used to discount the value of damages from future GHG emissions is used to calculate the present and annualized value of SC–GHGs for internal consistency, while all other costs and benefits are discounted at 3% in this table. d Non-GHG impacts associated with the standards presented here do not include the full complement of health and environmental effects that, if quantified and monetized, would increase the total monetized benefits. Instead, the non-GHG benefits are based on benefit-per-ton values that reflect only human health impacts associated with reductions in PM2.5 exposure.
TABLE 6—GHG ANALYSIS OF LIFETIME COSTS & BENEFITS TO MEET THE PROPOSED MYS 2023–2026 GHG STANDARDS, 7% DISCOUNT RATE [For vehicles produced in MY 2023–2026]abcd [Billions of 2018$]
MY Costs Fuel savings Benefits Net benefits
Present values
2023 ...... $4.4 $2.6 $1.7 ¥$0.14 2024 ...... 5.5 4.7 3.3 2.4 2025 ...... 6.1 5.5 3.9 3.4 2026 ...... 7.3 8.2 6.2 7.2
Sum ...... 23 21 15 13
Annualized values
2023 ...... 0.33 0.19 0.085 ¥0.053 2024 ...... 0.41 0.35 0.16 0.1 2025 ...... 0.45 0.41 0.19 0.15 2026 ...... 0.55 0.62 0.31 0.38
Sum ...... 1.7 1.6 0.75 0.58 Notes: a The lifetime costs and benefits of each MY vehicle are discounted back to 2021. b Climate benefits are based on reductions in CO2, CH4 and N2O emissions and are calculated using four different estimates of the social cost of each greenhouse gas (SC–GHG model average at 2.5%, 3%, and 5% discount rates; 95th percentile at 3% discount rate), which each in- crease over time. In this table, we show the benefits associated with the average SC–GHGs at a 3% discount rate, but the Agency does not have a single central SC–GHG point estimate. We emphasize the importance and value of considering the benefits calculated using all four SC– GHG estimates and present them later in this preamble. As discussed in Chapter 3.3 of the DRIA, a consideration of climate benefits calculated using discount rates below 3 percent, including 2 percent and lower, is also warranted when discounting intergenerational impacts. c The same discount rate used to discount the value of damages from future GHG emissions is used to calculate the present and annualized value of SC–GHGs for internal consistency, while all other costs and benefits are discounted at 7% in this table. d Non-GHG impacts associated with the standards presented here do not include the full complement of health and environmental effects that, if quantified and monetized, would increase the total monetized benefits. Instead, the non-GHG benefits are based on benefit-per-ton values that reflect only human health impacts associated with reductions in PM2.5 exposure.
E. How has EPA considered practicable and permitted by law, to activities on minority populations and environmental justice in this proposal? make achieving environmental justice low-income populations in the United (EJ) part of their mission by identifying States. Chapter 8.3 discusses the Executive Orders 12898 (59 FR 7629, and addressing, as appropriate, potential environmental justice February 16, 1994) and 14008 (86 FR disproportionately high and adverse concerns associated with this proposal. 7619, February 1, 2021) direct federal human health or environmental effects EPA defines environmental justice as agencies, to the greatest extent of their programs, policies, and the fair treatment and meaningful
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involvement of all people regardless of pollution are more prevalent in areas are of great importance for social equity race, color, national origin, or income where minority populations and low- and reflect these contrasting forces. The with respect to the development, income populations represent a higher overall effects on vehicle ownership, implementation, and enforcement of fraction of the population compared including for lower-income households, environmental laws, regulations, and with the general population. There is depend heavily on the role of fuel policies. Executive Order 14008 also substantial evidence, for example, that consumption in vehicle sales decisions, calls on federal agencies to make people who live or attend school near as discussed in Section VII.M. At the achieving environmental justice part of major roadways are more likely to be of same time, lower-income households their missions ‘‘by developing programs, a racial minority, Hispanic ethnicity, own fewer vehicles per household, are policies, and activities to address the and/or low socioeconomic status (see more likely to buy used vehicles than disproportionately high and adverse Section VII.L.2). new, and spend more on fuel than on human health, environmental, climate- We expect this proposed rule would vehicles on an annual basis than higher- related and other cumulative impacts on result in both small reductions and income households. In addition, for disadvantaged communities, as well as small increases of non-GHG emissions. lower-income households, fuel the accompanying economic challenges These effects could potentially impact expenditures are a larger portion of of such impacts.’’ It declares a policy communities with EJ concerns, though household income, so the fuel savings ‘‘to secure environmental justice and not necessarily immediately and not that would result from this proposal spur economic opportunity for equally in all locations. For this may be more impactful to these disadvantaged communities that have proposal, the air quality information consumers. Thus, the benefits of this been historically marginalized and needed to perform a quantified analysis proposal may be stronger for lower- overburdened by pollution and under- of the distribution of such impacts was income households even if they buy investment in housing, transportation, not available. We therefore recommend used vehicles: As vehicles meeting the water and wastewater infrastructure and caution when interpreting these broad, proposed standards enter the used health care.’’ Under Executive Order qualitative observations. vehicle market, they will retain the fuel 13563 (76 FR 3821), federal agencies We note that EPA intends to develop economy/GHG-reduction benefits, and may consider equity, human dignity, a future rule to control emissions of associated fuel savings, while facing a fairness, and distributional GHGs as well as criteria and air toxic smaller portion of the upfront vehicle considerations, where appropriate and pollutants from light-duty vehicles for costs. The reduction in operating costs permitted by law. MYs beyond 2026. We are considering may also increase access to EPA’s 2016 ‘‘Technical Guidance for how to project air quality impacts from transportation services, such as ride- Assessing Environmental Justice in the changes in non-GHG emissions for hailing and ride-sharing, where the Regulatory Analysis’’ provides that future rulemaking (see Section V.C). lower per-mile costs may play a larger recommendations on conducting the F. Affordability and Equity role than up-front costs in pricing. As a highest quality analysis feasible, result, lower-income consumers may be recognizing that data limitations, time In addition to considering environmental justice impacts, we have affected more from the reduction in and resource constraints, and analytic operating costs than the increase in up- challenges will vary by media and examined the effects of the proposed 40 standards on affordability of vehicles front costs. regulatory context. New electric vehicles currently have EPA’s mobile source regulatory and transportation services for low- income households in Section VII.L of higher up-front costs and lower program has historically reduced operating costs than gasoline vehicles significant amounts of both GHG and this Preamble and Chapter 8.4 of the and require access to charging non-GHG pollutants to the benefit of all DRIA. As with the effects of the infrastructure that may not be readily U.S. residents, including populations proposed standards on vehicle sales available to many. EPA has heard from that live near roads and in communities discussed in Section VII.B, the effects of some environmental justice groups and with EJ concerns. EJ concerns may arise the proposed standards on affordability Tribes that limited access to electric in the context of this rulemaking in two and equity depend in part on two vehicles and charging infrastructure can key areas. countervailing effects: The increase in First, minority populations and low- the up-front costs of new vehicles be a barrier for purchasing EVs. This income populations may be especially subject to more stringent standards, and proposal projects that the vast majority vulnerable to the impacts of climate the decrease in operating costs from of vehicles produced in the time frame change. As discussed in Section IV.C, reduced fuel consumption over time. of the proposed standards will be this proposed rulemaking would The increase in up-front new vehicle gasoline-fueled vehicles (with EVs and mitigate the impacts of climate change costs has the potential to increase the PHEVs gradually increasing to about 8 by achieving significant GHG emission prices of used vehicles, to make credit percent total market share by MY 2026 reductions, which would benefit more difficult to obtain, and to make the compared to about 4 percent in the No populations that may be especially least expensive new vehicles less Action scenario, see DRIA Chapter 4.1.3, vulnerable to various forms of damages desirable compared to used vehicles. Table 4–30). However, EPA will monitor associated with climate change. The reduction in operating costs over and study affordability issues related to Second, in addition to significant time has the potential to mitigate or electric vehicles as their prevalence in climate-change benefits, the proposed reverse all these effects. Lower operating the vehicle fleet increases. standards would also impact non-GHG costs on their own increase mobility G. What alternatives is EPA emissions. As discussed in Section (see DRIA Chapter 3.1 for a discussion considering? VII.L.2, numerous studies have found of rebound driving). that environmental hazards such as air While social equity involves issues 1. Description of the Alternatives beyond income and affordability, Along with the proposed standards, 40 ‘‘Technical Guidance for Assessing including race, ethnicity, gender, gender EPA analyzed both a more stringent and Environmental Justice in Regulatory Analysis.’’ identification, and residential location, a less stringent alternative. For the less Epa.gov, Environmental Protection Agency, https:// www.epa.gov/sites/production/files/2016-06/ the potential effects of the proposed stringent alternative, Alternative 1, EPA documents/ejtg_5_6_16_v5.1.pdf. (June 2016). standards on lower-income households used the coefficients in the California
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Framework for the 2.7 percent effective For the more stringent alternative, multipliers with the proposed stringency level (as described in Section Alternative 2, EPA used the 2012 rule cumulative credit cap in MYs 2022– II.B.1) as the basis for the MY 2023 standards as the basis for MY 2023– 2025, which would have the effect of stringency level and the 2012 rule’s MY 2025 targets, with the standards making Alternative 2 less stringent. As 2025 standards as the basis for the MY continuing to increase in stringency in discussed in Section II.B.1, EPA is 2026 stringency level, with linear year- a linear fashion for MY 2026. requesting comment on whether or not over-year reductions between the two Alternative 2 adopts the 2012 rule to include the proposed multipliers, and points for MYs 2024 and 2025. EPA stringency levels in MY 2023 and our request for comments extends to views the California Framework as a follows the 2012 rule standard target whether to include multipliers both for reasonable basis for the least stringent levels through MY 2025. EPA extended the proposal and for Alternative 2.41 alternative that EPA would consider the same linear average year-over-year finalizing, since it represents a level of trajectory for MYs 2023–2025 to MY As previously noted in Section I.B.2, stringency that five manufacturers have 2026 for the final standards under EPA is proposing several modifications already committed to achieving. EPA Alternative 2. As noted in Section to program flexibilities. These proposed did not include incentive multipliers for II.A.1, EPA believes that it is important program changes, except for the Alternative 1, as doing so would only to continue to make progress in MY advanced technology multipliers, would further reduce the effective stringency of 2026 beyond the MY 2025 standard also apply to the alternatives. Table 7 this Alternative, and EPA views levels in the 2012 rule. As with the below provides a list of the proposed Alternative 1 as the lower end of proposal, Alternative 2 meets this flexibilities and their applicability to the stringency that it believes is appropriate objective. EPA did not include in proposed and alternative standards. through 2026. Alternative 2 the proposed incentive
TABLE 7—APPLICABILITY OF REVISED FLEXIBILITY PROVISIONS TO THE PROPOSAL AND ALTERNATIVES
Provision Proposal Alternative 1 Alternative 2
Extension of credit carry-forward for MY 2016–2020 credits ...... Yes ...... Yes ...... Yes. Advanced technology incentive multipliers for MYs 2022–2025 with cap ...... Yes ...... No ...... No. Increase of off-cycle menu cap from 10 to 15 g/mile ...... Yes ...... Yes ...... Yes. Reinstatement of full-size pickup incentives for strong hybrids or equivalent tech- Yes ...... Yes ...... Yes. nologies for MYs 2022–2025. EPA’s technical analysis, presented in Section III, consists of model runs using a model capable of reflecting some but not all of these provi- sions. The modeling includes consideration of advanced technology incentive multipliers for the proposal but not for the alternatives. The model runs also include the 15 grams per mile off-cycle menu cap as appropriate given the standards or targets to which a fleet being modeled is com- plying. Not included in the model runs are the full-size pickup truck technology incentive credit or the extension of the emissions credit carry- forward.
The fleet average targets for the two transition to electrified vehicles, to in the marketplace by the MY 2026 time alternatives compared to the proposed require additional reductions in this frame than EPA has projected in this standards are provided in Table 8 timeframe. As discussed in detail in proposal for both the proposed MY 2026 below. EPA also requests comment on Section A.3 of the Executive Summary, standards and the Alternative 2 MY the level of stringency for MY 2026 for there has been a proliferation of recent 2026 standards. The information the alternatives and the proposed announcements from automakers concerning the investment landscape standards. Specifically, EPA requests signaling a rapidly growing shift in potentially accelerating to an even comment on standards for MY 2026 that investment away from internal- greater extent of market penetration of would result in fleet average target combustion technologies and toward EV products helps inform EPA’s request levels that are in the range of 5–10 high levels of electrification. EPA has for comment on the potential for a more g/mile lower (i.e., more stringent) than also heard from a wide range of stringent MY 2026 standard that would the levels shown for MY 2026 in Table stakeholders over the past several reflect this information and related 8. EPA is requesting specific comment months, including but not limited to the on whether the level of stringency for automotive manufacturers and the considerations, including any additional MY 2026 should be greater in keeping automotive suppliers, that the information provided by commenters. In with the additional lead time available significant investments being made now light of these stakeholder views and for this out-year compared to MYs to develop and launch new EV product other available information, EPA is 2023–2025, and because EPA may offerings and in the expansion of EV soliciting comment on the determine that it is appropriate, charging infrastructure could enable appropriateness of more stringent MY particularly in light of the accelerating higher levels of EV penetration to occur 2026 standards.
TABLE 8—PROJECTED FLEET AVERAGE TARGET LEVELS FOR PROPOSED STANDARDS AND ALTERNATIVES
[CO2 grams/mile]
Proposal Alternative 1 Alternative 2 Model year projected projected projected targets targets targets
2021 ...... * 223 * 223 * 224 2022 ...... * 220 * 220 * 220
41 41 See ‘‘Benefits and Costs of the EPA Light- Advanced Technology Multipliers,’’ memorandum duty Vehicle GHG Proposal with and without to Docket.
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TABLE 8—PROJECTED FLEET AVERAGE TARGET LEVELS FOR PROPOSED STANDARDS AND ALTERNATIVES—Continued
[CO2 grams/mile]
Proposal Alternative 1 Alternative 2 Model year projected projected projected targets targets targets
2023 ...... 199 203 195 2024 ...... 189 194 186 2025 ...... 180 185 177 2026 ** ...... 171 177 169 * SAFE rule standards included here for reference. ** EPA is also requesting comment on MY 2026 standards that would result in fleet average levels that are 5–10 g/mile more stringent than the levels shown. 240 ••• SAFE FRM --2012 FRM 230 -Proposal • • • Alternative 1 220 - -Alternative 2
210
Q) 200 E -~ ON 190 u
180 170 ---- 160
150 2020 2021 2022 2023 2024 2025 2026 2027 Model Year
Figure 2 Proposed Standards Fleet Average Targets Compared to Alternatives
As shown in Figure 2, the range of California Framework (representing stringency range of the proposal and the alternatives that EPA has analyzed is about one-third of the auto market), the Alternatives. fairly narrow, with the proposed standards adopted in the 2012 rule; and 2. Summary of Costs and Benefits of the standard targets differing from the the need to reduce GHG emissions. EPA Alternatives alternatives in any given MY in MYs provides a discussion of the feasibility 2023–2026 by 2 to 6 g/mile, although of the proposed standard and EPA estimates that Alternative 1 would result in significant present-value EPA is requesting comment on a wider alternatives and the selection of the net benefits of $76 billion to $130 range of standards, particularly for MY proposed standards in Section III.D. The billion (annualized net benefits of $4.1 2026 as noted above. EPA believes this analysis of costs and benefits of billion to $6.6 billion)—that is, the total approach is reasonable and appropriate Alternatives 1 and 2 is shown in the benefits far exceed the total costs of the considering the relatively limited lead DRIA Chapters 4, 6, and 10. EPA program. Table 9 below summarizes time for the proposed standards, requests comments on all aspects of EPA’s estimates of total discounted especially for MYs 2023–2025, EPA’s Alternatives 1 and 2 or other costs, fuel savings, and benefits for assessment of feasibility, the existing alternatives roughly within the Alternative 1. The results presented automaker commitments to meet the here project the monetized
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environmental and economic impacts The benefits include climate-related rebound effect, and the value of reduced associated with the proposed standards economic benefits from reducing refueling time needed to fill a more fuel- during each calendar year through 2050. emissions of GHGs that contribute to efficient vehicle. The analysis also Alternative 1 also would have climate change, reductions in energy includes estimates of economic impacts significant benefits for consumers, as security externalities caused by U.S. stemming from additional vehicle use, the fuel savings for American drivers petroleum consumption and imports, such as the economic damages caused would total $98 billion to $200 billion the value of certain particulate matter- by crashes, congestion, and noise (from through 2050. With these fuel savings, related health benefits (including increased rebound driving). See the consumers would benefit from reduced premature mortality), the value of DRIA for more information regarding operating costs over the vehicle lifetime. additional driving attributed to the these estimates.
TABLE 9—MONETIZED DISCOUNTED COSTS, BENEFITS, AND NET BENEFITS OF ALTERNATIVE 1 FOR CALENDAR YEARS THROUGH 2050 [Billions of 2018 dollars] abcde
Present value Annualized value 3% 7% 3% 7% Discount rate Discount rate Discount rate Discount rate
Costs ...... $190 $110 $9.5 $9.2 Fuel savings ...... 200 98 10 7.9 Benefits ...... 120 93 6 5.4 Net benefits ...... 130 76 6.6 4.1 Notes: a Values rounded to two significant figures; totals may not sum due to rounding. Present and annualized values are based on the stream of an- nual calendar year costs and benefits included in the analysis (2021–2050) and discounted back to year 2021. b Climate benefits are based on reductions in CO2, CH4 and N2O emissions and are calculated using four different estimates of the social cost of each greenhouse gas (SC–GHG model average at 2.5%, 3%, and 5% discount rates; 95th percentile at 3% discount rate), which each in- crease over time. In this table, we show the benefits associated with the average SC–GHGs at a 3% discount rate but the Agency does not have a single central SC–GHG point estimate. We emphasize the importance and value of considering the benefits calculated using all four SC–GHG estimates and present them later in this preamble. As discussed in Chapter 3.3 of the DRIA, a consideration of climate benefits calculated using discount rates below 3 percent, including 2 percent and lower, is also warranted when discounting intergenerational impacts. c The same discount rate used to discount the value of damages from future GHG emissions (SC–GHGs at 5, 3, and 2.5 percent) is used to calculate the present and annualized values of climate benefits for internal consistency, while all other costs and benefits are discounted at either 3% or 7%. d Net benefits reflect the fuel savings plus benefits minus costs. e Non-GHG impacts associated with the standards presented here do not include the full complement of health and environmental effects that, if quantified and monetized, would increase the total monetized benefits. Instead, the non-GHG benefits are based on benefit-per-ton values that reflect only human health impacts associated with reductions in PM2.5 exposure.
A second way to present the net vehicles projected to be sold in MYs standards continue at their MY2026 benefits of the proposal is using a 2023–2026 under Alternative 1. The levels beyond MY2026 in any scenario. vehicle MY lifetime basis. Table 10 and estimated results presented here project At both a 3% and 7% discount rate all Table 11 summarize EPA’s estimates of the monetized environmental and model years show substantial fuel total discounted costs, fuel savings, and economic impacts associated with the savings and net benefits. benefits through the full lifetime of Alternative 1 standards. Note that
TABLE 10—GHG ANALYSIS OF LIFETIME COSTS & BENEFITS TO MEET THE ALTERNATIVE 1 MYS 2023–2026 GHG STANDARDS, 3% DISCOUNT RATE [For vehicles produced in MY 2023–2026] abcd [Billions of 2018$]
MY Costs Fuel savings Benefits Net benefits
Present values
2023 ...... $3.9 $3.4 $2 $1.5 2024 ...... 4.9 6.5 3.7 5.3 2025 ...... 5.6 7.7 4.5 6.5 2026 ...... 6.4 10 6 9.7
Sum ...... 21 28 16 23
Annualized values
2023 ...... 0.17 0.15 0.085 0.067 2024 ...... 0.21 0.28 0.16 0.23 2025 ...... 0.24 0.33 0.19 0.28 2026 ...... 0.28 0.44 0.26 0.42
Sum ...... 0.9 1.2 0.7 1 Notes:
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a The lifetime costs and benefits of each MY vehicle are discounted back to 2021. b Climate benefits are based on reductions in CO2, CH4, and N2O emissions and are calculated using four different estimates of the social cost of each greenhouse gas (SC–GHG model average at 2.5%, 3%, and 5% discount rates; 95th percentile at 3% discount rate), which each in- crease over time. In this table, we show the benefits associated with the average SC–GHGs at a 3% discount rate, but the Agency does not have a single central SC–GHG point estimate. We emphasize the importance and value of considering the benefits calculated using all four SC– GHG estimates and present them later in this preamble. As discussed in Chapter 3.3 of the DRIA, a consideration of climate benefits calculated using discount rates below 3 percent, including 2 percent and lower, is also warranted when discounting intergenerational impacts. c The same discount rate used to discount the value of damages from future GHG emissions is used to calculate the present and annualized value of SC–GHGs for internal consistency, while all other costs and benefits are discounted at 3% in this table. d Non-GHG impacts associated with the standards presented here do not include the full complement of health and environmental effects that, if quantified and monetized, would increase the total monetized benefits. Instead, the non-GHG benefits are based on benefit-per-ton values that reflect only human health impacts associated with reductions in PM2.5 exposure.
TABLE 11—GHG ANALYSIS OF LIFETIME COSTS & BENEFITS TO MEET THE ALTERNATIVE 1 MYS 2023–2026 GHG STANDARDS, 7% DISCOUNT RATE [For Vehicles Produced in MY 2023–2026] abcd [Billions of 2018$]
MY Costs Fuel savings Benefits Net benefits
Present values
2023 ...... $3.7 $2.4 $1.7 $0.4 2024 ...... 4.7 4.3 3.2 2.8 2025 ...... 5.1 4.9 3.8 3.6 2026 ...... 5.6 6.2 5 5.6
Sum ...... 19 18 14 12
Annualized values
2023 ...... 0.28 0.18 0.091 ¥0.0084 2024 ...... 0.35 0.32 0.17 0.14 2025 ...... 0.38 0.37 0.2 0.19 2026 ...... 0.42 0.47 0.26 0.31
Sum ...... 1.4 1.3 0.72 0.63 Notes: a The lifetime costs and benefits of each MY vehicle are discounted back to 2021. b Climate benefits are based on reductions in CO2, CH4 and N2O emissions and are calculated using four different estimates of the social cost of each greenhouse gas (SC–GHG model average at 2.5%, 3%, and 5% discount rates; 95th percentile at 3% discount rate), which each in- crease over time. In this table, we show the benefits associated with the average SC–GHGs at a 3% discount rate, but the Agency does not have a single central SC–GHG point estimate. We emphasize the importance and value of considering the benefits calculated using all four SC– GHG estimates and present them later in this preamble. As discussed in Chapter 3.3 of the DRIA, a consideration of climate benefits calculated using discount rates below 3 percent, including 2 percent and lower, is also warranted when discounting intergenerational impacts. c The same discount rate used to discount the value of damages from future GHG emissions is used to calculate the present and annualized value of SC–GHGs for internal consistency, while all other costs and benefits are discounted at 7% in this table. d Non-GHG impacts associated with the standards presented here do not include the full complement of health and environmental effects that, if quantified and monetized, would increase the total monetized benefits. Instead, the non-GHG benefits are based on benefit-per-ton values that reflect only human health impacts associated with reductions in PM2.5 exposure.
EPA estimates that Alternative 2 Alternative 2 also would have related health benefits (including would result in significant present value significant benefits for consumers, as premature mortality), the value of net benefits of $110 billion to $180 the fuel savings for American drivers additional driving attributed to the billion (annualized net benefits of $5.7 would total $150 billion to $290 billion rebound effect, and the value of reduced billion to $9.1 billion)—that is, the total through 2050. With these fuel savings, time needed to refuel a more fuel benefits far exceed the total costs of the consumers would benefit from reduced efficient vehicle. The analysis also program. Table 12 below summarizes operating costs over the vehicle lifetime. includes estimates of economic impacts EPA’s estimates of total discounted The benefits include climate-related stemming from additional vehicle use, costs, fuel savings, and benefits for economic benefits from reducing such as the economic damages caused Alternative 2. The results presented emissions of GHGs that contribute to by crashes, congestion, and noise (from here project the monetized climate change, reductions in energy increased rebound driving). See the environmental and economic impacts security externalities caused by U.S. DRIA for more information regarding associated with the proposed standards petroleum consumption and imports, during each calendar year through 2050. the value of certain particulate matter- these estimates.
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TABLE 12—MONETIZED DISCOUNTED COSTS, BENEFITS, AND NET BENEFITS OF ALTERNATIVE 2 FOR CALENDAR YEARS THROUGH 2050 [Billions of 2018 dollars] abcde
Present value Annualized value 3% 7% 3% 7% Discount rate Discount rate Discount rate Discount rate
Costs ...... $290 $180 $15 $14 Fuel Savings ...... 290 150 15 12 Benefits ...... 170 140 8.8 8 Net Benefits ...... 180 110 9.1 5.7 Notes: a Values rounded to two significant figures; totals may not sum due to rounding. Present and annualized values are based on the stream of an- nual calendar year costs and benefits included in the analysis (2021–2050) and discounted back to year 2021. b Climate benefits are based on reductions in CO2, CH4 and N2O emissions and are calculated using four different estimates of the social cost of each greenhouse gas (SC–GHG model average at 2.5%, 3%, and 5% discount rates; 95th percentile at 3% discount rate), which each in- crease over time. In this table, we show the benefits associated with the average SC–GHGs at a 3% discount rate but the Agency does not have a single central SC–GHG point estimate. We emphasize the importance and value of considering the benefits calculated using all four SC–GHG estimates and present them later in this preamble. As discussed in Chapter 3.3 of the DRIA, a consideration of climate benefits calculated using discount rates below 3 percent, including 2 percent and lower, is also warranted when discounting intergenerational impacts. c The same discount rate used to discount the value of damages from future GHG emissions (SC–GHGs at 5, 3, and 2.5 percent) is used to calculate the present and annualized values of climate benefits for internal consistency, while all other costs and benefits are discounted at either 3% or 7%. d Net benefits reflect the fuel savings plus benefits minus costs. e Non-GHG impacts associated with the standards presented here do not include the full complement of health and environmental effects that, if quantified and monetized, would increase the total monetized benefits. Instead, the non-GHG benefits are based on benefit-per-ton values that reflect only human health impacts associated with reductions in PM2.5 exposure.
A second way to present the net vehicles projected to be sold in MYs continue at their MY2026 levels beyond benefits of the proposal is using a 2023–2026 under Alternative 2. The MY2026 in any scenario. At both a 3% vehicle MY lifetime basis. Table 13 and estimated results presented here project and 7% discount rate all model years Table 14 summarize EPA’s estimates of the monetized environmental and show substantial fuel savings and net total discounted costs, fuel savings, and economic impacts associated with the benefits. benefits through the full lifetime of proposed standards. Note that standards
TABLE 13—GHG ANALYSIS OF LIFETIME COSTS & BENEFITS TO MEET THE ALTERNATIVE 2 MY 2023–2026 GHG STANDARDS, 3% DISCOUNT RATE [For vehicles produced in MY 2023–2026] abcd [Billions of 2018$]
MY Costs Fuel savings Benefits Net benefits
Present values
2023 ...... $6.8 $7.7 $4.6 $5.5 2024 ...... 7.7 9.8 5.7 7.8 2025 ...... 8.4 11 6.5 9.1 2026 ...... 9.2 13 7.8 12
Sum ...... 32 42 25 34
Annualized values
2023 ...... $0.3 $0.33 $0.2 $0.24 2024 ...... 0.33 0.42 0.25 0.34 2025 ...... 0.37 0.48 0.28 0.39 2026 ...... 0.4 0.57 0.34 0.51
Sum ...... 1.4 1.8 1.1 1.5 Notes: a The lifetime costs and benefits of each MY vehicle are discounted back to 2021. b Climate benefits are based on reductions in CO2, CH4 and N2O emissions and are calculated using four different estimates of the social cost of each greenhouse gas (SC–GHG model average at 2.5%, 3%, and 5% discount rates; 95th percentile at 3% discount rate), which each in- crease over time. In this table, we show the benefits associated with the average SC–GHGs at a 3% discount rate, but the Agency does not have a single central SC–GHG point estimate. We emphasize the importance and value of considering the benefits calculated using all four SC– GHG estimates and present them later in this preamble. As discussed in Chapter 3.3 of the DRIA, a consideration of climate benefits calculated using discount rates below 3 percent, including 2 percent and lower, is also warranted when discounting intergenerational impacts. c The same discount rate used to discount the value of damages from future GHG emissions is used to calculate the present and annualized value of SC–GHGs for internal consistency, while all other costs and benefits are discounted at 3% in this table. d Non-GHG impacts associated with the standards presented here do not include the full complement of health and environmental effects that, if quantified and monetized, would increase the total monetized benefits. Instead, the non-GHG benefits are based on benefit-per-ton values that reflect only human health impacts associated with reductions in PM2.5 exposure.
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TABLE 14—GHG ANALYSIS OF LIFETIME COSTS & BENEFITS TO MEET THE ALTERNATIVE 2 MY 2023–2026 GHG STANDARDS, 7% DISCOUNT RATE [For vehicles produced in MY 2023–2026] abcd [Billions of 2018$]
MY Costs Fuel savings Benefits Net benefits
Present values
2023 ...... $6.3 $5.4 $4 $3.1 2024 ...... 7 6.5 5 4.4 2025 ...... 7.4 7.1 5.5 5.2 2026 ...... 7.9 8.2 6.6 6.9
Sum ...... 29 27 21 20
Annualized Values
2023 ...... 0.48 0.4 0.21 0.14 2024 ...... 0.53 0.49 0.26 0.22 2025 ...... 0.56 0.54 0.29 0.27 2026 ...... 0.59 0.61 0.34 0.37
Sum ...... 2.2 2 1.1 1 Notes: a The lifetime costs and benefits of each MY vehicle are discounted back to 2021. b Climate benefits are based on reductions in CO2, CH4 and N2O emissions and are calculated using four different estimates of the social cost of each greenhouse gas (SC–GHG model average at 2.5%, 3%, and 5% discount rates; 95th percentile at 3% discount rate), which each in- crease over time. In this table, we show the benefits associated with the average SC–GHGs at a 3% discount rate, but the Agency does not have a single central SC–GHG point estimate. We emphasize the importance and value of considering the benefits calculated using all four SC– GHG estimates and present them later in this preamble. As discussed in Chapter 3.3 of the DRIA, a consideration of climate benefits calculated using discount rates below 3 percent, including 2 percent and lower, is also warranted when discounting intergenerational impacts. c The same discount rate used to discount the value of damages from future GHG emissions is used to calculate the present and annualized value of SC–GHGs for internal consistency, while all other costs and benefits are discounted at 7% in this table. d Non-GHG impacts associated with the standards presented here do not include the full complement of health and environmental effects that, if quantified and monetized, would increase the total monetized benefits. Instead, the non-GHG benefits are based on benefit-per-ton values that reflect only human health impacts associated with reductions in PM2.5 exposure.
3. Summary of the Proposal’s Costs and the total discounted costs, fuel savings, related health benefits (including Benefits Compared to the Alternatives and benefits. The results presented in premature mortality), the value of Here we present the proposal’s costs these tables project the monetized additional driving attributed to the and benefits (as summarized previously environmental and economic impacts rebound effect, and the value of reduced in Section I.D) alongside the costs and associated with the proposed standards refueling time needed to fill a more fuel benefits of the alternatives (as during each calendar year through 2050. efficient vehicle. The analysis also summarized previously in Section The benefits include climate-related includes estimates of economic impacts I.G.2). economic benefits from reducing stemming from additional vehicle use, Table 15 below summarizes EPA’s emissions of GHGs that contribute to such as the economic damages caused estimates of present value total climate change, reductions in energy by crashes, congestion, and noise (from discounted costs, fuel savings, and security externalities caused by U.S. increased rebound driving). See the benefits. Table 16 below summarizes petroleum consumption and imports, DRIA for more information regarding EPA’s estimates of annualized values of the value of certain particulate matter- these estimates.
TABLE 15—PRESENT VALUE MONETIZED DISCOUNTED COSTS, BENEFITS, AND NET BENEFITS OF THE PROPOSED PROGRAM AND ALTERNATIVES FOR CALENDAR YEARS THROUGH 2050 [Billions of 2018 dollars] abcde
3% Discount rate 7% Discount rate Proposal Alternative 1 Alternative 2 Proposal Alternative 1 Alternative 2
Costs ...... $240 $190 $290 $150 $110 $180 Fuel Savings ...... 250 200 290 120 98 150 Benefits ...... 130 120 170 110 93 140 Net Benefits ...... 140 130 180 86 76 110 Notes: a Values rounded to two significant figures; totals may not sum due to rounding. Present and annualized values are based on the stream of an- nual calendar year costs and benefits included in the analysis (2021–2050) and discounted back to year 2021. b Climate benefits are based on reductions in CO2, CH4 and N2O emissions and are calculated using four different estimates of the social cost of each greenhouse gas (SC–GHG model average at 2.5%, 3%, and 5% discount rates; 95th percentile at 3% discount rate), which each in- crease over time. In this table, we show the benefits associated with the average SC–GHGs at a 3% discount rate but the Agency does not have a single central SC–GHG point estimate. We emphasize the importance and value of considering the benefits calculated using all four SC–GHG estimates and present them later in this preamble. As discussed in Chapter 3.3 of the DRIA, a consideration of climate benefits calculated using discount rates below 3 percent, including 2 percent and lower, is also warranted when discounting intergenerational impacts.
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c The same discount rate used to discount the value of damages from future GHG emissions (SC–GHGs at 5, 3, and 2.5 percent) is used to calculate the present and annualized values of climate benefits for internal consistency, while all other costs and benefits are discounted at either 3% or 7%. d Net benefits reflect the fuel savings plus benefits minus costs. e Non-GHG impacts associated with the standards presented here do not include the full complement of health and environmental effects that, if quantified and monetized, would increase the total monetized benefits. Instead, the non-GHG benefits are based on benefit-per-ton values that reflect only human health impacts associated with reductions in PM2.5 exposure.
TABLE 16—ANNUALIZED MONETIZED DISCOUNTED COSTS, BENEFITS, AND NET BENEFITS OF THE PROPOSED PROGRAM AND ALTERNATIVES FOR CALENDAR YEARS THROUGH 2050 [Billions of 2018 dollars] abcde
3% Discount rate 7% Discount rate Proposal Alternative 1 Alternative 2 Proposal Alternative 1 Alternative 2
Costs ...... $12 $9.5 $15 $12 $9.2 $14 Fuel Savings ...... 13 10 15 9.9 7.9 12 Benefits ...... 6.9 6 8.8 6.3 5.4 8 Net Benefits ...... 7.3 6.6 9.1 4.2 4.1 5.7 Notes: a Values rounded to two significant figures; totals may not sum due to rounding. Present and annualized values are based on the stream of an- nual calendar year costs and benefits included in the analysis (2021–2050) and discounted back to year 2021. b Climate benefits are based on reductions in CO2, CH4 and N2O emissions and are calculated using four different estimates of the social cost of each greenhouse gas (SC–GHG model average at 2.5%, 3%, and 5% discount rates; 95th percentile at 3% discount rate), which each in- crease over time. In this table, we show the benefits associated with the average SC–GHGs at a 3% discount rate but the Agency does not have a single central SC–GHG point estimate. We emphasize the importance and value of considering the benefits calculated using all four SC–GHG estimates and present them later in this preamble. As discussed in Chapter 3.3 of the DRIA, a consideration of climate benefits calculated using discount rates below 3 percent, including 2 percent and lower, is also warranted when discounting intergenerational impacts. c The same discount rate used to discount the value of damages from future GHG emissions (SC–GHGs at 5, 3, and 2.5 percent) is used to calculate the present and annualized values of climate benefits for internal consistency, while all other costs and benefits are discounted at either 3% or 7%. d Net benefits reflect the fuel savings plus benefits minus costs. e Non-GHG impacts associated with the standards presented here do not include the full complement of health and environmental effects that, if quantified and monetized, would increase the total monetized benefits. Instead, the non-GHG benefits are based on benefit-per-ton values that reflect only human health impacts associated with reductions in PM2.5 exposure.
A second way to present the net be sold in MYs 2023–2026. The MY2026 in any scenario. At both a 3% benefits is using a vehicle MY lifetime estimated results presented here project and 7% discount rate all model years basis. Table 17 and Table 18 summarize the monetized environmental and show substantial fuel savings and net EPA’s estimates of total discounted economic impacts associated with the benefits. costs, fuel savings, and benefits through proposed standards. Note that standards the full lifetime of vehicles projected to continue at their MY2026 levels beyond
TABLE 17—PRESENT VALUE GHG ANALYSIS OF LIFETIME COSTS & BENEFITS FOR MY 2023–2026 GHG STANDARDS UNDER THE PROPOSAL AND ALTERNATIVES [For vehicles produced in MY 2023–2026] abcd [Billions of 2018$]
3% Discount rate 7% Discount rate Fuel Net Fuel Net MY Costs I savings I Benefits I benefits Costs I savings I Benefits I benefits Proposal
2023 ...... $4.8 $3.6 $1.9 $0.68 $4.4 $2.6 $1.7 ¥$0.14 2024 ...... 5.9 7 3.6 4.7 5.5 4.7 3.3 2.4 2025 ...... 6.7 8.6 4.4 6.2 6.1 5.5 3.9 3.4 2026 ...... 8.1 13 7.2 12 7.3 8.2 6.2 7.2
Sum ...... 26 33 17 24 23 21 15 13
Alternative 1
2023 ...... $3.9 $3.4 $2 $1.5 $3.7 $2.4 $1.7 $0.4 2024 ...... 4.9 6.5 3.7 5.3 4.7 4.3 3.2 2.8 2025 ...... 5.6 7.7 4.5 6.5 5.1 4.9 3.8 3.6 2026 ...... 6.4 10 6 9.7 5.6 6.2 5 5.6
Sum ...... 21 28 16 23 19 18 14 12
Alternative 2
2023 ...... $6.8 $7.7 $4.6 $5.5 $6.3 $5.4 $4 $3.1
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TABLE 17—PRESENT VALUE GHG ANALYSIS OF LIFETIME COSTS & BENEFITS FOR MY 2023–2026 GHG STANDARDS UNDER THE PROPOSAL AND ALTERNATIVES—Continued [For vehicles produced in MY 2023–2026] abcd [Billions of 2018$]
3% Discount rate 7% Discount rate Fuel Net Fuel Net MY Costs savings Benefits benefits Costs savings Benefits benefits
2024 ...... 7.7 9.8 5.7 7.8 7 6.5 5 4.4 2025 ...... 8.4 11 6.5 9.1 7.4 7.1 5.5 5.2 2026 ...... 9.2 13 7.8 12 7.9 8.2 6.6 6.9
Sum ...... 32 42 25 34 29 27 21 20 Notes: a The lifetime costs and benefits of each MY vehicle are discounted back to 2021. b Climate benefits are based on reductions in CO2, CH4 and N2O emissions and are calculated using four different estimates of the social cost of each greenhouse gas (SC–GHG model average at 2.5%, 3%, and 5% discount rates; 95th percentile at 3% discount rate), which each in- crease over time. In this table, we show the benefits associated with the average SC–GHGs at a 3% discount rate, but the Agency does not have a single central SC–GHG point estimate. We emphasize the importance and value of considering the benefits calculated using all four SC– GHG estimates and present them later in this preamble. As discussed in Chapter 3.3 of the DRIA, a consideration of climate benefits calculated using discount rates below 3 percent, including 2 percent and lower, is also warranted when discounting intergenerational impacts. c The same discount rate used to discount the value of damages from future GHG emissions is used to calculate the present and annualized value of SC–GHGs for internal consistency, while all other costs and benefits are discounted at 3% in this table. d Non-GHG impacts associated with the standards presented here do not include the full complement of health and environmental effects that, if quantified and monetized, would increase the total monetized benefits. Instead, the non-GHG benefits are based on benefit-per-ton values that reflect only human health impacts associated with reductions in PM2.5 exposure.
TABLE 18—ANNUALIZED GHG ANALYSIS OF LIFETIME COSTS & BENEFITS FOR MY 2023–2026 GHG STANDARDS UNDER THE PROPOSAL AND ALTERNATIVES [For vehicles produced in MY 2023–2026] abcd [Billions of 2018$]
3% Discount rate 7% Discount rate Fuel Net Fuel Net MY Costs I savings I Benefits I benefits Costs I savings I Benefits I benefits Proposal
2023 ...... $0.21 $0.16 $0.08 $0.029 $0.33 $0.19 $0.085 ¥$0.053 2024 ...... 0.26 0.3 0.16 0.2 0.41 0.35 0.16 0.1 2025 ...... 0.29 0.37 0.19 0.27 0.45 0.41 0.19 0.15 2026 ...... 0.35 0.58 0.31 0.54 0.55 0.62 0.31 0.38
Sum ...... 1.1 1.4 0.74 1 1.7 1.6 0.75 0.58
Alternative 1
2023 ...... $0.17 $0.15 $0.085 $0.067 $0.28 $0.18 $0.091 ¥$0.0084 2024 ...... 0.21 0.28 0.16 0.23 0.35 0.32 0.17 0.14 2025 ...... 0.24 0.33 0.19 0.28 0.38 0.37 0.2 0.19 2026 ...... 0.28 0.44 0.26 0.42 0.42 0.47 0.26 0.31
Sum ...... 0.9 1.2 0.7 1 1.4 1.3 0.72 0.63
Alternative 2
2023 ...... $0.3 $0.33 $0.2 $0.24 $0.48 $0.4 $0.21 $0.14 2024 ...... 0.33 0.42 0.25 0.34 0.53 0.49 0.26 0.22 2025 ...... 0.37 0.48 0.28 0.39 0.56 0.54 0.29 0.27 2026 ...... 0.4 0.57 0.34 0.51 0.59 0.61 0.34 0.37 Sum ...... I 1.4 I 1.8 I 1.1 I 1.5 I 2.2 I 2 I 1.1 I 1 Notes: a The lifetime costs and benefits of each MY vehicle are discounted back to 2021. b Climate benefits are based on reductions in CO2, CH4 and N2O emissions and are calculated using four different estimates of the social cost of each greenhouse gas (SC–GHG model average at 2.5%, 3%, and 5% discount rates; 95th percentile at 3% discount rate), which each in- crease over time. For the presentational purposes of this table, we show the benefits associated with the average SC–GHGs at a 3% discount rate, but the Agency does not have a single central SC–GHG point estimate. We emphasize the importance and value of considering the bene- fits calculated using all four SC–GHG estimates and present them later in this preamble. As discussed in Chapter 3.3 of the RIA, a consideration of climate benefits calculated using discount rates below 3 percent, including 2 percent and lower, are also warranted when discounting intergen- erational impacts. c The same discount rate used to discount the value of damages from future GHG emissions is used to calculate the present and annualized value of SC–GHGs for internal consistency, while all other costs and benefits are discounted at 3% in this table.
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d Non-GHG impacts associated with the standards presented here do not include the full complement of health and environmental effects that, if quantified and monetized, would increase the total monetized benefits. Instead, the non-GHG benefits are based on benefit-per-ton values that reflect only human health impacts associated with reductions in PM2.5 exposure.
II. EPA Proposal for MY 2023–2026 requesting comment on standards for The current program includes several Light-Duty Vehicle GHG Standards MY 2026 that are in the range of 5–10 program elements that will remain in g/mile lower (i.e., more stringent) than place, without change. EPA is not A. Proposed Model Year 2023–2026 proposing to change the fundamental GHG Standards for Light-Duty Vehicles, the levels proposed, resulting in fleet structure of the standards, which are Light-Duty Trucks, and Medium Duty average target levels that are in the range Passenger Vehicles of 166–161 g/mile. EPA is not proposing based on the footprint attribute with to change existing averaging, banking, separate footprint curves for cars and As noted, the transportation sector is and trading program elements, except trucks. EPA is not proposing to change the largest U.S. source of GHG for a proposed limited extension of the existing CH4 and N2O emissions emissions, making up 29 percent of all credit carry-forward for one or two years standards. EPA is not proposing changes 42 emissions. Within the transportation for credits generated in MYs 2016–2020, to the program structure in terms of sector, light-duty vehicles are the largest as discussed in Section II.B.4. The vehicle certification, compliance, and contributor, 58 percent, to proposed standards would apply to enforcement. These aspects of the transportation GHG emissions in the program continue to function as 43 passenger cars, light-duty trucks, and U.S. EPA has concluded that more medium-duty passenger vehicles intended and EPA does not currently stringent standards are appropriate in (MDPVs).47 As an overall group, they believe changes are needed. EPA is light of our reassessment of the need to are referred to in this preamble as light- continuing to use tailpipe-only values to reduce GHG emissions, technological duty vehicles or simply as vehicles. In determine vehicle GHG emissions, feasibility, costs, lead time, and other this preamble, passenger cars may be without accounting for upstream factors. The program that EPA is referred to simply as ‘‘cars,’’ and light- emissions (EVs and PHEVs will proposing through MY 2026 in this duty trucks and MDPVs as ‘‘light continue to use 0 g/mile through MY notice does not represent the level of trucks’’ or ‘‘trucks.’’ 2026). EPA is also not proposing GHG reductions that will ultimately be changes to current program As discussed in section II.B, EPA is achievable and appropriate for the light- opportunities to earn credits toward the proposing several revised provisions duty sector, but it does serve as an fleet-wide average CO standards for that would allow manufacturers to 2 important stepping off point for a improvements to air conditioning longer-term program beyond 2026. The generate credits or that provide systems. The current A/C credits following section provides the details of additional incentives for use of program provides credits for EPA’s proposed standards and related advanced emission reduction improvements to address both provisions, followed by a discussion of technologies. These include ‘‘off-cycle’’ hydrofluorocarbon (HFC) refrigerant the alternatives EPA considered. EPA credits for technologies that reduce CO2 direct losses (i.e., system ‘‘leakage’’) and emissions during off-cycle operation requests comments on all of the indirect CO2 emissions related to the proposed provisions and alternatives. that are not reasonably accounted for by increased load on the engine (also EPA is proposing revised, more the 2-cycle tests used for compliance referred to as ‘‘A/C efficiency’’ related stringent standards to control the purposes. EPA is proposing to increase emissions). emissions of greenhouse gases (GHGs) the existing credit cap for menu-based from MY 2023 and later light-duty credits from 10 g/mile to 15 g/mile and 1. What fleet-wide emissions levels 44 vehicles. Carbon dioxide (CO2) is the is proposing a number of program correspond to the CO2 standards? primary greenhouse gas resulting from revisions and clarifications to address EPA is proposing revised more the combustion of vehicular fuels. The issues that have been identified as EPA stringent standards for MYs 2023–2026 standards regulate CO2 on a gram per has implemented the program. In that are projected to result in an mile (g/mile) basis, which EPA defines addition, EPA is proposing to extend industry-wide average target for the by separate footprint curves for a multiplier incentives for EVs, PHEVs, light-duty fleet of 171 g/mile of CO2 in 45 manufacturer’s car and truck fleets. and FCVs, with a cumulative cap on MY 2026. The proposed standards are Based on complying with these credits. Multiplier incentives allow designed to reach the same level of proposed standards, the industry-wide these low-emitting vehicles to count as stringency as the California Framework average emissions target for new light- more than one vehicle in a emission reduction targets in MY 2023, duty vehicles is projected to be 171 g/ manufacturer’s compliance calculation. and then ramp down in a linear fashion 46 mile of CO2 in MY 2026. Also, as EPA is proposing to eliminate multiplier with year over year average stringency discussed in Section II.C below, EPA is incentives for natural gas vehicles increases of 4.7–5.0 percent. For MY adopted in the SAFE rule after MY 2026, the proposal goes beyond the 2012 42 Inventory of U.S. Greenhouse Gas Emissions 2022. EPA is also proposing to reinstate rule level of stringency for MY 2025, by and Sinks: 1990–2019 (EPA–430–R–21–005, full size pick-up truck incentives published April 2021). about 3 percent more stringent, making 43 Inventory of U.S. Greenhouse Gas Emissions through MY 2025 for vehicles that meet the proposed MY 2026 standard the and Sinks: 1990–2019 (EPA–430–R–21–005, efficiency performance criteria or most stringent vehicle GHG standard published April 2021). include strong hybrid technology at a that EPA has proposed to date. EPA 44 See Sections III and VI for a discussion of lead minimum level of production volumes. believes that is possible and worthwhile time. The SAFE rule removed the full-size 45 Footprint curves are graphical representations to make additional progress in MY 2026 of the algebraic formulae defining the emission pickup incentives for MYs 2022–2025. by surpassing the level of stringency of standards in the regulatory text. the original MY 2025 standards 46 47 The reference to CO2 here refers to CO2 As with the previous GHG emissions standards, established nine years ago in the 2012 equivalent reductions, as this level includes some EPA will continue to use the same vehicle category reductions in emissions of greenhouse gases other definitions as in the CAFE program. MDPVs are rule. EPA is proposing an ambitious and than CO2, from refrigerant leakage, as one part of grouped with light trucks for fleet average reasonable approach that would take the the A/C related reductions. compliance determinations. initial steps towards making needed
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reductions in GHG emissions. EPA does the existing SAFE rule standards are duty trucks, the proposed footprint not propose any change to the approach provided in Table 19 below. For curves standards would require of having separate standards for cars passenger cars, the proposed footprint reducing CO2 by 10.8 percent in MY and light trucks under existing program curves call for reducing CO2 by 8.3 2023 followed by year over year definitions. percent in MY 2023 followed by year reductions of 4.7 to 5.2 percent on The industry fleet average and car/ over year reductions of 4.7 to 5.1 average from the MY 2023 light-duty truck year-over-year percent reductions percent from the MY 2023 passenger car truck standard through MY 2026. for the proposed standards compared to standard through MY 2026. For light-
TABLE 19—PROJECTED INDUSTRY FLEET AVERAGE TARGET YEAR-OVER-YEAR PERCENT REDUCTIONS
SAFE rule Proposal Cars Trucks Combined Cars Trucks Combined (%) (%) (%) (%) (%) (%)
2023 ...... 1.7 1.5 1.6 8.3 10.8 9.8 2024 ...... 1.1 1.2 1.2 4.8 4.7 4.7 2025 ...... 2.3 2.0 2.2 5.1 5.0 4.9 2026 ...... 1.8 1.6 1.7 *4.7 *5.2 *5.0 * The percentages shown do not include EPA’s request for comments on MY 2026 standards that are 5–10 g/mile more stringent than proposed.
For light-trucks, EPA is proposing to 50 percent cars and 50 percent trucks, passenger cars, EPA’s projection in the change the upper right cutpoints of the with only slight variations from MY Midterm Evaluation (MTE) January 2017 CO2-footprint curves (i.e., the footprint 2023–2026). As discussed below, the Final Determination for the original MY sizes in sq. ft. at which the CO2 final fleet average standards for each 2025 fleet average target level increased standards level off as flat CO2 target manufacturer ultimately will depend on to 173 g/mile.48 EPA has again updated values for larger vehicle footprints. See each manufacturer’s actual rather than its fleet mix projections and now Figure 5 below). The SAFE rule altered projected production in each MY from projects that the original 2012 rule MY these cutpoints and EPA is now MY 2023 to MY 2026 under the sales- 2025 footprint curves standards would proposing to restore them to the original weighted footprint-based standard result in an industry-wide fleet average upper right cutpoints initially curves for the car and truck regulatory target level of 177 g/mile. The projected established in the 2012 rule, for MYs classes. In the 2012 rule, EPA estimated fleet average targets under the 2012 rule, 2023–2026, essentially requiring that the fleet average target would be using the updated fleet mix projections increasingly more stringent CO2 targets at the higher footprint range up to the 163 g/mile in MY 2025 based on the and the projected fleet average targets revised cutpoint levels. The shapes of projected fleet mix for MY 2025 (67 for the proposal are provided in Table the curves and the cutpoints are percent car and 33 percent trucks) based 20 below. Figure 3 below, based on the discussed in Section II.A.2. on information available at the time of values in Table 20, shows the proposed The 171 g/mile estimated industry- the 2012 rulemaking. Primarily due to standards target levels along with wide target for MY 2026 noted above is the historical and ongoing shift in fleet estimated targets for the 2012 rule, based on EPA’s current fleet mix mix that included more crossover and SAFE rule, and California Framework projections for MY 2026 (approximately small and mid-size SUVs and fewer for comparison.49
TABLE 20—FLEET AVERAGE TARGET PROJECTIONS FOR THE PROPOSED STANDARDS COMPARED TO UPDATED FLEET AVERAGE TARGET PROJECTIONS FOR THE 2012 RULE, SAFE RULE AND CALIFORNIA FRAMEWORK
[CO2 grams/mile]
2012 Rule SAFE rule pro- California Proposal pro- projected jected framework MY jected targets targets projected targets (updated) (updated) targets
2021 ...... * 223 214 223 214 2022 ...... * 220 205 220 206 2023 ...... 199 195 216 199 2024 ...... 189 186 214 191 2025 ...... 180 177 209 184
48 ‘‘Final Determination on the Appropriateness of the Model Year 2022–2025 Light-Duty Vehicle Greenhouse Gas Emissions Standards under the Midterm Evaluation,’’ EPA–420–R–17–001, January 2017. 49 For comparison purposes, the California Framework estimates are based on a scenario in which all manufacturers meet the California Framework in MYs 2021–2026 (not only the manufacturers that agreed to the California Framework).
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TABLE 20—FLEET AVERAGE TARGET PROJECTIONS FOR THE PROPOSED STANDARDS COMPARED TO UPDATED FLEET AVERAGE TARGET PROJECTIONS FOR THE 2012 RULE, SAFE RULE AND CALIFORNIA FRAMEWORK—Continued
[CO2 grams/mile]
2012 Rule SAFE rule pro- California Proposal pro- projected jected framework MY jected targets targets projected targets (updated) (updated) targets
2026 ...... * 171 177 205 177 * Projected targets under the SAFE rule standards. ** EPA is also requesting comment on MY 2026 standards that would result in fleet average levels that are 5–10 g/mile more stringent than the level shown. 240
230
220
210 aJ .E --..... 200 ~ N 0u 190
180
170 ------11 EPA requests comment on a 5 to 10 g/mi greater stringency for the proposal in MY2026 160 2020 2021 2022 2023 2024 2025 2026 2027 Model Year
Figure 3 Proposed CO? Standard Target Levels Compared to Other Programs
EPA’s standards are based in part on Table 21 below shows overall fleet would be able to generate credits from EPA’s projection of average industry average target levels for both cars and cars and use them for compliance with wide CO2-equivalent emission light trucks that are projected over the the truck standard, or vice versa. In reductions from A/C improvements, implementation period of the proposed Section V, EPA discusses the year-by- where the footprint curves are made standards. A more detailed year estimate of emissions reductions numerically more stringent by an manufacturer by manufacturer break that are projected to be achieved by the amount equivalent to this projection of down of the projected target and proposed standards. A/C refrigerant leakage credits.50 achieved levels is provided in Section In general, the schedule of the Including this projection of A/C credits III.B.1 below. The actual fleet-wide proposed standards allows an average g/mile level that would be for purposes of setting GHG standards incremental phase-in to the MY 2026 achieved in any year for cars and trucks levels is consistent with the 2012 rule level and reflects consideration of the will depend on the actual production of and the SAFE rule. appropriate lead time for manufacturers vehicles for that year, as well as the use to take actions necessary to meet the of the various credit and averaging, 50 The total A/C adjustment is 18.8 g/mile for cars banking, and trading provisions. For and 24.4 g/mile for trucks. example, in any year, manufacturers
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proposed standards.51 The technical correspond with the attribute-based manufacturers based on projected feasibility of the standards is discussed footprint standards, based on production volumes into the fleet-wide in Section III below and in the DRIA. projections of the composition of each averages for cars, trucks, and the entire Note that MY 2026 is the final MY in manufacturer’s fleet in each year of the fleet, shown in Table 21.52 As discussed which the proposed standards become program. As noted above, EPA estimates above, the combined fleet estimates are more stringent. The MY 2026 CO2 that, on a combined fleet-wide national based on projected fleet mix of cars and standards would remain in place for basis, the 2026 MY standards would trucks that varies over the MY 2023– later MYs, unless and until revised by result in a level of 171 g/mile CO2. The 2026 timeframe. This fleet mix EPA in a future rulemaking for those derivation of the 171 g/mile estimate is distribution can also be found in MYs. described in Section III.A. EPA Section III.A. EPA has estimated the overall fleet- aggregated the estimates for individual wide CO2 emission levels that
TABLE 21—ESTIMATED FLEET-WIDE CO2 TARGET LEVELS CORRESPONDING TO THE PROPOSED STANDARDS
Cars CO2 Trucks CO2 Fleet CO2 Model year (g/mile) (g/mile) (g/mile)
2023 ...... 165 232 199 2024 ...... 157 221 189 2025 ...... 149 210 180 2026 and later * ...... 142 199 171 ** EPA is also requesting comment on MY 2026 standards that would result in fleet average levels that are 5–10 g/mile more stringent than the levels shown.
As shown in Table 21, fleet-wide CO2 requirement of CAA section 202(a)(1) 2. What are the proposed CO2 attribute- emission target levels for cars under the that standards be applicable to vehicles based standards? proposed standards are projected to ‘‘for their useful life,’’ the proposed MY As with the existing GHG standards, decrease from 165 to 142 g/mile 2023–2026 vehicle standards will apply EPA is proposing separate car and truck 54 between MY 2023 and MY 2026. for the useful life of the vehicle. Also, standards—that is, vehicles defined as Similarly, fleet-wide CO2 target levels EPA is not proposing any changes to the cars would have one set of footprint- for trucks are projected to decrease from test procedures over which emissions based curves, and vehicles defined as 232 to 199 g/mile. These numbers do are measured and weighted to trucks would have a different set.55 In not reflect the effects of flexibilities and determine compliance with the GHG 53 general, for a given footprint, the CO2 g/ credits in the program. The estimated standards. These procedures are the mile target 56 for trucks is higher than fleetwide achieved values can be found Federal Test Procedure (FTP or ‘‘city’’ the target for a car with the same in Section V. test) and the Highway Fuel Economy footprint. The curves are described As noted above, EPA is proposing Test (HFET or ‘‘highway’’ test). While mathematically in EPA’s regulations by standards that set increasingly stringent EPA may consider requiring the use of a family of piecewise linear functions levels of CO2 control from MY 2023 test procedures other than the 2-cycle (with respect to vehicle footprint) that though MY 2026. Applying the CO2 test procedures in a future rulemaking, gradually and continually ramp down footprint curves applicable in each MY EPA is not considering any test from the MY 2022 curves established in to the vehicles (and their footprint procedure changes in this rulemaking. the SAFE rule. EPA’s proposed distributions) expected to be sold in EPA has analyzed the feasibility of minimum and maximum footprint each MY produces progressively more achieving the proposed CO2 standards targets and the corresponding cutpoints stringent estimates of fleet-wide CO2 through the application of currently are provided below in Table 22 for MYs emission standards. EPA believes available technologies, based on 2023–2026 along with the slope and manufacturers can achieve the proposed projections of the technology and intercept defining the linear function for standards’ important CO2 emissions technology penetration rates to reduce footprints falling between the minimum reductions through the application of emissions of CO2, during the normal and maximum footprint values. For available control technology at redesign process for cars and trucks, footprints falling between the minimum reasonable cost, as well as the use of taking into account the effectiveness and maximum, the targets are calculated program flexibilities. and cost of the technology. The results as follows: Slope × Footprint + Intercept The existing program includes several of the analysis are discussed in detail in = Target. Figure 4 and Figure 5 provide provisions that we are not proposing to Section III below and in the DRIA. EPA the existing MY 2021–2022 and change and so would continue during also presents the overall estimated costs proposed MY 2023–2026 footprint the implementation timeframe of this and benefits of the proposed car and curves graphically for both car and light proposed rule. Consistent with the truck CO2 standards in Section VII.I. trucks, respectively.
51 As discussed in Section III, EPA has used the modeling-system and contained in the docket for 55 See 49 CFR part 523. Generally, passenger cars Corporate Average Fuel Economy (CAFE) this rule. include cars and smaller cross-overs and SUVs, Compliance and Effects Modeling System (CCEMS) 52 Due to rounding during calculations, the while the truck category includes larger cross-overs to support the technical assessment. Among the estimated fleet-wide CO2 target levels may vary by and SUVs, minivans, and pickup trucks. ways EPA has considered lead time in the proposal plus or minus 1 gram. 56 Because compliance is based on a sales- is by using the constraints built into the CCEMS 53 Nor do they reflect flexibilities under the ABT weighting of the full range of vehicles in a model which are designed to represent lead-time program. manufacturer’s car and truck fleets, the foot-print constraints, including the use of redesign and 54 The GHG emission standards apply for a useful refresh cycles. See CCEMS Model Documentation life of 10 years or 120,000 miles for LDVs and based CO2 emission levels of specific vehicles on web page https://www.nhtsa.gov/corporate- LLDTs and 11 years or 120,000 miles for HLDTs within the fleet are referred to as targets, rather than average-fuel-economy/compliance-and-effects- and MDPVs. See 40 CFR 86.1805–17. standards.
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TABLE 22—PROPOSED FOOTPRINT-BASED CO2 STANDARD CURVE COEFFICIENTS
Car Truck 2023 2024 2025 2026 2023 2024 2025 2026
MIN CO2 (g/mi) ...... 145.6 138.6 131.9 125.6 181.1 172.1 163.5 155.4 MAX CO2 (g/mi) ...... 199.1 189.5 180.3 171.6 312.1 296.5 281.8 267.8 Slope (g/mi/ft2) ...... 3.56 3.39 3.23 3.07 3.97 3.77 3.58 3.41 Intercept (g/mi) ...... ¥0.4 ¥0.4 ¥0.3 ¥0.3 18.4 17.4 16.6 15.8 MIN footprint (ft2) ...... 41 41 41 41 41 41 41 41 MAX footprint (ft2) ...... 56 56 56 56 74 74 74 74
BILLING CODE 6560–01–P
230
210 .. -
190 ■ r.,..•• ············•™™™w
QJ 170 -2021 N 0 .Eu 150 - •2022 E°l3o •••••• 2023 ...C'IJ 00 110 --- 2024 - •2025 90 -2026+ 70 so ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ m ~ ~ ~ ~ ~ footprint (ft2)
Figure 4 Car Cunres
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350
300
w 250 -2021 N 0 u - •2022 ·E 200 •••••• 2023 E -....re 00 150 --- 2024 - •2025
100 -2026+
50 .-1 m LO r-- O'l .-1 m LO r-- O'l .-1 m LO r-- O'l .-1 m LO r- """ """ """ """ """ Lt'l Lt'l Lt'l Lt'l Lt'l \.0 \.0 \.0 \.0 \.0 r-- r-- r-- r-- footprint (ft2)
Figure 5 Truck Curves
BILLING CODE 6560–01–C weel as the impacts of potential more fuel-efficient engine designs, The shapes of the proposed MY 2023– standards on emissions reductions of transmissions, aerodynamics, and tires, 2026 car curves are similar to the MY both GHGs and non-GHGs; the impacts air conditioning systems that contribute 2022 curve. By contrast, the proposed of standards on oil conservation and to lower GHG emissions, and various MY 2023–2026 truck curves return to energy security; the impacts of levels of electrified vehicle the cutpoint of 74.0 sq ft originally standards on fuel savings by consumers; technologies. established in the 2012 rule, but the impacts of standards on the auto 57 This proposed rule implements a changed in the SAFE rule. The gap industry; other energy impacts; and specific provision from Title II, section between the 2022 curves and the 2023 other relevant factors such as impacts 202(a). Section 202(a)(1) of the CAA, 42 curves is indicative of the design of the on safety. U.S.C. 7521(a)(1), states that ‘‘the proposed standards as described earlier, Pursuant to Title II of the Clean Air Administrator shall by regulation where the gap between the MY 2022 Act, EPA has taken a comprehensive, prescribe (and from time to time revise) and MY 2023 curves is roughly double integrated approach to mobile source . . . standards applicable to the the gap between the curves for MYs emission control that has produced emission of any air pollutant from any 2024–2026. benefits well in excess of the costs of class or classes of new motor vehicles 3. EPA’s Statutory Authority Under the regulation. In developing the Title II . . . which in his judgment cause, or CAA program, the Agency’s historic, initial contribute to, air pollution which may focus was on personal vehicles since reasonably be anticipated to endanger i. Standards-Setting Authority Under that category represented the largest CAA Section 202(a) public health or welfare.’’ Once EPA source of mobile source emissions. makes the appropriate endangerment Title II of the Clean Air Act (CAA) Title II emission standards have and cause or contribute findings,58 then provides for comprehensive regulation stimulated the development of a broad section 202(a) authorizes EPA to issue of mobile sources, authorizing EPA to set of advanced automotive standards applicable to emissions of regulate emissions of air pollutants from technologies, such as on-board those pollutants. Indeed, EPA’s all mobile source categories. Pursuant to computers and fuel injection systems, obligation to do so is mandatory. See these sweeping grants of authority, which have been the building blocks of Coalition for Responsible Regulation v. when setting GHG standards for light- automotive designs and have yielded duty vehicles, EPA considers such not only lower pollutant emissions, but 58 EPA did so in 2009 for the group of six well- issues as technology effectiveness, improved vehicle performance, mixed greenhouse gases—carbon dioxide, methane, technology cost (per vehicle, per reliability, and durability. In response to nitrous oxide, hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride—which manufacturer, and per consumer), the EPA’s adoption of Title II emission taken in combination endanger both the public lead time necessary to implement the standards for GHGs from light-duty health and the public welfare of current and future technology, and—based on these vehicles in 2010 and later, generations. EPA further found that the combined considerations—the feasibility and manufacturers have continued to emissions of these greenhouse gases from new motor vehicles and new motor vehicle engines practicability of potential standards; as significantly ramp up their development contribute to greenhouse gas air pollution that and application of a wide range of new endangers public health and welfare. 74 FR 66496 57 77 FR 62781. and improved technologies, including (Dec. 15, 2009).
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EPA, 684 F.3d 102, 126–27 (D.C. Cir. identify the major steps necessary for provision ‘‘does not resolve how the 2012); Massachusetts v. EPA, 549 U.S. development of the device, and give Administrator should weigh all [the 497, 533 (2007). Moreover, EPA’s plausible reasons for its belief that the statutory] factors in the process of mandatory legal duty to promulgate industry will be able to solve those finding the ‘greatest emission reduction these emission standards derives from problems in the time remaining. The achievable’ ’’); NPRA v. EPA, 287 F.3d ‘‘a statutory obligation wholly EPA is not required to rebut all 1130, 1135 (D.C. Cir. 2002) (EPA independent of DOT’s mandate to speculation that unspecified factors may decisions, under CAA provision promote energy efficiency.’’ hinder ‘real world’ emission control.’’ authorizing technology-forcing Massachusetts, 549 U.S. at 532. NRDC, 655 F. 2d at 333–34. In standards, based on complex scientific Consequently, EPA has no discretion to developing such technology-based or technical analysis are accorded decline to issue greenhouse gas standards, EPA has the discretion to particularly great deference); see also standards under section 202(a), or to consider different standards for Husqvarna AB v. EPA, 254 F. 3d 195, defer issuing such standards due to appropriate groupings of vehicles 200 (D.C. Cir. 2001) (great discretion to NHTSA’s regulatory authority to (‘‘class or classes of new motor balance statutory factors in considering establish fuel economy standards. vehicles’’), or a single standard for a Rather, ‘‘[j]ust as EPA lacks authority to larger grouping of motor vehicles. level of technology-based standard, and refuse to regulate on the grounds of NRDC, 655 F.2d at 338. Finally, with statutory requirement ‘‘to [give NHTSA’s regulatory authority, EPA respect to regulation of vehicular appropriate] consideration to the cost of cannot defer regulation on that basis.’’ greenhouse gas emissions, EPA is not applying . . . technology’’ does not Coalition for Responsible Regulation, ‘‘required to treat NHTSA’s . . . mandate a specific method of cost 684 F.3d at 127. regulations as establishing the baseline analysis); Hercules Inc. v. EPA, 598 F. Any standards under CAA section for the [section 202(a) standards].’’ 2d 91, 106 (D.C. Cir. 1978) (‘‘In 202(a)(1) ‘‘shall be applicable to such Coalition for Responsible Regulation, reviewing a numerical standard we vehicles . . . for their useful life.’’ 684 F.3d at 127 (noting that the section must ask whether the agency’s numbers Emission standards set by EPA under 202(a) standards provide ‘‘benefits are within a zone of reasonableness, not CAA section 202(a)(1) are technology- above and beyond those resulting from whether its numbers are precisely based, as the levels chosen must be NHTSA’s fuel-economy standards.’’) right’’); Permian Basin Area Rate Cases, premised on a finding of technological Although standards under CAA 390 U.S. 747, 797 (1968) (same); Federal feasibility. Thus, standards promulgated section 202(a)(1) are technology-based, Power Commission v. Conway Corp., under CAA section 202(a) are to take they are not based exclusively on 426 U.S. 271, 278 (1976) (same); Exxon effect only ‘‘after such period as the technological capability. EPA has the Mobil Gas Marketing Co. v. FERC, 297 Administrator finds necessary to permit discretion to consider and weigh F. 3d 1071, 1084 (D.C. Cir. 2002) (same). the development and application of the various factors along with technological requisite technology, giving appropriate feasibility, such as the cost of ii. Testing Authority consideration to the cost of compliance compliance (section 202(a)(2)), lead within such period.’’ CAA section time necessary for compliance (section Under section 203 of the CAA, sales 202(a)(2); see also NRDC v. EPA, 655 F. 202(a)(2)), safety (see NRDC, 655 F. 2d of vehicles are prohibited unless the 2d 318, 322 (D.C. Cir. 1981). EPA must at 336 n. 31) 59 and other impacts on vehicle is covered by a certificate of consider costs to those entities which consumers, and energy impacts conformity. EPA issues certificates of are directly subject to the standards. associated with use of the technology. conformity pursuant to section 206 of Motor & Equipment Mfrs. Ass’n Inc. v. See George E. Warren Corp. v. EPA, 159 the CAA, based on (necessarily) pre-sale EPA, 627 F. 2d 1095, 1118 (D.C. Cir. F.3d 616, 623–624 (D.C. Cir. 1998) testing conducted either by EPA or by 1979). Thus, ‘‘the [s]ection 202(a)(2) (ordinarily permissible for EPA to the manufacturer. The Federal Test reference to compliance costs consider factors not specifically Procedure (FTP or ‘‘city’’ test) and the encompasses only the cost to the motor- enumerated in the Act). Highway Fuel Economy Test (HFET or vehicle industry to come into In addition, EPA has clear authority to ‘‘highway’’ test) are used for this compliance with the new emission set standards under CAA section 202(a) purpose. Compliance with standards is standards, and does not mandate that are technology-forcing when EPA required not only at certification but consideration of costs to other entities considers that to be appropriate, but throughout a vehicle’s useful life, so not directly subject to the proposed EPA is not required to do so (as standards.’’ See Coalition for that testing requirements may continue distinguished from standards under post-certification. Useful life standards Responsible Regulation, 684 F.3d at 128. provisions such as section 202(a)(3) and EPA is afforded considerable may apply an adjustment factor to section 213(a)(3)). Section 202(a) of the discretion under section 202(a) when account for vehicle emission control CAA does not specify the degree of assessing issues of technical feasibility deterioration or variability in use weight to apply to each factor, and EPA and availability of lead time to (section 206(a)). accordingly has discretion in choosing implement new technology. Such an appropriate balance among factors. EPA establishes the test procedures determinations are ‘‘subject to the under which compliance with the CAA restraints of reasonableness,’’ which See Sierra Club v. EPA, 325 F.3d 374, 378 (D.C. Cir. 2003) (even where a GHG standards is measured. EPA’s ‘‘does not open the door to ‘crystal ball’ testing authority under the CAA is inquiry.’’ NRDC, 655 F. 2d at 328, provision is technology-forcing, the broad and flexible. EPA has also quoting International Harvester Co. v. 59 Ruckelshaus, 478 F. 2d 615, 629 (D.C. Since its earliest Title II regulations, EPA has developed tests with additional cycles considered the safety of pollution control (the so-called 5-cycle tests) which are Cir. 1973). However, ‘‘EPA is not technologies. See 45 FR 14496, 14503 (1980) (‘‘EPA obliged to provide detailed solutions to would not require a particulate control technology used for purposes of fuel economy every engineering problem posed in the that was known to involve serious safety problems. labeling and are also used in the EPA If during the development of the trap-oxidizer program for extending off-cycle credits perfection of [a particular device]. In the safety problems are discovered, EPA would absence of theoretical objections to the reconsider the control requirements implemented under the light-duty vehicle GHG technology, the agency need only by this rulemaking’’). program.
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iii. Compliance and Enforcement manufacturer), and credit trading earlier use of additional CO2 reducing Authority (across manufacturers). technologies. EPA oversees testing, collects and Credit carry-forward refers to banking Transferring credits in the EPA processes test data, and performs (saving) credits for future use, after program refers to exchanging credits calculations to determine compliance satisfying any needs to offset prior MY between the two averaging sets— with CAA standards. CAA standards debits within a vehicle category (car passenger cars and light trucks—within apply not only at certification but also fleet or truck fleet). Credit carry-back a manufacturer. For example, credits throughout the vehicle’s useful life. The refers to using credits to offset any accrued by overcompliance with a CAA provides for penalties should deficit in meeting the fleet average manufacturer’s car fleet average manufacturers fail to comply with their standards that had accrued in a prior standard can be used to offset debits fleet average standards, and there is no MY. A manufacturer may have a deficit accrued due to that manufacturer not option for manufacturers to pay fines in at the end of a MY (after averaging meeting the truck fleet average standard lieu of compliance with the standards. across its fleet using credit transfers in a given year. (Put another way, a Under the CAA, penalties for violation between cars and trucks)—that is, a manufacturer’s car and truck fleets are, of a fleet average standard are typically manufacturer’s fleet average level may in essence, a single averaging set in the determined on a vehicle-specific basis fail to meet the required fleet average EPA program). Finally, accumulated by determining the number of a standard for the MY. The CAA does not credits may be traded to another manufacturer’s highest emitting vehicles expressly limit the duration of such manufacturer. Credit trading has credit provisions, and in the MY 2012– occurred on a regular basis in EPA’s that cause the fleet average standard 62 violation. Penalties for reporting 2016 and 2017–2025 programs, EPA vehicle program. Manufacturers requirements under Title II of the CAA chose to adopt 5-year credit carry- acquiring credits may offset credit apply per day of violation, and other forward (generally, with an exception shortfalls and bank credits for use violations apply on a per vehicle, or a noted below) and 3-year credit carry- toward future compliance within the per part or component basis. See CAA back provisions as a reasonable carry-forward constraints of the program. sections 203(a) and 205(a) and 40 CFR approach that maintained consistency The ABT provisions are an integral 19.4. between the EPA GHG and NHTSA’s 61 part of the vehicle GHG program and the Section 207 of the CAA grants EPA CAFE provisions. While some agency expects that manufacturers will broad authority to require stakeholders had suggested that light- continue to utilize these provisions into manufacturers to remedy vehicles if duty GHG credits should have an the future. EPA’s annual Automotive EPA determines there are a substantial unlimited credit life, EPA did not adopt Trends Report provides details on the number of noncomplying vehicles. In that suggestion for the light-duty GHG use of these provisions in the GHG addition, section 205 of the CAA program because it would pose program.63 ABT allows EPA to consider authorizes EPA to assess penalties of up enforcement challenges and could lead standards more stringent than we would to $48,762 per vehicle for violations of to some manufacturers accumulating otherwise consider by giving various prohibited acts specified in the large banks of credits that could interfere with the program’s goal to manufacturers an important tool to CAA. In determining the appropriate resolve lead time and feasibility issues. penalty, EPA must consider a variety of develop and transition to progressively more advanced emissions control EPA believes the targeted extension of factors such as the gravity of the credit carry-forward that we are violation, the economic impact of the technologies in the future. Although the credit carry-forward and proposing, discussed below, is violation, the violator’s history of appropriate considering the stringency compliance, and ‘‘such other matters as carry-back provisions generally remained in place for MY 2017 and later and implementation timeframe of the justice may require.’’ The CAA does not proposed standards. authorize vehicle manufacturers to pay standards, EPA finalized provisions fines in lieu of meeting emission allowing all unused (banked) credits ii. Extended Credit Carry-Forward standards. generated in MY 2010–2016 (but not Proposal MY 2009 early credits) to be carried 4. Averaging, Banking, and Trading forward through MY 2021. See As in the transition to more stringent standards under the 2012 rule, EPA Provisions for CO2 Standards § 86.1865–12(k)(6)(ii); 77 FR 62788 recognizes that auto manufacturers are i. Background October 15, 2012. This is the normal 5- year carry-forward for MY 2016 and again facing a transition to more stringent standards with our MY 2023– Averaging, banking, and trading later credits but provides additional 2026 standards proposal. We also (ABT) is an important compliance carry-forward years for credits generated recognize that the stringency increase flexibility and ABT has been built into in MYs 2010–2015. Extending the life of from MY 2022 to MY 2023 is the various highway engine and vehicle MY 2010–2015 credits provided greater steepest step in our proposed program programs (and nonroad engines and flexibility for manufacturers in using the with relatively limited lead time. equipment programs) to support credits. This provision was intended to Therefore, we believe it is again emissions standards that through the facilitate the transition to increasingly appropriate in the current context to introduction of new technologies, result stringent standards through MY 2021 by provide a targeted, limited amount of in reductions in air pollution. The light- helping manufacturers resolve lead time additional flexibility to carry-forward duty ABT program for GHG standards issues they might face in the early MYs includes existing provisions initially of the program. This extension of credit established in the 2010 rule for how 62 EPA provides general information on credit carry-forward also provided additional trades annually as part of its annual Automotive credits may be generated and used Trends and GHG Compliance Report. The latest 60 incentive for manufacturers to generate within the program. These provisions credits earlier, for example in MYs 2014 report is available at: https://www.epa.gov/ include credit carry-forward, credit and 2015, thereby encouraging the automotive-trends and the docket for this carry-back (also called deficit carry- rulemaking. 63 ‘‘The 2020 EPA Automotive Trends Report, forward), credit transfers (within a 61 The EPCA/EISA statutory framework for the Greenhouse Gas Emissions, Fuel Economy, and CAFE program limits credit carry-forward to 5 years Technology since 1975,’’ EPA–420–R–21–003 60 40 CFR 86.1865–12. and credit carry-back to 3 years. January 2021.
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credits into the 2023–2026 MYs, to ease EPA proposes to increase credit carry- 2021 and later credits, EPA is not the manufacturers’ transition to these forward for MY 2016 credits by two proposing any modification to credit more stringent standards. years such that they would not expire carry-forward in this notice. Credit EPA is proposing to temporarily until after MY 2023. For MY 2017–2020 carry-forward would return to the increase the number of years that MY credits, EPA proposes to extend the normal 5 years in the existing ABT 2016–2020 vintage credits that may be credit life by one year, so that those regulations. Table 23 below provides an carried-forward to provide additional banked credits can be used through MYs illustration of the proposed credit carry- flexibility for manufacturers in the 2023–2026, depending on the MY in forward provisions. transition to more stringent standards. which the credits are banked. For MY
TABLE 23—PROPOSED EXTENSION OF CREDIT CARRY-FORWARD FOR MY 2016–2020 CREDITS
MY MYs credits are valid under EPA’s proposed extension credits are banked 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
2016 ...... x x x x x + + ...... 2017 ...... x x x x x + ...... 2018 ...... x x x x x + ...... 2019 ...... x x x x x + ...... 2020 ...... x x x x x + 2021 ...... x x x x x x = Current program. + = Proposed additional years.
Extending the life for MY 2016–2020 transition to more stringent standards.64 Manufacturers have been using these credits provides greater flexibility for ABT is an important compliance provisions since MY 2012 and EPA is manufacturers in using the credits they flexibility and has been built into not proposing or seeking comment on have generated through overcompliance various highway engine and vehicle changes in the areas of certification, with the stringent standards in those programs to support emissions compliance, or enforcement. standards programs that through the MYs. These credits would help 6. On-Board Diagnostics Program introduction of new technologies result manufacturers to ease the transition to Updates the more stringent proposed standards. in reductions in air pollution. While the Providing the extended credit carry- normal five-year credit life in the light- EPA regulations state that onboard forward will help some manufacturers duty GHG program is generally diagnostics (OBD) systems must to lower overall costs and address any sufficient to address the need for generally detect malfunctions in the potential lead time issues they may face manufacturer flexibility while emission control system, store trouble during these MYs, especially in the first considering the practical challenges of codes corresponding to detected year of the proposed standards (MY properly tracking credits over an malfunctions, and alert operators 2023). extended period of time for compliance appropriately. EPA adopted (as a and enforcement purposes, there are requirement for an EPA certificate) the EPA is proposing to extend credit life 2013 California Air Resources Board only for credits generated against occasions—such as when the industry is transitioning to significantly more (CARB) OBD regulation, with certain standards established in the 2012 rule additional provisions, clarifications and for MYs 2016–2020. EPA views these stringent standards—where more flexibility is appropriate. As noted exceptions, in the Tier 3 Motor Vehicle credits as a reflection of manufacturers’ above, ABT allows EPA to consider Emission and Fuel Standards final having achieved reductions beyond and standards more stringent than we would rulemaking (40 CFR 86.1806–17; 79 FR earlier than those required by the otherwise consider by giving 23414, April 28, 2014). Since that time, standards. EPA is not proposing to manufacturers an important tool to CARB has made several updates to their extend credit life for credits generated resolve lead time and feasibility issues, OBD regulations and continues to in MYs 2021–2022 against the SAFE 66 and EPA believes the targeted extension consider changes periodically. standards, as we view these credits as of credit life that we are proposing is Manufacturers may find it difficult to windfall credits, accumulated by appropriate given the stringency and meet both the 2013 OBD regulation manufacturers mostly because of the implementation timeframe of the adopted in the EPA regulations and the large reduction in the stringency of proposed standards. currently applicable CARB OBD standards under the SAFE rule, as regulation on the same vehicles. This compared to the 2012 rule standards 5. Certification, Compliance, and may result in different calibrations previously in effect, rather than for Enforcement being required for vehicles sold in states technology-based actions taken by a EPA established comprehensive subject to Federal OBD (2013 CARB manufacturer to reduce fleet emissions. vehicle certification, compliance, and OBD) and vehicles sold in states subject As noted above, there is precedent for enforcement provisions for the GHG to current CARB OBD. extending credit carry-forward standards as part of the rulemaking To provide clarity and regulatory temporarily beyond five years to help establishing the initial GHG standards certainty to manufacturers, EPA is manufacturers transition to more for MY 2012–2016 vehicles.65 proposing a limited regulatory change to stringent standards. In the 2012 rule, EPA extended carry-forward for MY 64 77 FR 62788. Technology since 1975,’’ EPA–420–R–21–003 2010–2015 credits to MY 2021 for 65 See 75 FR 25468–25488 and 77 FR 62884– January 2021 for additional information regarding 62887 for a description of these provisions. See also EPA compliance determinations. similar reasons, to provide more ‘‘The 2020 EPA Automotive Trends Report, 66 See https://ww2.arb.ca.gov/our-work/programs/ flexibility for a limited time during a Greenhouse Gas Emissions, Fuel Economy, and obd-board-diagnostic-program/obd-workshops.
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streamline OBD requirements. Under and NHTSA explained the purpose of require joint rulemaking for its many the proposed change, EPA could find the joint rulemaking effort was to provisions that require EPA’s that a manufacturer met OBD develop a coordinated and harmonized consultation with other agencies on requirements for purposes of the EPA approach to implementing the two topics such as the impacts of ozone- certification process if the manufacturer agencies’ statutes. The joint rule depleting substances on the atmosphere, could show that the vehicles meet approach was one appropriate renewable fuels, the importance of newer CARB OBD regulations than the mechanism for the agencies to visibility on public lands, regulation of 2013 CARB regulation which currently coordinate closely, given the common aerospace coatings, and federal establishes the core OBD requirements technical issues both agencies needed to procurement. For example, for aircraft for EPA certification and that the OBD consider and the importance of avoiding emissions standards, where EPA sets the system meets the intent of the EPA inconsistency between the programs. standards in consultation with the regulation, including provisions that are However, in light of additional Federal Aviation Administration (FAA), in addition to or different from the experience as the GHG and CAFE and FAA implements the standards, the applicable CARB regulation. The intent standards have co-existed since the two agencies may undertake, and have of the proposed provision is to allow 2010 rule and the agencies have engaged undertaken, separate rulemakings. manufacturers to produce vehicles with in several joint rulemakings, EPA has Likewise, when EPA revises tests one OBD system (software, calibration, concluded that, while it remains procedures for NHTSA’s fuel economy and hardware) for all 50 states. committed to ensuring that GHG standards, those rules are not done as emissions standards for light duty joint rulemaking (unless they were 7. Stakeholder Engagement vehicles are coordinated with fuel included as part of a larger joint In developing this proposal, EPA economy standards for those vehicles, it rulemaking on GHG and fuel economy conducted outreach with a wide range is unnecessary for EPA to do so standards). Thus, EPA concludes that of stakeholders, including auto specifically through a joint rulemaking. joint rulemaking is unnecessary, manufacturers, automotive suppliers, In reaching this conclusion, EPA particularly to the extent it was labor groups, state/local governments, notes that the agencies have different originally intended to ensure that the environmental and public interest statutory mandates and their respective agencies work together and coordinate groups, public health professionals, programs have always reflected those their rules. consumer groups, and other differences. As the Supreme Court has organizations. We also coordinated noted ‘‘EPA has been charged with ii. California GHG Program extensively with the California Air protecting the public’s ‘health’ and California has long been a partner in Resources Board as we considered this ‘welfare,’ a statutory obligation wholly reducing light-duty vehicle emissions, proposal. Consistent with Executive independent of DOT’s mandate to often leading the nation by setting more Order 13990, in developing this promote energy efficiency.’’ 68 The stringent standards before similar proposal EPA has considered the views agencies have recognized these different standards are adopted by EPA. This from labor unions, states, and industry, mandates, and the fact that they have historically has been the case with GHG as well as other stakeholders. produced different analytical emissions standards in past federal EPA looks forward to hearing from all approaches and standards. For example, rulemakings, where California provided stakeholders through comments on this since EPA’s responsibility is to address technical support to EPA’s nationwide proposal and during the public hearing. air pollution, it sets standards not only programs. Prior to EPA’s 2010 rule Looking ahead, we also plan to continue for carbon dioxide (measured as grams establishing the first nationwide GHG engagement with interested per mile), but also for methane and standards for MY 2012–2016 vehicles, stakeholders as we embark on a future nitrous oxide. Even more significantly, California had adopted GHG standards rulemaking to set standards beyond EPA regulates leakage of fluorocarbons for MYs 2009–2016.69 After EPA 2026, so diverse views can continue to from air conditioning units by providing adopted its standards in the 2012 rule be considered in our development of a a credit against the tailpipe CO2 for MYs 2017–2025, California also longer-term program. standard for leakage reduction and adopted similar standards for these 70 8. How do EPA’s proposed standards adjusting those standards numerically MYs. California also assisted and relate to NHTSA’s CAFE proposal and downwards to reflect the anticipated worked with EPA in the development of to California’s GHG program? availability of those credits. NHTSA, the 2016 Draft Technical Assessment given its responsibility for fuel economy Report for the Mid-term Evaluation,71 i. EPA and NHTSA Rulemaking (measured as miles per gallon), does not issued jointly by EPA, CARB and Coordination have these elements in the CAFE NHTSA, that served as an important In Executive Order 13990, President program. There have always been other technical basis for EPA’s original Biden directed NHTSA and EPA to differences between the programs as January 2017 Final Determination that consider whether to propose well, which generally can be traced back the standards adopted in the 2012 rule suspending, revising, or rescinding the to differences in statutory mandates. SAFE Rule standards for MYs 2021– Finally, EPA notes that EPA may 69 https://ww2.arb.ca.gov/our-work/programs/ 67 coordinate with NHTSA, and has done advanced-clean-cars-program/lev-program/low- 2026. Both agencies have determined emission-vehicle-greenhouse-gas. that it is appropriate to propose so, regardless of the formality of joint 70 The California Air Resources Board (CARB) revisions to their respective standards; rulemaking. EPA has consulted received a waiver of Clean Air Act preemption on EPA is proposing to revise its GHG significantly with NHTSA in the January 9, 2013 (78 FR 2211) for its Advanced Clean standards and, in a separate rulemaking development of this proposal. Car (ACC) program. CARB’s ACC program includes the MYs 2017–2025 greenhouse gas (GHG) action, NHTSA will propose to revise its Consultation is the usual approach standards as well as regulations for zero-emission CAFE standards. Since 2010, EPA and Congress specifies when it recognizes vehicle (ZEV) sales requirements and California’s NHTSA have adopted fuel economy and that EPA and another agency share low emission vehicle (LEV) III requirements. greenhouse gas standards in joint expertise and equities in an area. 71 Draft Technical Assessment Report: Midterm Evaluation of Light-Duty Vehicle Greenhouse Gas rulemakings. In the 2010 joint rule, EPA Indeed, the Clean Air Act does not Emission Standards and Corporate Average Fuel Economy Standards for Model Years 2022–2025, 67 86 FR 7037, January 25, 2021. 68 Massachusetts v. EPA, 549 U.S. at 532. EPA–420–D–16–900 July 2016.
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for MYs 2022–2025 remained EPA conducted extensive outreach with run.77 EPA understood that the appropriate. California also conducted the California Air Resources Board, temporary regulatory incentives may its own Midterm Review that arrived at Framework manufacturers, and help bring some technologies to market a similar conclusion.72 manufacturers that have not entered more quickly than in the absence of In August 2018, EPA and NHTSA into California Framework Agreements, incentives.78 EPA continues to believe jointly issued the SAFE rule proposal, along with numerous other stakeholders that temporary regulatory incentives which included an EPA proposal to in developing this proposed rule, as will help accomplish those goals, which withdraw CARB’s Advanced Clean Car further described in Section II.A.7. As supported those incentives in the 2012 (ACC) waiver as it related to California discussed further below, EPA is rule. As such, EPA is proposing to GHG emission standards and ZEV sales proposing standards that are equivalent increase and extend multiplier requirements (that would preclude to the stringency of the California incentives though MY 2025 and to California from enforcing its own Framework Agreements emission reinstate the full-size pickup incentives program) as well as a proposal to reduction targets in MY 2023 and that were removed from the program by sharply reduce the stringency of the increasingly more stringent than the 73 the SAFE rule for MYs 2022–2025. Also, national standards. In September Framework Agreements from MY 2024 EPA is proposing to remove the 2019, EPA and NHTSA then jointly through 2026. multiplier incentives for natural gas issued a final SAFE ‘‘Part One’’ rule, In a separate but related action, on vehicles for MYs 2023–2026 established which included a final EPA action April 28, 2021, EPA issued a Notice of by the SAFE rule. Multipliers and full- withdrawing CARB’s ACC waiver as it Reconsideration for the previous size pickup incentives are discussed in related to California GHG emission withdrawal of the California ACC standards and ZEV sales Sections II.B.1 and II.B.2, respectively. waiver, requesting comments on requirements.74 In response to the SAFE The current program also includes whether the withdrawal should be rule proposal, California and five auto credits for real-world emissions rescinded, which would reinstate the manufacturers entered into identical reductions not reflected on the test waiver.76 EPA conducted a virtual agreements commonly referred to as the cycles used for measuring CO2 public hearing on June 2, 2021 and the California Framework Agreements. The emissions for compliance with the fleet comment period closed on July 6, 2021. Framework Agreements included GHG EPA is currently reviewing comments, average GHG standards. Credits for emission reduction targets for MYs after which EPA plans to take final using technologies that reduce 2021–2026 that in terms of stringency action. emissions that are not captured on EPA are about halfway between the original tests (‘‘off-cycle’’ technologies) and 2012 rule standards and those adopted B. Additional Manufacturer Compliance improvements to air conditioning (A/C) in the final SAFE rule. The Framework Flexibilities systems that increase efficiency and Agreements also included additional reduce refrigerant leakage (‘‘A/C As discussed previously in Section flexibilities such as additional incentive credits’’) are discussed below in II.A.4, the ABT provisions, including multipliers for advanced technologies, sections II.B.3 and II.B.1, respectively. credit carry-forward and carry-back off-cycle credits, and full-size pickup These credit opportunities currently do strong hybrid incentives. These provisions, define how credits may be used and are an important part of the not sunset, remaining a part of the flexibilities are discussed further in program through MY 2026 and beyond Section II.B, below. program. The program also includes several additional credit and incentive unless the program is changed as part of EPA has considered California a future regulatory action. EPA is not standards in past vehicle standards program elements that allow proposing any changes for the A/C rules as we considered the factors of manufacturer flexibility in deciding credits but is proposing to modify the feasibility, costs of compliance and lead how to comply with the standards laid off-cycle credit program. time. The California Framework out in Section II.A. This section Agreement provisions, and the fact that provides an overview of those The use of the optional credit and five automakers representing about a provisions as well as areas where EPA incentive provisions has varied, and third of U.S. vehicle sales voluntarily is proposing changes or is seeking EPA continues to expect it to vary, from committed to them, at a minimum comment. manufacturer to manufacturer. provide a clear indication of The current GHG program includes However, most manufacturers are manufacturers’ capabilities to produce temporary incentives through MY 2021 currently using at least some of the cleaner vehicles than required by the that encourage the use of advanced flexibilities.79 Although a SAFE rule standards in the technologies such as all electric, plug-in manufacturer’s use of the credit and implementation timeframe of this hybrid, and fuel cell vehicles, as well as incentive provisions is optional, EPA proposed rule.75 The Framework incentives for full-size pickups using projects that the proposed standards Agreements’ emissions reduction targets either strong hybridization or would be met fleet-wide by using a therefore served as one starting point for technologies providing similar combination of reductions in tailpipe EPA’s assessment of potential standards emissions reductions. When EPA CO2 and some use of the optional credit and other provisions for the proposal. established these incentives in the 2012 and incentive provisions. These rule, EPA recognized that temporary projections are discussed in Section III, 72 https://ww2.arb.ca.gov/our-work/programs/ regulatory incentives would reduce the advanced-clean-cars-program/advanced-clean-cars- below and in the Draft RIA. midterm-review. overall emission reductions required by 73 EPA’s waiver for CARB’s Advanced Clean Car the standards, but the agency believed 77 See Tables III–2 and III–3, 77 FR 62772, regulations is at 78 FR 2211 (January 9, 2013). The that it was worthwhile to have a limited October 15, 2012. SAFE NPRM is at 83 FR 42986 (August 24, 2018). short-term loss of emission reductions 78 77 FR 62812, October 15, 2012. 74 84 FR 51310 (Sept. 27, 2019). to increase the potential for far-greater 79 See ‘‘The 2020 EPA Automotive Trends Report, 75 The five California Framework Agreements emissions reductions in the longer Greenhouse Gas Emissions, Fuel Economy, and may be found in the docket for this rulemaking and Technology since 1975,’’ EPA–420–R–21–003 at: https://ww2.arb.ca.gov/news/framework- January 2021 for additional information regarding agreements-clean-cars. 76 80 FR 22421 (April 28, 2021). manufacturer use of program flexibilities.
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1. Multiplier Incentives for Advanced technologies faced greater market Given that the previously established Technology Vehicles barriers. multipliers only run through MY 2021, i. Background EPA proposes to start the new TABLE 24—INCENTIVE MULTIPLIERS multipliers in MY 2022 to provide In the 2012 rule, EPA included FOR EV, FCV, PHEVS, AND NGVS continuity for the incentives over MYs incentives for advanced technologies to ESTABLISHED IN 2012 RULE 2021–2025. The multipliers would promote the commercialization of function in the same way as they have technologies that have the potential to EVs and PHEVs in the past, allowing manufacturers to transform the light-duty vehicle sector Model years and count eligible vehicles as more than one FCVs NGVs by achieving zero or near-zero GHG vehicle in their fleet average emissions in the longer term, but which calculations. The levels of the proposed faced major near-term market barriers. 2017–2019 ...... 2.0 1.6 multipliers, shown in Table 25 below, EPA recognized that providing 2020 ...... 1.75 1.45 2021 ...... 1.5 1.3 are the same as those contained in the temporary regulatory incentives for California Framework Agreements for certain advanced technologies would EPA requested comments in the SAFE decrease the overall GHG emissions MY 2022–2025. EPA is proposing to rule proposal on increasing and/or sunset the multipliers after MY 2025, reductions associated with the program extending CNG multiplier incentives. in the near term, by reducing the rather than extending them to MY 2026, After considering comments, EPA because EPA has always intended them effective stringency of the standards in adopted a multiplier of 2.0 for MYs years in which the incentives were to be a temporary part of the program to 2022–2026 NGVs, noting that no NGVs incentivize technology in the near-term. available, to the extent the incentives were being sold by auto manufacturers were used. However, in setting the Sunsetting the multipliers in MY 2025 at that time. EPA did not extend helps signal that EPA does not intend to 2017–2025 standards, EPA believed it multipliers for other vehicle types in the was worthwhile to forego modest include multipliers in its proposal for SAFE rule, as the SAFE standards did standards for MY 2027 and later MYs, additional emissions reductions in the not contemplate the extensive use of near term in order to lay the foundation where these technologies are likely to be these technologies in the future so there integral to the feasibility of the for much larger GHG emissions was no need to continue the incentives. reductions in the longer term. EPA also standards, as the goal of a long-term believed that the temporary regulatory ii. Proposed Multiplier Extension and program would be to quickly transition incentives may help bring some Cap the light-duty fleet to zero-emission technologies to market more quickly EPA is proposing to extend technology, in which case ‘‘incentives’’ than in the absence of incentives.80 multipliers for EVs, PHEVs, and FCVs would no longer be appropriate. As EPA established multiplier incentives for MYs 2022–2025, but with a cap to zero-emissions technologies become for MYs 2017–2021 electric vehicles limit the magnitude of resulting more mainstream, EPA believes it is (EVs), plug-in hybrid electric vehicles emissions reduction losses and to appropriate to transition away from (PHEVs), fuel cell vehicles (FCVs), and provide a means to more definitively multiplier incentives. EPA also believes natural gas vehicles (NGVs).81 The project the impact of the multipliers on sunsetting multipliers would simplify multiplier allows a vehicle to ‘‘count’’ the overall stringency of the program. programmatically a transition to a more as more than one vehicle in the Although EPA chose not to include stringent program for MY 2027. The MY manufacturer’s compliance calculation. additional multipliers in the SAFE rule 2025 sunset date combined with the Table 24 provides the multipliers for the except for natural gas vehicles, EPA is cap, discussed below, begins the process various vehicle technologies included in now proposing standards significantly of transitioning away from auto the 2012 final rule for MY 2017–2021 more stringent than in the SAFE rule manufacturers’ ability to make use of vehicles.82 Since the GHG performance and therefore EPA believes limited the incentive multipliers. While EPA is for these vehicle types is significantly additional multiplier incentives are proposing to end multipliers after MY better than that of conventional appropriate for the purposes of 2025 for these reasons, EPA requests vehicles, the multiplier provides a encouraging manufacturers to accelerate comments on whether it would be more significant benefit to the manufacturer. the introduction of zero and near-zero appropriate to allow multiplier credits EPA chose the magnitude of the emissions vehicles and maintaining to be generated in MY 2026 without an multiplier levels to be large enough to momentum for that market transition. increase in the cap. This may provide an provide a meaningful incentive, but not EPA requests comment on all aspects of additional incentive for manufacturers be so large as to provide a windfall for the proposed extension of multipliers, who have not yet produced advanced vehicles that still would have been including the proposed multiplier technology vehicles by MY 2026 to do produced even at lower multiplier levels, model years when multipliers are so but could also potentially complicate levels. The multipliers for EVs and available, and the size and structure of transitioning to MY 2027 standards for FCVs were larger because these the multiplier credit cap. some manufacturers.
TABLE 25—EPA PROPOSED MULTIPLIER INCENTIVES FOR MYS 2022–2025
Model years EVs and FCVs PHEVs
2022–2024 ...... 2.0 ...... 1.6. 2025 ...... 1.75 ...... 1.45. 2026+ ...... 1.0 (no multiplier credits) ...... 1.0 (no multiplier credits).
80 See 77 FR 62811 et seq. 81 77 FR 62810, October 15, 2012. 82 77 FR 62813–62816, October 15, 2012.
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EPA believes that an important limit the effect on stringency of the to the market to help sustain market element of this incentive program is to standards for manufacturers that use the momentum for the long-term. However, limit the potential effect of the multipliers to no greater than 2.5 g/mile EPA also believes that if left uncapped, multipliers on reducing the effective less stringent each year on average over the multiplier credits have the potential stringency of the standards. Therefore, MYs 2022–2025. EPA proposes that to lead to stagnation or even backsliding EPA proposes to cap the credits manufacturers would be able to choose for internal combustion engine vehicles generated by a manufacturer’s use of the how to apply the cap within the four- for some manufacturers in the near-term multipliers to the Megagram (Mg) year span of MYs 2022–2025 to best fit as sales of advanced technology vehicles equivalent of 2.5 g/mile for their car and their product plans. Manufacturers may continue to increase. If EPA were to light truck fleets per MY for MYs 2022– opt to use values other than 2.5 g/mile consider a significantly more generous 2025 or 10.0 g/mile on a cumulative in the cap calculation as long as the sum cap or even uncapped credits, EPA basis.83 Above the cap, the multiplier is of those values over MYs 2022–2025 would tighten the standards beyond the effectively a value of 1.0—in other does not exceed 10.0 g/mile (e.g., 0.0, levels EPA is proposing to rebalance the words, after a manufacturer reaches the 2.5, 2.5, 5.0 g/mile in MYs 2022–2025). overall stringency of the program. cap, the multiplier is no longer available In the 2012 rule, EPA did not cap the Therefore, as under the California and has no further effect on credit use of multipliers. At that time, the Framework Agreements, EPA is calculations. A manufacturer would advanced technologies incentivized by proposing to extend multiplier credits sum the Mg values calculated for each the multipliers were in their relative but also to include a multiplier cap to of its car and light truck fleets at the end infancy and EPA believed it was balance these considerations. appropriate to encourage manufacturers of a MY into a single cap value that to continue to develop and introduce The proposed cap differs from and would serve as the overall multiplier those vehicles for the long-term benefits limits the effective stringency loss more cap for the combined car and light truck of the program. We are now in a than the cap contained in the California fleets for that MY. This approach would transitional period where manufacturers Framework Agreements. The are actively increasing their zero- cumulative cap in the Framework 83 Proposed Multiplier Credit Cap [Mg] = (2.5 g/ emission vehicle offerings. In MY 2019, Agreements is based on the area mile CO2 × VMT × Actual Annual Production)/ 1,000,000 calculated annually for each fleet and almost all manufacturers made use of between the 2.7 percent and 3.7 percent summed. Manufacturers may use values higher than advanced technology credits.84 EPA year over year reduction in the 2.5 g/mile in the calculation as long as the sum of believes extending the multipliers is standards from MY 2021 levels, as the cumulative values over MYs 2022–2025 does important to encourage manufacturers shown for an average fleet in Figure 6 not exceed 10.0 g/mile. The vehicle miles traveled (VMT) used in credit calculations in the GHG to accelerate bringing these technologies below. This is equivalent to 27 percent program, as specified in the regulations, are 195,264 (1%/3.7%) of the total increase in miles for cars and 225,865 for trucks. See 40 CFR 84 See ‘‘The 2020 EPA Automotive Trends stringency from MY 2021 through MY 86.1866–12. See also 40 CFR 86.1866–12(c) for the Report, Greenhouse Gas Emissions, Fuel Economy, 2026 in the Framework Agreements. calculation of multiplier credits to be compared to and Technology since 1975,’’ EPA–420–R–21–003 the cap. January 2021. BILLING CODE 6560–50–P
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240
220
180
rm 2020 1021 2022 2.0-23 2024 2025 202.-6 Mode-I Year
--3.7%standard - -2.7%cap
Figure 6 California Framework Standards Fleet Average Target Levels and Multiplier Cap
EPA is proposing a cap that extends proposed cap would provide additional stringency relative to the MY 2021 level over fewer MYs and is less generous flexibility in the near term, as shown in from MY 2021 through MY 2026. than the cap in the California Figure 7. This is equivalent to about 6 Framework Agreements. The EPA percent of the total increase in
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--.. ' ' :nu ' ' , Effective stringency loss due ''= -.:._- --/- toproposedmultipUers 100 ... -' 190 ------
100
Hill ------2021 2022 2023 202:4 2025 2026 Model Year
-fleet Average Target Levels - -2.5 g/mile proposed cap
Figure 7 Proposed Multiplier Cap Compared to Fleet Average Target Levels
BILLING CODE 6560–50–C comments on whether the proposed incentivize these vehicles to encourage To estimate the potential impact of extension of multipliers is appropriate manufacturers to introduce them in the multipliers on the tons of CO2 reduction in light of the stringency level of the light-duty vehicle market. EPA does not provided by the proposed program, EPA proposed standards or whether there view NGVs as a pathway for significant modeled scenarios with and without should be no multipliers beyond those vehicle GHG emissions reductions in multipliers. As shown, EPA estimates in the current program that are the future. Any NGV multiplier credits that the proposed multipliers, if fully scheduled to end after MY 2021. generated in MY 2022 would be utilized by manufacturers, would result included under the proposed multiplier iii. Natural Gas Vehicle Multipliers in roughly 46 MMT (596 minus 550 cap. There are no NGVs currently MMT) fewer tons of CO2 reduced over As noted above, the SAFE rule did not offered by manufacturers in the light- the lifetimes of MY 2021–2026 extend multipliers for advanced duty market and EPA is unaware of any 85 vehicles. We have also analyzed the technology vehicles but did extend and plans to introduce NGVs, so EPA does impact of the advanced technology increase multiplier incentives for dual- not expect the removal of multipliers for multipliers on BEV and PHEV fuel and dedicated natural gas vehicles NGVs to have an impact on penetration rates and have found that (NGVs). The current regulations include manufacturers’ ability to meet the impact on the fleet is less than 0.5 a multiplier of 2.0, uncapped, for MY standards.87 EPA requests comment on percent in any MY 2023 through 2026 2022–2026 NGVs. In the SAFE rule, its proposed treatment of multipliers for (see RIA Chapter 4.1.3). EPA believes EPA said it was extending the NGVs including whether they should be such an approach represents a multipliers for NGVs because ‘‘NGVs eliminated altogether for MYs 2023– reasonable balance of providing an could be an important part of the overall 2026 as proposed or retained partially or incentive for advanced technology light-duty vehicle fleet mix, and such at a lower level for MYs 2023–2025. vehicles in the timeframe of the offerings would enhance the diversity of rulemaking while limiting the impact on potentially cleaner alternative fueled 2. Advanced Technology Incentives for effective stringency of the proposed vehicles available to consumers.’’ 86 Full-Size Pickups program. EPA requests comment on the After further considering the issue, EPA In the 2012 rule, EPA included a per- proposed extension of multipliers, now proposes to remove the extended vehicle credit provision for including the proposed multiplier multiplier incentives added by the manufacturers that hybridize a levels, model years when multipliers are SAFE rule from the GHG program after significant number of their full-size available, size and structure of the MY 2022. EPA is proposing to end multiplier credit cap. EPA also requests multipliers for NGVs in this manner 87 The last vehicle to be offered, a CNG Honda because NGVs are not a near-zero Civic, was discontinued after MY 2015. It had 85 EPA analyzed the MY 2021–2026 timeframe to emissions technology and EPA no approximately 20 percent lower CO2 than the allow for a more direct comparison of the estimated gasoline Civic. For more recent advanced internal emissions loss in tons of the proposed multipliers longer believes it is appropriate to combustion engines, the difference may be less than and cap with the impact of the California 20% due to lower emissions of the gasoline-fueled Framework multiplier cap. 86 85 FR 25211. vehicles.
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pickup trucks or use other technologies strong hybrid technology are eligible for technologies as long as the vehicle’s CO2 that comparably reduce CO2 emissions. a per-truck 20 g/mile CO2 credit during performance is at least 15 or 20 percent EPA’s goal was to incentivize the MYs 2017–2021, if certain minimum below the vehicle’s footprint-based penetration into the marketplace of low- production thresholds are met.89 EPA target. However, a vehicle cannot emissions technologies for these established definitions in the 2012 rule receive both hybrid and performance- pickups. The incentives were intended for full-size pickup and mild and strong based credits, since that would be 90 to provide an opportunity in the hybrid for the program. double-counting. program’s early years to begin Alternatively, manufacturers may generate performance-based credits for Access to any of these large pickup penetration of advanced technologies full-size pickups. This performance- credits requires that the technology be into this category of vehicles, which used on a minimum percentage of a based credit is 10 g/mile CO2 or 20 g/ face unique challenges in the costs of manufacturer’s full-size pickups. These mile CO2 for full-size pickups achieving applying advanced technologies due to 15 percent or 20 percent, respectively, minimum percentages, established in the need to maintain vehicle utility and better CO2 performance than their the 2012 final rule, are set to encourage meet consumer expectations. In turn, footprint-based targets in a given MY.91 significant penetration of these the introduction of low-emissions This second option incentivizes other, technologies, leading to long-term technologies in this market segment non-hybrid, advanced technologies that market acceptance. Meeting the creates more opportunities for achieving can reduce pickup truck GHG emissions penetration threshold in one MY does the more stringent later year standards. and fuel consumption at rates not ensure credits in subsequent years; Under the existing program, full-size comparable to strong and mild hybrid if the production level in a MY drops pickup trucks using mild hybrid technology. These performance-based below the required threshold, the credit technology are eligible for a per-truck 10 credits have no specific technology or is not earned for that MY. The required g/mile CO2 credit during MYs 2017– design requirements; automakers can penetration levels are shown in Table 26 2021.88 Full-size pickup trucks using use any technology or set of below.92
TABLE 26—PENETRATION RATE REQUIREMENTS BY MODEL YEAR FOR FULL-SIZE PICKUP CREDITS [% of production]
2017 2018 2019 2020 2021
Strong hybrid ...... 10 10 10 10 10 Mild Hybrid ...... 20 30 55 70 80 20% better performance ...... 10 10 10 10 10 15% better performance ...... 15 20 28 35 40
Under the 2012 rule, the strong more stringent standards for MY 2023– strong hybrid/20% better performance hybrid/20% better performance 2026, EPA believes these full-size incentives and the proposed approach incentives initially extended out pickup truck credits are appropriate to for doing so. EPA notes for this proposal through MY 2025, the same as the 10 further incentivize advanced our analysis does not include the percent production threshold. However, technologies penetrating this impacts of this incentive on the the SAFE rule removed these incentives particularly challenging segment of the projected GHG emissions, costs, benefits after MY 2021. The mild hybrid/15% market. As with the original program, and other program effects. EPA requests better performance incentive was not EPA is limiting this incentive to full- comment on the potential impacts of the affected by the SAFE rule, as those size pickups rather than broadening it to full-size pickup incentive credit, and provisions end after MY 2021. EPA other vehicle types. Introducing whether, and how, EPA should take the proposes to reinstate the full-size advanced technologies with very low projected effects into account in the pickup credits as they existed before the CO2 emissions in the full-size pickup final rulemaking. SAFE rule, for MYs 2022 through 2025. market segment remains a challenge due In the 2012 rule, EPA included a While no manufacturer has yet claimed to the need to preserve the towing and provision that prevents a manufacturer these credits, the rationale for hauling capabilities of the vehicles. The from using both the full-size pickup establishing them in the 2012 rule full-size pickup credits incentivize performance-based credit pathway and remains valid. At the time of the SAFE advanced technologies into the full-size the multiplier credits for the same rule, EPA did not envision significantly pickup truck segment to help address vehicles. This would prevent, for more stringent standards in the future cost, utility, and consumer acceptance example, an EV full-size pickup from and so did not believe the incentives challenges. EPA requests comments on generating both credits. EPA did not were useful. In the context of this whether or not to reinstate the include the same restriction for vehicles proposal that includes significantly previously existing full-size pickup qualifying for the full-size pickup
88 As with multiplier credits, full-size pickup the calculation is simpler than that for multiplier over the Federal Test Procedure is at least 65 credits are in Megagrams (Mg). Full-size pickup credits. percent of the total braking energy. credits are derived by multiplying the number of 89 77 FR 62825, October 15, 2012. 91 77 FR 62826, October 15, 2012. For additional full-size pickups produced with the eligible 90 77 FR 62825, October 15, 2012. Mild and strong discussion of the performance requirements, see technology by the incentive credit (either 10 or 20 hybrid definitions as based on energy flow to the Section 5.3.4 of the ‘‘Joint Technical Support g/mile) and a vehicle miles traveled (VMT) value high-voltage battery during testing. Both types of Document: Final Rulemaking for 2017–2025 Light- vehicles must have start/stop and regenerative for trucks of 225,865, as specified in the regulations. duty Vehicle Greenhouse Gas Emission Standards braking capability. Mild hybrid is a vehicle where The resulting value is divided by 1,000,000 to the recovered energy over the Federal Test and Corporate Average Fuel Economy Standards’’ convert it from grams to Mg. EPA is not proposing Procedure is at least 15 percent but less than 65 for the Final Rule,’’ EPA–420–R–12–901, August a cap for these credits and they are only available percent of the total braking energy. Strong hybrid 2012. for full-size pickups, rather than the entire fleet, so means a hybrid vehicle where the recovered energy 92 40 CFR 86.1870–12.
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hybrid credit pathway. For example, a the specified 2-cycle test. For example: ii. EPA Proposal To Increase Menu PHEV could qualify for both the strong High efficiency lighting is not measured Credit Cap hybrid credit and the multiplier credits on the EPA 2-cycle tests because EPA has received comments from under the prior regulations as they were lighting is not turned on as part of the manufacturers on multiple occasions established in the 2012 rule. With our test procedure but reduces CO2 requesting that EPA increase the menu proposal to extend the multiplier credits emissions by decreasing the electrical credit cap. Previously, EPA has opted and reinstate the full-size pickup credit, load on the alternator and engine. The not to increase the cap for several EPA believes allowing both credits key difference between the credits reasons.99 First, the cap is necessary would in a sense be double-counting discussed below and the incentives given the uncertainty in the menu and inappropriate. Therefore, EPA discussed in the previous two sections values for any given vehicle. Menu proposes to modify the regulations such is that off-cycle credits—as well as A/C credits are values EPA established to be that manufacturers may choose between credits, discussed in the next section— used across the fleet rather than vehicle- the two credits in instances where full- represent real-world emissions specific values. When EPA established size pickups qualify for both but may reductions if appropriately sized and the menu credits in the 2012 rule, EPA not use both credits for the same therefore their use should not result in included a cap because of the vehicles. A manufacturer may choose to deterioration of program benefits, and uncertainty inherent in using limited use the full-size pickup strong hybrid should not be viewed as cutting into the data and modeling as the basis of a credit, for example, if the manufacturer effective stringency of the program. single credit value for either cars or either has reached the multiplier credit Under EPA’s existing regulations, trucks. While off-cycle technologies cap or intends to do so with other there are three pathways by which a should directionally provide an off- qualifying vehicles. Or a manufacturer manufacturer may accrue off-cycle cycle emissions reduction, quantifying may instead decide to forego the strong technology credits.95 The first pathway the reductions and setting an hybrid credit in cases where the is a predetermined list or ‘‘menu’’ of appropriate credit values based on manufacturer does not expect to reach credit values for specific off-cycle limited data was difficult. the multiplier cap and the multiplier technologies that was effective starting Manufacturers wanting to generate provides more credits than the strong in MY 2014.96 This pathway allows credits beyond the cap may do so by hybrid credit. EPA requests comments manufacturers to use credit values bringing in their own test data as the on this approach to avoid double- established by EPA for a wide range of basis for the credits. Credits established counting of credits, by restricting the off-cycle technologies, with minimal or under the second and third pathways do use of the two types of credits for the no data submittal or testing not count against the menu cap. Also, same vehicles. requirements. The menu includes a until recently most manufacturers still 3. Off-Cycle Technology Credits fleetwide cap on credits of 10 g/mile to had significant headroom under the cap i. Background address the uncertainty of a one-size- allowing them to continue to introduce fits-all credit level for all vehicles and additional menu technologies.100 Starting with MY 2008, EPA started the limitations of the data and analysis Finally, during the implementation of employing a ‘‘five-cycle’’ test used as the basis of the menu credits. A the program, EPA has expended methodology to measure fuel economy second pathway allows manufacturers significantly more effort than for purposes of new car window stickers to use 5-cycle testing to demonstrate anticipated on scrutinizing menu credits 97 (labels) to give consumers better and justify off-cycle CO2 credits. The to determine if a manufacturer’s information on the fuel economy they additional emissions tests allow technology approach was eligible under could more reasonably expect under emission benefits to be demonstrated the technology definitions contained in real-world driving conditions.93 over some elements of real-world the regulations. This further added to However, for GHG compliance, EPA driving not captured by the GHG concerns about whether the technology continues to use the established ‘‘two- compliance tests, including high speeds, could reasonably be expected to provide cycle’’ (city and highway test cycles, rapid accelerations, and cold the real-world benefits that credits are also known as the FTP and HFET) test temperatures. Under this pathway, meant to represent. For these reasons, methodology.94 As learned through manufacturers submit test data to EPA, EPA has been reluctant to consider development of the ‘‘five-cycle’’ and EPA determines whether there is increasing the cap. methodology and prior rulemakings, sufficient technical basis to approve the EPA may make changes to the test there are technologies that provide real- off-cycle credits. The third pathway procedures for the GHG program in the world GHG emissions improvements, allows manufacturers to seek EPA future that could change the need for an but whose improvements are not fully approval, through a notice and comment off-cycle credits program, but there are reflected on the ‘‘two-cycle’’ test. EPA process, to use an alternative no such test procedure changes established the off-cycle credit program methodology other than the menu or 5- proposed in this rule. Off-cycle credits, to provide an appropriate level of CO2 cycle methodology for determining the therefore, will likely remain an 98 credit for technologies that achieve CO2 off-cycle technology CO2 credits. This important source of emissions reductions, but may not otherwise be option is only available if the benefit of reductions under the program, at least chosen as a GHG control strategy, as the technology cannot be adequately through MY 2026. Off-cycle their GHG benefits are not measured on demonstrated using the 5-cycle technologies are often more cost methodology. effective than other available 93 https://www.epa.gov/vehicle-and-fuel- technologies that reduce vehicle GHG emissions-testing/dynamometer-drive-schedules. See also 75 FR 25439 for a discussion of 5-cycle 95 See ‘‘The 2020 EPA Automotive Trends Report, emissions over the 2-cycle tests and testing. Greenhouse Gas Emissions, Fuel Economy, and 94 The city and highway test cycles, commonly Technology since 1975,’’ EPA–420–R–21–003 99 85 FR 25237. referred to together as the ‘‘2-cycle tests’’ are January 2021 for information regarding the use of 100 See ‘‘The 2020 EPA Automotive Trends laboratory compliance tests are effectively required each pathway by manufacturers. Report, Greenhouse Gas Emissions, Fuel Economy, by law for CAFE, and also used for determining 96 See 40 CFR 86.1869–12(b). and Technology since 1975,’’ EPA–420–R–21–003 compliance with the GHG standards. 49 U.S.C. 97 See 40 CFR 86.1869–12(c). January 2021 for information on the use of menu 32904(c). 98 See 40 CFR 86.1869–12(d). credits.
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manufacturer use of the program into the 15 g/mile credit cap. Requiring definitions, discussed below. EPA continues to grow. Off-cycle credits their use for MYs 2020 and earlier for specifically requests comment on reduce program costs and provide all manufacturers would potentially whether an increased credit cap, if additional flexibility in terms of affect credits already awarded to finalized, should begin in MY 2020 as technology choices to manufacturers manufacturers, causing significant proposed or a later MY such as MY which has resulted in many problems in program implementation 2021, 2022, or 2023. Commenters manufacturers using the program. and manufacturer plans to comply with supporting off-cycle provisions that Multiple manufacturers were at or the proposed MY 2023–2026 standards. differ from EPA’s proposal are approaching the 10 g/mile credit cap in Similarly, MY 2021 is underway, and encouraged to address how such MY 2019.101 Also, in the SAFE rule, some manufacturers are already differences could be implemented to EPA added menu credits for high producing MY 2022 vehicles. EPA improve real-world emissions benefits efficiency alternators but did not believes credits that were generated in and how such provisions could be increase the credit cap for the reasons a manner consistent with the applicable effectively implemented. noted above.102 While adding the regulatory definitions in place at the iii. EPA Proposed Modifications to technology to the menu has the time the vehicles were produced should Menu Technology Definitions potential to reduce the burden continue to be allowed in compliance associated with the credits for both determinations for the proposed MY Some stakeholders have previously manufacturers and EPA, it further 2023–2026 standards. The 10 g/mile cap raised concerns about whether the off- exacerbates the credit cap issue for some EPA adopted to address uncertainties cycle credit program produces the real- manufacturers. around the menu credits, including the world emissions reductions as intended, After considering the above points definitions, is acting as intended and or results in a loss of emissions further in the context of the proposed the proposed approach of allowing benefits.103 EPA shares these concerns, standards, EPA is proposing to increase menu credits beyond the 10 g/mile cap as noted above, and believes it is the cap on menu-based credits from the only for manufacturers meeting the important to address to the extent current 10 g/mile to 15 g/mile beginning revised definitions is the appropriate possible the issues that the agency has as early as MY 2020. As a companion approach until the 15 g/mile menu cap experienced in implementing the menu to increasing the credit cap, though, and revised definitions are fully credits, alongside proposing to raise the EPA is also proposing modifications to implemented in MY 2023. EPA views menu cap. EPA believes that raising the some of the off-cycle technology the proposed definition updates as menu cap is appropriate so long as the definitions to improve program refinements to the ongoing off-cycle agency can improve the program and implementation and to better program to improve its implementation reasonably expect the use of menu accomplish the goal of the off-cycle and help ensure that the program technologies to provide real-world credits program: To ensure emissions produces real-world benefits as emissions reductions, consistent with reductions occur in the real-world from intended and believes that it is the intent of the program. Providing the use of the off-cycle technologies. reasonable to make these updates in additional opportunities for menu Manufacturers wanting to claim menu parallel with the proposed cap increase. credits may allow for more emissions credits between 10 and 15 g/mile in Manufacturers that utilized technologies reductions sooner and at a lower cost MYs 2020–2022 would need to meet all in MY 2020 that meet the proposed than would otherwise be possible under revised technology definitions across revised definitions, in addition to the a program without off-cycle credits. both the car and truck fleets. For MYs unchanged current definitions, would Indeed, the additional credits are fully 2023 and later, the revised definitions be able to claim menu credits up to the incorporated as an element of the cost would apply exclusively, and the 15 g/mile cap. and feasibility analysis of the proposed current definitions would no longer be EPA requests comment on whether standards. With that in mind, EPA used in the program. EPA is proposing the menu credit cap should be increased proposes to modify the menu this approach as a reasonable transition to 15 g/mile, EPA’s proposed approach definitions discussed below to coincide to the new definitions. for implementing the increased credit with increasing the menu cap. EPA is proposing not to require the cap, including the start date of MY The existing menu technologies and use of the revised definitions prior to 2020, as well as the proposed associated credits are provided below in MY 2023 for manufacturers not opting application of revised technology Table 27 and Table 28 for reference.104
TABLE 27—EXISTING OFF-CYCLE TECHNOLOGIES AND CREDITS FOR CARS AND LIGHT TRUCKS
Credit for Credit for Technology cars light trucks g/mi g/mi
High Efficiency Alternator (at 73%; scalable) ...... 1.0 ...... 1.0. High Efficiency Exterior Lighting (at 100W) ...... 1.0 ...... 1.0. Waste Heat Recovery (at 100W; scalable) ...... 0.7 ...... 0.7. Solar Roof Panels (for 75W, battery charging only) ...... 3.3 ...... 3.3. Solar Roof Panels (for 75W, active cabin ventilation plus battery charging) ...... 2.5 ...... 2.5. Active Aerodynamic Improvements (scalable) ...... 0.6 ...... 1.0. Engine Idle Start-Stop with heater circulation system ...... 2.5 ...... 4.4.
101 In MY 2019, Ford, FCA, and Jaguar Land Technology since 1975,’’ EPA–420–R–21–003 2017–2025 Light-duty Vehicle Greenhouse Gas Rover reached the 10 g/mile cap and three other January 2021. Emission Standards and Corporate Average Fuel manufacturers were within 3 g/mile of the cap. See 102 85 FR 25236. Economy Standards for the Final Rule,’’ EPA–420– ‘‘The 2020 EPA Automotive Trends Report, 103 85 FR 25237. R–12–901, August 2012, for further information on Greenhouse Gas Emissions, Fuel Economy, and 104 See 40 CFR 86.1869–12(b). See also ‘‘Joint the definitions and derivation of the credits values. Technical Support Document: Final Rulemaking for
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TABLE 27—EXISTING OFF-CYCLE TECHNOLOGIES AND CREDITS FOR CARS AND LIGHT TRUCKS—Continued
Credit for Credit for Technology cars light trucks g/mi g/mi
Engine Idle Start-Stop without heater circulation system ...... 1.5 ...... 2.9. Active Transmission Warm-Up ...... 1.5 ...... 3.2. Active Engine Warm-Up ...... 1.5 ...... 3.2. Solar/Thermal Control ...... Up to 3.0 ...... Up to 4.3.
TABLE 28—OFF-CYCLE TECHNOLOGIES AND CREDITS FOR SOLAR/THERMAL CONTROL TECHNOLOGIES FOR CARS AND LIGHT TRUCKS
Car credit Truck credit Thermal control technology (g/mi) (g/mi)
Glass or Glazing ...... Up to 2.9 ...... Up to 3.9. Active Seat Ventilation ...... 1.0 ...... 1.3. Solar Reflective Paint ...... 0.4 ...... 0.5. Passive Cabin Ventilation ...... 1.7 ...... 2.3. Active Cabin Ventilation ...... 2.1 ...... 2.8.
a. Passive Cabin Ventilation restrictions on heated cabin air exiting body’s cabin by opening windows or a Some manufacturers have claimed the the vehicle, particularly in the target sunroof, or equivalent means of creating passive cabin ventilation credits based areas of the occupant’s upper torso. That and maintaining convective airflow, on the addition of software logic to their hotter air generally must escape through when the vehicle is parked outside in HVAC system that sets the interior restrictive (by design to prevent water direct sunlight. climate control outside air/recirculation and exhaust fumes from entering the Current systems claiming the passive vent to the open position when the cabin) body leaks and occasional ventilation credit by opening the dash power to vehicle is turned off at higher venting of the heated cabin air through vent would not meet the updated ambient temperatures. The the body exhausters. While this may definition. Manufacturers seeking to manufacturers have claimed that the provide some minimal reduction in claim credits for the open dash vent opening of the vent allows for the flow cabin temperatures, this open dash vent system will be eligible to petition the of ambient temperature air into the technology is not as effective as the Agency for credits for this technology cabin. While opening the vent may combination of vents used by the NREL using the alternative EPA approved ensure that the interior of the vehicle is researchers to allow additional ambient method outlined in § 86.1869–12(d). open for flow into the cabin, no other temperature air to enter the cabin and also to reduce the restriction of heated b. Active Engine and Transmission action is taken to improve the flow of Warm-Up heated air out of the vehicle. This air exiting the cabin. technology relies on the pressure in the As noted in the Joint Technical In the NPRM for the 2012 rule (76 FR cabin to reach a sufficient level for the Support Document: Final Rulemaking 74854) EPA proposed capturing waste heated air in the interior to flow out for 2017–2025 Light-Duty Vehicle heat from the exhaust and using that through body leaks or the body Greenhouse Gas Emission Standards heat to actively warm-up targeted parts exhausters to open and vent heated air and Corporate Average Fuel Economy of the engine and the transmission fluid. out of the cabin. Standards, pg. 584, ‘‘For passive The exhaust waste heat from an internal The credits for passive cabin ventilation technologies, such as combustion engine is heat that is not ventilation were determined based on opening of windows and/or sunroofs being used as it is exhausted to the an NREL study that strategically opened and use of floor vents to supply fresh air atmosphere. a sunroof to allow for the unrestricted to the cabin (which enhances convective In the 2012 Final Rule (77 FR 62624), flow of heated air to exit the interior of airflow), (1.7 grams/mile for LDVs and the Agency revised the definitions for the vehicle while combined with 2.3 grams/mile for LDTs) a cabin air active engine and transmission warm-up additional floor openings to provide a temperature reduction of 5.7 °C can be by replacing exhaust waste heat with minimally restricted entry for cooler realized.’’ The passive cabin ventilation the waste heat from the vehicle. As ambient air to enter the cabin. The credit values were based on achieving noted in the Joint TSD, pages 5–98 and modifications that NREL performed on the 5.7 °C cabin temperature reduction. 5–99, the Alliance of Automobile the vehicle reduced the flow restrictions The Agency has decided to revise the Manufacturers and Volkswagen for both heated cabin air to exit the passive cabin ventilation definition to recommended the definition be vehicle and cooler ambient air to enter make it consistent with the technology broadened to account for other methods the vehicle, creating a convective used to generate the credit value. The of warm-up besides exhaust heat such airflow path through the vehicle cabin. Agency continues to allow for as a secondary coolant loop. Analytical studies performed by innovation as the definition includes EPA concluded that other methods, in manufacturers to evaluate the demonstrating equivalence to the addition to waste heat from the exhaust, performance of the open dash vent methods described in the Joint TSD. that could provide similar demonstrate that while the dash vent EPA proposes to revise the definition performance—such as coolant loops or may allow for additional airflow of of passive cabin ventilation to only direct heating elements—may prove to ambient temperature air entering the include methods that create and be more effective alternative to direct cabin, it does not reduce the existing maintain convective airflow through the exhaust heat. Therefore, the Agency
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expanded the definition in the 2012 the coolant do not qualify for credits if testing pathways. EPA views this as Final Rule. their operation depends on, and is addressing a potential loophole around In the 2012 Final Rule the Agency delayed by, engine oil temperature or the menu cap. As is currently the case, also required two unique heat exchanger interior cabin temperature. As the a new technology that represents an loops—one for the engine and one for engine and transmission components advancement compared to the the transmission—for a manufacturer to are warming up, the engine coolant and technology represented by the menu claim both the Active Engine Warm-up transmission oil typically do not have credit—that is, by providing and Active Transmission Warm-up any ‘‘waste’’ heat available for warming significantly more emissions reductions credits. EPA stated in the Joint TSD that up anything else on the vehicle since than the menu credit technology— manufacturers utilizing a single heat they are both absorbing any heat from would be eligible for the other two exchanging loop would need to combustion cylinder walls or from pathways. demonstrate that the performance of the friction between moving parts in order 4. Air Conditioning System Credits single loop would be equivalent to two to achieve normal operating dedicated loops in order for the temperatures. During engine and There are two mechanisms by which manufacturer to claim both credits, and transmission warm-up, the only waste A/C systems contribute to the emissions that this test program would need to be heat source in a vehicle with an internal of GHGs: Through leakage of performed using the alternative method combustion engine is the engine hydrofluorocarbon refrigerants into the off-cycle GHG credit application exhaust, as the transmission and coolant atmosphere (sometimes called ‘‘direct described in § 86.1869–12(d). have not reached warmed-up operating emissions’’) and through the All Agency analysis regarding active temperature and therefore do not have consumption of fuel to provide engine and transmission warm-up any heat to share (85 FR 25240). mechanical power to the A/C system through the 2012 Final Rule (77 FR EPA proposes to revise the menu (sometimes called ‘‘indirect 62624) was performed assuming the definitions of active engine and emissions’’).105 The high global waste heat utilized for these transmission warm-up to no longer warming potential of the previously technologies would be obtained directly allow systems that capture heat from the most common automotive refrigerant, from the exhaust prior to being released coolant circulating in the engine block HFC–134a, means that leakage of a into the atmosphere and not from any to qualify for the Active Engine and small amount of refrigerant will have a engine-coolant-related loops. At this Active Transmission warm-up menu far greater impact on global warming time no manufacturer has introduced an credits. EPA would allow credit for than emissions of a similar amount of exhaust waste heat exchanger to be used coolant systems that capture heat from CO2. The impacts of refrigerant leakage to warm up the engine or transmission. a liquid-cooled exhaust manifold if the can be reduced significantly by systems The systems in use are engine-coolant- system is segregated from the coolant that incorporate leak-tight components, loop-based and are taking heat from the loop in the engine block until the engine or, ultimately, by using a refrigerant coolant to warm-up the engine oil and has reached fully warmed-up operation. with a lower global warming potential. transmission fluid. The Agency would also allow system The A/C system also contributes to EPA provided additional clarification design that captures and routes waste increased tailpipe CO2 emissions on the use of waste heat from the engine heat from the exhaust to the engine or through the additional work required to coolant in preamble to SAFE rule (85 FR transmission, as this was the basis for operate the compressor, fans, and 24174). EPA focused on systems using these two credits as originally proposed blowers. This additional power demand heat from the exhaust as a primary in the proposal for the 2012 rule. EPA’s is ultimately met by using additional source of waste heat because that heat proposed approach would help ensure fuel, which is converted into CO2 by the would be available quickly and also that the level of menu credit is engine during combustion and would be exhausted by the vehicle and consistent with the technology design exhausted through the tailpipe. These otherwise unused (85 FR 25240). Heat envisioned by EPA when it established emissions can be reduced by increasing from the engine coolant already may be the credit in the 2012 rule. the overall efficiency of an A/C system, used by design to warm up the internal Manufacturers seeking to utilize their thus reducing the additional load on the engine oil and components. That heat is existing systems that capture coolant engine from A/C operation, which in traditionally not considered ‘‘waste heat before the engine is fully warmed- turn means a reduction in fuel heat’’ until the engine reaches normal up and transfer this heat to the engine consumption and a commensurate operating temperature and subsequently oil and transmission fluid would remain reduction in GHG emissions. requires it to be cooled in the radiator eligible to seek credits through the Manufacturers may generate credits or other heat exchanger. alternative method application process for improved A/C systems to help them EPA allowed for the possible use of outlined in § 86.1869–12(d). EPA comply with the CO2 fleet average other sources of heat such as engine expects that these technologies may standards since the MY 2012 and later coolant circuits, as the basis for the provide some benefit. But, as noted MYs. Because A/C credits represent a credits as long as those methods would above since these system designs low-cost and effective technology ‘‘provide similar performance’’ as remove heat that is needed to warm-up pathway, EPA expected manufacturers extracting the heat directly from the the engine the Agency expects that these to generate both A/C refrigerant and exhaust system and would not technologies will be less effective than efficiency credits, and EPA accounted compromise how the engine systems those that capture and utilize exhaust for those credits in developing the final would heat up normally absent the waste heat. CO2 standards for the 2012 and SAFE added heat source. However, the SAFE rules, by adjusting the standards to rule also allowed EPA to require iv. Clarification Regarding Use of Menu make them more stringent. EPA believes manufacturers to demonstrate that the Credits it is important to encourage system is based on ‘‘waste heat’’ or heat Finally, EPA proposes to clarify that manufacturers to continue to implement that is not being preferentially used by manufacturers claiming credits for a low GWP refrigerants or low leak the engine or other systems to warm up menu technology must use the menu systems. Thus, EPA is not proposing other areas like engine oil or the interior pathway rather than claim credits cabin. Systems using waste heat from through the public process or 5-cycle 105 40 CFR 1867–12 and 40 CFR 86.1868–12.
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any changes for its A/C credit the regulations are consistent with the proposed cumulative credit cap in MYs provisions and is taking the same decision and rationale in the SAFE final 2022–2025, which would have the effect approach in adjusting the level of the rule. EPA likely would not have granted of making Alternative 2 less stringent. proposed standards to reflect the use of credits under the erroneous regulatory As noted in Section II.B.1, EPA is the A/C credits. However, if EPA were text if such credits were sought by a requesting comment on whether or not to remove the refrigerant credits from manufacturer because the intent of the to include the proposed multipliers, and the program, the proposed standards agency was clear in the preamble text. our request for comments extends to would need to be adjusted or increased In addition, natural gas vehicles are not whether to include multipliers both for by the amount of the credit to reflect its currently offered by any manufacturer the proposal and for Alternative 2. elimination from the program. and EPA is not aware of any plans to do The fleet average targets for the two so. Therefore, there are no significant alternatives compared to the proposed 5. Natural Gas Vehicles Technical impacts associated with the correction standards are provided in Table 29 Correction of this clerical error. below. EPA also requests comment on In the SAFE proposal, EPA sought the level of stringency for MY 2026 for C. What alternatives is EPA considering? comment on whether it should adopt the alternatives and the proposed additional incentives for natural gas- Along with the proposed standards, standards. Specifically, EPA requests fueled light-duty vehicles.106 After EPA analyzed both a more stringent and comment on standards for MY 2026 that considering comments, EPA finalized a less stringent alternative. For the less would result in fleet average target additional incentive multipliers for MYs stringent alternative, Alternative 1, EPA levels that are in the range of 5–10 g/ 2022–2026 natural gas vehicles.107 EPA used the coefficients in the California mile lower (i.e., more stringent) than the also received comments recommending Framework for the 2.7 percent effective levels shown for MY 2026 in Table 29. that EPA adopt an additional incentive stringency level (as described EPA is requesting specific comment on for natural gas vehicles in the form of a previously in Section II.B.1) as the basis whether the level of stringency for MY 0.15 multiplicative factor that would be for the MY 2023 stringency level and 2026 should be greater in keeping with applied to the CO2 emissions measured the 2012 rule MY 2025 standards as the the additional lead time available for from the vehicle when tested on natural basis for the MY 2026 stringency level, this out-year compared to MYs 2023– gas. Commenters recommended the 0.15 with linear year-over-year reductions 2025, and because EPA may determine factor as an appropriate way to account between the two points for MYs 2024 that it is appropriate, particularly in for the potential use of renewable and 2025. EPA views the California light of the accelerating transition to natural gas (RNG) in the vehicles.108 Framework as a reasonable basis for the electrified vehicles, to require EPA decided not to adopt the least stringent alternative that EPA additional reductions in this time frame. additional 0.15 factor incentive, as would consider finalizing, since it As discussed in detail in Section A.3 of discussed in the preamble to the SAFE represents a level of stringency that five the Executive Summary, there has been Rule.109 EPA provided a detailed manufacturers have already committed a proliferation of recent announcements rationale for its decision not to to achieving. EPA did not include from automakers signaling a rapidly implement a 0.15 factor recommended incentive multipliers for Alternative 1, growing shift in investment away from by commenters in the SAFE Rule.110 as doing so would only further reduce internal-combustion technologies and EPA is not revisiting or reopening its the effective stringency of this toward high levels of electrification. decision regarding the 0.15 factor. Alternative, and EPA views Alternative EPA has also heard from a wide range However, the regulatory text adopted in 1 as the lower end of stringency that it of stakeholders over the past several the SAFE rule contains an inadvertent believes is appropriate through MY months, including but not limited to the clerical error that conflicts with EPA’s 2026. automotive manufacturers and the decision and rationale in the final SAFE For the more stringent alternative, automotive suppliers, that the rule preamble and provides an option Alternative 2, EPA used the 2012 rule significant investments being made now for manufacturers to use this additional standards as the basis for MY 2023– to develop and launch new EV product incentive in MYs 2022–2026 by 2025 targets, with the standards offerings and in the expansion of EV multiplying the measured CO2 continuing to increase in stringency in charging infrastructure could enable emissions measured during natural gas a linear fashion for MY 2026. higher levels of EV penetration to occur operation by the 0.15 factor.111 EPA is Alternative 2 adopts the 2012 rule in the marketplace by the MY 2026 time proposing narrow technical stringency levels in MY 2023 and frame than EPA has projected as the amendments to its regulations to correct follows the 2012 rule standard target basis for both the proposed MY 2026 this clerical error by removing the levels through MY 2025. EPA extended standards and the Alternative 2 MY option to use the 0.15 factor in MY 2022 the same linear average year-over-year 2026 standards. The information (as discussed in Section II.B.1.iii, EPA is trajectory for MYs 2023–2025 to MY concerning the investment landscape proposing to eliminate multipliers for 2026 for the final standards under potentially accelerating to an even NGVs after MY 2022). This will ensure Alternative 2. As noted in Section greater extent of market penetration of II.A.1, EPA believes it is important to EV products is the basis on which EPA 106 83 FR 43464, August 24, 2018. continue to make progress in MY 2026 is relying in soliciting comment on the 107 85 FR 25211, April 30, 2020. 108 beyond the MY 2025 standard levels in potential for a more stringent MY 2026 85 FR 25210–25211. standard that would reflect this 109 85 FR 25211. the 2012 rule. As with the proposal, 110 Ibid. Alternative 2 meets this objective. EPA information and related considerations, 111 See 40 CFR 600.510–12(j)(2)(v) and also did not include in Alternative 2 the including any additional information (j)(2)(vii)(A). proposed incentive multipliers with the provided by commenters.
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TABLE 29—PROJECTED FLEET AVERAGE TARGET LEVELS FOR PROPOSED STANDARDS AND ALTERNATIVES
[CO2 grams/mile]
Proposal Alternative 1 Alternative 2 Model year projected projected projected targets targets targets
2021 ...... * 223 * 223 * 224 2022 ...... * 220 * 220 * 220 2023 ...... 199 203 195 2024 ...... 189 194 186 2025 ...... 180 185 177 2026 ** ...... 171 177 169 * SAFE rule standards included here for reference. ** EPA is also requesting comment on MY 2026 standards and alternatives that would result in fleet average levels that are 5–10 g/mile more stringent than the levels shown. 240 ••• SAFE FRM --2012 FRM 230 -Proposal • • • Alternative 1 220 - -Alternative 2 210
QJ .E 200 ...... ~ ON 190 u 180
170 EPA requests comment on a 5 to 10 g/mi greater stringency for the proposal and 160 each alternative in MY2026
150 2020 2021 2022 2023 2024 2025 2026 2027 Model Year
Figure 8 Proposed Standards Fleet Average Targets Compared to Alternatives
As shown in Figure 8, the range of feasibility, the existing automaker alternatives roughly within the alternatives that EPA is considering is commitments to meet the California stringency range of the proposal and the fairly narrow, with the proposed Framework (representing about one- Alternatives. standard targets differing from the third of the auto market), the standards III. Technical Assessment of the alternatives in any given MY in MYs adopted in the 2012 rule; and the need Proposed CO Standards 2023–2026 by 2 to 6 g/mile, to reduce GHG emissions. EPA provides 2 notwithstanding EPA’s request for a discussion of the feasibility of the Section II provided a description of comment on more stringent standards proposed standard and alternatives and EPA’s proposed standards and related for MY 2026 standards noted above. the selection of the proposed standards program elements and industry-wide EPA believes this approach is in Section III.D. The analysis of costs estimates of projected GHG emissions reasonable and appropriate considering and benefits of Alternatives 1 and 2 is targets. This Section III provides an the relatively short lead time for the shown in the DRIA Chapters 4, 6, and overview of EPA’s technical assessment proposed standards, especially for MYs 10. EPA requests comments on all of the proposed standards including the 2023–2025; our assessment of aspects of Alternatives 1 and 2 or other approach EPA used for its analysis,
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EPA’s projected target levels by (Optimization Model for reducing and potentially significant enough to manufacturer, projected per vehicle cost Emissions of Greenhouse gases from merit revisions to the analysis. Some for each manufacturer, EPA’s Automobiles) model as the basis for key revisions made for the SAFE FRM projections of EV and PHEV technology setting light-duty GHG emissions version of the CCEMS model include penetration rates, and a discussion of standards. EPA’s OMEGA model was changes to the decision logic for why EPA believes the proposed not used to support the analysis of the technology application by standards are technologically feasible, GHG standards for the SAFE FRM; manufacturers and changes related to drawing from these analyses. Finally, instead, NHTSA’s Corporate Average the SAFE NPRM’s unrealistic changes in this section discusses the alternative Fuel Economy (CAFE) Compliance and VMT associated with the scrappage standards EPA analyzed in developing Effects Modeling System (CCEMS) modeling. Similarly, a number of the proposal. The DRIA presents further model was used. revisions were also made to the model details of the analysis including a full In considering modeling tools to inputs for the SAFE FRM, including the assessment of technology penetration support the analysis for today’s adjustment of some technology rate and cost projections. EPA discusses proposed GHG standards, EPA has effectiveness values. the basis for our proposed standards chosen to use the peer reviewed CCEMS In considering what revisions to the under CAA section 202(a) in Section VI, model and to use the same version of analysis were needed from the SAFE and Section VII presents aggregate cost that model used in support of the SAFE NRPM to the SAFE FRM, and from the and benefit projections as well as other FRM. EPA has made this choice specific SAFE FRM to this proposal, we are program impacts. to this proposal for the purpose of careful to make a distinction between enabling direct comparison to the SAFE the model and the inputs. As stated in a. What approach did EPA use in FRM analysis, which addressed a analyzing potential standards? the SAFE FRM preamble, ‘‘[I]nputs do model-year timespan consistent with not define models; models use inputs. The proposed standards are based on this proposal. Therefore, disagreements about inputs the extensive light-duty GHG technical Given that the SAFE FRM was do not logically extend to disagreements analytical record developed over the published only a year ago, direct about models. Similarly, while models past dozen years, as represented by the comparisons between the analysis determine resulting outputs, they do so EPA supporting analyses for the 2010 presented here and the analysis based on inputs.’’ 112 To illustrate, while and 2012 final rules, the Mid-Term presented in support of the SAFE FRM CCEMS and OMEGA are different Evaluation (including the Draft TAR, are made more direct if the same models, they both provide comparable Proposed Determination and Final modeling tool is used. For example, results when comparable inputs are Determinations), as well as the updated CCEMS has categorizations of used. For example, as discussed in analysis for this proposed rule and the technologies and model output formats Chapter 1.2.2 of the DRIA, EPA’s supporting analysis for the SAFE rule. that are distinct to the model, so OMEGA model runs conducted for the The updated analysis for this proposed continuing use of CCEMS for this MTE show a MY2025 technology cost rule is intended to allow direct proposal facilitates comparisons to the for the 2012 rule relative to the SAFE comparison to the analysis used in the SAFE FRM. Also, by using the same FRM of between $922 to $1,228 per SAFE FRM and is not intended to be the modeling tool as used in the SAFE rule, sole technical basis of the proposed we can more clearly illustrate the vehicle, depending on the specific standards. EPA’s extensive record is influence of some of the key updates to analysis. Thus, the MY2025 per vehicle consistent and makes clear that GHG the inputs used in the SAFE FRM. EPA costs of $942 (see RIA Chapter 4.1.2.1) standards at the level of stringency and believes that using that same tool, with from CCEMS modeling runs for this in the time frame of this proposed rule changes to some of the critical inputs as proposal relative to a full fleet meeting are feasible at reasonable costs and discussed below (see Table 30), the SAFE FRM are comparable to our result in significant GHG emission provides a better apples-to-apples past analyses of standards for the reductions and public health and comparison and serves to strengthen the similar level of stringency and are welfare benefits. The updated analysis basis for why we are proposing changes within the bounds of previous EPA also shows that, consistent with past to the standards. analyses and sensitivity studies analyses, when modeling standards of Some public comments received on conducted for the MTE using OMEGA similar stringency to those set forth in the SAFE NPRM argued that EPA (see DRIA Chapter 1.2.2). the 2012 rule, the results are similar to should use its own modeling tools to Throughout the development of the those results presented previously. In support the EPA action. In addition to SAFE FRM, EPA had significant input particular, the estimated costs for the reasoning described above on the on revisions to the analysis and EPA manufacturers to meet standards similar value of comparing results to the SAFE considered the FRM version of the to those proposed have been roughly FRM, our decision here to utilize the CCEMS model, given changes made in consistent since EPA first estimated CCEMS model as an appropriate tool for response to public comments and our them in 2012. The DRIA Chapter 1 this analysis is informed by our own input, to be an effective modeling further discusses and synthesizes EPA’s consideration of the significant tool for purposes of assessing standards record supporting stringent GHG revisions made to the model between through the MY 2026 timeframe. standards through the MY 2025/2026 the SAFE proposal and the SAFE FRM While we believe the SAFE FRM time frame. and carried over here, and by the model and inputs, together with the key To confirm that these past analyses opportunity this analysis provides to changes that we have made since the continue to provide valid results for incorporate additional updates to key SAFE FRM, are appropriate for the consideration by the Administrator in inputs and assumptions. particular analysis at hand in assessing selecting the most appropriate level of Other commenters expressed standards through MY2026, we stringency and other aspects of the concerns about technical issues with the welcome comments on other changes to proposed standards, we have conducted NPRM analysis. During EPA’s own the inputs that may be more appropriate an updated analysis of the proposed review and after consideration of public for use in the final rule. standards. In the past, EPA has comments, we concluded that a number traditionally used its OMEGA of these concerns were well founded, 112 See 85 FR 24218.
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Finally, EPA recognizes that in the developed to better account for the As noted, to allow for direct Revised Final Determination 113 and the significant evolution over the past comparison to the analytical results SAFE rule, the agency expressed decade in vehicle markets, technologies, used to support the recent SAFE FRM, concerns that were based at least in part and mobility services. In particular, the our updated analysis is based on the on comments from certain stakeholders recent advancements in battery electric same version of the CCEMS model that about uncertainties, lack of rigor and vehicles (BEVs), and their introduction was used for the SAFE FRM. The certain technical issues in the analyses into the full range of market segments CCEMS model was extensively used for the 2016 Proposed provides strong evidence that vehicle documented by NHTSA for the SAFE Determination and 2017 Final electrification can play a central role in FRM and the documentation also Determination. However, EPA has achieving greater levels of emissions applies to the updated analysis for this 114 reconsidered those criticisms, as well as reduction in the future. In developing proposed rule. While the CCEMS the prior analyses, and concludes that OMEGA2, EPA is exploring the model itself remains unchanged from the prior concerns expressed do not the version used in the SAFE rule, EPA interaction between consumer and undermine the utility and relevance of has made the following changes (shown producer decisions when modeling the prior analyses for this rulemaking. in Table 30) to the inputs for this Our consideration of such analyses is compliance pathways and the analysis. Additional information reasonable because EPA no longer associated technology penetration into concerning the changes in model inputs agrees with those concerns and/or the vehicle fleet. OMEGA2 also is being can be found in the sections of the because the concerns raised technical designed to have expanded capability to preamble and DRIA cited in the table. issues that we believe do not model a wider range of GHG program EPA invites public comment on the significantly impact the analyses. options than are possible using existing input changes noted below, as well as Additionally, the updated modeling for tools, which will be especially on whether there are other input choices this rulemaking addresses many of the important for the assessment of policies that EPA should consider making for the concerns previously identified. that are designed to address future GHG final rule. In offering comments on the For use in future vehicle standards reduction goals. While the OMEGA2 modeling inputs, EPA encourages analyses, EPA is developing an updated model is not available for use in this stakeholders to provide technical version of its OMEGA model. This proposal, we plan to begin peer review support for any suggestions in changes updated model, OMEGA2, is being of the draft model in the fall of 2021. to modeling inputs.
TABLE 30—CHANGES MADE TO CCEMS MODEL INPUTS FOR THIS PROPOSAL, RELATIVE TO THE SAFE FRM ANALYSIS
Input file Changes
parameters file ...... Global social cost of carbon $/ton values in place of domestic values (see DRIA Chapter 3.3). Inclusion of global social cost of methane (CH4) and nitrous oxide (N2O) $/ton values (see Section IV). Updated PM2.5 cost factors (benefit per ton values, see Section VII.E). Rebound effect of ¥0.10 rather than ¥0.20 (see DRIA Chapter 3.1). AEO2021 fuel prices (expressed in 2018 dollars) rather than AEO2019. Updated energy security cost per gallon factors (see Section VII.F). Congestion cost factors of 6.34/6.34/5.66 (car/van-SUV/truck) cents/mile rather than 15.4/15/4/13.75 (see RIA Chapter 5). Discounting values to calendar year 2021 rather than calendar year 2019. The following fuel import and refining inputs have been changed based on AEO2021 (see DRIA Chapter 3.2): Share of fuel savings leading to lower fuel imports: Gasoline 7%; E85 19%; Diesel 7% rather than 50%; 7.5%; 50%. Share of fuel savings leading to reduced domestic fuel refining: Gasoline 93%; E85 25.1%; Diesel 93% rather than 50%; 7.5%; 50%. Share of reduced domestic refining from domestic crude: Gasoline 9%; E85 2.4%; Diesel 9% rather than 10%; 1.5%; 10%. Share of reduced domestic refining from imported crude: Gasoline 91%; E85 24.6%; Diesel 91% rather than 90%; 13.5%; 90%. technology file ...... High compression ratio level 2 (HCR2, sometimes referred to as Atkinson cycle) technology allowance set to TRUE for all engines beginning in 2018 (see DRIA Chapter 2). market file ...... On the Engines sheet, we allow high compression ratio level 1 (HCR1) and HCR2 technology on all 6- cyclinder and smaller engines rather than allowing it on no engines (see DRIA Chapter 2). Change the off-cycle credit values on the Credits and Adjustments sheet to 15 grams/mile for 2020 through 2026 (for the CA Framework) or to 15 gram/mile for 2023 through 2026 (for the proposed op- tion) depending on the model run.
Consistent with the SAFE FRM, EPA compliance analyses, EPA will often model applies technologies to future is using the MY2017 base year fleet, attempt to utilize the most recent base vehicles for all alternatives being which is projected to a future fleet based year data that is available as finalized analyzed, including the ‘‘No Action’’ on the CCEMS model’s sales, scrappage, compliance data, which at the time of scenario, the vintage of the base year and fleet mix responses to the standards this analysis was for MY2019. It is normally will not have a significant being analyzed. When performing important to note that because the impact on the model results for
113 See 83 FR 16077. 114 See CCEMS Model Documentation on web page https://www.nhtsa.gov/corporate-average-fuel- economy/compliance-and-effects-modeling-system.
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projected fleets. There might be an ‘‘action’’ scenario. The results, or CCEMS model and, while the maps are additional reason to update the base impact of our proposed standards, are somewhat dated, the incremental year fleet in cases where a broad shift measured relative to the no action effectiveness values derived from them has occurred in vehicle power-to-weight scenario. Our No Action scenario are in rough agreement with ratios, since that can impact the consists of the Framework OEMs incremental values derived from more incremental cost effectiveness of (roughly 29 percent of fleet sales) up-to-date engine maps (see DRIA emissions-reducing technologies. EPA’s meeting the Framework emission Chapter 2). Likewise, while the annual Automotive Trends Report 115 reduction targets and the Non- electrified vehicle battery costs used in shows only a modest increase Framework OEMs (roughly 71 percent the SAFE FRM could have been lower (approximately 3 percent) in the average of fleet sales) meeting the SAFE FRM based on EPA’s latest assessment, we vehicle power-to-weight ratio between standards. Our action scenario consists concluded that updating those costs for MYs 2017 and 2019, and therefore we of the whole fleet meeting our proposed this proposal would not have a notable have concluded that the MY2017 base standards for MYs 2023 and later. impact on overall cost estimates, year remains a sound basis for this Throughout this preamble, our ‘‘No although we may consider doing so for analysis. EPA requests comment on the Action scenario’’ refers to this the final rule. The past EPA analyses use of the MY2017 base year fleet and Framework-OEM/NonFramework-OEM described above generally have whether it would be more appropriate to compliance split. EPA may consider a estimated EV penetrations of less than 5 update the base year fleet for the final different No Action scenario for the percent, and electrification continues to rule, for example by using a base year final rule. For example, currently the No play a relatively modest role in our fleet reflecting the most recent final Action baseline includes the California projections of compliance paths for the compliance data. Accordingly, we are Framework Agreement emission targets proposed standards. In contrast to the using the data contained in the SAFE for those automakers who have model inputs unchanged from the SAFE FRM market file (the base year fleet) committed to them, but does not rule as described above, the treatment of except as described in Table 30 and include California’s GHG or ZEV HCR1 and HCR2 technologies in the splitting the market file into separate standards, because California does not CCEMS model, specifically a broader California Framework OEM (FW–OEM) currently have a waiver to enforce those availability of those technologies as a and non-Framework OEM (NonFW– standards. If, after consideration of compliance choice within the model, OEM) fleets for some model runs. Note public comment, EPA were to rescind was considered by EPA to be significant that the scrappage model received many the withdrawal of California’s Advanced and we made an update to the model’s negative comments in response to the Clean Car waiver, then it might be inputs relative to the SAFE FRM. We SAFE NPRM, but changes made for the appropriate to update the No Action made that choice because these are a FRM version of the CCEMS model were scenario to reflect California’s GHG and very cost-effective ICE technology that is responsive to the identified issues ZEV standards. EPA seeks comment on in-use today and ready for broader involving sales and VMT results of the potential adjustments to the No Action application. In short, there are many SAFE NPRM version of the CCEMS scenario. modeling inputs that EPA has chosen model.116 In our updated analysis, as indicated not to change out of the very large As mentioned, for some model runs in Table 18, we are using a vehicle- number of inputs required to run a we have split the fleet in two, one fleet miles-traveled (VMT) rebound effect of model as complex as the CCEMS model, consisting of California Framework 10 percent. The 10 percent value has but there are others we have updated OEMs (FW–OEMs) and the other been used in EPA supporting analyses with most of those updated because of consisting of the non-Framework OEMs for the 2010 and 2012 final rules as well the way they value the effects of (NonFW–OEMs). This was done because as the MTE. The SAFE rule used a VMT emissions on public health. EPA seeks the FW–OEMs would be meeting more rebound effect of 20 percent. Our comment on our choice of modeling stringent emission reduction targets (as assessment indicates that a rebound inputs, including whether additional set in the scenarios file) and would have effect of 10 percent is appropriate and inputs should be modified for the final access to more (15 g/mi rather than 10 supported by the body of research on rule analysis. g/mi) off-cycle credits (as set in the the rebound effect for light-duty vehicle market and scenarios file) and more driving, as described further in the B. Projected Compliance Costs and advanced technology incentive DRIA Chapter 3.1. We are requesting Technology Penetrations multipliers, while the NonFW–OEMs comment on the use of the 10 percent 1. GHG Targets and Compliance Levels would be meeting less stringent VMT rebound value, or an alternative standards and would have access to 10 value such as 5 or 15 percent, for our The proposed curve coefficients were g/mi off-cycle credits and would not analysis of the MY2023 through 2026 presented in Table 22. Here we present have access to any advanced technology standards. the projected fleet targets for each multipliers. For such model runs, a EPA has chosen to change a select manufacturer. These targets are post-processing step was necessary to number of the SAFE FRM model inputs, projected based on each manufacturer’s properly sales-weight the two sets of as listed in Table 30, largely because we car/truck fleets and their sales weighted model outputs into a single fleet of concluded that other potential updates, footprints. As such, each manufacturer results. This post-processing tool is in regardless of their potential merit, such has a set of targets unique to them. The the docket for this rule.117 as the continued use of the MY2017 projected targets are shown by Importantly, our primary model runs base year fleet, would not have a manufacturer for MYs 2023 through consist of a ‘‘No Action’’ scenario and significant impact on the assessment of 2026 in Table 31 for cars, Table 32 for the proposed standards. In addition, trucks, and Table 33 for the combined 115 See Table 3.1, U.S. Environmental Protection while the technology effectiveness fleets.118 Agency (2021). 2020 EPA Automotive Trends estimates used in the CCEMS model to Report: Greenhouse Gas Emissions, Fuel Economy, support the SAFE FRM could have been 118 Note that these targets are projected based on and Technology since 1975. EPA–420–R–21–003. both projected future sales in applicable MYs and 116 See 85 FR 24647. updated with more recent engine maps, our proposed standards; after the standards are 117 See EPA_CCEMS_PostProcessingTool, Release the incremental effectiveness values are finalized the targets will change depending on each 0.3.1 July 21, 2021. of primary importance within the manufacturer’s actual sales.
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TABLE 31—CAR TARGETS
[CO2 gram/mile]
2023 2024 2025 2026
BMW ...... 166 158 150 143 Daimler ...... 173 165 157 149 FCA ...... 169 161 153 146 Ford ...... 167 159 151 144 General Motors ...... 166 158 151 143 Honda ...... 163 155 147 140 Hyundai Kia-H ...... 165 157 149 142 Hyundai Kia-K ...... 164 156 149 142 JLR ...... 174 166 158 150 Mazda ...... 163 155 147 140 Mitsubishi ...... 151 143 136 130 Nissan ...... 164 156 148 141 Subaru ...... 160 152 145 138 Tesla ...... 191 182 173 165 Toyota ...... 162 154 147 140 Volvo ...... 172 164 156 148 VWA ...... 160 152 145 138
Total ...... 165 157 149 142
TABLE 32—TRUCK TARGETS
[CO2 gram/mile]
2023 2024 2025 2026
BMW ...... 219 208 198 188 Daimler ...... 225 214 203 193 FCA ...... 233 222 211 200 Ford ...... 246 234 222 211 General Motors ...... 252 239 228 216 Honda ...... 215 205 195 185 Hyundai Kia-H ...... 214 203 193 183 Hyundai Kia-K ...... 217 206 196 186 JLR ...... 221 210 199 190 Mazda ...... 206 196 186 177 Mitsubishi ...... 194 184 175 166 Nissan ...... 225 214 203 193 Subaru ...... 197 187 178 169 Tesla ...... Toyota ...... 227 216 205 195 Volvo ...... 222 211 200 190 VWA ...... 218 207 196 187
Total ...... 232 221 210 199
TABLE 33—COMBINED FLEET TARGETS
[CO2 gram/mile]
2023 2024 2025 2026
BMW ...... 187 178 169 161 Daimler ...... 195 186 177 168 FCA ...... 221 210 200 190 Ford ...... 215 205 195 185 General Motors ...... 215 204 195 185 Honda ...... 185 176 167 159 Hyundai Kia-H ...... 168 160 152 145 Hyundai Kia-K ...... 177 169 161 153 JLR ...... 211 200 190 181 Mazda ...... 176 167 159 151 Mitsubishi ...... 168 160 152 145 Nissan ...... 185 176 167 159 Subaru ...... 187 178 169 161 Tesla ...... 191 182 173 165 Toyota ...... 194 185 176 167 Volvo ...... 205 195 185 176 VWA ...... 179 171 162 155
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TABLE 33—COMBINED FLEET TARGETS—Continued
[CO2 gram/mile]
2023 2024 2025 2026
Total ...... 198 189 180 171
The modeled achieved CO2- were not modeled (the CCEMS version manufacturers exhibit different equivalent (CO2e) levels for the used does not have this capability) and compliance approaches in the modeling proposed standards are shown in Table are therefore not included in the results. For the combined fleet, the 34 for cars, Table 35 for trucks, and achieved values. achieved values are typically close to, or Table 36 for the combined fleets. These Comparing the target and achieved slightly under the target values, which values were produced by the modeling values, it can be seen that some would represent the banking of credits analysis and represent the projected manufacturers are projected to have that can be carried over into other certification emissions values for achieved values that are over target model years. For all manufacturers, the possible compliance approaches with (higher emissions) on trucks, and under total achieved values for MYs 2023 to the proposed standards for each target (lower emissions) on cars, and 2026 are within ¥1 to +3 grams/mile of manufacturer. These achieved values, vice versa for other manufacturers. This the total target values. This indicates shown as averages over the respective is a feature of the unlimited credit that overall, the modeled fleet tracks the car, truck and combined fleets, include transfer provision, which results in a standards very closely from year-to-year. the 2-cycle tailpipe emissions based on compliance determination that is based Note that an achieved value for a the modeled application of emissions- on the combined car and truck fleet manufacturer’s combined fleet that is reduction technologies minus the credits rather than a separate above the target in a given model year modeled application of off-cycle credit determination of each fleet’s does not indicate a likely failure to technologies and the full A/C efficiency compliance. The application of comply with the standards, since the credits. The values also reflect any technologies is influenced by the model includes the GHG program credit application of the proposed advanced relative cost-effectiveness of banking provisions that allow credits technology multipliers, up to the cap. technologies among each manufacturer’s from one year to be carried into another Hybrid pickup truck incentive credits vehicles, which explains why different year.
TABLE 34—CAR ACHIEVED LEVELS
[CO2e gram/mile]
2023 2024 2025 2026
BMW ...... 173 168 168 131 Daimler ...... 184 169 166 168 FCA ...... 183 178 178 171 Ford ...... 168 160 159 151 General Motors ...... 152 136 133 132 Honda ...... 161 161 161 130 Hyundai Kia-H ...... 162 147 146 145 Hyundai Kia-K ...... 138 134 134 137 JLR ...... 217 162 158 165 Mazda ...... 156 156 156 146 Mitsubishi ...... 136 136 129 129 Nissan ...... 165 153 147 147 Subaru ...... 193 193 193 174 Tesla ...... ¥20 ¥20 ¥20 ¥20 Toyota ...... 161 143 135 133 Volvo ...... 185 185 184 145 VWA ...... 146 144 143 135
Total ...... 161 150 147 141
TABLE 35—TRUCK ACHIEVED LEVELS
[CO2e gram/mile]
2023 2024 2025 2026
BMW ...... 220 210 156 161 Daimler ...... 206 206 151 126 FCA ...... 218 217 217 207 Ford ...... 245 234 234 216 General Motors ...... 270 261 245 224 Honda ...... 212 210 210 210 Hyundai Kia-H ...... 222 129 129 140 Hyundai Kia-K ...... 225 209 209 209 JLR ...... 210 210 176 187 Mazda ...... 177 177 177 176
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TABLE 35—TRUCK ACHIEVED LEVELS—Continued
[CO2e gram/mile]
2023 2024 2025 2026
Mitsubishi ...... 194 194 185 185 Nissan ...... 220 218 198 192 Subaru ...... 187 187 187 168 Tesla ...... Toyota ...... 239 231 224 204 Volvo ...... 181 180 176 183 VWA ...... 240 200 173 122
Total ...... 233 226 218 203
TABLE 36—COMBINED FLEET ACHIEVED LEVELS
[CO2e gram/mile]
2023 2024 2025 2026
BMW ...... 192 184 163 143 Daimler ...... 194 185 159 150 FCA ...... 211 210 210 200 Ford ...... 215 205 205 190 General Motors ...... 220 208 197 185 Honda ...... 183 181 182 164 Hyundai Kia-H ...... 166 146 145 145 Hyundai Kia-K ...... 160 153 153 156 JLR ...... 212 200 172 182 Mazda ...... 162 162 162 155 Mitsubishi ...... 159 160 152 152 Nissan ...... 184 175 164 163 Subaru ...... 189 189 189 170 Tesla ...... ¥20 ¥20 ¥20 ¥20 Toyota ...... 199 186 179 168 Volvo ...... 182 182 179 170 VWA ...... 178 163 153 131
Total ...... 197 188 183 172
2. Projected Compliance Costs per averaged over all manufacturers, California Framework Agreement Vehicle increases from MY 2023 to MY 2026 as manufacturers in MY 2026 range from the proposed standards become more approximately $500–$850 dollars per EPA has performed an updated stringent. The costs for trucks tend to be vehicle—because the proposed assessment of the estimated per vehicle somewhat higher than for cars—many standards are more stringent than the costs for manufacturers to meet the technology costs scale with engine and Framework emission reduction targets— proposed MY2023–2026 standards. The vehicle size—but it is important to note and fall within the wider cost range of car costs per vehicle from this analysis that the absolute emissions, and non-Framework manufacturers. The are shown in Table 37, followed by therefore emissions reductions, also estimated costs for Framework truck costs in Table 38 and combined tend to be higher for trucks. Projected manufacturers are somewhat lower than 119 fleet costs in Table 39. costs for individual manufacturers vary the overall industry average costs of As shown in these tables, the based on the composition of vehicles approximately $1,000 per vehicle in MY combined cost for car and truck fleets, produced. The estimated costs for 2026.
TABLE 37—CAR COSTS PER VEHICLE RELATIVE TO THE NO ACTION SCENARIO [2018 dollars]
2023 2024 2025 2026
BMW * ...... $64 $40 $42 $254 Daimler ...... 37 414 490 487 FCA ...... 465 525 511 823 Ford * ...... 22 234 228 458 General Motors...... 662 1,351 1,354 1,512 Honda * ...... 39 44 43 766 Hyundai Kia-H ...... 457 845 847 878
119 As shown in Table 23, Tesla incurs nearly there being no upstream emissions accounting represent the costs of 15 grams/mile of off-cycle $400 in costs per vehicle despite being a pure under the proposal. The costs shown for Tesla credit. electric vehicle maker (0 grams/mile) and despite
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TABLE 37—CAR COSTS PER VEHICLE RELATIVE TO THE NO ACTION SCENARIO—Continued [2018 dollars]
2023 2024 2025 2026
Hyundai Kia-K ...... 395 406 396 416 JLR ...... ¥510 1,075 1,076 1,006 Mazda ...... 510 522 517 745 Mitsubishi ...... 870 860 993 985 Nissan ...... 614 825 940 912 Subaru ...... 403 397 392 710 Tesla ...... 398 393 387 382 Toyota ...... 470 822 958 979 Volvo * ...... 212 210 222 211 VWA * ...... 158 168 177 185
Total ...... 383 643 682 846 * Framework Manufacturer.
TABLE 38—TRUCK COST PER VEHICLE RELATIVE TO THE NO ACTION SCENARIO [2018 dollars]
2023 2024 2025 2026
BMW * ...... $270 $264 $1,080 $1,037 Daimler ...... 1,641 1,582 2,964 4,233 FCA ...... 1,074 1,022 974 1,423 Ford * ...... 34 279 267 500 General Motors ...... 786 977 1,350 2,100 Honda * ...... 25 64 63 62 Hyundai Kia-H ...... 398 3,370 3,170 2,995 Hyundai Kia-K ...... 435 482 475 468 JLR ...... 752 740 2,140 2,007 Mazda ...... 787 783 777 788 Mitsubishi ...... 440 434 599 592 Nissan ...... 556 590 978 1,178 Subaru ...... 415 410 404 808 Tesla ...... 0 0 0 0 Toyota ...... 440 590 763 1,081 Volvo * ...... 1,193 1,140 1,040 997 VWA * ...... 35 1,028 1,595 2,148
Total ...... 546 682 855 1,232 * Framework Manufacturer.
TABLE 39—FLEET AVERAGE COST PER VEHICLE RELATIVE TO THE NO ACTION SCENARIO [2018 dollars]
2023 2024 2025 2026
BMW * ...... $145 $129 $459 $566 Daimler ...... 727 917 1,567 2,123 FCA ...... 957 927 886 1,309 Ford * ...... 29 261 252 485 General Motors...... 733 1,138 1,353 1,854 Honda * ...... 33 52 52 467 Hyundai Kia-H...... 454 1,006 997 1,015 Hyundai Kia-K ...... 404 424 413 426 JLR ...... 471 813 1,904 1,784 Mazda ...... 591 599 595 758 Mitsubishi ...... 697 688 833 825 Nissan ...... 595 746 954 1,005 Subaru ...... 412 406 401 783 Tesla ...... 398 393 387 382 Toyota ...... 456 709 863 1,033 Volvo * ...... 860 827 766 731 VWA * ...... 116 456 656 853
Total ...... 465 663 771 1,044 * Framework Manufacturer.
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Overall, EPA estimates the average increased sales of advanced gasoline vehicles. As the proposed standards costs of today’s proposal at $1,044 per vehicle technologies, and relatively low become more stringent over MYs 2023 vehicle in MY2026 relative to meeting penetration rates of electrified vehicle to 2026, the projected penetration of the No Action scenario in MY2026. As technology. electrified vehicles increases by discussed in Section VII, there are Table 40, Table 41, and Table 42 show approximately 4 percent over this 4-year benefits resulting from these costs the EPA projected penetration rates of period (from 3.6 percent to 7.8 percent), including savings to consumers in the BEV+PHEV technology under today’s reaching nearly 8 percent of overall form of lower fuel costs. proposal with the remaining share being vehicle production in MY2026. While traditional or advanced ICE technology. this is not an insignificant change, it is 3. Technology Penetration Rates Values shown reflect absolute values of notable that we estimate that over 92 In this section we discuss the fleet penetration and are not increments projected new sales technology from the No Action scenario or other percent of new light-duty vehicle sales penetration rates from EPA’s updated standards. It is important to note that will continue to utilize ICE technology analysis for the proposed standards. this is a projection and represents one under our updated analysis. This Additional detail on this topic can be out of many possible compliance conclusion that ICE vehicles will found in the DRIA. EPA’s assessment for pathways for the industry. The continue to play an important role in the proposal, consistent with past EPA proposed standards are performance- meeting GHG standards is consistent assessments, shows that the proposed based and do not mandate any specific with EPA’s prior analyses for this standards can largely be met with technology for any manufacturer or any timeframe.
TABLE 40—CAR BEV+PHEV PENETRATION RATES UNDER THE PROPOSED STANDARDS
2023 2024 2025 2026
BMW ...... 8.4% 8.4% 8.4% 19.5% Daimler ...... 7.2 8.0 8.0 8.0 FCA ...... 4.3 6.3 6.2 6.2 Ford ...... 7.7 9.3 9.6 9.6 General Motors ...... 6.1 12.2 12.1 13.3 Honda ...... 0.1 0.1 0.1 12.7 Hyundai Kia-H ...... 0.3 3.4 3.8 3.8 Hyundai Kia-K ...... 9.2 9.2 9.1 9.1 JLR ...... 0.5 11.2 11.2 11.2 Mazda ...... 0.0 0.0 0.0 0.0 Mitsubishi ...... 0.0 0.0 0.0 0.0 Nissan ...... 1.0 1.2 1.2 1.2 Subaru ...... 0.0 0.0 0.0 0.0 Tesla ...... 100.0 100.0 100.0 100.0 Toyota ...... 2.6 4.0 4.4 4.4 Volvo ...... 0.0 0.0 0.0 16.6 VWA ...... 15.4 15.5 15.5 17.2
Total ...... 4.6 6.3 6.4 8.4
TABLE 41—TRUCK BEV+PHEV PENETRATION RATES UNDER THE PROPOSED STANDARDS
2023 2024 2025 2026
BMW ...... 4.3% 4.3% 8.9% 8.9% Daimler ...... 28.8 28.8 38.3 39.6 FCA ...... 5.6 5.6 5.6 5.6 Ford ...... 1.8 4.8 4.8 7.3 General Motors ...... 2.3 3.7 5.0 11.0 Honda ...... 0.0 0.0 0.0 0.0 Hyundai Kia-H ...... 0.0 20.6 20.6 20.6 Hyundai Kia-K ...... 0.0 0.0 0.0 0.0 JLR ...... 13.0 13.0 24.6 24.6 Mazda ...... 0.0 0.0 0.0 0.0 Mitsubishi ...... 0.0 0.0 0.0 0.0 Nissan ...... 0.0 0.0 3.7 5.9 Subaru ...... 0.0 0.0 0.0 0.0 Tesla ...... 0.0 0.0 0.0 0.0 Toyota ...... 0.0 0.0 1.9 1.9 Volvo ...... 15.6 15.6 17.3 17.3 VWA ...... 1.2 20.8 20.8 39.5
Total ...... 2.6 4.0 5.1 7.2
TABLE 42—FLEET BEV+PHEV PENETRATION RATES UNDER THE PROPOSED STANDARDS
2023 2024 2025 2026
BMW ...... 6.8% 6.8% 8.6% 15.2%
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TABLE 42—FLEET BEV+PHEV PENETRATION RATES UNDER THE PROPOSED STANDARDS—Continued
2023 2024 2025 2026
Daimler ...... 16.5 17.0 21.2 21.8 FCA ...... 5.3 5.7 5.7 5.7 Ford ...... 4.1 6.5 6.7 8.2 General Motors ...... 3.9 7.4 8.0 12.0 Honda ...... 0.1 0.1 0.1 7.3 Hyundai Kia-H ...... 0.2 4.5 4.9 4.9 Hyundai Kia-K ...... 6.9 6.9 6.8 6.8 JLR ...... 10.2 12.6 21.7 21.7 Mazda ...... 0.0 0.0 0.0 0.0 Mitsubishi ...... 0.0 0.0 0.0 0.0 Nissan ...... 0.6 0.8 2.1 2.8 Subaru ...... 0.0 0.0 0.0 0.0 Tesla ...... 100.0 100.0 100.0 100.0 Toyota ...... 1.3 2.0 3.1 3.1 Volvo ...... 10.3 10.3 11.5 17.0 VWA ...... 10.7 17.3 17.3 24.7
Total ...... 3.6 5.1 5.8 7.8
C. Are the proposed standards feasible? the proposed standards does not rely on electrification of all types (HEV, PHEV, The proposed standards are based on dramatically increased penetration of and EV) have increased more than 3- the extensive light-duty GHG technical electric vehicles into the fleet during the fold from MY2015 to MY2020. In analytical record developed over the 2023–2026 model years. Our updated MY2015, hybrid electric vehicles past dozen years, as represented by the analysis projects that the proposed accounted for approximately 2.4 percent EPA supporting analyses for the 2010 standards can be met with a gradually of vehicle sales, which increased to and 2012 final rules, the Mid-Term increasing market share of EVs and approximately 6.5 percent of vehicle Evaluation (including the Draft TAR, PHEVs up to approximately 8 percent sales in MY2020. Sales of plug-in hybrid Proposed Determination and Final by MY 2026 (see Section III.B.3 of this electric vehicles (PHEVs) and battery Determinations), as well as the updated preamble and the following paragraph). electric vehicles (EVs) together analysis for this proposed rule and the The percentage share of specific comprised 0.7 percent of vehicle sales in MY2015 and increased to about 2 supporting analysis for the SAFE MY2015 to MY2020 engine and percent of sales for MY2019.122 The rule.120 Our conclusion that the transmission technologies are pace of introduction of new EV and proposed program is technologically summarized from EPA Automotive PHEV models is rapidly increasing. For feasible is based in part on a projection Trends Report data within Chapter 2.2 example, the number of EV and PHEV that the standards will be met using the of the DRIA. The introduction of GHG models available for sale in the U.S. has same advances in light-duty vehicle reducing technologies has been steadily more than doubled from about 24 in MY engine technologies, transmission increasing within the light-duty vehicle 2015 to about 60 in MY 2021.123 Even technologies, electric drive systems, fleet. As of MY2020, more than half of in the absence of more stringent aerodynamics, tires, and vehicle mass light-duty gasoline spark ignition standards, manufacturers have indicated reduction that have gradually entered engines now use direct injection (GDI) that the number of EV and PHEV the light-duty vehicle fleet over the past engines and more than a third are models will increase to more than 80 by decade and that are already in place in turbocharged. Nearly half of all light- MY 2023, with many more expected to today’s vehicles. This conclusion is also duty vehicles have planetary automatic reach production before the end of the supported by the analysis performed by transmissions with 8 or more gear ratios, decade.124 Although our analysis NHTSA that served as the basis for the and one-quarter are using continuously projects that approximately 8 percent of SAFE final rule. In the SAFE final rule, variable transmissions (CVT). The sales new vehicles meeting the MY 2026 the NHTSA analysis showed that the of vehicles with 12V start/stop systems has increased from approximately 7 proposed standards would be EVs or 2012 CO2 standards could be met percent to approximately 42 percent PHEVs, it is possible that an even higher primarily with improvements in percentage may be electrified during the gasoline vehicle and hybrid technology between MY2015 and MY2020. Significant levels of powertrain time period of our proposed MY 2023– and with only 6 percent penetration of 2026 standards, when taking into EV+PHEV, which is very similar to account the pace at which new EV and today’s projection.121 The feasibility of this final rule, EPA projects a combined strong and mild hybrid penetration of 16 percent (compared to PHEV models are being announced for 20 percent in the 2017 Final Determination), with introduction by automakers, under 120 Although the MTE 2018 Revised Final the share of mild hybrids somewhat lower (7 Determination ‘‘withdrew’’ the 2017 Final percent compared to 18 percent in the 2017 Final Determination, the D.C. Circuit Court has noted that Determination) and the share of strong hybrids 122 ‘‘The 2020 EPA Automotive Trends Report, EPA did ‘‘not erase[ ] the Draft Technical higher (9 percent compared to 2 percent in the 2017 Greenhouse Gas Emissions, Fuel Economy, and Assessment Report, Technical Support Document, Final Determination). EPA projects a total level of Technology since 1975,’’ EPA–420–R–21–003, or any of the other prior evidence [EPA] collected.’’ plug-in vehicles of 6 percent, similar to the 5 January 2021. California v. EPA, 940 F.3d 1342, 1351 (D.C. Cir. percent total projected in the 2017 Final 123 Fueleconomy.gov, 2015 Fuel Economy Guide 2019). Determination, but with a slightly different mix of and 2021 Fuel Economy Guide. 121 See the SAFE Final Rule preamble: ‘‘The plug-in hybrid electric vehicles (0.4 percent 124 Environmental Defense Fund and M.J. Bradley levels of electrified vehicle technologies projected compared to 2 percent in the 2017 Final & Associates, ‘‘Electric Vehicle Market Status— in this final rule to meet the baseline Alternative Determination) and dedicated electric vehicles (5.7 Update, Manufacturer Commitments to Future (the previous GHG standards) differ slightly from percent compared to 3 percent in the 2017 Final Electric Mobility in the U.S. and Worldwide,’’ April those projected in the 2017 Final Determination. In Determination). 85 FR 25107, April 30, 2020. 2021.
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current policy, over the next three to technological achievements over the feasible. Several arguments can be made five years.125 past decade, and the availability of a in support of Alternative 2 that are EPA believes that the proposed range of existing and proposed similar to those that support the program is technologically feasible compliance flexibilities, puts proposed standards. In terms of based on our projection that the automakers in a strong position to meet technology penetrations, Alternative 2 standards can be met largely with the the proposed revised standards for projects that nearly 10 percent of the kinds of advanced gasoline vehicle model years 2023 through 2026 on a fleet would need to be made up of EV/ technologies already in place in vehicles year-by-year trajectory close to the PHEVs compared with about 8 percent within today’s new vehicle fleet and standards in the 2012 program. Given for the proposed standards. See Table 4– relies on a penetration of plug-in our conclusion that standards more 23, and Table 4–28 of the DRIA. Several electric vehicles into the fleet during the stringent than those in Alternative 1 are automakers have made public 2023–2026 model years that is clearly feasible considering available announcements regarding electrification commensurate with current trends in technology and compliance costs, and of the light-duty fleet, particularly the industry. This conclusion, which is in light of the critical national need to regarding the latter years of the supported by EPA’s updated analysis, is quickly and substantially reduce light- proposed program. These electrified consistent with EPA’s past analyses of duty GHG emissions, we believe at this products will provide a significant standards similar to those proposed in time that a program of the stringency of contribution to the ability of these this notice, see Section III.B and Chapter Alternative 1 (and any less stringent manufacturers to comply with more 2 of the DRIA. The analysis confirms alternative) would not be appropriate stringent standards. However, EPA EPA’s previous conclusions that a wide given EPA’s consideration of the public recognizes that the additional variety of emission reducing health and welfare benefits of potential penetration of electrification by 2026 technologies are already available at standards. Nonetheless, we invite could be challenging for any reasonable costs for manufacturers to comment on Alternative 1 and may manufacturers that are not currently incorporate into their vehicles within consider it in determining the standards investing in advanced technologies, the timeframe of the proposed for the final rule. such as EVs, for this timeframe, standards. Similarly, we considered the although with additional investment implications of a more stringent D. How did EPA consider the two and product development, or greater program in Alternative 2. In this reliance on the emissions ABT program alternatives in choosing the proposed alternative program, the standards program? including credit trading, this level of would more quickly return to the 2012 stringency may be achievable. EPA also In Section II.C, we described two program’s trajectory, in model year recognizes Alternative 2 is more alternative stringency levels that we 2023. While we believe, given the stringent than the proposal in MY2023, considered in developing the level of combination of factors discussed in and EPA believes a lower level of stringency of the proposed program— Section VI, reaching the 2012 program’s stringency increase for 2023 may be Alternative 1 (less stringent than the levels in 2023 may be feasible appropriate taking into consideration proposed program) and Alternative 2 industrywide, we are proposing a lead time. (more stringent). All three potential slightly less stringent standard for that Projected costs and technology programs would incorporate year-over- first year to provide a more gradual penetrations associated with year increases in GHG stringency, with transition to the 2012 trajectory. Alternatives 1 and 2 are available in All three alternative programs after varying starting stringencies in MY2023, Chapter 4 of the DRIA. and varying ending stringencies in MY2023 would essentially follow the We invite comment on our assessment MY2026, and with fairly linear same slope of increasing year-over-year of Alternatives. increases in stringency between stringency of the 2012 program. For MY2023 and 2026 that would Alternative 1, this would mean that the IV. How would this proposal reduce essentially follow the same slope as the standards would reach the model year GHG emissions and their associated 2012 program. All three potential 2025 level of the 2012 rule (the final effects? increase in stringency of the 2012 programs would also result, by MY2026, A. Impact on GHG Emissions in standards at least as stringent as the program) in model year 2026, resulting EPA used the CCEMS to estimate last year (MY2025) of the 2012 program. in a less stringent program compared to GHG emissions inventories including See Figure 8 and Table 16 in Section the 2012 rule until MY2026. Chapter tailpipe emissions from light-duty cars II.C. 5.1.1.2 of the DRIA shows the associated In determining the stringency of the lower amount of GHG reductions and trucks and the upstream emissions proposed standards, our primary focus achieved under Alternative 1 compared associated with the fuels used to power was on the first and last model years of to the proposal. Again, given the urgent those vehicles (both at the refinery and the proposed program, 2023 and 2026. need for GHG reductions to address the the electricity generating unit). The Some stakeholders have encouraged climate challenge, we believe upstream emission factors used in the EPA to propose standards that would Alternative 1 does not go far enough and modeling are identical to those used for closely follow the stringency levels of would be inappropriate, as discussed the SAFE FRM and were generated the California Framework Agreements, above. using the DOE/Argonne GREET model For Alternative 2, the standards by or that would represent less stringent as described in the SAFE FRM (See MY2025 would nearly match the standards (between the California DRIA Chapter 5.1.1, referencing the stringency level of the MY2025 Framework emission reduction targets SAFE FRM). standards in the 2012 rule and would The resultant annual GHG inventory and the relaxed standards of the SAFE continue to increase in stringency for estimates are shown in Table 43 for the rule). In Section VI below, we discuss one additional year in MY2026. calendar years 2023 through 2050. The why we believe the auto industry’s Consistent with EPA’s previous table shows our proposed program would result in net GHG reductions 125 Rhodium Group, ‘‘Pathways to Build Back discussions regarding feasibility, Better: Investing in Transportation compliance costs, and lead time, we compared to the No Action scenario. Decarbonization,’’ May 13, 2021. believe that Alternative 2 may be The CO2, CH4 and N2O emissions
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reductions from the proposed program total 2,205 MMT, 2.7 MMT and 0.072 MMT, respectively, by 2050.
TABLE 43—ESTIMATED GHG IMPACTS OF THE PROPOSED STANDARDS RELATIVE TO THE NO ACTION SCENARIO
Emission impacts relative to no action Percent change from no action
Year CO2 CH4 N2O CO2 CH4 N2O (million (metric tons) (%) (%) (%) metric tons) (metric tons)
2023 ...... ¥4 ¥4,821 ¥105 0 0 0 2024 ...... ¥7 ¥8,560 ¥200 0 0 0 2025 ...... ¥11 ¥13,412 ¥330 ¥1 ¥1 ¥1 2026 ...... ¥17 ¥21,154 ¥534 ¥1 ¥1 ¥1 2027 ...... ¥25 ¥30,702 ¥785 ¥2 ¥2 ¥1 2028 ...... ¥33 ¥41,019 ¥1,051 ¥2 ¥2 ¥2 2029 ...... ¥42 ¥51,607 ¥1,325 ¥3 ¥3 ¥2 2030 ...... ¥50 ¥62,014 ¥1,591 ¥4 ¥3 ¥3 2031 ...... ¥58 ¥72,138 ¥1,847 ¥4 ¥4 ¥3 2032 ...... ¥66 ¥81,872 ¥2,096 ¥5 ¥5 ¥4 2033 ...... ¥74 ¥91,079 ¥2,332 ¥6 ¥5 ¥4 2034 ...... ¥81 ¥99,597 ¥2,555 ¥6 ¥6 ¥5 2035 ...... ¥86 ¥106,981 ¥2,739 ¥7 ¥6 ¥5 2036 ...... ¥92 ¥113,813 ¥2,915 ¥7 ¥7 ¥6 2037 ...... ¥97 ¥119,952 ¥3,090 ¥8 ¥7 ¥6 2038 ...... ¥101 ¥125,292 ¥3,245 ¥8 ¥7 ¥6 2039 ...... ¥105 ¥129,675 ¥3,368 ¥9 ¥8 ¥7 2040 ...... ¥108 ¥133,346 ¥3,474 ¥9 ¥8 ¥7 2041 ...... ¥110 ¥136,405 ¥3,564 ¥9 ¥8 ¥7 2042 ...... ¥112 ¥138,441 ¥3,630 ¥9 ¥8 ¥7 2043 ...... ¥113 ¥140,060 ¥3,693 ¥9 ¥9 ¥7 2044 ...... ¥114 ¥141,230 ¥3,745 ¥10 ¥9 ¥8 2045 ...... ¥115 ¥141,929 ¥3,790 ¥10 ¥9 ¥8 2046 ...... ¥116 ¥142,314 ¥3,826 ¥10 ¥9 ¥8 2047 ...... ¥116 ¥142,870 ¥3,872 ¥10 ¥9 ¥8 2048 ...... ¥116 ¥142,942 ¥3,901 ¥10 ¥9 ¥8 2049 ...... ¥117 ¥143,167 ¥3,938 ¥10 ¥9 ¥8 2050 ...... ¥117 ¥143,681 ¥4,001 ¥10 ¥9 ¥8
Sum ...... ¥2,205 ¥2,720,073 ¥71,543 ¥6 ¥6 ¥5
B. Climate Change Impacts From GHG this section, as well as in the technical 66497). While climate change also Emissions and scientific information supporting increases the likelihood of reductions in Elevated concentrations of GHGs have them. One of those documents is EPA’s cold-related mortality, evidence been warming the planet, leading to 2009 Endangerment and Cause or indicates that the increases in heat changes in the Earth’s climate including Contribute Findings for Greenhouse mortality will be larger than the changes in the frequency and intensity Gases Under Section 202(a) of the CAA decreases in cold mortality in the of heat waves, precipitation, and (74 FR 66496, December 15, 2009). In United States (74 FR 66525). The 2009 extreme weather events, rising seas, and the 2009 Endangerment Finding, the Endangerment Finding further retreating snow and ice. The changes Administrator found under section explained that compared with a future taking place in the atmosphere as a 202(a) of the CAA that elevated without climate change, climate change result of the well-documented buildup atmospheric concentrations of six key is expected to increase tropospheric of GHGs due to human activities are well-mixed GHGs—CO2, methane (CH4), ozone pollution over broad areas of the changing the climate at a pace and in a nitrous oxide (N2O), HFCs, United States, including in the largest way that threatens human health, perfluorocarbons (PFCs), and sulfur metropolitan areas with the worst society, and the natural environment. hexafluoride (SF6)—‘‘may reasonably be tropospheric ozone problems, and While EPA is not making any new anticipated to endanger the public thereby increase the risk of adverse scientific or factual findings with regard health and welfare of current and future effects on public health (74 FR 66525). to the well-documented impact of GHG generations’’ (74 FR 66523). The 2009 Climate change is also expected to cause emissions on public health and welfare Endangerment Finding, together with more intense hurricanes and more in support of this proposal, EPA is the extensive scientific and technical frequent and intense storms of other providing some scientific background evidence in the supporting record, types and heavy precipitation, with on climate change to offer additional documented that climate change caused impacts on other areas of public health, context for this rulemaking and to by human emissions of GHGs (including such as the potential for increased increase the public’s understanding of HFCs) threatens the public health of the deaths, injuries, infectious and the environmental impacts of GHGs. U.S. population. It explained that by waterborne diseases, and stress-related Extensive additional information on raising average temperatures, climate disorders (74 FR 66525). Children, the climate change is available in the change increases the likelihood of heat elderly, and the poor are among the scientific assessments and the EPA waves, which are associated with most vulnerable to these climate-related documents that are briefly described in increased deaths and illnesses (74 FR health effects (74 FR 66498).
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The 2009 Endangerment Finding also released that further advance our including heat waves, drought, sea level documented, together with the understanding of the climate system and rise, extreme climate and weather extensive scientific and technical the impacts that GHGs have on public events, coastal flooding, and wildfires. evidence in the supporting record, that health and welfare both for current and While EPA did not conduct modeling to climate change touches nearly every future generations. specifically quantify changes in climate aspect of public welfare 126 in the These updated observations and impacts resulting from this proposal in United States with resulting economic projections document the rapid rate of terms of avoided temperature change or costs, including: Changes in water current and future climate change both sea-level rise, we did quantify the supply and quality due to changes in globally and in the United climate benefits by monetizing the drought and extreme rainfall events; States.127 128 129 130 emission reductions through the increased risk of storm surge and C. Global Climate Impacts and Benefits application of the social cost of flooding in coastal areas and land loss Associated With the Proposal’s GHG greenhouse gases (SC–GHGs), as due to inundation; increases in peak Emissions Reductions described in Section VII.D. electricity demand and risks to electricity infrastructure; and the Transportation is the largest source of V. How would the proposal impact non- potential for significant agricultural GHG emissions in the United States, GHG emissions and their associated disruptions and crop failures (though making up 29 percent of all emissions. effects? Within the transportation sector, light- offset to some extent by carbon A. Impact on Non-GHG Emissions fertilization). These impacts are also duty vehicles are the largest contributor, global and may exacerbate problems 58 percent, to transportation GHG The model runs that EPA conducted outside the United States that raise emissions in the U.S, and 17 percent of estimated the inventories of non-GHG humanitarian, trade, and national all emissions.131 Reducing GHG air pollutants resulting from tailpipe security issues for the United States (74 emissions, including the four GHGs emissions from light-duty cars and FR 66530). affected by the proposed program, will trucks, and the upstream emissions In 2016, the Administrator similarly contribute toward the goal of holding associated with the fuels used to power issued Endangerment and Cause or the increase in the global average those vehicles (both at the refinery and ° Contribute Findings for greenhouse gas temperature to well below 2 C above the electricity generating unit). The emissions from aircraft under section pre-industrial levels, and subsequently tailpipe emissions of PM2.5, NOX, VOCs, 231(a)(2)(A) of the CAA (81 FR 54422, reducing the probability of severe CO and SO2 are estimated using August 15, 2016). In the 2016 climate change related impacts emission factors from EPA’s Midterm Endangerment Finding, the model. The emission factors used are Administrator found that the body of 127 USGCRP, 2018: Impacts, Risks, and identical to those used in the SAFE scientific evidence amassed in the Adaptation in the United States: Fourth National Climate Assessment, Volume II [Reidmiller, D.R., FRM. The upstream emissions are then record for the 2009 Endangerment C.W. Avery, D.R. Easterling, K.E. Kunkel, K.L.M. calculated using emission factors Finding compellingly supported a Lewis, T.K. Maycock, and B.C. Stewart (eds.)]. U.S. applied to the gallons of liquid fuels similar endangerment finding under Global Change Research Program, Washington, DC, projected to be consumed and the CAA section 231(a)(2)(A), and also USA, 1515 pp. doi: 10.7930/NCA4.2018. https:// kilowatt hours of electricity projected to found that the science assessments nca2018.globalchange.gov. 128 Roy, J., P. Tschakert, H. Waisman, S. Abdul be consumed. The upstream emission released between the 2009 and the 2016 Halim, P. Antwi-Agyei, P. Dasgupta, B. Hayward, factors used in the modeling are Findings ‘‘strengthen and further M. Kanninen, D. Liverman, C. Okereke, P.F. Pinho, identical to those used for the SAFE support the judgment that GHGs in the K. Riahi, and A.G. Suarez Rodriguez, 2018: FRM and were generated using the atmosphere may reasonably be Sustainable Development, Poverty Eradication and Reducing Inequalities. In: Global Warming of 1.5°C. DOE/Argonne GREET model as anticipated to endanger the public An IPCC Special Report on the impacts of global described in the SAFE FRM. health and welfare of current and future warming of 1.5 °C above pre-industrial levels and generations’’ (81 FR 54424). related global greenhouse gas emission pathways, in On the whole, the proposed standards Since the 2016 Endangerment the context of strengthening the global response to reduce non-GHG emissions. Table 44 Finding, the climate has continued to the threat of climate change, sustainable presents the annual tailpipe and development, and efforts to eradicate poverty upstream inventory impacts for years change, with new observational records [Masson-Delmotte, V., P. Zhai, H.-O. Po¨rtner, D. being set for several climate indicators Roberts, J. Skea, P.R. Shukla, A. Pirani, W. 2023 through 2050 and Table 45 such as global average surface Moufouma-Okia, C. Pe´an, R. Pidcock, S. Connors, presents the net annual inventory temperatures, GHG concentrations, and J.B.R. Matthews, Y. Chen, X. Zhou, M.I. Gomis, E. impacts for those same years. Lonnoy, T. Maycock, M. Tignor, and T. Waterfield Specifically, we project reductions in sea level rise. Additionally, major (eds.)]. In Press. https://www.ipcc.ch/sr15/chapter/ scientific assessments continue to be chapter-5. emissions of non-GHG pollutants from 129 National Academies of Sciences, Engineering, upstream sources, except for SO2. For 126 The CAA states in section 302(h) that ‘‘[a]ll and Medicine. 2019. Climate Change and tailpipe emissions we project initial language referring to effects on welfare includes, Ecosystems. Washington, DC: The National increases from most non-GHG Academies Press. https://doi.org/10.17226/25504. but is not limited to, effects on soils, water, crops, pollutants, except SO2, followed by vegetation, manmade materials, animals, wildlife, 130 NOAA National Centers for Environmental weather, visibility, and climate, damage to and Information, State of the Climate: Global Climate decreases in all non-GHG pollutants deterioration of property, and hazards to Report for Annual 2020, published online January over time. The increases in non-GHG transportation, as well as effects on economic 2021, retrieved on February 10, 2021, from https:// tailpipe emissions are due to increased values and on personal comfort and well-being, www.ncdc.noaa.gov/sotc/global/202013. driving, and the increases in upstream whether caused by transformation, conversion, or 131 Inventory of U.S. Greenhouse Gas Emissions combination with other air pollutants.’’ 42 U.S.C. and Sinks: 1990–2019 (EPA–430–R–21–005, SO2 are due to increased EGU 7602(h). published April 2021). emissions.
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TABLE 44—ESTIMATED NON-GHG EMISSION IMPACTS OF THE PROPOSED STANDARDS RELATIVE TO THE NO ACTION SCENARIO
Upstream Tailpipe emissions Year (U.S. tons) (U.S. tons)
PM2.5 NOX SO2 VOC CO PM2.5 NOX SO2 VOC CO
2023 ...... ¥56 ¥628 ¥36 ¥1,211 ¥334 17 1,037 ¥24 1,345 12,884 2024 ...... ¥97 ¥1,040 282 ¥2,245 ¥539 37 2,385 ¥45 3,255 29,814 2025 ...... ¥150 ¥1,570 699 ¥3,595 ¥802 50 3,270 ¥72 4,501 41,380 2026 ...... ¥236 ¥2,454 1,183 ¥5,699 ¥1,251 58 4,032 ¥114 5,583 50,655 2027 ...... ¥342 ¥3,546 1,730 ¥8,279 ¥1,807 57 4,356 ¥166 6,183 52,764 2028 ...... ¥457 ¥4,747 2,167 ¥11,023 ¥2,429 40 4,010 ¥220 5,817 43,400 2029 ...... ¥575 ¥5,973 2,611 ¥13,840 ¥3,065 24 3,656 ¥276 5,491 34,336 2030 ...... ¥690 ¥7,182 2,963 ¥16,588 ¥3,699 5 3,072 ¥331 4,889 21,673 2031 ...... ¥806 ¥8,419 3,094 ¥19,228 ¥4,342 ¥16 2,359 ¥383 4,105 7,504 2032 ...... ¥917 ¥9,601 3,248 ¥21,779 ¥4,952 ¥41 1,506 ¥433 3,137 ¥8,754 2033 ...... ¥1,023 ¥10,726 3,340 ¥24,183 ¥5,533 ¥70 573 ¥480 2,048 ¥26,420 2034 ...... ¥1,121 ¥11,756 3,468 ¥26,425 ¥6,058 ¥101 ¥401 ¥525 904 ¥44,195 2035 ...... ¥1,207 ¥12,685 3,364 ¥28,315 ¥6,542 ¥128 ¥1,265 ¥561 ¥116 ¥59,229 2036 ...... ¥1,286 ¥13,520 3,349 ¥30,084 ¥6,969 ¥156 ¥2,094 ¥596 ¥1,085 ¥74,202 2037 ...... ¥1,355 ¥14,232 3,506 ¥31,727 ¥7,319 ¥188 ¥2,951 ¥629 ¥2,088 ¥90,292 2038 ...... ¥1,416 ¥14,846 3,646 ¥33,163 ¥7,616 ¥219 ¥3,746 ¥657 ¥3,021 ¥105,517 2039 ...... ¥1,466 ¥15,374 3,601 ¥34,301 ¥7,878 ¥246 ¥4,394 ¥679 ¥3,809 ¥117,461 2040 ...... ¥1,508 ¥15,804 3,594 ¥35,264 ¥8,085 ¥272 ¥4,963 ¥699 ¥4,502 ¥127,860 2041 ...... ¥1,544 ¥16,174 3,571 ¥36,067 ¥8,264 ¥295 ¥5,463 ¥714 ¥5,091 ¥138,174 2042 ...... ¥1,569 ¥16,411 3,581 ¥36,619 ¥8,371 ¥316 ¥5,901 ¥726 ¥5,600 ¥147,394 2043 ...... ¥1,588 ¥16,573 3,706 ¥37,098 ¥8,429 ¥336 ¥6,304 ¥735 ¥6,065 ¥156,119 2044 ...... ¥1,602 ¥16,679 3,831 ¥37,464 ¥8,458 ¥356 ¥6,662 ¥743 ¥6,472 ¥164,134 2045 ...... ¥1,610 ¥16,714 4,022 ¥37,729 ¥8,443 ¥374 ¥6,983 ¥749 ¥6,834 ¥171,092 2046 ...... ¥1,615 ¥16,711 4,249 ¥37,913 ¥8,381 ¥390 ¥7,269 ¥753 ¥7,153 ¥177,417 2047 ...... ¥1,622 ¥16,708 4,571 ¥38,172 ¥8,310 ¥408 ¥7,590 ¥759 ¥7,507 ¥185,213 2048 ...... ¥1,624 ¥16,659 4,821 ¥38,284 ¥8,219 ¥424 ¥7,855 ¥762 ¥7,801 ¥191,667 2049 ...... ¥1,627 ¥16,620 5,110 ¥38,450 ¥8,129 ¥440 ¥8,138 ¥766 ¥8,100 ¥198,645 2050 ...... ¥1,632 ¥16,556 5,686 ¥38,781 ¥8,000 ¥460 ¥8,501 ¥774 ¥8,475 ¥207,606
TABLE 45—ESTIMATED NON-GHG EMISSION IMPACTS OF THE PROPOSED STANDARDS RELATIVE TO THE NO ACTION SCENARIO
Upstream Tailpipe emissions (U.S. tons) (U.S. tons) Year PM2.5 NOX SO2 VOC CO PM2.5 NOX SO2 VOC CO (%) (%) (%) (%) (%)
2023 ...... ¥40 409 ¥59 134 12,550 0 0 0 0 0 2024 ...... ¥60 1,345 237 1,010 29,275 0 0 0 0 0 2025 ...... ¥101 1,700 627 907 40,578 0 0 0 0 0 2026 ...... ¥179 1,578 1,068 ¥116 49,405 0 0 1 0 0 2027 ...... ¥285 810 1,565 ¥2,096 50,956 ¥1 0 1 0 0 2028 ...... ¥417 ¥737 1,947 ¥5,207 40,971 ¥1 0 1 0 0 2029 ...... ¥550 ¥2,316 2,334 ¥8,349 31,271 ¥1 0 1 ¥1 0 2030 ...... ¥685 ¥4,109 2,632 ¥11,699 17,974 ¥2 ¥1 1 ¥1 0 2031 ...... ¥822 ¥6,060 2,711 ¥15,123 3,162 ¥2 ¥1 1 ¥2 0 2032 ...... ¥959 ¥8,095 2,815 ¥18,642 ¥13,706 ¥3 ¥1 1 ¥2 0 2033 ...... ¥1,093 ¥10,153 2,860 ¥22,136 ¥31,953 ¥3 ¥1 1 ¥3 0 2034 ...... ¥1,222 ¥12,156 2,943 ¥25,522 ¥50,254 ¥3 ¥2 1 ¥3 ¥1 2035 ...... ¥1,335 ¥13,949 2,802 ¥28,431 ¥65,771 ¥4 ¥2 1 ¥4 ¥1 2036 ...... ¥1,442 ¥15,614 2,753 ¥31,169 ¥81,171 ¥4 ¥3 1 ¥4 ¥1 2037 ...... ¥1,543 ¥17,183 2,877 ¥33,815 ¥97,611 ¥4 ¥3 1 ¥5 ¥1 2038 ...... ¥1,635 ¥18,592 2,989 ¥36,184 ¥113,133 ¥5 ¥3 2 ¥5 ¥2 2039 ...... ¥1,712 ¥19,769 2,921 ¥38,110 ¥125,338 ¥5 ¥4 1 ¥6 ¥2 2040 ...... ¥1,779 ¥20,767 2,895 ¥39,766 ¥135,945 ¥5 ¥4 1 ¥6 ¥2 2041 ...... ¥1,839 ¥21,637 2,857 ¥41,158 ¥146,438 ¥5 ¥4 1 ¥7 ¥2 2042 ...... ¥1,885 ¥22,312 2,856 ¥42,219 ¥155,765 ¥6 ¥5 1 ¥7 ¥3 2043 ...... ¥1,924 ¥22,877 2,971 ¥43,164 ¥164,548 ¥6 ¥5 2 ¥7 ¥3 2044 ...... ¥1,958 ¥23,341 3,088 ¥43,935 ¥172,591 ¥6 ¥5 2 ¥8 ¥3 2045 ...... ¥1,984 ¥23,697 3,273 ¥44,563 ¥179,535 ¥6 ¥5 2 ¥8 ¥3 2046 ...... ¥2,005 ¥23,979 3,496 ¥45,066 ¥185,798 ¥6 ¥5 2 ¥8 ¥3 2047 ...... ¥2,031 ¥24,298 3,812 ¥45,678 ¥193,523 ¥6 ¥5 2 ¥8 ¥4 2048 ...... ¥2,047 ¥24,515 4,060 ¥46,086 ¥199,886 ¥6 ¥6 2 ¥9 ¥4 2049 ...... ¥2,067 ¥24,758 4,344 ¥46,550 ¥206,774 ¥7 ¥6 2 ¥9 ¥4 2050 ...... ¥2,093 ¥25,057 4,912 ¥47,256 ¥215,607 ¥7 ¥6 2 ¥9 ¥4
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B. Health and Environmental Effects complex, and making predictions based well as our earlier analyses of similar Associated With Exposure to Non-GHG solely on emissions changes is standards, supports the conclusion that Pollutants Impacted by the Proposed extremely difficult. However, based on the proposed model years 2023–2026 Standards the magnitude of the emissions changes standards are technologically feasible Along with reducing GHG emissions, predicted to result from the proposed and the costs of compliance for these proposed standards would also standards, we expect that there will be manufacturers are reasonable. In have an impact on non-GHG (criteria very small changes in ambient air addition, we project that there would be and air toxic pollutant) emissions from quality in most places. The changes in a net savings to consumers over the vehicles and non-GHG emissions that tailpipe and upstream non-GHG lifetime of vehicles meeting the occur during the extraction, transport, emissions that were inputs to the air proposed standards, which we think is quality modeling analysis for the 2012 distribution and refining of fuel and a more significant consideration, rule were larger than the changes in from power plants. The non-GHG particularly for lower-income non-GHG emissions projected for this emissions that would be impacted by consumers, than the anticipated proposal. The air quality modeling for the proposed standards contribute, increase in cost for new vehicles. the 2012 rule projected very small directly or via secondary formation, to Importantly, the benefits of the impacts across most of the country, with concentrations of pollutants in the air proposed program would significantly the direction of the small impact which affect human and environmental exceed the costs. (increase or decrease) dependent on health. These pollutants include location.132 For the next phase of LD A. Consideration of Technological particulate matter, ozone, nitrogen GHG standards to be considered in a Feasibility and Lead Time oxides, sulfur oxides, carbon monoxide separate, future rulemaking for model 1. Technological Readiness of the Auto and air toxics. Chapter 7 of the DRIA years 2027 and beyond, we expect that includes more detailed information Industry in Meeting Revised GHG impacts may be considerably larger and Standards about the health and environmental are considering how best to project air The technological readiness of the effects associated with exposure to these quality impacts from changes in non- auto industry to meet the proposed non-GHG pollutants. This includes GHG emissions. pollutant specific health effect revised standards for model years 2023– information, discussion of exposure to VI. Basis for the Proposed GHG 2026 is best understood in the context the mixture of traffic-related pollutants Standards Under CAA Section 202(a) of the decade-long light-duty vehicle in the near road environment, and In this section, EPA discusses the GHG emission reduction program in effects of particulate matter and gases on basis for our proposed standards under which the auto industry has introduced visibility, effects of ozone on our authority in CAA section 202(a), a wide lineup of ever more fuel- ecosystems, and the effect of deposition how we are balancing the factors efficient, GHG-reducing technologies. of pollutants from the atmosphere to the considered in our assessment that the Over this time period, the industry has surface. proposed standards are appropriate, and been planning for increasingly stringent how this balancing of factors differs GHG emissions requirements. The result C. Air Quality Impacts of Non-GHG has been the widespread and continual Pollutants from that used in the SAFE rule. This section draws from information introduction of new and improved Photochemical air quality modeling is presented elsewhere in this preamble, GHG-reducing technologies across the necessary to accurately project levels of including EPA’s statutory authority in industry, many of which were in the most criteria and air toxic pollutants, Section II, our presentation of early stages of development at the including ozone and PM. Air quality compliance costs and technology beginning of the EPA program in 2012. models use mathematical and numerical penetrations in Section III, GHG (See Section III.A of this preamble and techniques to simulate the physical and emissions impacts in Section IV, non- Chapter 2 of the DRIA for a discussion chemical processes that affect air GHG emissions impacts in Section V, of technological progression, status of pollutants as they disperse and react in and the total costs and benefits of the technology penetration, and our the atmosphere. Based on inputs of proposal in Section VII. assessment of continuing technology meteorological data and source EPA has considered the technological penetration across the fleet.) information, these models are designed feasibility and cost of the proposed The technological achievements to characterize primary pollutants that standards, available lead time for already developed and applied to are emitted directly into the atmosphere manufacturers, and other relevant vehicles within the current new vehicle and secondary pollutants that are factors under section 202(a) of the CAA. fleet will enable the industry to achieve formed through complex chemical Based on our analyses, discussed in the proposed standards even without reactions within the atmosphere. greater detail in other sections of this the development of new technologies Photochemical air quality models have preamble and in Chapter 2 of the DRIA, beyond those already widely available. become widely recognized and we believe that the proposed standards Rather, in response to the increased routinely utilized tools in regulatory are reasonable and appropriate. Greater stringency of the proposed standards analysis for assessing the impacts of reductions in GHG emissions from light compared to existing standards, control strategies. duty vehicles over these model years are automakers would be expected to adopt Section V.A of the preamble presents both feasible and warranted as a step to these technologies at an increasing pace projections of the changes in non-GHG reduce the impacts of climate change on across more of their vehicle fleets. In emissions due to the proposed public health and welfare. In addition, other words, the technologies needed to standards. Section VII.E describes the the proposal would achieve reductions meet the proposed standards are already monetized non-GHG health impacts of in emissions of some criteria pollutants widely available and in use on this proposal which are estimated using and air toxics that would achieve vehicles—there is no need for a reduced-form benefit-per-ton benefits for public health and welfare. development of new technologies for approach. The atmospheric chemistry Our analysis for this proposed rule, as the time frame of these proposed related to ambient concentrations of standards. Instead, compliance with the PM2.5, ozone and air toxics is very 132 Insert 2012 rule RIA ref, EPA–420–R–12–016. proposed standards will necessitate
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greater implementation and pace of development and the regulatory and announced in July 2019, to meet more technology penetration through MY2026 litigation history of the GHG standards stringent GHG emission reduction using existing GHG reduction since 2012 support EPA’s expectation targets nationwide than the relaxed technologies. In addition, as we discuss that automakers remain largely on track standards in the SAFE rule.135 These further below, our assessment shows in terms of technological readiness voluntary actions by automakers that that a large portion of the current fleet within their product plans to meet the collectively represent approximately (MY2021 vehicles), across a wide range approximate trajectory of increasingly one-third of the U.S. vehicle market of vehicle segments, already meets their stringent standards initially speak directly to the feasibility of proposed MY2023 footprint-based CO2 promulgated in 2012. Although we do meeting standards at least as stringent as targets. not believe that automakers have the emission reduction targets under the The availability of current models significantly changed their product California Framework Agreements. As across a range of vehicle segments plans in response to the SAFE final rule discussed in Section II.A.5, the meeting the standards is notable issued in 2020, any that did would have California Framework Agreements were because EPA recognizes that auto design done so relatively recently and there is a key consideration in our development and development is a multi-year reason to expect that, for any and assessment of the proposed EPA process, which imposes some automakers that changed their plans standards. constraints on the ability of after the SAFE rule, the automakers’ It is important to note that our manufacturers to immediately redesign earlier plans could be reinstated or conclusion that the proposed program is vehicles with new technologies. adapted with little change. We also note technologically feasible is based in part However, EPA also understands that that some automakers may have adopted on a projection that the standards will this multi-year process means that the product plans to overcomply with the be met largely with the kinds of industry’s product plans developed in prior, more stringent standards, with the advanced gasoline vehicle technologies response to EPA’s 2012 GHG standards intention of selling credits to other already in place in vehicles within rulemaking for MYs 2017–2025 has automakers. For these automakers, the today’s fleet and does not rely on a largely continued, notwithstanding the proposed standards of this rule, if significant penetration of electric SAFE rule that was published on April adopted, would reduce or eliminate the vehicles into the fleet during the 2023– 30, 2020 and that did not relax sudden disruption to product plans 2026 model years. As discussed above, standards until MY 2021. In their past caused by the SAFE rule. EPA invites EPA modeled auto manufacturers’ comments on EPA’s light-duty GHG comment on the impact of EPA’s current decisions in choosing among available programs, some automakers broadly and recent rulemakings on automakers’ emission reduction technologies to stated that they generally require about product plans. It is important to note incorporate in their vehicles, taking into five years to design, develop, and that we have considered the need for account both the projected costs and produce a new vehicle model.133 Under manufacturers to transition from the effectiveness of the technologies. This that schedule, it would follow that in SAFE standards (or the California updated analysis is consistent with most cases the vehicles that automakers Framework emission reduction targets) EPA’s past analyses of standards similar will be selling during the first years of to standards that are closer in stringency to those proposed in this notice, see the proposed MY 2023–26 program to the 2012 standards and we have Section III.B and Chapter 2 of the DRIA. were already designed under the structured the proposed standards The analysis demonstrates that a wide original, more stringent GHG standards (including the proposed footprint curves variety of emission reducing finalized in 2012 for those model years. as well as the combination of flexibility technologies are already available for At the time of this proposal, the relaxed and credit options) to be less stringent manufacturers to incorporate into their GHG standards under the SAFE rule than the 2012 standards for model years gasoline vehicles within the time frame have been in place for little more than 2023, 2024, and 2025. of the proposed standards. EPA considers this an important one year. During this time, the ability of We recognize that although the aspect of its analysis that mitigates the industry to commit to revised plans technology penetration rates that we concerns about lead time for based on the SAFE rule’s relaxed project in this rulemaking are generally manufacturers to meet the proposed standards, especially for MYs 2023 and similar to the technology penetration standards beginning with the 2023 later, has been highly uncertain in light rates that we projected in the SAFE model year. We see no reason to expect of pending litigation,134 and concern rulemaking, in the SAFE rulemaking that the major GHG-reducing EPA concluded that the projected level was regularly expressed across the auto technologies that automakers have industry over the uncertain future of the of advanced technologies was ‘‘too high already developed and introduced, or from a consumer-choice perspective’’ SAFE standards. In fact, due in part to have already been planning for near- this uncertainty, five automakers and ultimately could lead to automakers term implementation, will not be changing the vehicle types they offer.136 voluntarily agreed to more stringent available for model year 2023–2026 national emission reduction targets EPA currently does not believe this is an vehicles. Thus, in contrast to the accurate assessment or one that deserves under the California Framework situation that existed prior to EPA’s Agreements (discussed further below). weight that could overcome EPA’s adoption of the initial light-duty GHG expert assessment of the appropriate Therefore, the automakers’ own past standards in the 2012 rule, automakers comments regarding product plan standards under section 202 of the CAA. now have had the benefit of at least 8 Rather, EPA’s judgment is that the to 9 years of planning and development 133 history of the significant developments For example, in its comments on the 2012 in preparation for meeting the proposed rule, Ford stated that manufacturers typically begin in automotive offerings over the last ten to firm up their product plans roughly five years in standards. years supports the conclusion that Another important factor in advance of actual production. (Docket OAR–2009– automakers are capable of deploying a 0472–7082.1, p. 10.) considering the feasibility of the 134 Competitive Enterprise Institute v. NHTSA, proposed standards is the fact that five D.C. Cir. No. 20–1145 (and consolidated cases 135 https://ww2.arb.ca.gov/resources/documents/ brought by several states, localities, environmental automakers voluntarily entered into the framework-agreements-clean-cars (last updated on and public organizations, and others), filed on May California Framework Agreements with May 22, 2021). 1, 2020 and later dates. the California Air Resources Board, first 136 85 FR 25116.
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wide range of advanced technologies powerful tools in finding the lowest cost meeting the proposed MY2023 across the entire vehicle fleet, and that compliance solutions in light of the standards. We also considered the consumers remain interested and proposed revised standards. ability of MY2021 vehicles to generate willing to purchase vehicles with The GHG credit program was credits based on the MY2021 and advanced technologies. Reinforcing this designed to recognize that automakers MY2022 standards relaxed in the SAFE updated judgement, the recent typically have a multi-year redesign rule. Of the 1370 distinct MY2021 announcements of BEV light-duty trucks cycle and not every vehicle will be vehicle models, EPA’s analysis (DRIA, and the introduction of hybrid minivans redesigned every year to add GHG- Chapter 2.4) indicates that 355 of these and pickups exemplify such a trend, reducing technology. Moreover, when models are credit generators for and EPA sees no reason why the GHG-reducing technology is added, it MY2021, with most of those also standards proposed in this rule would will generally not achieve emissions generating credits for the MY2022 SAFE fundamentally alter it. reductions corresponding exactly to a standards (25 percent of today’s new Our updated analysis projects that single year-over-year change in vehicle fleet offerings). This represents about 8 percent of vehicles meeting the stringency of the standards. Instead, in an opportunity for manufacturers to MY 2026 proposed standards would be any given model year, some vehicles build their credit banks for both MY EV/PHEVs (See Section III.B.3). Given will be ‘‘credit generators,’’ over- 2021 and MY2022 and carry those manufacturers’ public announcements performing compared to the footprint- credits forward to help meet the about their ambitious plans to transition based CO2 target in that model year, MY2023–2026 proposed standards. fleets to electrified vehicles, we believe while other vehicles will be ‘‘debit These data demonstrate the it is possible that an even higher generators’’ and under-performing opportunities for manufacturers to sell percentage of the industry-wide fleet against their footprint-based targets. more of the credit-generator vehicles as could be electrified during the time Together, an automaker’s mix of credit- another available strategy to generate period of our proposed model year generator and debit-generator vehicles credits that will help them comply with 2023–2026 standards. Moreover, EPA is contribute to its sales-weighted fleet the proposed model year 2023 and later committed to encouraging the rapid average CO2 performance, compared to standards. Our analysis clearly shows development and broad acceptance of its standard, for that year. If a this could be done within vehicle zero-emission vehicles, and we are manufacturer’s sales-weighted fleet CO2 segments to maintain consumer choice proposing incentives to support this performance is better than its fleet (we would not expect that overall car/ transition (see Section II.B.2). Any average standard at the end of the model truck fleet mix would shift), as credit- acceleration in electric vehicle year, those credits can be banked for the generating vehicles exist across vehicle penetration would be beneficial and automaker’s future use in certain years segments, representing 95 percent of would further expand the technology (under the credit carry-forward vehicle sales. Under the fleet-average choices available to manufacturers to provisions) or sold to other based standards, manufacturers have meet the proposed standards. manufacturers (under the credit trading multiple feasible paths to compliance, provisions). Likewise, if a including varying sales volumes of 2. Opportunities Provided Through manufacturer’s sales-weighted fleet CO2 credit generating vehicles,138 adopting Credits and Incentives Provisions performance falls short of its fleet GHG-reducing technologies, and In considering feasibility of the average standard at the end of a model implementing other credit and incentive proposed standards EPA also considers year, the automaker can use banked provisions including those proposed in the impact of available compliance credits or purchase credits to meet the this notice. flexibilities on automakers’ compliance standard. Furthermore, in recognition of EPA further considered the issue of options. As we discuss above, the the possibility that a manufacturer generating credits against the MY2021 advanced technologies that automakers might comply with a standard for a and MY2022 SAFE standards in the are continuing to incorporate in vehicle given model year with credits earned in context of lead time. In discussions models today directly contribute to each a future model year (under the during development of this proposed company’s compliance plan (i.e., these allowance for ‘‘credit carryback’’), a rule, some stakeholders suggested that vehicle models have lower GHG manufacturer may also choose to carry EPA should limit automakers’ ability to emissions). In addition, automakers a deficit forward up to three years before generate credits against the relaxed widely utilize the program’s established showing compliance with that model SAFE standards or discount the value of year. such credits. These stakeholders argue ABT provisions which provide a variety EPA has examined manufacturer that the nominal 1.5 percent year-over- of flexible paths to plan compliance certification data to assess the extent to (See more detail in Section II.A.4). which model year 2021 vehicles already 138 E.g., When fuel economy standards were not EPA’s annual Automotive Trends being produced and sold today would footprint-based, less efficient vehicles were priced Report illustrates how different be credit generators compared to the higher than more efficient vehicles to encourage sales of the latter. Austin, D., and T. Dinan (2004). automakers have chosen to make use of proposed model year 2023 targets the GHG program’s various credit ‘‘Clearing the air: The costs and consequences of higher CAFE standards and increased gasoline 137 (accounting for projected off-cycle and features. It is clear that manufacturers air conditioning credits). As detailed in taxes.’’ Journal of Environmental Economics and are widely utilizing the various credit Chapter 2.4 of the DRIA, automakers are Management 50: 562–582. Greene, D., P. Patterson, programs available, and we have every M. Singh, and J. Li (2005). ‘‘Feebates, rebates, and selling approximately 216 vehicle gas-guzzler taxes: A study of incentives for expectation that manufacturers will models (60 percent of them are increased fuel economy.’’ Energy Policy 33: 757– continue to take advantage of the advanced gasoline technology vehicles) 775 found that automakers were more likely to add compliance flexibilities and crediting that would be credit generators technology than use pricing mechanisms to achieve standards. Whitefoot, K., M. Fowlie, and S. Skerlos programs to their fullest extent, thereby compared to the proposed model year providing them with additional (2017). ‘‘Compliance by Design: Influence of 2023 targets, and they appear in nearly Acceleration Trade-offs on CO2 Emissions and Costs all light-duty vehicle market segments. of Fuel Economy and Greenhouse Gas Regulations.’’ 137‘‘The 2020 EPA Automotive Trends Report, Environmental Science and Technology 51: 10307– Greenhouse Gas Emissions, Fuel Economy, and This information supports our 10315 find evidence consistent with automakers Technology issue 1975,’’ EPA-420-R-21-003 January conclusion about the feasibility of using trade-offs with acceleration as yet another 2021. vehicles with existing technologies path to comply with fuel economy standards.
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year stringency increase of the SAFE FCV vehicles, and extra credits for full- standards are not appropriate under standards barely keeps up with a size pickup trucks that utilize strong section 202. ‘‘business as usual’’ scenario of industry hybrid technology or achieve similar EPA recognizes that several industry GHG emissions improvements.139 EPA performance-based GHG reductions). stakeholders suggested in comments on has considered that argument. EPA also Collectively, these proposed flexibilities the MTE and SAFE rule that considered the recent performance of provide additional strategies underperformance compared to CO2 the auto industry in meeting the GHG manufacturers can use to smooth their targets indicated the standards were standards; in MY2019 the industry-wide path to compliance with the proposed overly stringent, EPA previously stated average performance was 7 g/mi above revised standards. In fact, these that a declining credit balance indicated the industry-wide average standard and additional credits and incentives future compliance would be more compliance was achieved by many provisions were an important factor in difficult, and EPA was taking into manufacturers through applying banked EPA’s consideration of the appropriate consideration the unwillingness of credits.140 In light of the level of stringency for this proposal, and manufacturers to design a compliance implementation timeframe of the they provide additional support for our strategy around purchasing credits. proposed revised standards beginning in consideration of revised standards even However, as explained above, EPA does model year 2023, we are proposing to more stringent than if we were not not believe a declining credit balance is continue allowing manufacturers to including these provisions in the evidence the standards are infeasible or generate credits against the SAFE proposed program. less feasible than anticipated. EPA standards in model years 2021 and Just as the fleet average standard believes the more accurate view is that 2022. We are not proposing to shorten approach of the light duty vehicle GHG manufacturers are able and willing to the existing 5-year credit carry-forward program allows manufacturers to design purchase credits, as well as use banked provision for credits generated in model a compliance strategy relying on the sale credits, as part of their compliance years 2021 and 2022, so those credits of both credit-generating vehicles and strategies and that significant use of can be carried forward under the debit generating vehicles in a single credits for compliance is indicative of existing regulations to facilitate the year, the credit banking and trading EPA’s flexibilities working as intended, transition from the SAFE standards to provisions of the program allow to offer a wide array of compliance the proposed more stringent standards. manufacturers to design a compliance strategies which reduce overall costs of However, EPA seeks comment on strategy relying on overcompliance and compliance. whether there should be any restrictions undercompliance in different years, or In summary, there is ample evidence placed on credits generated in model even by different manufacturers. Credit that, in addition to the demonstration of years 2021 and 2022, for example, trading is a compliance flexibility technological feasibility resulting from discounting of MY2021 and MY2022 provision that allows one vehicle the ‘‘head start’’ that automakers have credits, given the relaxed stringency of manufacturer to purchase credits from toward complying with the proposed the SAFE standards in those model another, accommodating the ability of standards, there are a wide range of years. manufacturers to make strategic choices credit and flexibility strategies, as well In addition, EPA is proposing a in planning for and reacting to normal as fleet mix strategies, that targeted set of extended credit and fluctuations in an automotive business manufacturers can marshal to enable compliance flexibility options for cycle. When credits are available for less them to comply with the proposed manufacturers, specifically designed to than the marginal cost of compliance, standards. further address any potential concerns EPA would anticipate that an automaker B. Consideration of Vehicle Costs of of manufacturers about stringency and might choose to adopt a compliance Compliance lead time under the proposed standards strategy relying on credits.141 As shown (as explained in detail in Section II.B.3 in the most recent EPA Trends Report, In addition to technological feasibility and II.C). These proposals include a more than 10 vehicle firms collectively and lead time, EPA has considered the limited extension of credit carry- have participated in 70 credit trading cost for the auto industry to comply forward, such that credits from model transactions since the inception of the with the proposed revised standards. years 2016–2020 would be available to EPA program through Model Year 2019, See section III.B and Chapter 2 of the carry forward for one (or two, in the including many of the largest DRIA for our analysis of compliance case of 2016 credits) additional model automotive firms.142 EPA does not costs. As shown in Section III.B.2 and year(s) for compliance in model years believe that the fact that automakers Chapter 4.1.2 of the DRIA, the average 2023–2026; an extension of the off-cycle have adopted a compliance strategy per-vehicle cost for a MY2026 vehicle is credit menu cap from 10 grams/mile to relying on credits (whether banked or $1,044 compared to the No Action 15 grams/mile to provide additional purchased) is per se evidence that scenario. Average per-vehicle costs rise credit to manufacturers who install from $465 in MY2023 to $771 in technologies that reduce GHG emissions 141 ‘‘FCA historically pursued compliance with MY2025. The $1,044 average per- that are not captured on EPA’s GHG fuel economy and greenhouse gas regulations in the vehicle cost is consistent with prior EPA certification tests; and two forms of markets where it operated through the most cost analyses (see DRIA Chapter 1.2). EPA effective combination of developing, manufacturing has also evaluated costs by incentive credits for applying advanced and selling vehicles with better fuel economy and technologies in the manufacturer’s lower GHG emissions, purchasing compliance manufacturer (see Section III.B.2) and vehicle fleet (i.e., an extension of credits, and, as allowed by the U.S. federal finds the range of costs to be similarly incentive multipliers for EV, PHEV and Corporate Average Fuel Economy (‘‘CAFE’’) consistent with findings from prior program, paying regulatory penalties. The cost of analyses. each of these components of FCA’s strategy has 139 We note that the 2020 SAFE FRM presented increased and is expected to continue to increase The estimated costs to meet the a 0 percent year-over-year alternative for MYs in the future. The compliance strategy for the proposed standards are lower than those 2021–2026. In that scenario with no stringency combined company is currently being assessed by projected in the 2012 rule, which EPA change, the modeled fleet improved fuel economy Stellantis management.’’ Stellantis N.V. (2020). estimated at about $1,200 (see DRIA by 0.9 percent per year from 38.3 mpg in 2021 to ‘‘Annual Report and Form 20–F for the year ended 40.0 mpg in 2026. (see 2020 SAFE FRIA, Table I– December 31, 2020.’’ Table 1–4). EPA found in the 2012 rule 19, Alternative 1) 142 EPA 2020 Trends Report, page 110 and Figure that these (higher) costs were 140 Trends Report, Figure ES–8. 5.15. reasonable, even without considering
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the fuel savings, which more than VII.M of this preamble and Chapter 8.3 See Section IV.A, Table 29. The offsets these costs. See 77 FR 62663– of the DRIA. Because lower-income monetized benefit of these GHG 62665, 62880, and 62922. This decrease households spend more on gasoline reductions is estimated at $22 billion to in estimated per-vehicle cost since the than on vehicle purchases, the effects of $280 billion across a range of discount 2012 rule is not surprising—technology reduced operating costs may be rates and values for the social cost of to achieve environmental improvements especially important for these carbon (see Section VII.I). These GHG has often proved to be less costly than households. reductions are important to continued EPA’s initial estimates.143 EPA recognizes that in the SAFE progress in addressing climate change. As part of these cost estimates, we rulemaking we placed greater weight on In fact, EPA believes that we will need project significant increases in the use the upfront costs of vehicles, and little to achieve far deeper GHG reductions of advanced gasoline technologies weight on total cost of ownership. In from the light-duty sector in future years (including mild and strong hybrids), part, that rulemaking explained that beyond the compliance timeframe for comprising more than 92 percent of the approach on the ground that ‘‘[n]ew the proposed standards, which is why fleet. (See Section III.B.3). EPA has vehicle purchasers are not likely to we will be initiating a rulemaking in the considered the feasibility of the place as much weight on fuel savings near future to establish more stringent standards under several different that will be realized by subsequent standards after model year 2026. assumptions about future fuel prices, owners.’’ 144 However, in light of The criteria pollutant emissions technology application or credit trading changes in policy priorities (including reductions expected to result from the (see DRIA Chapters 4 and 10), which concern about accounting for benefits to proposed standards are also a factor shows very small variations in average lower-income households), EPA now considered by the Administrator. The per-vehicle cost or technology believes in assessing the benefits of proposed standards would result in penetration mix. Our conclusion that these standards it is more appropriate to emissions reductions of some criteria there are multiple ways the MY2023– consider the total fuel savings of the pollutants and air toxics and associated 2026 standards can be met given the vehicle, over its lifetime, including benefits for public health and welfare. wide range of technologies at reasonable those fuel savings that may accrue to Public health benefits are estimated to cost, and predominantly with advanced later owners. Disregarding those total $3.3 billion to $8 billion (7 percent gasoline engine and vehicle benefits, which often accrue to lower and 3 percent discount rates, see technologies, holds true across all these income households, who more often Section VII.H, Table 38). EPA finds that scenarios. purchase used cars, would provide a this proposal is important in reducing These cost estimates are in the same less accurate picture of total benefits to the public health impacts of air range as EPA’s earlier analyses of society. Likewise, EPA has reconsidered pollution. similarly stringent GHG standards the weight placed in the SAFE E. Consideration of Energy, Safety and including the model year 2023 and later rulemaking on promoting fleet turnover Other Factors timeframe. (See Chapter 1 of the DRIA). as a standalone factor and is now EPA concludes that the per-vehicle considering the influence of turnover in EPA also evaluated the impacts of the costs of the proposed standards are the context of the full range effects of proposed standards on energy, in terms reasonable. the proposed standards. While of fuel consumption and energy recognizing that standards can influence security. This proposal is projected to C. Consideration of Impacts on purchasing decisions, EPA currently reduce U.S. gasoline consumption by Consumers believes that, for the range of 291 million barrels through 2050 (see Another important consideration for appropriate emissions standards, the Section VII.C). EPA considered the EPA is the impact of the proposed emissions reductions from more impacts of this projected reduction in standards on consumers. EPA concludes stringent standards far outweigh any fuel consumption on energy security, that the proposed standards would be temporary effect from delayed specifically the avoided costs of beneficial for consumers because the purchases. macroeconomic disruption (See Section lower operating costs from significant D. Consideration of Emissions of GHGs VII.F). We estimate the energy security fuel savings would offset the upfront and Other Air Pollutants benefits of the proposal in 2050 at $6.1 vehicle costs. Total fuel savings for An essential factor that EPA billion to $13 billion (7 percent and 3 consumers through 2050 are estimated considered in determining the percent discount rate, see Section VII.H. at $120 billion to $250 billion (7 percent appropriate level of the proposed Table 37). EPA considers this proposal and 3 percent discount rates, see standards is the reductions in emissions to be beneficial from an energy security Section VII.I, Table 40). Thus, the that would result from the program. perspective. proposal would result in significant This primarily includes reductions in Section 202(a)(4)(A) of the CAA savings for consumers, as further vehicle GHG emissions, given the specifically prohibits the use of an described in Section VII.J. increased urgency of the climate crisis. emission control device, system or The Administrator also carefully We also considered the effects of the element of design that will cause or considered the affordability impacts of proposed standards on criteria pollutant contribute to an unreasonable risk to these proposed standards, especially and air toxics emissions and associated public health, welfare, or safety. EPA considering Executive Order 14008 and public health and welfare impacts. has a long history of considering the EPA’s increasing focus on The GHG emissions reductions from safety implications of its emission 145 environmental justice and equity. EPA our proposed standards are projected to standards, up to and including the examined the impacts of the proposed more recent light-duty GHG regulations: exceed 2,200 MMT of CO2, 2.7 MMT of standards on the affordability of new The 2010 rule which established the CH4 and 71,000 metric tons of N2O, as and used cars and trucks in Section the fleet turns over year-by-year to new MY2012–2016 light-duty vehicle GHG vehicles that meet the proposed 143 Anderson, John F and Sherwood, 145 See, e.g., 45 FR 14496, 14503 (1980) (‘‘EPA ‘‘Comparison of EPA and Other Estimates of Mobile standards, in an analysis through 2050. would not require a particulate control technology Source Rule Costs to Actual Price Changes,’’ SAE that was known to involve serious safety paper 2003–1–1980. 144 85 FR 25114. problems.’’).
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standards, the 2012 rule which first that the proposed standards provide Taking into consideration the established MY2017–2025 light-duty sufficient time for the development and importance of reducing GHG emissions vehicle GHG standards, the MTE 2016 application of technology, giving and the primary purpose of CAA section Proposed Determination and the 2020 appropriate consideration to cost. 202 to reduce the threat posed to human SAFE rule. The relationship between EPA recognizes that the cost and health and the environment by air GHG emissions standards and safety is technology penetration estimates in this pollution, the Administrator finds it is multi-faceted, and can be influenced not rule are similar to the estimates in the appropriate to place greater weight on only by control technologies, but also by SAFE rulemaking and that the reducing emissions and to adopt consumer decisions about vehicle Administrator is balancing the factors standards that, when implemented, ownership and use. EPA has estimated considered differently than in the SAFE would result in significant reductions of the impacts of this proposal on safety by rule to reach his conclusion about what light duty vehicle emissions both the accounting for changes in new vehicle standards are appropriate to propose. In near term and over the longer term. As purchase, changes in vehicle scrappage, the SAFE rulemaking, EPA promulgated discussed above and the DRIA Chapter fleet turnover, and VMT, and changes in relaxed GHG standards that were 1.2.2, EPA has updated the analyses for vehicle weight as an emissions control projected to result in increases in GHG this rule. The updated analysis shows strategy. EPA finds that under this and criteria pollutant emissions and several key analytical results that are proposal, the estimated risk of fatal and adverse public health impacts (e.g., similar to those from the SAFE final non-fatal injuries per distance traveled increases in premature mortality and rule. EPA concludes that the will remain virtually unchanged (see illnesses due to increased air pollution). Administrator’s current approach to Section VII.H). This proposal also The SAFE rulemaking was the most considering the relevant factors would projects that as the costs of driving significant weakening of mobile source fully support the proposed standards declines due to the improvement in fuel emissions standards in EPA’s history. It even if they were based solely on the economy, consumers overall will choose is particularly notable that the rationale technical record and conclusions that to drive more miles (this is the ‘‘VMT for the revision was not that the were used to set standards in the final rebound’’ effect). As a result of this standards had turned out to be SAFE rule. personal decision by consumers to drive technologically infeasible or, even that Finally, EPA estimates net benefits of more due to the reduce cost of driving, they would impose unexpectedly high this proposal in 2050 at $93 billion to EPA also projects this will result in an costs on society. As we have noted, the $150 billion (7 percent and 3 percent increase in accidents, injuries, and estimated costs for more stringent discount rates, with 3 percent SC–GHG) fatalities. EPA recognizes that in the standards in the SAFE rulemaking were (see Section VII.H). In comparison, the SAFE rulemaking EPA placed emphasis not significantly different from the costs SAFE rule estimated net benefits at on the estimated total number of fatal estimated in 2012, or for this $16.1 billion to negative $13.1 billion (7 and non-fatal injuries. However, EPA rulemaking. Rather, in balancing the percent and 3 percent discount rates, currently believes it is more appropriate factors under consideration for the respectively)—in other words, the SAFE to consider the risk of injuries per mile SAFE rulemaking, EPA placed greatest rule estimated net costs to society under traveled. EPA requests comment on weight on reducing the cost of a 3 percent discount rate. Our what role these negative impacts due to compliance on the regulated industry conclusion that the estimated benefits consumers’ decision to drive additional and the upfront (but not total) cost to considerably exceed the estimated costs miles should play in EPA’s standard- consumers, and placed little weight on of the proposed program reinforces our reductions in GHGs and other setting decision-making. view that the proposed standards pollutants, contrary to EPA’s traditional represent an appropriate weighing of the F. Balancing of Factors Under CAA approach to adopting standards under statutory factors and other relevant 202(a) section 202. Under section 202(a) EPA has Although EPA continues to believe considerations. statutory authority providing that the Administrator has significant In summary, after consideration of a considerable discretion in setting or discretion to weigh various factors number of relevant factors, given the revising vehicle emission standards under Section 202, the Administrator technical feasibility of the proposed with adequate lead time for the now notes that the purpose of adopting standards, the moderate costs per development and application of standards under that provision of the vehicle, the savings to consumers in fuel technology to meet the standards. EPA’s Clean Air Act is to address air pollution costs over the lifetime of the vehicle, the proposed standards properly implement that may reasonably be anticipated to very significant reductions in GHG this statutory provision, as discussed endanger public health and welfare and emissions and fuel consumption, and above. As discussed throughout this that reducing air pollution has the significantly greater quantified preamble, the emission reduction traditionally been the focus of such benefits compared to quantified costs, technologies needed to meet the standards. In this action, the EPA believes that the proposed proposed standards are already Administrator is proposing more standards are appropriate under EPA’s available at reasonable cost, and a stringent standards based on a balancing section 202(a) authority. significant fraction of new vehicles of the factors under consideration VII. What are the estimated cost, today already meets these standards. different from that in the SAFE economic, and other impacts of the Moreover, the flexibilities already rulemaking, a balancing that the proposal? available under EPA’s existing Administrator believes is more regulations, including fleet average consistent with Congressional intent This Section VII discusses EPA’s standards and the ABT program—in and the goals of the Clean Air Act.146 assessment of a variety of impacts effect enabling manufacturers to spread related to the proposed standards, the compliance requirement for any 146 See, e.g., CAA sections 101(a)(2) (finding that including impacts on vehicle sales, fuel particular model year across multiple ‘‘the increasing use of motor vehicles[ ] has resulted in mounting dangers to the public health and health and welfare’’); 101(c) (‘‘a primary goal of this model years—and the additional welfare’’); 101(b)(1) (declaring one purpose of the chapter is to encourage or otherwise promote flexibilities being proposed in this CAA is ‘‘to protect and enhance the quality of the reasonable Federal . . . actions . . . for pollution notice further support EPA’s conclusion Nation’s air resources, so as to promote the public prevention’’).
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consumption, energy security, on other vehicle attributes. In the (2018),155 Watten et al. observe that the additional driving, and safety. It Midterm Evaluation,150 EPA evaluated ‘‘marginal rate of attribute substitution’’ presents an overview of EPA’s estimates both the costs and the effectiveness for between power and fuel economy has of GHG reduction benefits and non-GHG reducing fuel consumption (and GHG changed substantially over time. In health impacts. This Section VII emissions) of technologies used to meet particular, it has become relatively more presents a summary of aggregate costs, the emissions standards to date; the costly to improve efficiency by reducing drawing from the per-vehicle cost agency found that the estimates used in power, and relatively less costly to add estimates presented in Section III, and the original rulemakings were generally technologies that improve efficiency. estimated program benefits. Finally, the correct. These technology improvements do not section discusses EPA’s assessment of EPA also examined the relationship reduce power and in some cases may the potential impacts on consumers and between the presence of fuel-saving enhance it. It supports the concept that employment impacts. The DRIA technologies and negative evaluations of automakers take consumer preferences presents further details of the analyses vehicle operating characteristics, such into account in identifying where to add presented in this Section VII. as performance and noise, in auto technology. A. Conceptual Framework for reviews and found that the presence of EPA cannot reject the observation that Evaluating Consumer Impacts the technologies was more often the energy efficiency gap has existed for correlated with positive evaluations light-duty vehicles—that is, it appears A significant question in analyzing than negative ones.151 Preliminary work that markets on their own have not led consumer impacts from vehicle GHG with data from recent purchasers of new to adoption of a number of technologies standards has been why there have vehicles found similar results.152 While whose fuel savings quickly outweigh the appeared to be existing technologies these studies cannot prove that the costs in the absence of standards. As that, if adopted, would reduce fuel technologies pose no problems to other discussed in DRIA Chapter 8.1.1.2, EPA consumption enough to pay for vehicle attributes, they suggest that it is has previously identified a number of themselves in short periods, but which hypotheses to explain this apparent were not widely adopted. If the benefits possible to implement the technologies without imposing hidden costs. market failure.156 Some relate to to vehicle buyers outweigh the costs to consumer behavior, such as putting those buyers of the new technologies, EPA has also evaluated the relationship between performance and little emphasis on future fuel savings conventional economic principles compared to up-front costs (a form of suggest that automakers would provide fuel economy, in light of research arguing that fuel consumption must ‘‘myopic loss aversion’’), not having a them, and people would buy them. Yet full understanding of potential cost engineering analyses have identified a come at the expense of other vehicle attributes.153 Research in progress from savings, or not prioritizing fuel number of technologies whose costs are consumption in the complex process of quickly covered by their fuel savings, Watten et al. (2021) 154 distinguishes between technologies that improve, or selecting a vehicle. Other potential such as downsized-turbocharged explanations relate to automaker engines, gasoline direct injection, and do not adversely affect, both performance and fuel economy and behaviors that grow out of the large improved aerodynamics, that were not fixed costs of investments involved with widely adopted before the issuance of technologies that reduce engine displacement, which does trade off switching to new technologies, as well standards, but which were adopted as the complex and uncertain processes rapidly afterwards.147 Why did markets improved fuel economy for performance. Following Moskalik et al. involved in technological innovation fail, on their own, to adopt these and adoption. technologies? This question, termed the It is challenging to identify which of 150 https://www.epa.gov/regulations-emissions- ‘‘energy paradox’’ or ‘‘energy efficiency these hypotheses for the efficiency gap 148 vehicles-and-engines/midterm-evaluation-light- gap,’’ has been discussed in detail in explain its apparent existence. On the 149 duty-vehicle-greenhouse-gas. previous rulemakings. As discussed 151 Helfand, G., et al. (2016). ‘‘Searching for consumer side, EPA has explored the in more detail in DRIA Chapter 8.1.1, Hidden Costs: A Technology-Based Approach to the evidence on how consumers evaluate EPA has evaluated whether the Energy Efficiency Gap in Light-Duty Vehicles.’’ Energy Policy 98: 590–606; Huang, H., et al. (2018). fuel economy in their vehicle purchase efficiency gap exists, as well as potential 157 ‘‘Re-Searching for Hidden Costs: Evidence from the decisions. As noted, there does not explanations for why the gap might Adoption of Fuel-Saving Technologies in Light- exist. Duty Vehicles.’’ Transportation Research Part D 65: 155 Moskalik, A., K. Bolon, K. Newman, and J. Whether the efficiency gap exists 194–212. Cherry (2018). ‘‘Representing GHG Reduction depends on the assessment of fuel 152 Huang, H., G. Helfand, and K. Bolon (2018a). Technologies in the Future Fleet with Full Vehicle savings relative to technology costs and ‘‘Consumer Satisfaction with New Vehicles Subject Simulation.’’ SAE Technical Paper 2018–01–1273. ‘‘hidden costs,’’ i.e., any adverse effects to Greenhouse Gas and Fuel Economy Standards.’’ doi:10.4271/2018–01–1273. Presentation at the Society for Benefit-Cost Analysis 156 75 FR 25510–25513; 77 FR 62913–62917; U.S. annual conference, March. https:// Environmental Protection Agency (2016), Proposed 147 U.S. Environmental Protection Agency (2021). benefitcostanalysis.org/docs/G.4_Huang_Slides.pdf, Determination on the Appropriateness of the Model 2020 EPA Automotive Trends Report: Greenhouse accessed 4/7/2021. Year 2022–2025 Light-Duty Vehicle Greenhouse Gas Emissions, Fuel Economy, and Technology 153 Knittel, C.R. (2011). ‘‘Automobiles on Gas Emissions Standards under the Midterm since 1975, Chapter 4. EPA–420–R–21–003, https:// Steroids: Product Attribute Trade-Offs and Evaluation, EPA–420–R–16–020, Appendix B.1.2; www.epa.gov/automotive-trends/download- Technological Progress in the Automobile Sector.’’ 85 FR 24603–24613. automotive-trends-report#Full%20Report, accessed American Economic Review 101(7): pp. 3368–3399; 157 U.S. Environmental Protection Agency (2010). 4/15/2021. Klier, T. and Linn, J. (2016). ‘‘The Effect of Vehicle ‘‘How Consumers Value Fuel Economy: A 148 Jaffe, A.B., and Stavins, R.N. (1994). ‘‘The Fuel Economy Standards on Technology Literature Review.’’ EPA–420–R–10–008, https:// Energy Paradox and the Diffusion of Conservation Adoption.’’ Journal of Public Economics 133: 41– cfpub.epa.gov/si/si_public_file_download.cfm?p_ Technology.’’ Resource and Energy Economics 63; McKenzie, D. and Heywood, J. B. (2015). download_id=499454&Lab=OTAQ (accessed 4/15/ 16(2): 91–122. ‘‘Quantifying efficiency technology improvements 2021); U.S. Environmental Protection Agency 149 75 FR 25510–25513; 77 FR 62913–62917; U.S. in U.S. cars from 1975–2009.’’ Applied Energy 157: (2018). ‘‘Consumer Willingness to Pay for Vehicle Environmental Protection Agency (2016), Proposed 918–928. Attributes: What is the Current State of Determination on the Appropriateness of the Model 154 Watten, A., S. Anderson, and G. Helfand Knowledge?’’ EPA–420–R–18–016, https:// Year 2022–2025 Light-Duty Vehicle Greenhouse (2021). ‘‘Attribute Production and Technical cfpub.epa.gov/si/si_public_file_download.cfm?p_ Gas Emissions Standards under the Midterm Change: Rethinking the Performance and Fuel download_id=536423&Lab=OTAQ (accessed 4/15/ Evaluation, EPA–420–R–16–020, Appendix B.1.2; Economy Trade-off for Light-duty Vehicles.’’ 2021); Greene, D., A. Hossain, J. Hofmann, G. 85 FR 24603–24613. Working paper. Continued
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appear to be consensus in that literature This $334 is within the large standard driving, and macroeconomic measures on that behavior; the variation in deviation in Greene et al. (2018) for the and the scrappage rate, with different estimates is very large. Even less willingness to pay to reduce fuel costs, equations for cars, SUVs/vans, and research has been conducted on but it is far lower than both the mean pickups. EPA’s project to review new producer-side behavior. The reason of $1,880 (160 percent of that value) and vehicle demand elasticities also there continues to be limited adoption the median of $990 (85 percent of that includes a review of the literature on the of cost-effective fuel-saving technologies value) per one cent per mile in the relationship between new and used before the implementation of more paper. On the other hand, the 2015 NAS vehicle markets and scrappage. stringent standards remains an open report (cited in the 2021 NAS report) For this proposal, EPA is maintaining question. Yet, more stringent standards observed that automakers ‘‘perceive that these assumptions for its modeling. We have been adopted without apparent typical consumers would pay upfront also examine a sensitivity case using an disruption to the vehicle market after for only one to four years of fuel elasticity of ¥0.4. We hope to complete 158 160 they become effective. savings’’ (pp. 9–10), a range of values our work on both the vehicle demand within that identified in Greene et al. B. Vehicle Sales Impacts elasticity and scrappage in time to be (2018) for consumer response, but well As discussed in Section III.A EPA able to consider it for use in analyses below the median or mean. Thus, it that will be developed for the final rule. utilized the CCEMS model for this appears possible that automakers analysis. The FRIA for the SAFE rule operate under a different perception of With the modeling assumptions that (starting p. 871) describes the approach consumer willingness to pay for both automakers and vehicle buyers used in the model for estimating vehicle additional fuel economy than how consider 2.5 years of future fuel sales impacts. First, it projects future consumers actually behave. The CCEMS consumption in the purchase decision ¥ new vehicle sales in the reference case model does not differentiate between and that the demand elasticity is 1, based on projections of macroeconomic automaker perception and consumer vehicle sales would decrease by roughly variables. Second, it applies an perception of the value of additional 2 percent compared to sales in the SAFE elasticity of ¥1 (that is, a one percent fuel economy in its sales modeling. rule, as discussed in more detail in increase in price produces a one percent In addition, setting the elasticity of DRIA Chapter 8.1.4. In contrast, when decrease in the quantity sold) to the demand at ¥1 in the SAFE FRIA was modeled using a demand elasticity of change in net price, where net price is based on literature more than 25 years ¥0.4, sales decrease by between 0.5 and the difference in technology costs less old. EPA is currently working to review 1 percent. If, however, automakers an estimate of the change in fuel costs more recent estimates of the elasticity of underestimate consumers’ valuation of over 2.5 years. This approach assumes demand for new vehicles. A smaller fuel economy, then sales may increase that both automakers and vehicle buyers elasticity would not change the relative to the baseline under the take into consideration the fuel savings direction of sales effects, but it would proposed standards. that buyers might expect to accrue over reduce the magnitude of the effects. C. Changes in Fuel Consumption the first 2.5 years of vehicle ownership. The CCEMS model also makes use of As discussed in Section VII.C, and in a dynamic fleet share model (SAFE The proposed standards will reduce more detail in DRIA Chapter 8.1.1.2, FRIA p. 877) that estimates, separately, not only GHG emissions but also fuel there does not yet appear to be the shares of passenger cars and light consumption. Reducing fuel consensus around the role of fuel trucks based on vehicle characteristics, consumption is a significant means of consumption in vehicle purchase and then adjusts them so that the market reducing GHG emissions from the decisions, and the assumption that 2.5 shares sum to one. The model also transportation fleet. Table 46 shows the years of fuel consumption is the right includes the effects of the standards on estimated fuel consumption changes number for both automakers and vehicle vehicle scrappage based on a statistical under the proposed standards relative to buyers deserves further evaluation. As analysis (FRIA starting p. 926). The the No Action scenario and include noted there, Greene et al. (2018) model looks for associations between rebound effects, credit usage and provides a reference value of $1,150 for vehicle age, change in new vehicle advanced technology multiplier use. the value of reducing fuel costs by prices, fuel prices, cost per mile of $0.01/mile over the lifetime of an The largest changes in fuel average vehicle; for comparison, 2.5 provide enough detail to replicate their analysis consumption come from gasoline, years of fuel savings is only about 30 perfectly. The 30% estimate is calculated by which follows from our projection that percent of that value, or about $334.159 assuming, following assumptions in Greene et al. improvements to gasoline vehicles will (2018), that a vehicle is driven 15,000 miles per be the primary way that manufacturers year for 13.5 years, 10% discount rate. Those Helfand, and R. Beach (2018). ‘‘Consumer figures produce a ‘‘present value of miles’’ of meet the proposed standards. By 2050, Willingness to Pay for Vehicle Attributes: What Do 108,600; thus, a $0.01/mile change in the cost of our proposal would reduce gasoline We Know?’’ Transportation Research Part A 118: driving would be worth $1086. In contrast, saving consumption by more than 290 million 258–279. $0.01/mile for 2.5 years using these assumptions is barrels—a nearly 10 percent reduction 158 ‘‘The 2020 EPA Automotive Trends Report, worth about $318, or 29% of the value over 13.5 Greenhouse Gas Emissions, Fuel Economy, and years. Multiplying Greene et al.’s 29 percent to in U.S. gasoline consumption. Since Technology since 1975,’’ EPA–420–R–21–003 $1150 = $334. only about 8 percent of the fleet is January 2021. See Table 2–1 for total vehicle 160 National Research Council (2015). Cost, projected to be either EV or PHEV by production by model year. Effectiveness, and Deployment of Fuel Economy MY2026 to meet the proposed 159 See Greene et al. (2018), Footnote 157. Greene Technologies for Light-Duty Vehicles. Washington, et al. (2018) cite a ballpark value of reducing DC: The National Academies Press. https://doi.org/ standards, we project smaller changes in driving costs by $0.01/mile as $1150, but does not 10.17226/21744, p. 9–10. the electricity to fuel these vehicles.
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TABLE 46—CHANGE IN FUEL CONSUMPTION FROM THE LIGHT-DUTY FLEET
Gasoline Percent of Electricity Percent of (million 2020 U.S. (gigawatt 2020 U.S. barrels) consumption hours) consumption
2023 ...... ¥9 ¥0.3 929 0.0 2026 ...... ¥43 ¥1.5 6,798 0.2 2030 ...... ¥124 ¥4.2 19,017 0.5 2035 ...... ¥211 ¥7.2 30,735 0.8 2040 ...... ¥263 ¥8.9 38,228 1.0 2050 ...... ¥291 ¥9.9 48,122 1.3
NOTES: One barrel (BBL) contains 42 gallons of gasoline; according to the Energy Information Administration (EIA), US gasoline consumption in 2020 was 123.49 billion gallons (see https://www.eia.gov/tools/faqs/faq.php?id=23&t=10, last accessed July 19, 2021), roughly 16 percent less (due to the coronavirus pandemic) than the highest consumption on record (2018). According to the Department of Energy, there are 0.031 kWh of electricity per gallon gasoline equivalent, the metric reported by the CCEMS model for electricity consumption and used here to convert to kWh. According to statista.com, the US consumed 3,802 terawatt hours of electricity in 2020.
With changes in fuel consumption 47), the costs of time spent refueling are refueling vehicles under the proposed come associated changes in the amount calculated as the total amount of time standards, then a refueling time savings of time spent refueling vehicles. the driver of a typical vehicle would would be incurred. Consistent with the assumptions used in spend refueling multiplied by the value the SAFE FRM (and presented in Table of their time. If less time is spent
TABLE 47—CCEMS INPUTS USED TO ESTIMATE REFUELING TIME COSTS
Cars Vans/SUVs Pickups
Fixed Component of Average Refueling Time in Minutes (by Fuel Type)
Gasoline ...... 3.5 3.5 3.5 Ethanol¥85 ...... 3.5 3.5 3.5 Diesel ...... 3.5 3.5 3.5 Electricity ...... 3.5 3.5 3.5 Hydrogen ...... 0 0 0 Compressed Natural Gas ...... 0 0 0 Average Tank Volume Refueled ...... 65 65 65 Value of Travel Time per Vehicle (2018 $/hour) ...... 20.46 20.79 20.79
D. Greenhouse Gas Emission Reduction the societal value of reducing emissions the limitations suggest that these SC– Benefits of the gas in question by one metric ton. GHG estimates likely underestimate the We estimate the global social benefits damages from GHG emissions. The IWG EPA estimated the climate benefits for of CO2, CH4, and N2O emission is currently working on a this proposed rulemaking using reductions expected from this proposed comprehensive update of the SC–GHG measures of the social cost of three rule using the SC–GHG estimates estimates (to be released by January GHGs: Carbon, methane, and nitrous presented in the February 2021 2022 under E.O. 13990) taking into oxide. While the program also accounts Technical Support Document (TSD): consideration recommendations from for reduction in HFCs through the AC Social Cost of Carbon, Methane, and the National Academies of Sciences, credits program, EPA has not quantified Nitrous Oxide Interim Estimates under Engineering and Medicine, recent the associated emission reductions. The E.O. 13990 (IWG 2021). These SC–GHG scientific literature, public comments social cost of each gas (i.e., the social estimates are interim values developed received on the February 2021 TSD and cost of carbon (SC–CO2), methane (SC– under E.O. 13990 for use in benefit-cost other input from experts and diverse CH4), and nitrous oxide (SC–N2O)) is analyses until an improved estimate of stakeholder groups. We request the monetary value of the net harm to the impacts of climate change can be comment on this approach to estimating society associated with a marginal developed based on the best available social benefits of GHG in this increase in emissions in a given year, or climate science and economics. As rulemaking in light of the ongoing the benefit of avoiding that increase. discussed in Section 3.3 of the RIA, interagency process. See Section VII.I Collectively, these values are referenced these interim SC–GHG estimates have a for a summary of the monetized GHG as the ‘‘social cost of greenhouse gases’’ number of limitations, including that benefits and Section 3.3 of the RIA for (SC–GHG). In principle, SC–GHG the models used to produce them do not more on the application of SC–GHG includes the value of all climate change include all of the important physical, estimates. impacts, including (but not limited to) ecological, and economic impacts of E. Non-Greenhouse Gas Health Impacts changes in net agricultural productivity, climate change recognized in the human health effects, property damage climate-change literature and that It is important to quantify the health from increased flood risk and natural several model input assumptions are and environmental impacts associated disasters, disruption of energy systems, outdated. As discussed in the February with the proposed program because a risk of conflict, environmental 2021 TSD, the Interagency Working failure to adequately consider ancillary migration, and the value of ecosystem Group on the Social Cost of Greenhouse impacts could lead to an incorrect services. The SC–GHG therefore, reflects Gases (IWG) finds that, taken together, assessment of a program’s costs and
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164 165 benefits. Moreover, the health and other estimate PM2.5-related benefits. were based on information drawn from impacts of exposure to criteria air Compared to values that EPA has used the recent 2019 PM2.5 and 2020 Ozone pollutants and airborne toxics tend to in the past,166 these BPT values provide Integrated Science Assessments (ISAs), occur in the near term, while most better resolution by mobile sector and which were reviewed by the Clean Air effects from reduced climate change are geographic area, two features that make Science Advisory Committee (CASAC) likely to occur over a time frame of them especially useful for quantifying and the public.170 171 Unfortunately, several decades or longer. Ideally, the benefits of reducing emissions from EPA has not had an opportunity to human health benefits would be the onroad light-duty sector. update its BPT estimates to reflect these estimated based on changes in ambient To monetize the PM2.5-related impacts updates in time for this proposal. PM2.5 and ozone as determined by full- of upstream emissions, we apply BPT Instead, we use PM2.5 BPT estimates that scale air quality modeling. However, the values that were developed for the are based on the review of the 2009 PM projected non-GHG emissions impacts refinery sector.167 While total upstream ISA 172 and include a mortality risk associated with the proposal would be emissions also include electricity estimate derived from the Krewski et al. expected to contribute to very small generating unit sources, petroleum (2009) 173 analysis of the American changes in ambient air quality (see extraction, storage and transport Cancer Society (ACS) cohort and Preamble Section V.C for more detail). sources, as well as sources upstream nonfatal illnesses consistent with benefits analyses performed for the In lieu of air quality modeling, we use from the refinery, the modeling tool used to support this analysis only analysis of the final Tier 3 Vehicle a reduced-form benefit-per-ton (BPT) 174 provides estimates of upstream Rule, the final 2012 PM NAAQS approach to inform our assessment of 175 emissions impacts aggregated across all Revision, and the final 2017–2025 health impacts, which is conceptually 176 sources. Furthermore, we assume the Light-duty Vehicle GHG Rule. We consistent with EPA’s use of BPT expect this lag in updating our BPT estimates in several previous RIAs.161 162 majority of upstream emission reductions associated with the proposal In this approach, the PM2.5-related BPT would be related to domestic onsite (CSAPR) Update for the 2008 Ozone NAAQS. EPA– values are the total monetized human 452/R–21–002. March. health benefits (the sum of the economic refinery emissions and domestic crude 169 U.S. Environmental Protection Agency (U.S. value of the reduced risk of premature production, because the fleet EPA). 2021. Estimating PM2.5- and Ozone- Attributable Health Benefits. Technical Support death and illness) that are expected penetration of electric vehicles attributed to the proposed standards is Document (TSD) for the Final Revised Cross-State from reducing one ton of directly- Air Pollution Rule Update for the 2008 Ozone relatively small (i.e., the change in emitted PM2.5 or PM2.5 precursor such as Season NAAQS. EPA–HQ–OAR–2020–0272. March. NO or SO . We note, however, that the electric vehicle penetration is projected 170 U.S. Environmental Protection Agency (U.S. X 2 EPA). 2019. Integrated Science Assessment (ISA) for complex, non-linear photochemical to change from 4 percent in the No Action case to 8 percent under the Particulate Matter (Final Report, 2019). U.S. processes that govern ozone formation Environmental Protection Agency, Washington, DC, prevent us from developing reduced- proposed standards). We therefore EPA/600/R–19/188, 2019. form ozone BPT values. This is an believe for purposes of this proposed 171 U.S. Environmental Protection Agency (U.S. rule it is appropriate to apply the EPA). 2020. Integrated Science Assessment (ISA) for important limitation to recognize when Ozone and Related Photochemical Oxidants (Final using the BPT approach. refinery values to all upstream emissions. We solicit comment on this Report). U.S. Environmental Protection Agency, For tailpipe emissions, we apply Washington, DC, EPA/600/R–20/012, 2020. approach and any alternative 172 U.S. Environmental Protection Agency (U.S. national PM2.5-related BPT values that approaches that we should adopt for the EPA). 2009. Integrated Science Assessment for were recently derived for the ‘‘Onroad final rule. Particulate Matter (Final Report). EPA–600–R–08– 163 139F. National Center for Environmental Light Duty Vehicle’’ sector. The EPA bases its benefits analyses on onroad light-duty vehicle BPT values Assessment—RTP Division, Research Triangle Park, peer-reviewed studies of air quality and NC. December. Available at: http://cfpub.epa.gov/ were derived using detailed mobile health effects and peer-reviewed studies ncea/cfm/recordisplay.cfm?deid=216546. sector source-apportionment air quality of the monetary values of public health 173 Krewski D., M. Jerrett, R.T. Burnett, R. Ma, E. Hughes, Y. Shi, et al. 2009. Extended Follow-Up modeling, and apply EPA’s existing and welfare improvements. Very method for using reduced-form tools to and Spatial Analysis of the American Cancer recently, EPA updated its approach to Society Study Linking Particulate Air Pollution and estimating the benefits of changes in Mortality. HEI Research Report, 140, Health Effects 161 U.S. Environmental Protection Agency (U.S. 168 169 Institute, Boston, MA. PM2.5 and ozone. These updates EPA). 2012. Regulatory Impact Analysis for the 174 U.S. Environmental Protection Agency. (2014). Final Revisions to the National Ambient Air Quality Control of Air Pollution from Motor Vehicles: Tier Standards for Particulate Matter. EPA452/R–12– 164 Zawacki, M.; Baker, K. R.; Phillips, S.; 3 Motor Vehicle Emission and Fuel Standards Final 003. Office of Air Quality Planning and Standards, Davidson, K.; Wolfe, P. 2018. Mobile Source Rule: Regulatory Impact Analysis, Assessment and Health and Environmental Impacts Division, Contributions to Ambient Ozone and Particulate Standards Division, Office of Transportation and Research Triangle Park, NC. December. Available at: Matter in 2025. Atmos. Environ. 188, 129–141. Air Quality, EPA–420–R–14–005, March 2014. http://www.epa.gov/ttnecas1/regdata/RIAs/ 165 Fann, N.; Fulcher, C. M.; Baker, K. 2013. The Available on the internet: http://www3.epa.gov/ finalria.pdf. Recent and Future Health Burden of Air Pollution otaq/documents/tier3/420r14005.pdf. 162 U.S. Environmental Protection Agency (U.S. Apportioned across U.S. Sectors. Environ. Sci. 175 U.S. Environmental Protection Agency. (2012). EPA). 2014. Regulatory Impact Analysis for the Technol. 47 (8), 3580–3589. https://doi.org/ Regulatory Impact Analysis for the Final Revisions Proposed Carbon Pollution Guidelines for Existing 10.1021/es304831q. to the National Ambient Air Quality Standards for Power Plants and Emission Standards for Modified 166 US EPA, 2018. Technical Support Document: Particulate Matter, Health and Environmental and Reconstructed Power Plants. EPA–542/R–14– Estimating the Benefit per Ton of Reducing PM2.5 Impacts Division, Office of Air Quality Planning 002. Office of Air Quality Planning and Standards, Precursors from 17 Sectors. 2018. Office of Air and Standards, EPA–452–R–12–005, December Research Triangle Park, NC. June. Available at Quality Planning and Standards. Research Triangle 2012. Available on the internet: http:// http://www.epa.gov/ttnecas1/regdata/RIAs/ Park, NC. www3.epa.gov/ttnecas1/regdata/RIAs/finalria.pdf. 111dproposalRIAfinal0602.pdf. 167 U.S. Environmental Protection Agency (U.S. 176 U.S. Environmental Protection Agency (U.S. 163 Wolfe, P.; Davidson, K.; Fulcher, C.; Fann, N.; EPA). 2018. Technical Support Document: EPA). (2012). Regulatory Impact Analysis: Final Zawacki, M.; Baker, K. R. 2019. Monetized Health Estimating the Benefit per Ton of Reducing PM2.5 Rulemaking for 2017–2025 Light-Duty Vehicle Benefits Attributable to Mobile Source Emission Precursors from 17 Sectors. 2018. Office of Air Greenhouse Gas Emission Standards and Corporate Reductions across the United States in 2025. Sci. Quality Planning and Standards. Research Triangle Average Fuel Economy Standards, Assessment and Total Environ. 650, 2490–2498. https://doi.org/ Park, NC. Standards Division, Office of Transportation and 10.1016/J.SCITOTENV.2018.09.273. Also see 168 U.S. Environmental Protection Agency (U.S. Air Quality, EPA–420–R–12–016, August 2012. https://www.epa.gov/benmap/mobile-sector-source- EPA). 2021. Regulatory Impact Analysis for the Available on the internet at: http://www3.epa.gov/ apportionment-air-quality-and-benefits-ton. Final Revised Cross-State Air Pollution Rule otaq/climate/documents/420r12016.pdf.
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estimates to have only a minimal impact The PM-related BPT estimates used in pollutants from both onroad light-duty on total PM benefits, since the this analysis are provided in Table 48. vehicle use and upstream sources such underlying mortality risk estimate based We multiply these BPT values by as fuel refineries will increase over time. on the Krewski study is identical to an projected national changes in NOX, SO2 These projected increases reflect rising updated PM2.5 mortality risk estimate and directly-emitted PM2.5, in tons, to income levels, which increase affected derived from an expanded analysis of estimate the total PM2.5-related individuals’ willingness to pay for the same ACS cohort.177 The Agency is monetized human health benefits reduced exposure to health threats from currently working to update its BPT associated with the proposed program. air pollution. The BPT values also estimates to reflect these recent updates As the table indicates, these values reflect future population growth and for use in future rulemaking analyses. differ among pollutants and depend on increased life expectancy, which More information on the BPT approach their original source, because emissions expands the size of the population to valuing PM-related benefits can be from different sources can result in exposed to air pollution in both urban different degrees of population exposure and rural areas, especially among older found in RIA Chapter 7.2 that and resulting health impacts. The BPT age groups with the highest mortality accompanies this proposal. values for emissions of non-GHG risk.178
TABLE 48—PM2.5-RELATED BENEFIT-PER-TON VALUES [2018$] a
Onroad light duty vehicles b Upstream Sourcesc Year Direct PM2.5 I SO2 I NOX Direct PM2.5 I SO2 I NOX Estimated Using a 3 Percent Discount Rate
2020 ...... $600,000 $150,000 $6,400 $380,000 $81,000 $8,100 2025 ...... 660,000 170,000 6,900 420,000 90,000 8,800 2030 ...... 740,000 190,000 7,600 450,000 98,000 9,600 2035 ...... 830,000 210,000 8,400 ...... 2040 ...... 920,000 230,000 9,000 ...... 2045 ...... 1,000,000 250,000 9,600 ......
Estimated Using a 7 Percent Discount Rate
2020 ...... 540,000 140,000 5,800 350,000 74,000 7,300 2025 ...... 600,000 150,000 6,200 380,000 80,000 7,900 2030 ...... 660,000 170,000 6,800 410,000 88,000 8,600 2035 ...... 750,000 190,000 7,500 ...... 2040 ...... 830,000 210,000 8,200 ...... 2045 ...... 900,000 230,000 8,600 ...... Notes: a The benefit-per-ton estimates presented in this table are based on estimates derived from the American Cancer Society cohort study (Krewski et al., 2009). They also assume either a 3 percent or 7 percent discount rate in the valuation of premature mortality to account for a twenty-year segmented premature mortality cessation lag. b Benefit-per-ton values for onroad light duty vehicles were estimated for the years 2020, 2025, 2030, 2035, 2040, and 2045. We hold values constant for intervening years (e.g., the 2020 values are assumed to apply to years 2021–2024; 2025 values for years 2026–2029; and 2045 val- ues for years 2046 and beyond). c Benefit-per-ton values for upstream sources were estimated only for the years 2020, 2025 and 2030. We hold values constant for intervening years and 2030 values are applied to years 2031 and beyond. d We assume for the purpose of this analysis that total ‘‘upstream emissions’’ are most appropriately monetized using refinery sector benefit per-ton values.
The monetized PM2.5 health impacts pollutants impacted by the proposed U.S., thus increasing U.S. energy of the proposed standards are presented program. security. in Table 54. Using PM2.5-related BPT F. Energy Security Impacts In order to understand the energy estimates to monetize the non-GHG security implications of reducing U.S. impacts of the proposed standards omits This proposal is designed to require oil imports, EPA has worked with Oak ozone-related impacts, unquantified reductions in the GHG emissions of Ridge National Laboratory (ORNL), PM-related health impacts, as well as light-duty vehicles (LDV) and thereby which has developed approaches for other impacts associated with reduce fuel consumption. In turn, this evaluating the social costs and energy reductions in exposure to air toxics, proposed LDV GHG (2023–2026) security implications of oil use. When ecosystem benefits, and visibility proposal would help to reduce U.S. conducting this analysis, ORNL improvement. Section V of this petroleum imports. A reduction of U.S. considers the full cost of importing preamble provides a qualitative petroleum imports reduces both petroleum into the U.S. The full description of both the health and financial and strategic risks caused by economic cost (i.e., oil security environmental effects of the non-GHG potential sudden disruptions in the premiums, as labeled below) is defined supply of imported petroleum to the to include two components in addition
177 Turner, MC, Jerrett, M, Pope, A, III, Krewski, a large prospective study. Am J Respir Crit Care projections, please refer to the following: https:// D, Gapstur, SM, Diver, WR, Beckerman, BS, Med 193(10): 1134–1142. www.epa.gov/sites/production/files/2015-04/ Marshall, JD, Su, J, Crouse, DL and Burnett, RT 178 For more information about income growth documents/benmap-ce_user_manual_march_ (2016). Long-term ozone exposure and mortality in adjustment factors and EPA’s population 2015.pdf.
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to the purchase price of petroleum itself. selected years from 2023–2050 in Table with a positive rebound effect also These are: (1) The higher costs/benefits 49. contributes to increased traffic for oil imports resulting from the effect congestion and highway noise. of changes in U.S. demand on the world TABLE 49—MACROECONOMIC OIL SE- Depending on how the additional travel oil price (i.e., the ‘‘demand’’ or CURITY PREMIUMS FOR SELECTED is distributed throughout the day and ‘‘monopsony’’ costs/benefits); and (2) YEARS FROM 2023–2050 where it takes place, additional vehicle the risk of reductions in U.S. economic [2018$/Barrel] * use can contribute to traffic congestion output and disruption to the U.S. and delays by increasing traffic volumes economy caused by sudden disruptions Macroeconomic oil on facilities that are already heavily in the supply of imported oil to the U.S. Year traveled during peak periods. These (range) security premiums (i.e., the avoided macroeconomic (range) added delays impose higher costs on disruption/adjustment costs). other road users in the form of increased 2023 ...... $3.63 ($1.22–$6.13) For this proposed rule, EPA is using travel time and operating expenses. 2026 ...... $3.78 ($1.17–$6.37) Because drivers do not take these oil security premiums estimated using 2030 ...... $3.99 ($1.13–$6.74) ORNL’s methodology, which 2035 ...... $4.30 ($1.14–$7.35) external costs into account in deciding incorporates oil price projections and 2040 ...... $4.66 ($1.26–$7.96) when and where to travel, they must be energy market and economic trends 2050 ...... $5.57 ($1.89–$9.53) accounted for separately as a cost of the added driving associated with the from the EIA’s Annual Energy Outlook * Top values in each cell are the midpoints, (AEO). For this analysis, we are using rebound effect. the values in parentheses are the 90 percent EPA relies on estimates of congestion oil security premiums based on AEO confidence intervals. 2018, but for the final rule we intend to and noise costs developed by the update this analysis to AEO 2021. We G. Impacts of Additional Driving Federal Highway Administration to only consider the avoided As discussed in Chapter 3.1 of the estimate the increased external costs macroeconomic disruption/adjustment RIA, the assumed rebound effect might caused by added driving due to the rebound effect. EPA employed estimates costs oil security premiums (i.e., labeled occur when an increase in vehicle fuel from this source previously in the macroeconomic oil security premiums efficiency encourages people to drive analysis accompanying the light-duty below), since the monopsony impacts of more as a result of the lower cost per 2010 and 2012 vehicle rulemakings and this proposed rule are considered mile of driving. Along with the safety the 2016 Draft TAR and Proposed transfer payments. See previous EPA considerations associated with Determination. We continue to find GHG vehicle rules for a discussion of increased vehicle miles traveled them appropriate for this analysis after the monopsony oil security (described in Section VII.H of this reviewing the procedures used by premiums.179 In addition, EPA and preamble), additional driving can lead FHWA to develop them and considering ORNL have worked together to revise to other costs and benefits that can be monetized. other available estimates of these values. the oil security premiums based upon FHWA’s congestion cost estimates The increase in travel associated with recent energy security literature (see focus on freeways because non-freeway the rebound effect produces additional Chapter 3.2.5 of the DRIA effects are less serious due to lower benefits to vehicle drivers, which reflect accompanying this proposed rule for traffic volumes and opportunities to re- the value of the added (or more how the macroeconomic oil security route around the congestion. EPA, desirable) social and economic premiums have been updated based however, applied the congestion cost to opportunities that become accessible upon a review of recent energy security the overall VMT. The results of this with additional travel. Consistent with literature on this topic). We do not analysis potentially overestimate the assumptions used in the SAFE FRM, consider military cost impacts from this congestions costs associated with this analysis estimates the economic proposed rule due to methodological increased vehicle use, and thus lead to issues in quantifying these impacts (see benefits from increased rebound-effect a conservative estimate of net benefits. Chapter 3.2.3 of the DRIA for a review driving as the owner/operator surplus EPA has used FHWA’s ‘‘Middle’’ of the literature on the military costs from the additional accessibility it estimates for marginal congestion and impacts of U.S. oil import reductions). provides. noise costs caused by increased travel To calculate the energy security The equation for the calculation of the from vehicles. This approach is benefits of this proposed rule, EPA is Drive Value: consistent with the methodology used using the ORNL oil security premium Drive Value = (1/2) (VMTrebound) [($/ in our prior analyses. The values used ¥ methodology with: (1) Estimated oil mile)NoAction ($/mile)Action] are shown in Table 50. savings calculated by EPA and (2) an oil The economic value of the increased These congestion costs differ from import reduction factor of 91 percent, owner/operator surplus provided by those used in the SAFE FRM and, as which shows how much U.S. oil added driving is one half of the product stated, are consistent with those used in imports are reduced from changes in of the decline in vehicle operating costs the 2016 Draft TAR and the 2016 U.S. oil consumption. Each of these per vehicle-mile and the resulting Proposed Determination. For this assumptions is discussed in more detail increase in the annual number of miles proposal, EPA has chosen not to adopt in Chapter 3.2 of the accompanying driven. Because it depends on the extent the approach from the SAFE FRM where DRIA. Below EPA presents the of improvement in fuel consumption, scaling factors were used to adjust the macroeconomic oil security premiums the value of benefits from increased underlying FHWA congestion cost used for the proposed standards for vehicle use changes by model year and estimates. In particular, EPA now finds varies among alternative standards. that scaling the marginal per-mile 179 See Energy Security Impacts. Effect of Oil Use In contrast to the benefits of congestion costs by the change in VMT on the Long-Run Oil Price. Section 10. 5.2.1. pp.10– additional driving are the costs per lane-mile on U.S. highways from 25. 2016. Draft Technical Assessment Report: associated with that driving. If net 1997 to 2017 does not account for Midterm Evaluation of Light-Duty Vehicle operating costs of the vehicle decline, Greenhouse Gas Emission Standards and Corporate changes in average speeds and Average Fuel Economy Standards for Model Years then we expect a positive rebound improved road design, and may have 2022–2025. EPA–420–D–16–900. effect. Increased vehicle use associated the potential to over-estimate costs. We
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are continuing to use the FHWA prior EPA rulemakings, and adjusting to comments on the congestion cost values congestion estimates without scaling, measure in 2018 dollars. EPA invites and methodology. consistent with the SAFE NPRM and
TABLE 50—COSTS ASSOCIATED WITH CONGESTION AND NOISE [2018 Dollars per vehicle mile]
Passenger cars Van/SUVs Pickups
Congestion ...... 0.0634 0.0634 0.0566 Noise ...... 0.0009 0.0009 0.0009
H. Safety Considerations in Establishing standards on annual fatalities per billion in VMT and mobility (i.e., people GHG Standards miles driven ranges from a decrease of driving more). Our analysis also Consistent with previous light-duty 0.25 percent to an increase of 0.38 considered the increase in non-fatal GHG analyses, EPA has assessed the percent, with a central estimate of a 0.07 injuries. Consistent with the SAFE FRM, potential of the proposed MY 2023– percent increase.180 EPA assumed that non-fatal injuries 2026 standards to affect vehicle safety. In addition to changes in risk, EPA scale with fatal injuries. EPA applied the same historical also considered the projected impact of EPA also estimated the societal costs relationships between mass, size, and the proposed standards on the absolute of these safety impacts using fatality risk that were established and number of fatal and non-fatal injuries. assumptions consistent with the SAFE documented in the SAFE rulemaking. The majority of the fatalities projected FRM (see Table 51.) Specifically, we are These relationships are based on the would result from the projected continuing to use the cost associated statistical analysis of historical crash increased driving—i.e., people choosing with each fatality of $10.4 million. We data, which included an analysis to drive more due to the lower operating have also continued to use a scalar of performed by using the most recently costs of more efficient vehicles. Our approximately 1.6 applied to fatality available crash studies based on data for cost-benefit analysis accounts for both costs to estimate non-fatal injury costs. model years 2007 to 2011. EPA used the the value of this additional driving and In addition, we have accounted for the findings of this analysis to estimate its associated risk, which we assume are driver’s inherent valuation of risk when safety impacts of the modeled mass considerations in the decision to drive. making the decision to drive more due reductions over the lifetimes of new The risk valuation associated with this to rebound. This risk valuation partially vehicles in response to MY 2023–2026 increase in driving partially offsets the offsets the fatal and non-fatal injury standards. As in initially promulgating associated increase in societal costs due costs described previously, and, the GHG standards, the MTE Proposed to increased fatalities and non-fatal consistent with the SAFE FRM, is Determination and this proposal, EPA’s injuries. calculated as 90 percent of the fatal and assessment is that manufacturers can This analysis projects that there will non-fatal injury costs due to rebound to achieve the MY 2023–2026 standards be an increase in vehicle miles traveled reflect the fact that consumers do not while using modest levels of mass (VMT) under the proposed standards of fully evaluate the risks associated with reduction as one technology option 449 billion miles compared to the No this additional driving. Action scenario through 2050 (an among many. On the whole, EPA I. Summary of Costs and Benefits considers safety impacts in the context increase of about 0.5 percent). EPA of all projected health impacts from the estimates that vehicle safety, in terms of This section presents a summary of proposal including public health risk measured as the total fatalities per costs, benefits, and net benefits of the benefits from the projected reductions the total distance traveled over this proposed program. Table 51 shows the in air pollution. period, will remain almost unchanged at estimated annual monetized costs of the The projected change in risk of fatal 4.642 fatalities per billion miles under proposed program for the indicated and non-fatal injuries is influenced by the proposal, compared to 4.640 calendar years. The table also shows the changes in fleet mix (car/truck share), fatalities per billion miles for the no- present-values (PV) of those costs and vehicle scrappage rates, distribution of action scenario. EPA has also estimated, the annualized costs for the calendar VMT among vehicles in the fleet and over the same 30 year period, that total years 2021–2050 using both 3 percent vehicle mass. Because the empirical fatalities will increase by 2,288, with and 7 percent discount rates.181 The analysis described previously did not 1,952 deaths attributed to increased table includes an estimate of foregone produce any mass-safety coefficients driving and 336 deaths attributed to the consumer sales surplus, which with a statistically significant difference increase in fatality risk. In other words, measures the loss in benefits attributed from zero, we analyzed safety results approximately 85 percent of the change to consumers who would have over the range of coefficient values. We in fatalities under these proposed purchased a new vehicle in the absence project that the effect of the proposed standards is due to projected increases of the proposed standards.
180 These fatality risk values are the average of interval of mass-safety coefficients presented in the 181 For the estimation of the stream of costs and changes in annual risk through 2050. The range of SAFE FRM. benefits, we assume that after implementation of values is based on the 5% to 95% confidence the proposed MY 2023–2026 standards, the 2026 standards apply to each year thereafter.
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TABLE 51—COSTS ASSOCIATED WITH THE PROPOSED PROGRAM [Billions of 2018 dollars]
Foregone consumer Technology Congestion Noise Fatality Non-fatal Total costs Calendar year sales costs ($) ($) costs crash costs ($) surplus a ($) ($) ($) ($)
2023 ...... 0.26 6.7 0.046 0.00073 0.16 0.26 7.4 2026 ...... 0.64 15 0.19 0.003 0.61 1 18 2030 ...... 0.43 14 0.59 0.0095 0.58 0.96 17 2035 ...... 0.28 12 1 0.017 0.2 0.33 14 2040 ...... 0.21 11 1.3 0.021 ¥0.038 ¥0.062 12 2050 ...... 0.16 9.9 1.3 0.021 ¥0.0093 ¥0.015 11 PV, 3%...... 5.7 210 15 0.24 4.5 7.6 240 PV, 7%...... 3.7 130 7.3 0.12 3.4 5.6 150 Annualized, 3% ...... 0.29 11 0.75 0.012 0.23 0.39 12 Annualized, 7% ...... 0.3 10 0.59 0.0095 0.27 0.45 12 a ‘‘Foregone Consumer Sales Surplus’’ refers to the difference between a vehicle’s price and the buyer’s willingness to pay for the new vehicle; the impact reflects the reduction in new vehicle sales described in Section VII.B. See Section 8 of CAFE_Model_Documentation_FR_2020.pdf in the docket for more information.
Table 52 shows the undiscounted calculations use the aggregate value of result from reductions in fleet-wide fuel annual monetized fuel savings of the fuel savings (calculated using pre-tax use and include rebound effects, credit proposed program. The table also shows fuel prices) since savings in fuel taxes usage and advanced technology the present- and annualized-values of do not represent a reduction in the multiplier use. Thus, fuel savings grow those fuel savings for the same calendar value of economic resources utilized in over time as an increasing fraction of the years using both 3 percent and 7 percent producing and consuming fuel. Note fleet is projected to meet the proposed discount rates. The net benefits that the fuel savings shown in Table 52 standards.
TABLE 52—FUEL SAVINGS ASSOCIATED WITH THE PROPOSED PROGRAM [Billions of 2018 dollars]
Retail fuel Fuel tax Pre-tax fuel Calendar year savings savings savings ($) ($) ($)
2023 ...... 0.78 0.2 0.58 2026 ...... 3.5 0.95 2.6 2030 ...... 12 2.7 8.9 2035 ...... 21 4.4 17 2040 ...... 28 5.4 23 2050 ...... 32 5.6 26 PV, 3% ...... 310 62 250 PV, 7% ...... 150 32 120 Annualized, 3% ...... 16 3.2 13 Annualized, 7% ...... 12 2.5 9.9 Note: Electricity expenditure increases are included.
Table 53 presents estimated annual The table also shows the present- and both 3 percent and 7 percent discount monetized benefits from non-emission annualized-value of those benefits for rates. sources for the indicated calendar years. the calendar years 2021–2050 using
TABLE 53—BENEFITS FROM NON-EMISSION SOURCES [Billions of 2018 dollars]
Energy Total Drive value Refueling time security non-emission Calendar year ($) savings benefits benefits ($) ($) ($)
2023 ...... 0.065 ¥0.019 0.03 0.076 2026 ...... 0.25 ¥0.12 0.15 0.28 2030 ...... 0.83 ¥0.15 0.46 1.1 2035 ...... 1.6 ¥0.1 0.83 2.3 2040 ...... 2.1 ¥0.017 1.1 3.2 2050 ...... 2.3 0.1 1.5 3.9 PV, 3% ...... 23 ¥0.94 13 35 PV, 7% ...... 11 ¥0.72 6.1 17 Annualized, 3% ...... 1.2 ¥0.048 0.64 1.8
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TABLE 53—BENEFITS FROM NON-EMISSION SOURCES—Continued [Billions of 2018 dollars]
Energy Total Drive value Refueling time security non-emission Calendar year ($) savings benefits benefits ($) ($) ($)
Annualized, 7% ...... 0.92 ¥0.058 0.49 1.4 * See Section VII.G, Section VII.C and Section VII.F for more on drive value, refueling time and energy security, respectively.
Table 54 presents estimated annual calendar years. The table also shows the 2050 using both 3 percent and 7 percent monetized benefits from non-GHG present- and annualized-values of those discount rates. emission sources for the indicated benefits for the calendar years 2021–
TABLE 54—PM2.5-RELATED EMISSION REDUCTION BENEFITS [Billions of 2018 dollars] ab
Tailpipe benefits Upstream benefits Total PM2.5-related ($) ($) benefits Calendar year ($) 3% DR 7% DR 3% DR 7% DR 3% DR 7% DR
2023 ...... ¥0.013 ¥0.012 0.029 0.027 0.016 0.015 2026 ...... ¥0.047 ¥0.042 0.014 0.015 ¥0.033 ¥0.028 2030 ...... 0.035 0.032 0.089 0.084 0.12 0.12 2035 ...... 0.23 0.21 0.34 0.31 0.57 0.52 2040 ...... 0.46 0.41 0.48 0.44 0.94 0.85 2050 ...... 0.74 0.67 0.34 0.31 1.1 0.98 PV ...... 4.3 1.6 4.5 2 8.8 3.6 Annualized ...... 0.22 0.13 0.23 0.16 0.45 0.29 Notes: a Note that the non-GHG impacts associated with the standards presented here do not include the full complement of health and environmental effects that, if quantified and monetized, would increase the total monetized benefits. Instead, the non-GHG benefits are based on benefit-per-ton values that reflect only human health impacts associated with reductions in PM2.5 exposure. b Calendar year non-GHG benefits presented in this table assume either a 3 percent or 7 percent discount rate in the valuation of PM-related premature mortality to account for a twenty-year segmented cessation lag. Note that annual benefits estimated using a 3 percent discount rate were used to calculate the present and annualized values using a 3 percent discount rate and the annual benefits estimated using a 7 percent discount rate were used to calculate the present and annualized values using a 7 percent discount rate.
Table 55 shows the benefits of interagency working group. As catastrophic impacts, their incomplete reduced GHG emissions, and discussed in the RIA Chapter 3.3, there treatment of adaptation and consequently the annual quantified are some limitations to the SC–GHG technological change, uncertainty in the benefits (i.e., total GHG benefits), for analysis, including the incomplete way extrapolation of damages to high each of the four interim social cost of in which the integrated assessment temperatures, and assumptions GHG (SC–GHG) values estimated by the models capture catastrophic and non- regarding risk aversion.
TABLE 55—CLIMATE BENEFITS FROM REDUCTIONS IN GREENHOUSE GAS EMISSIONS [Billions of 2018 dollars]
Discount rate and statistic Calendar year 3% 95th 5% Average 3% Average 2.5% Average percentile ($) ($) ($) ($)
2023 ...... 0.063 0.21 0.31 0.63 2026 ...... 0.31 1 1.5 3 2030 ...... 1 3.2 4.6 9.5 2035 ...... 2 6 8.5 18 2040 ...... 2.8 8.1 11 25 2050 ...... 3.9 10 14 31 PV ...... 22 91 140 280 Annualized ...... 1.4 4.7 6.7 14 Notes: The present value of reduced GHG emissions is calculated differently than other benefits. The same discount rate used to discount the value of damages from future emissions (SC–GHGs at 5, 3, 2.5 percent) is used to calculate the present value of SC–GHGs for internal consistency. Annual benefits shown are undiscounted values.
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Table 56 presents estimated annual discount rates. The table includes the far exceed the costs and would result in net benefits for the indicated calendar benefits of reduced GHG emissions (and a net present value of benefits that years. The table also shows the present consequently the annual net benefits) ranges between $17–330 billion, and annualized value of those net for each of the four SC–GHG values depending on which SC–GHG and benefits for the calendar years 2021– considered by EPA. We estimate that the discount rate is assumed. 2050 using both 3 percent and 7 percent total benefits of the proposed program
TABLE 56—NET BENEFITS (EMISSION BENEFITS + NON-EMISSION BENEFITS + FUEL SAVINGS ¥ COSTS) ASSOCIATED WITH THE PROPOSED PROGRAM [Billions of 2018 dollars] ab
Net benefits, Net benefits, with climate Net benefits, Net benefits, with climate benefits with climate with climate benefits based on 3% Calendar year benefits benefits based on discount rate, based on 5% based on 3% 2.5% 95th discount rate discount rate discount rate percentile ($) ($) ($) SC–GHG ($)
2023 ...... ¥6.6 ¥6.5 ¥6.4 ¥6.1 2026 ...... ¥14 ¥14 ¥13 ¥12 2030 ...... ¥5.8 ¥3.7 ¥2.3 2.7 2035 ...... 7.6 12 14 24 2040 ...... 17 22 26 39 2050 ...... 23 30 34 51 PV, 3% ...... 73 140 190 330 PV, 7% ...... 17 86 140 270 Annualized, 3% ...... 4.1 7.3 9.4 17 Annualized, 7% ...... 1 4.2 6.3 14 Notes: a The present value of reduced GHG emissions is calculated differently than other benefits. The same discount rate used to discount the value of damages from future emissions (SC–GHG at 5, 3, 2.5 percent) is used to calculate present value of SC–GHGs for internal consistency, while all other costs and benefits are discounted at either 3% or 7%. Annual costs and benefits shown are undiscounted values. b Note that the non-GHG impacts associated with the standards presented here do not include the full complement of health and environmental effects that, if quantified and monetized, would increase the total monetized benefits. Instead, the non-GHG benefits are based on benefit-per-ton values that reflect only human health impacts associated with reductions in PM2.5 exposure.
EPA also conducted a separate impacts of the proposed program on in Table 57 and Table 58 at both 3 analysis of the total benefits over the vehicles produced during each of the percent and 7 percent discount rates, model year lifetimes of the 2023 through model years 2023 through 2026 over the respectively. Similar to the calendar 2026 model year vehicles. In contrast to course of their expected lifetimes. The year analysis, the net benefits would the calendar year analysis presented in net societal benefits over the full exceed the costs of the program. Table 51 through Table 56 the model lifetimes of vehicles produced during year lifetime analysis below shows the each of the four model years are shown
TABLE 57—MONETIZED VEHICLE PROGRAM COSTS, FUEL SAVINGS, BENEFITS, AND NET BENEFITS ASSOCIATED WITH THE LIFETIMES OF 2023–2026 MODEL YEAR LIGHT-DUTY VEHICLES [Billions, 2018$; 3% discount rate] abc
Costs Fuel savings Benefits Net benefits MY ($) ($) ($) ($)
Present-Values
2023 ...... 4.8 3.6 0.89 to 4.5 ¥0.29 to 3.3 2024 ...... 5.9 7 1.8 to 8.8 2.8 to 9.8 2025 ...... 6.7 8.6 2 to 11 3.9 to 13 2026 ...... 8.1 13 3.6 to 17 8.8 to 22
Sum ...... 26 33 8.2 to 41 15 to 48
Annualized-Values
2023 ...... 0.21 0.16 0.044 to 0.19 ¥0.0072 to 0.14 2024 ...... 0.26 0.3 0.086 to 0.38 0.13 to 0.43 2025 ...... 0.29 0.37 0.1 to 0.46 0.18 to 0.55 2026 ...... 0.35 0.58 0.17 to 0.73 0.4 to 0.96
Sum ...... 1.1 1.4 0.4 to 1.8 0.71 to 2.1 Notes:
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a Model year values are discounted to 2021; the ‘‘Sum’’ represents those discounted values summed across model years. b The range of benefits and net benefits reflects the low to high range of SC–GHG values. The same discount rate used to discount the value of damages from future GHG emissions is used to calculate net present value of SC–GHGs for internal consistency, while all other costs and benefits are discounted at 3 percent in this table. c Note that the non-GHG impacts associated with the standards presented here do not include the full complement of health and environmental effects that, if quantified and monetized, would increase the total monetized benefits. Instead, the non-GHG benefits are based on benefit-per-ton values that reflect only human health impacts associated with reductions in PM2.5 exposure.
TABLE 58—MONETIZED COSTS, FUEL SAVINGS, BENEFITS, AND NET BENEFITS ASSOCIATED WITH THE LIFETIMES OF 2023–2026 MODEL YEAR LIGHT-DUTY VEHICLES [Billions, 2018$; 7% discount rate] abc
Costs Fuel savings Benefits Net benefits MY ($) ($) ($) ($)
Present-Values
2023 ...... 4.4 2.6 0.72 to 4.3 ¥1.1 to 2.5 2024 ...... 5.5 4.7 1.4 to 8.4 0.54 to 7.6 2025 ...... 6.1 5.5 1.6 to 10 1 to 9.7 2026 ...... 7.3 8.2 2.6 to 16 3.6 to 17
Sum ...... 23 21 6.3 to 39 4 to 37
Annualized-Values
2023 ...... 0.33 0.19 0.048 to 0.2 ¥0.089 to 0.061 2024 ...... 0.41 0.35 0.092 to 0.39 0.029 to 0.32 2025 ...... 0.45 0.41 0.1 to 0.47 0.064 to 0.43 2026 ...... 0.55 0.62 0.18 to 0.74 0.25 to 0.81
Sum ...... 1.7 1.6 0.42 to 1.8 0.25 to 1.6 Notes: a Model year values are discounted to 2021; the ‘‘Sum’’ represents those discounted values summed across model years. b The range of benefits and net benefits reflects the low to high range of SC–GHG values. The same discount rate used to discount the value of damages from future GHG emissions is used to calculate net present value of SC–GHGs for internal consistency, while all other costs and benefits are discounted at 7 percent in this table. c Note that the non-GHG impacts associated with the standards presented here do not include the full complement of health and environmental effects that, if quantified and monetized, would increase the total monetized benefits. Instead, the non-GHG benefits are based on benefit-per-ton values that reflect only human health impacts associated with reductions in PM2.5 exposure.
J. Impacts on Consumers of Vehicle reductions in fuel consumption will costs are distributed among new and Costs and Fuel Savings offset the increase in upfront costs. For used vehicle owners. Because Although the primary purpose of this instance, EPA estimates that, over the depreciation occurs over the lifetime of 183 regulatory action is to reduce GHG lifetime of a MY 2026 vehicle, the the vehicle, the net purchase cost to an emissions, the impact of the proposed reduction in fuel costs will exceed the owner will depend on the vehicle age EPA standards on consumers is an increase in vehicle costs by $883, using when it was bought, and, if sold, the 184 important consideration for EPA. This a 3 percent discount rate. length of time that the vehicle was chapter discusses the impact of the Another way to look at the effects on owned. A study from Argonne National proposed standards on consumer net vehicle buyers is to examine how the Laboratory provides estimates for the costs for purchasing and fueling depreciation of light-duty vehicles by analysis involving 5-year ownership periods, we age, as summarized in Table 59.185 If the vehicles. For further discussion of use the fuel costs associated with the initial year of impacts on vehicle sales, see Section purchase for each owner, i.e., 2026, 2031, 2036. The additional cost of fuel-saving technology VII.B; for impacts on affordability, see analysis includes the program flexibilities of credit depreciates at the same rates, then a Section VII.M. banking, fleet averaging, advanced technology person who buys a new vehicle and multipliers, and air conditioning and off-cycle sells it after 5 years would incur 60 EPA estimates that the average cost of credits. a new MY 2026 vehicle will increase by 183 The CCEMS models vehicles over a 40 year percent of the upfront costs (100 percent $1,044 due to the proposed standards, lifetime; however, it includes scrappage rates such of the original value, less 40 percent while we estimate that the average per- that fewer and fewer vehicles of any vintage remain paid back). Analogously, the person mile fuel cost in the first year will on the road year after year, and those vehicles that who buys the vehicle at age 5 would 182 remain are driven fewer and fewer miles year after decrease by 0.59 cents. Over time, year. incur 20 percent of those costs (40 184 The EPA Guidelines for Preparing Economic percent, less 20 percent paid back), and 182 See U.S. Environmental Protection Agency, Analysis, Chapter 6.4, suggests that a 3 percent the purchaser of the 10-year-old vehicle ‘‘Fuel Savings Offset to Vehicle Costs_ discount rate is appropriate for calculations would face a net 10 percent of the cost 20210610.xlsx,’’ in the docket for this and the other involving consumption, instead of the opportunity calculations in this section. Fuel prices are based cost of capital. Here, the discount rate is applied, of the technology after it is sold five on AEO2021 and change over time; for the beginning in 2026 when the vehicle is purchased Reference Case, the average retail fuel price for new, to the stream of fuel costs over the vehicle 185 Argonne National Laboratory (2021). years 2026–2036 ranged from $2.53 to $2.98/gallon lifetime. U.S. Environmental Protection Agency ‘‘Comprehensive Total Cost of Ownership (2020$) for gasoline and $0.118 to $0.119/kWh of (2010). ‘‘Guidelines for Preparing Economic Quantification for Vehicles with Different Size electricity (2020$). U.S. Energy Information Analysis,’’ Chapter 6. https://www.epa.gov/sites/ Classes and Powertrains.’’ ANL/ESD–21/4, Figure Administration (EIA), U.S. Department of Energy production/files/2017-09/documents/ee-0568- ES–2. https://publications.anl.gov/anlpubs/2021/ (DOE), Annual Energy Outlook, 2021. For the 06.pdf, accessed 6/14/2021. 05/167399.pdf, accessed 6/8/2021.
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years later at vehicle age 15. A person reflects fuel savings that offset 70 used vehicle would see an estimated purchasing a new vehicle, driving the percent of the depreciation cost. The reduction of net cost of $314. In general, average fleetwide VMT for the given age buyer of that 5-year-old used vehicle the purchasers of older vehicles will see and facing the fuel prices used in this would see an estimated reduction in net a greater portion of their depreciation analysis, would face an estimated net cost—that is, a net saving—of $230, costs offset by fuel savings. cost of $204, shown in Table 60, which while the buyer of that same 10-year-old
TABLE 59—DEPRECIATION ESTIMATES FOR LIGHT DUTY VEHICLES
Vehicle age 1 2 3 4 5 10 15
Fraction of original value retained...... 0.70 0.61 0.53 0.475 0.40 0.20 0.10 Estimated by Argonne National Laboratory using Edmunds data for MY2013–2019 vehicles (see figure ES–2).185
TABLE 60—IMPACT OF PROPOSED STANDARDS ON DEPRECIATION AND FUEL COSTS FOR MY 2026 VEHICLE OVER 5 YEARS OF OWNERSHIP
Portion of Vehicle depreciation depreciation costs offset plus fuel by fuel costs savings ($) (%)
Vehicle Purchased New ...... 204 70 Vehicle Purchased at Age 5 ...... (230) 197 Vehicle Purchased at Age 10 ...... (314) 365 Calculated using analysis VMT assumptions for proposed standards, using a 3% discount rate from year of purchase.
Because the use of vehicles varies measure makes clear, the financial effect Table 61 shows, for purchasers of widely across vehicle owners, another on a new vehicle owner depends on the different-age MY 2026 vehicles, how the way to estimate the effects of the amount that the vehicle is driven. degree to which fuel savings offset standards is to examine the ‘‘break Mobility service providers, such as taxis depreciation costs will depend on even’’ number of miles—that is, the or ride-sharing services, are likely to vehicle use levels.187 Cost recovery is number of miles driven that would accumulate miles more quickly than again higher for older vehicles, and result in fuel savings matching the most people who use their vehicles for faster for vehicles that accumulate VMT increase in up-front costs. For example, personal use. As discussed in Section more quickly. For example, a consumer if operating costs of a MY 2026 vehicle VII.M, the lower per-mile cost for these who purchases a 5-year old used decrease by 0.59 cents per mile due to vehicles may reduce the importance of MY2026 vehicle would recover their reduced fuel consumption, the upfront up-front costs in the charge for mobility vehicle costs through fuel savings after costs (when purchased new) would be as a service, and thus further enable use only 31,000 miles of driving. recovered after 177,000 miles of driving, excluding discounting.186 As this of that service.
TABLE 61—PROPORTION OF DEPRECIATION COSTS OFFSET BY FUEL SAVINGS, FOR NEW AND USED VEHICLE PURCHASERS, FOR A MY2026 VEHICLE
When vehicle When vehicle When vehicle purchased purchased at 5 purchased at new years old 10 years old (%) (%) (%)
Portion of vehicle depreciation cost offset by fuel savings At 10,000 miles ...... 9 32 69 (own vehicle for 5 years). At 50,000 miles ...... 47 161 347 At 100,000 miles ...... 94 322 693 Miles where fuel savings fully offset the vehicle owner’s de- Owned vehicle for 5 years ..... 106,000 31,000 14,000 preciation cost. Owned vehicle for full remain- 177,000 62,000 28,000 ing lifetime.
Thus, the financial effects on a person drives, as well as whether the Importantly, all people receive the vehicle buyer depend on how much that vehicle is bought new or used.
186 This estimate is calculated as the increase in 187 The up-front costs for each purchaser are $0.0059, and is multiplied by the number of miles cost, $1044, divided by the reduced per-mile cost, based on the cost to the owner based on the in the second column. The remaining columns are $0.0059, to get miles until cost is recovered. depreciated price for the vehicle’s age, with cost recovery divided by the relevant cost. recovery of some further depreciated cost after 5 Discounting is not used to abstract from the VMT years of ownership. Cost recovery per mile is occurring during a specified timeframe.
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benefits of reduced GHG emissions, the abatement costs into three separate percent increase. If automakers primary focus of this rule. components. First, there is a demand underestimate consumers’ valuation of effect caused by higher production costs fuel economy, as noted in Section VII.B, K. Employment Impacts raising market prices. Higher prices then demand-effect employment is If the U.S. economy is at full reduce consumption (and production), likely to be higher, and employment employment, even a large-scale reducing demand for labor within the impacts are likely to be more positive. environmental regulation is unlikely to regulated industry. Second, there is a Note that these are employment have a noticeable impact on aggregate cost effect where, as production costs impacts in the directly regulated sector, net employment.188 Instead, labor increase, plants use more of all inputs, plus the impacts for automotive dealers. would primarily be reallocated from one including labor, to produce the same These do not include economy-wide productive use to another, and net level of output. Third, there is a factor- labor impacts. As discussed earlier, national employment effects from shift effect where post-regulation economy-wide impacts on employment environmental regulation would be production technologies may have are generally driven by broad small and transitory (e.g., as workers different labor intensities. Other macroeconomic effects. It also does not 189 move from one job to another). researchers use different frameworks reflect employment effects due to Affected sectors may nevertheless along a similar vein.192 reduced spending on fuel consumption. experience transitory effects as workers DRIA Chapter 8.2 discusses the Those changes may lead to some change jobs. Some workers may retrain calculation of employment impacts in reductions in employment in gas or relocate in anticipation of new the model used for this analysis. The stations, and some increases in other requirements or require time to search estimates include effects on three sectors to which people reallocate those for new jobs, while shortages in some sectors: Automotive dealers, final expenditures. sectors or regions could bid up wages to assembly labor and parts production, Electrification of the vehicle fleet is attract workers. These adjustment costs and fuel economy technology labor. The likely to affect both the number and the can lead to local labor disruptions. Even first two of these are examples of nature of employment in the auto and if the net change in the national Morgenstern et al.’s (2002) demand- parts sectors and related sectors, such as workforce is small, localized reductions effect employment, while the third providers of charging infrastructure. in employment may adversely impact reflects cost-effect employment. For Because this proposal projects relatively individuals and communities just as automotive dealers, the model estimates minor increases in penetration of plug- localized increases may have positive the hours involved in each new vehicle in electric vehicles, from 4.6 percent in impacts. sale. To estimate the labor involved in MY 2023 to 8.4 percent in MY 2026 (see If the economy is operating at less final assembly, the model used average Table 42), we do not predict major than full employment, economic theory labor hours per vehicle at a sample of does not clearly indicate the direction or changes in the composition of U.S. assembly plants, adjusted by the employment in these sectors for MYs magnitude of the net impact of ratio of vehicle assembly manufacturing environmental regulation on 2023–2026. EPA will continue to assess employment to employment for total changes in employment as employment; it could cause either a vehicle and equipment manufacturing short-run net increase or short-run net electrification of the auto industry for new vehicles. Finally, for fuel proceeds. decrease.190 At the level of individual economy technology labor, DOT companies, employers affected by calculated the average revenue per job- L. Environmental Justice environmental regulation may increase year for automakers. Executive Order 12898 (59 FR 7629, their demand for some types of labor, EPA’s assessment of employment February 16, 1994) establishes federal decrease demand for other types of impacts, in DRIA Chapter 8.2.3, using executive policy on environmental labor, or for still other types, not change the sales assumptions of both justice. It directs federal agencies, to the it at all. The uncertain direction of labor automakers and consumers using 2.5 greatest extent practicable and impacts is due to the different channels years of fuel consumption in vehicle permitted by law, to make achieving by which regulations affect labor decisions and a demand elasticity of environmental justice part of their demand. ¥1, shows initial very small decreases mission by identifying and addressing, Morgenstern et al. (2002) 191 in employment of 0.1 percent, followed as appropriate, disproportionately high decompose the labor consequences in a by small positive gains (less than 1 and adverse human health or regulated industry facing increased percent) in employment due to the labor environmental effects of their programs, involved in producing the technologies 188 policies, and activities on minority Full employment is a conceptual target for the needed to meet the proposed standards. economy where everyone who wants to work and populations and low-income is available to do so at prevailing wages is actively If, instead, we use the sensitivity analysis with a demand elasticity of populations in the United States. EPA employed. The unemployment rate at full defines environmental justice as the fair employment is not zero. ¥0.4, employment is higher for both the 189 Arrow et al. (1996). ‘‘Benefit-Cost Analysis in no-action alternative and the proposed treatment and meaningful involvement Environmental, Health, and Safety Regulation: A standards. Between the no-action of all people regardless of race, color, Statement of Principles.’’ American Enterprise alternative and the proposal, with an national origin, or income with respect Institute, The Annapolis Center, and Resources for to the development, implementation, the Future. See discussion on bottom of p. 6. In elasticity of ¥0.4, the employment practice, distributional impacts on individual impacts are positive, rising to about a 2 and enforcement of environmental laws, workers can be important, as discussed later in this regulations, and policies.193 section. 192 Berman, E. and Bui, L. T. M. (2001). 190 Schmalensee, Richard, and Stavins, Robert N. ‘‘Environmental Regulation and Labor Demand: 193 Fair treatment means that ‘‘no group of people ‘‘A Guide to Economic and Policy Analysis of EPA’s Evidence from the South Coast Air Basin.’’ Journal should bear a disproportionate burden of Transport Rule.’’ White paper commissioned by of Public Economics 79(2): 265–295; Descheˆnes, O. environmental harms and risks, including those Excelon Corporation, March 2011. (2018). ‘‘Balancing the Benefits of Environmental resulting from the negative environmental 191 Morgenstern, R.D.; Pizer, W.A.; and Shih, J.- Regulations for Everyone and the Costs to Workers consequences of industrial, governmental and S. (2002). ‘‘Jobs Versus the Environment: An and Firms.’’ IZA World of Labor 22v2. https:// commercial operations or programs and policies.’’ Industry-Level Perspective.’’ Journal of wol.iza.org/uploads/articles/458/pdfs/ Meaningful involvement occurs when ‘‘(1) Environmental Economics and Management 43: environmental-regulations-and-labor-markets.pdf, potentially affected populations have an 412–436. 2002. accessed 4/19/2021. Continued
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Executive Order 14008 (86 FR 7619, the effects of the pollutant(s) are more (USGCRP),195 196 the Intergovernmental February 1, 2021) also calls on Agencies concentrated in some population Panel on Climate Change to make achieving environmental justice groups). (2) Is there evidence of (IPCC),197 198 199 200 and the National part of their missions ‘‘by developing potential EJ concerns for the regulatory Academies of Science, Engineering, and programs, policies, and activities to option(s) under consideration? Medicine 201 202 add more evidence that address the disproportionately high and Specifically, how are the pollutant(s) adverse human health, environmental, and its effects distributed for the 195 USGCRP, 2018: Impacts, Risks, and climate-related and other cumulative regulatory options under consideration? Adaptation in the United States: Fourth National Climate Assessment, Volume II [Reidmiller, D.R., impacts on disadvantaged communities, And, (3) Do the regulatory option(s) C.W. Avery, D.R. Easterling, K.E. Kunkel, K.L.M. as well as the accompanying economic under consideration exacerbate or Lewis, T.K. Maycock, and B.C. Stewart (eds.)]. U.S. challenges of such impacts.’’ It also mitigate EJ concerns relative to the Global Change Research Program, Washington, DC, declares a policy ‘‘to secure baseline? It is not always possible to USA, 1515 pp. doi: 10.7930/NCA4.2018. environmental justice and spur quantitatively assess these questions. 196 USGCRP, 2016: The Impacts of Climate Change on Human Health in the United States: A economic opportunity for disadvantaged EPA’s 2016 Technical Guidance does Scientific Assessment. Crimmins, A., J. Balbus, J.L. communities that have been historically not prescribe or recommend a specific Gamble, C.B. Beard, J.E. Bell, D. Dodgen, R.J. Eisen, marginalized and overburdened by approach or methodology for N. Fann, M.D. Hawkins, S.C. Herring, L. pollution and under-investment in conducting an environmental justice Jantarasami, D.M. Mills, S. Saha, M.C. Sarofim, J. Trtanj, and L. Ziska, Eds. U.S. Global Change housing, transportation, water and analysis, though a key consideration is Research Program, Washington, DC, 312 pp. http:// wastewater infrastructure and health consistency with the assumptions dx.doi.org/10.7930/J0R49NQX. care.’’ Under Executive Order 13563 (76 underlying other parts of the regulatory 197 Oppenheimer, M., M. Campos, R. Warren, J. FR 3821), federal agencies may consider analysis when evaluating the baseline Birkmann, G. Luber, B. O’Neill, and K. Takahashi, 2014: Emergent risks and key vulnerabilities. In: equity, human dignity, fairness, and and regulatory options. Where Climate Change 2014: Impacts, Adaptation, and distributional considerations, where applicable and practicable, the Agency Vulnerability. Part A: Global and Sectoral Aspects. appropriate and permitted by law. endeavors to conduct such an analysis. Contribution of Working Group II to the Fifth EPA’s 2016 ‘‘Technical Guidance for Going forward, EPA is committed to Assessment Report of the Intergovernmental Panel Assessing Environmental Justice in conducting environmental justice on Climate Change [Field, C.B., V.R. Barros, D.J. Dokken, K.J. Mach, M.D. Mastrandrea, T.E. Bilir, M. Regulatory Analysis’’ provides analysis for rulemakings based on a Chatterjee, K.L. Ebi, Y.O. Estrada, R.C. Genova, B. recommendations on conducting the framework similar to what is outlined in Girma, E.S. Kissel, A.N. Levy, S. MacCracken, P.R. highest quality analysis feasible, EPA’s Technical Guidance, in addition Mastrandrea, and L.L. White (eds.)]. Cambridge recognizing that data limitations, time to investigating ways to further weave University Press, Cambridge, United Kingdom and New York, NY, USA, pp. 1039–1099. and resource constraints, and analytic environmental justice into the fabric of 198 Porter, J.R., L. Xie, A.J. Challinor, K. Cochrane, challenges will vary by media and the rulemaking process. EPA greatly S.M. Howden, M.M. Iqbal, D.B. Lobell, and M.I. regulatory context.194 values input from EJ stakeholders and Travasso, 2014: Food security and food production When assessing the potential for communities and looks forward to systems. In: Climate Change 2014: Impacts, disproportionately high and adverse engagement as we consider the impacts Adaptation, and Vulnerability. Part A: Global and Sectoral Aspects. Contribution of Working Group II health or environmental impacts of of light-duty vehicle emissions. to the Fifth Assessment Report of the regulatory actions on minority 1. GHG Impacts Intergovernmental Panel on Climate Change [Field, populations, low-income populations, C.B., V.R. Barros, D.J. Dokken, K.J. Mach, M.D. tribes, and/or indigenous peoples, EPA In 2009, under the Endangerment and Mastrandrea, T.E. Bilir, M. Chatterjee, K.L. Ebi, Y.O. Cause or Contribute Findings for Estrada, R.C. Genova, B. Girma, E.S. Kissel, A.N. strives to answer three broad questions: Levy, S. MacCracken, P.R. Mastrandrea, and L.L. (1) Is there evidence of potential EJ Greenhouse Gases Under Section 202(a) White (eds.)]. Cambridge University Press, concerns in the baseline (the state of the of the Clean Air Act (‘‘Endangerment Cambridge, United Kingdom and New York, NY, world absent the regulatory action)? Finding’’), the Administrator considered USA, pp. 485–533. Assessing the baseline will allow EPA to how climate change threatens the health 199 Smith, K.R., A. Woodward, D. Campbell- Lendrum, D.D. Chadee, Y. Honda, Q. Liu, J.M. determine whether pre-existing and welfare of the U.S. population. As Olwoch, B. Revich, and R. Sauerborn, 2014: Human disparities are associated with the part of that consideration, she also health: Impacts, adaptation, and co-benefits. In: pollutant(s) under consideration (e.g., if considered risks to minority and low- Climate Change 2014: Impacts, Adaptation, and income individuals and communities, Vulnerability. Part A: Global and Sectoral Aspects. Contribution of Working Group II to the Fifth appropriate opportunity to participate in decisions finding that certain parts of the U.S. Assessment Report of the Intergovernmental Panel about a proposed activity [e.g., rulemaking] that population may be especially vulnerable on Climate Change [Field, C.B., V.R. Barros, D.J. will affect their environment and/or health; (2) the based on their characteristics or Dokken, K.J. Mach, M.D. Mastrandrea, T.E. Bilir, M. public’s contribution can influence [the EPA’s Chatterjee, K.L. Ebi, Y.O. Estrada, R.C. Genova, B. rulemaking] decision; (3) the concerns of all circumstances. These groups include Girma, E.S. Kissel, A.N. Levy, S. MacCracken, P.R. participants involved will be considered in the economically and socially Mastrandrea, and L.L. White (eds.)]. Cambridge decision-making process; and (4) [the EPA will] disadvantaged communities; University Press, Cambridge, United Kingdom and seek out and facilitate the involvement of those New York, NY, USA, pp. 709–754. potentially affected’’ A potential EJ concern is individuals at vulnerable lifestages, 200 ° defined as ‘‘the actual or potential lack of fair such as the elderly, the very young, and IPCC, 2018: Global Warming of 1.5 C. An IPCC treatment or meaningful involvement of minority Special Report on the impacts of global warming of pregnant or nursing women; those ° populations, low-income populations, tribes, and already in poor health or with 1.5 C above pre-industrial levels and related global indigenous peoples in the development, greenhouse gas emission pathways, in the context implementation and enforcement of environmental comorbidities; the disabled; those of strengthening the global response to the threat of laws, regulations and policies.’’ See ‘‘Guidance on experiencing homelessness, mental climate change, sustainable development, and Considering Environmental Justice During the illness, or substance abuse; and/or efforts to eradicate poverty [Masson-Delmotte, V., P. ¨ Development of an Action.’’ Environmental Indigenous or minority populations Zhai, H.-O. Portner, D. Roberts, J. Skea, P.R. Shukla, Protection Agency, www.epa.gov/ A. Pirani, W. Moufouma-Okia, C. Pe´an, R. Pidcock, environmentaljustice/guidanceconsidering- dependent on one or limited resources S. Connors, J.B.R. Matthews, Y. Chen, X. Zhou, M.I. environmental-justice-duringdevelopment-action. for subsistence due to factors including Gomis, E. Lonnoy, T. Maycock, M. Tignor, and T. See also https://www.epa.gov/environmentaljustice. but not limited to geography, access, Waterfield (eds.)]. In Press. 201 194 ‘‘Technical Guidance for Assessing and mobility. National Research Council. 2011. America’s Climate Choices. Washington, DC: The National Environmental Justice in Regulatory Analysis.’’ Scientific assessment reports Epa.gov, Environmental Protection Agency, https:// Academies Press. https://doi.org/10.17226/12781. www.epa.gov/sites/production/files/2016-06/ produced over the past decade by the 202 National Academies of Sciences, Engineering, documents/ejtg_5_6_16_v5.1.pdf. U.S. Global Change Research Program and Medicine. 2017. Communities in Action:
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the impacts of climate change raise outcomes, which is problematic as these extreme weather events. In addition, potential environmental justice diseases occur at higher rates within children are among those especially concerns. These reports conclude that vulnerable communities. Importantly, susceptible to allergens, as well as poorer or predominantly non-White negative public health outcomes include health effects associated with heat communities can be especially those that are physical in nature, as well waves, storms, and floods. Additional vulnerable to climate change impacts as mental, emotional, social, and health concerns may arise in low- because they tend to have limited economic. income households, especially those adaptive capacities and are more To this end, the scientific assessment with children, if climate change reduces dependent on climate-sensitive literature, including the aforementioned food availability and increases prices, resources such as local water and food reports, demonstrates that there are leading to food insecurity within supplies, or have less access to social myriad ways in which these households. and information resources. Some populations may be affected at the The Impacts of Climate Change on communities of color, specifically individual and community levels. Human Health 203 also found that some populations defined jointly by ethnic/ Individuals face differential exposure to communities of color, low-income racial characteristics and geographic criteria pollutants, in part due to the groups, people with limited English location, may be uniquely vulnerable to proximities of highways, trains, proficiency, and certain immigrant climate change health impacts in the factories, and other major sources of groups (especially those who are United States. In particular, the 2016 pollutant-emitting sources to less- undocumented) live with many of the scientific assessment on the Impacts of affluent residential areas. Outdoor factors that contribute to their Climate Change on Human Health 203 workers, such as construction or utility vulnerability to the health impacts of found with high confidence that crews and agricultural laborers, who climate change. While difficult to isolate vulnerabilities are place- and time- frequently are comprised of already at- from related socioeconomic factors, race specific, lifestages and ages are linked to risk groups, are exposed to poor air appears to be an important factor in immediate and future health impacts, quality and extreme temperatures vulnerability to climate-related stress, and social determinants of health are without relief. Furthermore, individuals with elevated risks for mortality from linked to greater extent and severity of within EJ populations of concern face high temperatures reported for Black or climate change-related health impacts. greater housing and clean water African American individuals compared insecurity and bear disproportionate to White individuals after controlling i. Effects on Specific Populations of economic impacts and health burdens for factors such as air conditioning use. Concern associated with climate change effects. Moreover, people of color are Individuals living in socially and They have less or limited access to disproportionately exposed to air economically disadvantaged healthcare and affordable, adequate pollution based on where they live, and communities, such as those living at or health or homeowner insurance. disproportionately vulnerable due to below the poverty line or who are Finally, resiliency and adaptation are higher baseline prevalence of experiencing homelessness or social more difficult for economically underlying diseases such as asthma, so isolation, are at greater risk of health disadvantaged communities: They have climate exacerbations of air pollution effects from climate change. This is also less liquidity, individually and are expected to have disproportionate true with respect to people at vulnerable collectively, to move or to make the effects on these communities. lifestages, specifically women who are types of infrastructure or policy changes Native American Tribal communities pre- and perinatal, or are nursing; in to limit or reduce the hazards they face. possess unique vulnerabilities to utero fetuses; children at all stages of They frequently are less able to self- climate change, particularly those development; and the elderly. Per the advocate for resources that would impacted by degradation of natural and Fourth National Climate Assessment, otherwise aid in resiliency and hazard cultural resources within established ‘‘Climate change affects human health reduction and mitigation. reservation boundaries and threats to by altering exposures to heat waves, The assessment literature cited in traditional subsistence lifestyles. Tribal floods, droughts, and other extreme EPA’s 2009 and 2016 Endangerment communities whose health, economic events; vector-, food- and waterborne Findings, as well as Impacts of Climate well-being, and cultural traditions infectious diseases; changes in the Change on Human Health, also depend upon the natural environment quality and safety of air, food, and concluded that certain populations and will likely be affected by the water; and stresses to mental health and life stages, including children, are most degradation of ecosystem goods and well-being.’’ 204 Many health conditions vulnerable to climate-related health services associated with climate change. such as cardiopulmonary or respiratory effects. The assessment literature The IPCC indicates that losses of illness and other health impacts are produced from 2016 to the present customs and historical knowledge may associated with and exacerbated by an strengthens these conclusions by cause communities to be less resilient or increase in GHGs and climate change providing more detailed findings adaptable.205 The Fourth National regarding related vulnerabilities and the Climate Assessment (2018) noted that Pathways to Health Equity. Washington, DC: The projected impacts youth may while Indigenous peoples are diverse National Academies Press. https://doi.org/ experience. These assessments— 10.17226/24624. and will be impacted by the climate 203 USGCRP, 2016: The Impacts of Climate including the Fourth National Climate changes universal to all Americans, Change on Human Health in the United States: A Assessment (2018) and The Impacts of there are several ways in which climate Scientific Assessment. Climate Change on Human Health in change uniquely threatens Indigenous 204 Ebi, K.L., J.M. Balbus, G. Luber, A. Bole, A. the United States (2016)—describe how peoples’ livelihoods and economies.206 Crimmins, G. Glass, S. Saha, M.M. Shimamoto, J. children’s unique physiological and Trtanj, and J.L. White-Newsome, 2018: Human Health. In Impacts, Risks, and Adaptation in the developmental factors contribute to 205 Porter et al., 2014: Food security and food United States: Fourth National Climate Assessment, making them particularly vulnerable to production systems. Volume II [Reidmiller, D.R., C.W. Avery, D.R. climate change. Impacts to children are 206 Jantarasami, L.C., R. Novak, R. Delgado, E. Easterling, K.E. Kunkel, K.L.M. Lewis, T.K. expected from heat waves, air pollution, Marino, S. McNeeley, C. Narducci, J. Raymond- Maycock, and B.C. Stewart (eds.)]. U.S. Global Yakoubian, L. Singletary, and K. Powys Whyte, Change Research Program, Washington, DC, USA, infectious and waterborne illnesses, and 2018: Tribes and Indigenous Peoples. In Impacts, pp. 539–571. doi: 10.7930/NCA4.2018.CH14. mental health effects resulting from Continued
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In addition, there can institutional emissions reductions from the Analyses of communities in close barriers to their management of water, combination of ‘‘upstream’’ emissions proximity to upstream sources, such as land, and other natural resources that sources related to extracting, refining, EGUs, have found that a higher could impede adaptive measures. transporting, and storing petroleum percentage of communities of color and For example, Indigenous agriculture fuels. We also expect small increases in low-income communities live near these in the Southwest is already being emissions from upstream electricity sources when compared to national adversely affected by changing patterns generating units (EGUs). A possible averages.214 Vulnerable populations of flooding, drought, dust storms, and increase in emissions from coal- and near upstream refineries may experience rising temperatures leading to increased NG-fired electricity generation to meet potential disparities in pollution-related soil erosion, irrigation water demand, increased EV electricity demand could health risk from that source.215 We and decreased crop quality and herd result in adverse EJ impacts. For on-road expect that small increases in non-GHG sizes. The Confederated Tribes of the light duty vehicles, the proposed emissions from EGUs and small Umatilla Indian Reservation in the standards would reduce total non-GHG reductions in petroleum-sector Northwest have identified climate risks emissions, though we expect small emissions would lead to small changes to salmon, elk, deer, roots, and increases in some non-GHG emissions in exposure to these non-GHG huckleberry habitat. Housing and in the years immediately following pollutants for people living in the sanitary water supply infrastructure are implementation of the proposal, communities near these facilities. vulnerable to disruption from extreme followed by growing decreases in There is also substantial evidence that precipitation events. emissions in later years. This is due to people who live or attend school near NCA4 noted that Indigenous peoples our assumptions about increased major roadways are more likely to be of often have disproportionately higher ‘‘rebound’’ driving. See Table 44 for a racial minority, Hispanic ethnicity, rates of asthma, cardiovascular disease, more detail on the estimated non-GHG and/or low socioeconomic status.216 217 Alzheimer’s, diabetes, and obesity, emissions impacts of the proposal.208 As We would expect that communities near which can all contribute to increased discussed in Section I.A.3 of the roads will benefit from reductions of vulnerability to climate-driven extreme Executive Summary, future EPA non-GHG pollutants as fuel efficiency heat and air pollution events. These regulatory actions that would result in improves and the use of zero-emission factors also may be exacerbated by increased zero-emission vehicles and vehicles (such as full battery electric stressful situations, such as extreme cleaner energy generation would more vehicles) increases, though increased weather events, wildfires, and other significantly change the non-GHG rebound driving may offset some of circumstances. impacts of transportation and electricity these emission reductions, especially in 207 NCA4 and IPCC AR5 also generation, and those impacts will be the years immediately after finalization highlighted several impacts specific to analyzed in more detail in those future of the proposed standards. Alaskan Indigenous Peoples. Coastal actions. erosion and permafrost thaw will lead to There is evidence that communities Although proximity to an emissions more coastal erosion, exacerbated risks with EJ concerns are disproportionately source is a useful indicator of potential of winter travel, and damage to impacted by the non-GHG emissions exposure, it is important to note that the buildings, roads, and other associated with this proposal.209 impacts of emissions from both infrastructure—these impacts on Numerous studies have found that upstream and tailpipe sources are not archaeological sites, structures, and environmental hazards such as air limited to communities in close objects that will lead to a loss of cultural pollution are more prevalent in areas proximity to these sources. The effects heritage for Alaska’s Indigenous people. where minority populations and low- of potential increases and decreases in In terms of food security, the NCA income populations represent a higher emissions from the sources affected by discussed reductions in suitable ice fraction of the population compared this proposal might also be felt many conditions for hunting, warmer with the general population.210 211 212 miles away, including in communities temperatures impairing the use of Consistent with this evidence, a recent with EJ concerns. The spatial extent of traditional ice cellars for food storage, study found that most anthropogenic these impacts from upstream and tailpipe sources depend on a range of and declining shellfish populations due sources of PM2.5, including industrial to warming and acidification. While the sources, and light- and heavy-duty interacting and complex factors NCA also noted that climate change vehicle sources, disproportionately including the amount of pollutant provided more opportunity to hunt from affect people of color.213 emitted, atmospheric chemistry and boats later in the fall season or earlier meteorology. in the spring, the assessment found that 209 Mohai, P.; Pellow, D.; Roberts Timmons, J. the net impact was an overall decrease (2009) Environmental justice. Annual Reviews 34: disproportionately and systemically affect people of 405–430. https://doi.org/10.1146/annurev-environ- color in the United States. Sci. Adv. 7, eabf4491 in food security. 082508-094348. (2021). 2. Non-GHG Impacts 210 Rowangould, G.M. (2013) A census of the 214 See 80 FR 64662, 64915–64916 (October 23, near-roadway population: public health and 2015). In addition to significant climate environmental justice considerations. Trans Res D 215 U.S. EPA (2014). Risk and Technology change benefits, the proposed standards 25: 59–67. http://dx.doi.org/10.1016/ Review—Analysis of Socio-Economic Factors for would also impact non-GHG emissions. j.trd.2013.08.003. Populations Living Near Petroleum Refineries. 211 Marshall, J.D., Swor, K.R.; Nguyen, N.P (2014) Office of Air Quality Planning and Standards, In general, we expect small non-GHG Prioritizing environmental justice and equality: Research Triangle Park, North Carolina. January. diesel emissions in Southern California. Environ 216 Tian, N.; Xue, J.; Barzyk. T.M. (2013) Risks, and Adaptation in the United States: Fourth Sci Technol 48: 4063–4068. https://doi.org/10.1021/ Evaluating socioeconomic and racial differences in National Climate Assessment, Volume II es405167f. traffic-related metrics in the United States using a [Reidmiller, D.R., C.W. Avery, D.R. Easterling, K.E. 212 Marshall, J.D. (2000) Environmental GIS approach. J Exposure Sci Environ Epidemiol Kunkel, K.L.M. Lewis, T.K. Maycock, and B.C. inequality: air pollution exposures in California’s 23: 215–222. Stewart (eds.)]. U.S. Global Change Research South Coast Air Basin. Atmos Environ 21: 5499– 217 Boehmer, T.K.; Foster, S.L.; Henry, J.R.; Program, Washington, DC, USA, pp. 572–603. doi: 5503. https://doi.org/10.1016/ Woghiren-Akinnifesi, E.L.; Yip, F.Y. (2013) 10.7930/NCA4.2018.CH15. j.atmosenv.2008.02.005. Residential proximity to major highways—United 207 Porter et al., 2014: Food security and food 213 C.W. Tessum, D.A. Paolella, S.E. Chambliss, States, 2010. Morbidity and Mortality Weekly production systems. J.S. Apte, J.D. Hill, J.D. Marshall, PM2.5 polluters Report 62(3): 46–50.
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In summary, we expect this proposed discussed in Cassidy et al. (2016),218 new vehicle affordability: How the rule would result in both small researchers have generally applied the standards affect lower-income reductions and small increases of non- term to necessities such as food, households; how the standards affect GHG emissions. These effects could housing, or energy, and have identified the used vehicle market; how the potentially impact communities with EJ some themes related to: standards affect access to credit; and concerns, though not necessarily Instead of focusing on the traditional how the standards affect the low-priced immediately and not equally in all economic concept of willingness to pay, any vehicle segment. See DRIA Chapter 8.3 locations. For this proposal, the air consideration of affordability must also for further detail. quality information needed to perform a consider the ability to pay for a socially The effects of the standards on lower- quantified analysis of the distribution of defined minimum level of a good, especially income households depend on the such impacts was not available. We of a necessity. responses not just to up-front costs but Although the ability to pay is often based therefore recommend caution when also to the reduction in fuel and on the proportion of income devoted to operating costs associated with the interpreting these broad, qualitative expenditures on a particular good, this ratio observations. We note that EPA intends approach is widely criticized for not standards. These responses will affect to develop a future rule to control considering expenditures on other possibly not only the sales of new vehicles, as emissions of GHGs as well as criteria necessary goods, quality differences in the discussed in Sections 0 and VII.B, but and air toxic pollutants from light-duty good, and heterogeneity of consumer also the prices of used vehicles as well vehicles for model years beyond 2026. preferences for the good. as the costs associated with ride-hailing We are considering how to project air Assessing affordability should take into and ride-sharing services. A recent account both the short-term costs and long- quality impacts from the changes in study notes that lower-income term costs associated with consumption of a households spend more on gasoline as non-GHG emissions for that future particular good. rulemaking (see Section V.C). EPA is a proportion of their income than As noted in Cassidy et al. (2016), 220 also seeking comment on how to higher-income households. In there is very little literature applying the conduct an EJ analysis of the non-GHG addition, the Proposed Determination, concept of affordability to impacts associated with mobile source Appendix B.1.6, observed that lower- transportation, much less to vehicle rulemakings, including how EV income households spend more on ownership. It is not clear how to penetration in the future fleet would gasoline than on either new or used identify a socially acceptable minimum affect these impacts. vehicles, and more on used vehicles level of transportation service. However, than new ones, suggesting the M. Affordability and Equity Impacts it seems reasonable that some minimum importance of operating costs for these level of transportation services is The impacts of the proposed households. If the per-mile costs of necessary to enable households access standards on social equity depend in services such as ride hailing and ride to employment, education, and basic part on their effects on the affordability sharing decrease to reflect lower services such as buying food. It also of vehicles and transportation services, operating costs, those who do not own seems reasonable to assume that especially for lower-income households. vehicles may benefit. transportation requirements vary Access to transportation improves the If sales of new vehicles decrease, then substantially across populations and ability of people, including those with prices of used vehicles, which are geographic locations, and it is not clear disproportionately purchased by lower- low income, to pursue jobs, education, when consumption of transportation income households, would be expected health care, and necessities of daily life moves from being a necessity to to increase; the reverse would happen if such as food and housing. This section optional. Normatively defining the new vehicle sales increase. These effects discusses how these standards might minimum adequate level of in the used vehicle market also affect affect affordability of vehicles. We transportation consumption is difficult how long people hold onto their used acknowledge that vehicles, especially given the heterogeneity of consumer vehicles. This effect, sometimes termed household ownership of vehicles, are preferences and living situations. As a the ‘‘Gruenspecht effect’’ after only a portion of the larger issues result, it is challenging to define how Gruenspecht (1982),221 would lead to concerning access to transportation and much residual income should remain both slower adoption of vehicles subject mobility services, which also takes into with each household after to the new standards, and more use of consideration public transportation and transportation expenditures. It is older vehicles not subject to the new land use design. Though these issues are therefore not surprising that academic standards, with associated higher inextricably linked, the following and policy literature have largely emissions, if new vehicle sales decrease. discussion focuses on effects related to avoided attempting to define The Gruenspecht effect, therefore, may private vehicle ownership and use. We transportation affordability. have the additional consequence of also acknowledge that the emissions of We are following the approach in the increased concentrations of older vehicles, both local pollutants and 2016 EPA Proposed Determination for vehicles in some communities in the GHGs, can have disproportionate the Midterm Evaluation 219 of short term, and may delay benefits impacts on lower-income and minority considering four questions that relate to associated with advanced vehicle communities; see Preamble Section I.E the effects of the LDV GHG standards on technologies for those communities. As for further discussion of these topics. discussed in Section VII.B, new vehicle Finally, we note that social equity 218 Cassidy, A., G. Burmeister, and G. Helfand. involves issues beyond income and ‘‘Impacts of the Model Year 2017–2025 Light-Duty 220 Vaidyanathan, S., P. Huether, and B. affordability, including race, ethnicity, Vehicle Greenhouse Gas Emission Standards on Jennings (2021). ‘‘Understanding Transportation gender, gender identification, and Vehicle Affordability.’’ Working paper. Energy Burdens.’’ Washington, DC: American residential location; EPA will continue 219 U.S. Environmental Protection Agency (2016). Council for an Energy-Efficient White Paper. Proposed Determination on the Appropriateness of https://www.aceee.org/white-paper/2021-05/ to examine such impacts and seeks the Model Year 2022–2025 Light-Duty Vehicle understanding-transportation-energy-burdens, comment on the impact of this proposal Greenhouse Gas Emissions Standards under the accessed 5/24/2021. on additional dimensions of equity. Midterm Evaluation, Chapter 4.3.3. EPA–420–R– 221 Gruenspecht, H. (1982). ‘‘Differentiated Affordability is not a well-defined 16–020. https://nepis.epa.gov/Exe/ Regulation: The Case of Auto Emissions ZyPDF.cgi? Dockey=P100Q3DO.pdf, accessed 4/26/ Standards.’’ American Economic Review 72: 328– concept in academic literature. As 2021. 331.
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sales are projected to show a roughly 2 achieving CAFE standards.225 The compared to used vehicles. The percent decrease from sales under the footprint-based standards, by reduction in operating costs has the SAFE rule; that value depends on the encouraging improvements in GHG potential to mitigate or reverse all these uncertain assumption that vehicle emissions and fuel economy across the effects. Lower operating costs on their buyers consider just a small share of vehicle fleet, reduce the need for low- own increase mobility (see DRIA future fuel consumption in the purchase priced vehicles to be a primary means Chapter 3.1 for a discussion of rebound decision. EPA is working with RTI of compliance with the standards. This driving). It is possible that lower-income International to understand better the change in incentives for the marketing households may benefit more from the connections between the new and the of this segment may contribute to the reduction in operating costs than the used vehicle market. Changes in the increases in the prices of vehicles increase in up-front costs, because they new vehicle market are expected not previously in this category. Low-priced own fewer vehicles per household, only to have immediate effects on the vehicles still exist; the Chevrolet Spark, spend more on fuel than on vehicles on prices of used vehicles, but also to affect for example, is listed as starting at an annual basis, and those fuel the market over time, as the supply of $13,400.226 At the same time, this expenditures represent a higher fraction used vehicles in the future depends on segment is gaining more content, such of their household income. how many new vehicles are sold. as improved entertainment systems and See DRIA Chapter 8.3 for more electric windows; they may be detailed discussion of these issues. Access to credit is a potential barrier developing an identity as a desirable to purchase of vehicles whose up-front market segment without regard to their VIII. Statutory and Executive Order costs have increased; access may also be previous purpose in enabling the sales Reviews affected by race, ethnicity, gender, of less efficient vehicles and compliance gender identity, residential location, 227 A. Executive Order 12866: ‘‘Regulatory with CAFE standards. Whether this Planning and Review and Executive religion, or other factors. If lenders are segment continues to exist, and in what not willing to provide financing for Order 13563: Improving Regulation and form, may depend on the marketing Regulatory Review’’ buyers who face higher prices, perhaps plans of manufacturers: Whether because the potential buyers are hitting benefits are greater from offering basic This action is an economically a maximum on the debt-to-income ratio new vehicles to first-time new-vehicle significant regulatory action that was (DTI) that lenders are willing to accept, buyers, or from making small vehicles submitted to the Office of Management then those buyers may not be able to more attractive by adding more and Budget (OMB) for review. Any purchase new vehicles. On the other desirable features to them. changes made in response to OMB hand, some lenders give discounts on New electric vehicles currently have recommendations have been loans to purchase more fuel-efficient higher up-front costs and lower documented in the docket. EPA 222 vehicles. Subsidies exist from the operating costs than gasoline vehicles prepared an analysis of the potential federal government, and some state and require access to charging costs and benefits associated with this governments, for plug-in electric infrastructure that may not be readily action. This analysis is in the Draft 223 vehicles. In addition, as documented available to many. This proposal does Regulatory Impact Analysis, which can 224 in the Midterm Evaluation, the DTI not project major penetration of electric be found in the docket for this rule, and does not appear to be a fixed obstacle vehicles in response to the proposed is briefly summarized in Section VII of for access to finance; from 2007 to 2015, standards, from 3.6 percent in MY 2023 this preamble. 28 percent of lower-income households to 7.8 percent in MY 2026 (see Table and 7 percent of higher-income 42). EPA will monitor and study B. Paperwork Reduction Act households who both had a DTI of over affordability issues related to electric This action does not impose any new 36 percent and purchased at least one vehicles as their prevalence in the information collection burden under the new vehicle financed their vehicle vehicle fleet increases. PRA. OMB has previously approved the purchases. In sum, as with the effects of the information collection activities Low-priced vehicles may be proposed standards on vehicle sales contained in the existing regulations considered an entry point for people discussed in Section VII.B, the effects of and has assigned OMB control number into buying new vehicles instead of the standards on affordability depend 2127–0019. This proposed rule changes used ones; automakers may seek to on two countervailing effects: The the level of the existing emission entice people to buy new vehicles increase in the up-front costs of the standards and revises several existing through a low price point. It is possible vehicles, and the decrease in operating credit provisions, but imposes no new that higher costs associated with costs. The increase in up-front costs has information collection requirements. proposed standards could affect the the potential to increase the prices of ability of automakers to maintain used vehicles, to make credit more C. Regulatory Flexibility Act difficult to obtain, and to make the least vehicles in this value segment. At the I certify that this action will not have expensive new vehicles less desirable same time, this segment historically a significant economic impact on a tended to include more fuel-efficient substantial number of small entities vehicles that assisted automakers in 225 Austin, D., and T. Dinan (2005). ‘‘Clearing the Air: The Costs and Consequences of Higher CAFE under the RFA. This action will not Standards and Increased Gasoline.’’ Journal of impose any requirements on small 222 Helfand, Gloria (2021). ‘‘Memorandum: Environmental Economics and Management 50(3): entities. EPA’s existing regulations Lending Institutions that Provide Discounts for 562–82; Kleit, A. (2004). ‘‘Impacts of Long-Range more Fuel Efficient Vehicles.’’ U.S. EPA Office of Increases in the Fuel Economy (CAFE) Standard.’’ exempt from the GHG standards any Transportation and Air Quality, Memorandum to Economic Inquiry 42(2): 279–294. manufacturer, domestic or foreign, the Docket. 226 Motortrend (2021). ‘‘These Are the 10 meeting Small Business 223 U.S. Department of Energy and U.S. Cheapest Cars You Can Buy in 2021.’’ https:// Administration’s size definitions of Environmental Protection Agency. ‘‘Federal Tax www.motortrend.com/features-collections/top-10- small business in 13 CFR 121.201. EPA Credits for New All-Electric and Plug-in Hybrid cheapest-new-cars/, accessed 4/28/2021; Chevrolet Vehicles.’’ https://www.fueleconomy.gov/feg/ Spark, https://www.chevrolet.com/cars/spark, is not proposing any changes to the taxevb.shtml, accessed 4/28/2021. accessed 5/27/2021. provisions for small businesses under 224 See Note 219, Chapter 4.3.3.4. 227 See Note 218. this proposal, and thus they would
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remain exempt. For additional certain populations and life stages, fuel savings, this rule encourages more discussion see chapter 9 of the DRIA. including children, the elderly, and the efficient use of fuels. Table 5–7 in the poor, are most vulnerable to climate- RIA shows 291 million barrels of D. Unfunded Mandates Reform Act related health effects. The assessment gasoline per year will be saved in 2050, This proposed rule contains no literature since 2016 strengthens these which can be summarized as a net federal mandates under UMRA, 2 U.S.C. conclusions by providing more detailed reduction of 797,260 barrels of gasoline 1531–1538, for State, local, or tribal findings regarding these groups’ per day in 2050. governments. The proposed rule would vulnerabilities and the projected I. National Technology Transfer and impose no enforceable duty on any impacts they may experience. These Advancement Act State, local or tribal government. This assessments describe how children’s proposed rule would contain a federal unique physiological and Section 12(d) of the NTTAA, 15 mandate under UMRA that may result developmental factors contribute to U.S.C. 272 note, directs federal agencies in expenditures of $100 million or more making them particularly vulnerable to to use voluntary consensus standards for the private sector in any one year. climate change. Impacts to children are (VCSs) in their regulatory activities Accordingly, the costs and benefits expected from heat waves, air pollution, unless to do so would be ‘‘inconsistent associated with the proposed rule are infectious and waterborne illnesses, and with applicable law or otherwise discussed in Section VII and in the mental health effects resulting from impractical.’’ VCSs are technical DRIA, which are in the docket for this extreme weather events. In addition, standards, which include materials rule. children are among those especially specifications, test methods, sampling This action is not subject to the susceptible to most allergic diseases, as protocols, business practices and requirements of section 203 of UMRA well as health effects associated with management systems developed or because it contains no regulatory heat waves, storms, and floods. adopted by voluntary consensus requirements that might significantly or Additional health concerns may arise in standards bodies (VCSBs), both uniquely affect small governments. low-income households, especially domestic and international. These those with children, if climate change bodies plan, develop, establish or E. Executive Order 13132: ‘‘Federalism’’ reduces food availability and increases coordinate voluntary consensus This action does not have federalism prices, leading to food insecurity within standards using agreed-upon implications. It will not have substantial households. More detailed information procedures. direct effects on the states, on the on the impacts of climate change to In addition, the statute encourages relationship between the national human health and welfare is provided agencies to consult with VCSBs and government and the states, or on the in Section IV.B of this preamble. participate in the development of such distribution of power and We expect this proposed rule would, standards when compatible with agency responsibilities among the various on net, result in both small reductions missions, authorities, priorities and levels of government. and small increases in non-GHG budget resources. The use of VCSs, emissions that could impact children, F. Executive Order 13175: ‘‘Consultation whenever practicable and appropriate, though not necessarily immediately and and Coordination With Indian Tribal is intended to achieve the following not equally in all locations. However, Governments’’ goals: with respect to non-GHG emissions, • To eliminate the cost to the This action does not have tribal EPA has concluded that it is not government of developing its own implications as specified in Executive practicable to determine whether there standards and decrease the cost of goods Order 13175. Thus, Executive Order would be disproportionate impacts on procured and the burden of complying 13175 does not apply to this action. children. EPA intends to develop with agency regulation; However, EPA plans to continue another rule to further reduce emissions • To provide incentives and engaging with our tribal stakeholders in of GHGs from light-duty vehicles for opportunities to establish standards that the development of this rulemaking by model years beyond 2026. We are serve national needs; offering a tribal workshop and offering considering how to project air quality • To encourage long-term growth for government-to-government consultation and health impacts from the changes in U.S. enterprises and promote efficiency upon request. non-GHG emissions for that future and economic competition through rulemaking (see Section V.C). harmonization of standards; and G. Executive Order 13045: ‘‘Protection • To further the policy of reliance of Children From Environmental Health H. Executive Order 13211: ‘‘Energy upon the private sector to supply Risks and Safety Risks’’ Effects’’ government needs for goods and With respect to GHG emissions, EPA This action is not a ‘‘significant services. has determined that this rule will not energy action’’ because it is not likely to The requirements apply to the use of have disproportionate impacts on have a significant adverse effect on the VCSs in ‘‘regulatory and procurement children (62 FR 19885, April 23, 1997). supply, distribution, or use of energy. activities.’’ Regulations that do not This rule will reduce emissions of EPA has outlined the energy effects in establish or involve technical standards potent GHGs, which as noted earlier in Table 5–7 of the Regulatory Impact do not trigger the NTTAA requirements, Section I.E of this preamble, will reduce Analysis (RIA), which is available in the but it is recommended that agencies the effects of climate change, including docket for this action and is briefly provide a brief explanation for why the the public health and welfare effects on summarized here. NTTAA does not apply. children. This action proposes to reduce CO2 Note that agencies retain broad GHGs contribute to climate change for passenger cars and light trucks under discretion in deciding when to use and the GHG emissions reductions revised GHG standards, which will VCSs; however, agencies are required to resulting from implementation of this result in significant reductions of the justify the use of government-unique proposal would further improve consumption of petroleum, will achieve standards when potentially applicable children’s health. The assessment energy security benefits, and have no VCSs are available. The NTTAA also literature cited in EPA’s 2009 and 2016 adverse energy effects. Because the GHG does not affect the agency’s authority to Endangerment Findings concluded that emission standards result in significant determine substantive standards as
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opposed to technical standards (see For non-GHG pollutants EPA has PART 86—CONTROL OF EMISSIONS guidance from the Office of concluded that it is not practicable FROM NEW AND IN-USE HIGHWAY Management and Budget (OMB) at given the timing of this proposed action VEHICLES AND ENGINES http://www.whitehouse.gov/omb/ to determine the extent to which effects _ circulars a119. on minority populations, low-income ■ 1. The authority citation for part 86 This rulemaking involves technical populations and/or indigenous peoples continues to read as follows: standards. The Agency conducted a are differentially distributed. We expect search to identify potentially applicable this proposed rule would result in both Authority: 42 U.S.C. 7401–7671q. voluntary consensus standards. For CO2, small reductions and small increases of ■ 2. Amend § 86.1 by redesignating emissions, we identified no such non-GHG emissions that could impact paragraphs (g)(3) through (27) as (g)(4) standards. For CO2 emissions, EPA is communities with EJ concerns, though through (28) and adding new paragraph therefore collecting data over the same not necessarily immediately and not (g)(3) to read as follows: tests that are used for the current CO2 equally in all locations. It was not standards and for the CAFE program. practicable to develop the air quality § 86.1 Incorporation by reference. This will minimize the amount of information needed to perform a * * * * * testing done by manufacturers, since quantified analysis of the distribution of (g) * * * manufacturers are already required to such non-GHG impacts. EPA intends to run these tests. For A/C credits, EPA is develop a future rule to further reduce (3) SAE J1711, Recommended Practice using the test specified in 40 CFR emissions of GHGs from light-duty for Measuring the Exhaust Emissions 1066.845. EPA knows of no voluntary vehicles for model years beyond 2026. and Fuel Economy of Hybrid-Electric consensus standard for the A/C test. We are considering how to project air Vehicles, Including Plug-in Hybrid We are proposing to amend 40 CFR quality impacts from the changes in Vehicles, Revised June 2010, IBR 86.1 to reference SAE J1711, non-GHG emissions for that future approved for § 86.1866–12(b). Recommended Practice for Measuring rulemaking (see Section V.C). EPA is * * * * * the Exhaust Emissions and Fuel taking comment on the types of effects ■ 3. Amend § 86.1806–17 by revising Economy of Hybrid-Electric Vehicles, that are important to consider from an paragraph (a) introductory text to read Including Plug-in Hybrid Vehicles, EJ perspective as well as ways in which as follows: Revised June 2010. The regulation such effects could be quantitatively already has rulemaking provisions at 40 evaluated for future rulemakings. § 86.1806–17 Onboard diagnostics. CFR 86.1866–12(b) that include Section VII.L describes how we * * * * * references to SAE J1711. We rely on the considered environmental justice in this (a) Vehicles must comply with the published procedure to describe test action. methods related to measuring exhaust 2013 OBD requirements adopted for emissions from hybrid-electric vehicles. IX. Statutory Provisions and Legal California as described in this paragraph The proposed amendment would Authority (a). California’s 2013 OBD–II complete the administrative steps Statutory authority for this proposed requirements are part of Title 13, needed to properly accomplish this rule is found in section 202(a) (which § 1968.2 of the California Code of incorporation by reference. The authorizes standards for emissions of Regulations, approved on July 31, 2013 referenced recommended practice may pollutants from new motor vehicles (incorporated by reference in § 86.1). We be obtained from SAE International on which emissions cause or contribute to may approve your request to certify an the internet at www.sae.org, by email at air pollution which may reasonably be OBD system meeting a later version of [email protected], or by calling anticipated to endanger public health or California’s OBD requirements if you 877–606–7323 or 724–776–4970. welfare), 202(d), 203–209, 216, and 301 demonstrate that it complies with the of the Clean Air Act, 42 U.S.C. 7521(a), intent of this section. The following J. Executive Order 12898: ‘‘Federal 7521(d), 7522–7525, 7541–7543, 7550, clarifications and exceptions apply for Actions To Address Environmental and 7601. vehicles certified under this subpart: Justice in Minority Populations and * * * * * Low-Income Populations’’ List of Subjects ■ 4. Amend § 86.1818–12 by revising For this proposed action, EPA is only 40 CFR Part 86 paragraph (c)(2)(i) and (3)(i) to read as able to qualitatively evaluate the extent Environmental protection, follows: to which this action may result in Administrative practice and procedure, disproportionately high and adverse § 86.1818–12 Greenhouse gas emission Confidential business information, standards for light-duty vehicles, light-duty human health or environmental effects Incorporation by reference, Labeling, on minority populations, low income trucks, and medium-duty passenger Motor vehicle pollution, Reporting and vehicles. populations, and/or indigenous peoples, recordkeeping requirements. as specified in Executive Order 12898 * * * * * (59 FR 7629, February 16, 1994). With 40 CFR Part 600 (c) * * * respect to GHG emissions, EPA has Environmental protection, (2) * * * determined that this rule will benefit all Administrative practice and procedure, (i) Calculation of CO2 target values for U.S. populations, including minority Electric power, Fuel economy, Labeling, passenger automobiles. A CO target populations, low-income populations Reporting and recordkeeping 2 value shall be determined for each and/or indigenous peoples. While this requirements. proposed rule would substantially passenger automobile as follows: reduce GHG emissions, future impacts Michael S. Regan, (A) For passenger automobiles with a of climate change are still expected in Administrator. footprint of less than or equal to 41 the baseline and will likely be unevenly For the reasons set out in the square feet, the gram/mile CO2 target distributed in ways that uniquely preamble, we propose to amend title 40, value shall be selected for the impact these communities. EPA has not chapter I of the Code of Federal appropriate model year from the quantitatively assessed these effects. Regulations as set forth below. following table:
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TABLE 1 TO § 86.1818–12(c)(2)(i)(A) (C) For passenger automobiles with a selected for the appropriate model year footprint that is greater than 41 square from the following table: CO2 target feet and less than or equal to 56 square Model year value feet, the gram/mile CO2 target value ABLE TO (grams/mile) T 4 § 86.1818–12(c)(3)(i)(A) shall be calculated using the following 2012 ...... 244.0 equation and rounded to the nearest 0.1 CO2 target 2013 ...... 237.0 grams/mile, except that for any vehicle Model year value (grams/mile) 2014 ...... 228.0 footprint the maximum CO2 target value 2015 ...... 217.0 shall be the value specified for the same 2012 ...... 294.0 2016 ...... 206.0 model year in paragraph (c)(2)(i)(B) of 2013 ...... 284.0 2017 ...... 195.0 this section: 2018 ...... 185.0 × 2014 ...... 275.0 2019 ...... 175.0 Target CO2 = [a f] + b 2015 ...... 261.0 2020 ...... 166.0 Where: 2016 ...... 247.0 2021 ...... 161.8 f is the vehicle footprint, as defined in 2017 ...... 238.0 2022 ...... 159.0 § 86.1803; and a and b are selected from 2018 ...... 227.0 2023 ...... 145.6 the following table for the appropriate 2019 ...... 220.0 2024 ...... 138.6 model year: 2025 ...... 131.9 2020 ...... 212.0 2026 and later ...... 125.6 2021 ...... 206.5 TABLE 3 TO § 86.1818–12(c)(2)(i)(C) 2022 ...... 203.0 (B) For passenger automobiles with a 2023 ...... 181.1 Model year a b footprint of greater than 56 square feet, 2024 ...... 172.1 2025 ...... 163.5 the gram/mile CO2 target value shall be 2012 ...... 4.72 50.5 selected for the appropriate model year 2013 ...... 4.72 43.3 2026 and later ...... 155.4 from the following table: 2014 ...... 4.72 34.8 2015 ...... 4.72 23.4 (B) For light trucks with a footprint TABLE 2 TO § 86.1818–12(c)(2)(i)(B) 2016 ...... 4.72 12.7 that is greater than 41 square feet and 2017 ...... 4.53 8.9 2018 ...... 4.35 6.5 less than or equal to the maximum CO2 target footprint value specified in the table Model year value 2019 ...... 4.17 4.2 (grams/mile) 2020 ...... 4.01 1.9 below for each model year, the gram/ 2021 ...... 3.94 0.2 mile CO2 target value shall be calculated 2012 ...... 315.0 2022 ...... 3.88 ¥0.1 using the following equation and 2013 ...... 307.0 2023 ...... 3.56 ¥0.4 2024 ...... 3.39 ¥0.4 rounded to the nearest 0.1 grams/mile, 2014 ...... 299.0 except that for any vehicle footprint the 2015 ...... 288.0 2025 ...... 3.23 ¥0.3 2016 ...... 277.0 2026 and later ...... 3.07 ¥0.3 maximum CO2 target value shall be the 2017 ...... 263.0 value specified for the same model year 2018 ...... 250.0 * * * * * in paragraph (c)(3)(i)(D) of this section: 2019 ...... 238.0 (3) * * * Target CO2 = (a × f) + b 2020 ...... 226.0 (i) Calculation of CO2 target values for 2021 ...... 220.9 light trucks. A CO2 target value shall be Where: 2022 ...... 217.3 determined for each light truck as 2023 ...... 199.1 f is the footprint, as defined in § 86.1803; and follows: a and b are selected from the following 2024 ...... 189.5 (A) For light trucks with a footprint of 2025 ...... 180.3 table for the appropriate model year: 2026 and later ...... 171.6 less than or equal to 41 square feet, the gram/mile CO2 target value shall be
TABLE 5 TO § 86.1818–12(c)(3)(i)(B)
Maximum Model year footprint a b
2012 ...... 66.0 4.04 128.6 2013 ...... 66.0 4.04 118.7 2014 ...... 66.0 4.04 109.4 2015 ...... 66.0 4.04 95.1 2016 ...... 66.0 4.04 81.1 2017 ...... 50.7 4.87 38.3 2018 ...... 60.2 4.76 31.6 2019 ...... 66.4 4.68 27.7 2020 ...... 68.3 4.57 24.6 2021 ...... 68.3 4.51 21.5 2022 ...... 68.3 4.44 20.6 2023 ...... 74.0 3.97 18.4 2024 ...... 74.0 3.77 17.4 2025 ...... 74.0 3.58 16.6 2026 and later ...... 74.0 3.41 15.8
(C) For light trucks with a footprint footprint value specified in the table maximum footprint value specified in that is greater than the minimum below and less than or equal to the the table below for each model year, the
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gram/mile CO2 target value shall be shall be the value specified for the same Where: calculated using the following equation model year in paragraph (c)(3)(i)(D) of f is the footprint, as defined in § 86.1803; and and rounded to the nearest 0.1 grams/ this section: a and b are selected from the following mile, except that for any vehicle table for the appropriate model year: Target CO2 = (a × f) + b footprint the maximum CO2 target value
TABLE 6 TO § 86.1818–12(c)(3)(i)(C)
Minimum Maximum Model year footprint footprint a b
2017 ...... 50.7 66.0 4.04 80.5 2018 ...... 60.2 66.0 4.04 75.0
(D) For light trucks with a footprint model year, the gram/mile CO2 target appropriate model year from the greater than the minimum value value shall be selected for the following table: specified in the table below for each
TABLE 7 TO § 86.1818–12(c)(3)(i)(D)
CO2 tar- Model year Minimum getvalue footprint (grams/mile)
2012 ...... 66.0 395.0 2013 ...... 66.0 385.0 2014 ...... 66.0 376.0 2015 ...... 66.0 362.0 2016 ...... 66.0 348.0 2017 ...... 66.0 347.0 2018 ...... 66.0 342.0 2019 ...... 66.4 339.0 2020 ...... 68.3 337.0 2021 ...... 68.3 329.4 2022 ...... 68.3 324.1 2023 ...... 74.0 312.1 2024 ...... 74.0 296.5 2025 ...... 74.0 281.8 2026 and later ...... 74.0 267.8
* * * * * introduce any regulated vehicles into not be used to demonstrate compliance ■ 5. Amend § 86.1865–12 by revising U.S. commerce. for later model years. paragraphs (k)(2), (3), and (6) to read as * * * * * * * * * * ■ follows: (6) Unused CO credits generally 6. Amend § 86.1866–12 by— 2 ■ a. Revising paragraphs (b) retain their full value through five § 86.1865–12 How to comply with the fleet introductory text and (b)(1). model years after the model year in average CO2 standards. ■ b. Removing paragraph (b)(2)(i). * * * * * which they were generated. Credits ■ c. Redesignating paragraph (b)(2)(ii) as remaining at the end of the fifth model (k) * * * paragraph (b)(2). year after the model year in which they ■ (2) There are no property rights d. Adding paragraph (c)(3). were generated may not be used to The addition reads as follows: associated with CO2 credits generated demonstrate compliance for later model under this subpart. Credits are a limited years. The following particular § 86.1866–12 CO2 credits for advanced authorization to emit the designated provisions apply for passenger cars and technology vehicles. amount of emissions. Nothing in this light trucks: * * * * * part or any other provision of law shall (i) Unused CO credits from the 2016 (b) For electric vehicles, plug-in be construed to limit EPA’s authority to 2 hybrid electric vehicles, fuel cell terminate or limit this authorization model year shall retain their full value through the 2023 model year. Credits vehicles, dedicated natural gas vehicles, through a rulemaking. and dual-fuel natural gas vehicles as from the 2016 model year that remain at (3) Each manufacturer must comply those terms are defined in § 86.1803–01, the end of the 2023 model year may not with the reporting and recordkeeping that are certified and produced for U.S. be used to demonstrate compliance for requirements of paragraph (l) of this sale in the specified model years and later model years. section for CO2 credits, including early that meet the additional specifications credits. The averaging, banking and (ii) Unused CO2 credits from the 2017 in this section, the manufacturer may trading program is enforceable as through 2020 model years shall retain use the production multipliers in this provided in paragraphs (k)(7)(ii), their full value through six model years paragraph (b) when determining (k)(9)(iii), and (l)(1)(vi) of this section after the model year in which they were additional credits for advanced through the certificate of conformity generated. Credits remaining from these technology vehicles. Full size pickup that allows the manufacturer to model years after six model years may trucks eligible for and using a
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production multiplier are not eligible performance-based credits described in (1) The following production for the strong hybrid-based credits § 86.1870–12(b). multipliers apply for model year 2017 described in § 86.1870–12(a)(2) or the through 2025 vehicles:
TABLE 1 TO § 86.1866–12(b)(1)
Electric vehicles Plug-in Dedicated and Model year and fuel cell hybrid electric dual-fuel natural vehicles vehicles gas vehicles
2017 ...... 2.0 1.6 1.6 2018 ...... 2.0 1.6 1.6 2019 ...... 2.0 1.6 1.6 2020 ...... 1.75 1.45 1.45 2021 ...... 1.5 1.3 1.3 2022 ...... 2.0 1.6 2.0 2023–2024 ...... 2.0 1.6 1.0 2025 ...... 1.75 1.45 1.0 * (No multiplier credits)
* * * * * (3) Multiplier-based credits for model (i) Calculate a nominal annual credit (c) * * * years 2022 through 2025 may not cap in Mg using the following equation, exceed credit caps, as follows: rounded to the nearest whole number:
CAPannual 2.5+1 · [195,264 miles· Pauto + 225,865 · Ptruck] · 10-6 tonne = m1e g
Where: Ptruck = total number of certified light (ii) Calculate an annual g/mile equivalent Pauto = total number of certified passenger trucks (including MDPV) the manufacturer value for the multiplier-based credits using automobiles the manufacturer produced produced in a given model year for sale in the following equation, rounded to the in a given model year for sale in any any state or territory of the United States. nearest 0.1 g/mile: state or territory of the United States.
annual g per mile equivalent value 2_5 . _an_n_ua_l_cr_e_di_ts CAP annual
Where: § 86.1868–12 CO2 credits for improving the (x)(B) of this section. If the total of the annual credits = a manufacturer’s total efficiency of air conditioning systems. CO2 g/mi credit values from paragraph multiplier-based credits in a given model * * * * * (b)(1) of this section does not exceed 10 year from all passenger automobiles and ■ 8. Amend § 86.1869–12 by revising or 15 g/mi (as applicable) for any light trucks as calculated under this the section heading and paragraphs passenger automobile or light truck in a paragraph (c). (b)(2), (4)(v), (vi), and (x), and manufacturer’s fleet, then the total off- cycle credits may be calculated (iii) Calculate a cumulative g/mile (d)(2)(ii)(A) to read as follows: according to paragraph (f) of this equivalent value for the multiplier- § 86.1869–12 CO credits for off-cycle CO 2 2 section. If the total of the CO2 g/mi based credits in 2022 through 2025 by reducing technologies. credit values from paragraph (b)(1) of adding the annual g/mile equivalent * * * * * this section exceeds 10 or 15 g/mi (as values calculated under paragraph (b) * * * applicable) for any passenger (c)(3)(ii) of this section. (2) The maximum allowable decrease automobile or light truck in a (iv) The cumulative g/mile equivalent in the manufacturer’s combined manufacturer’s fleet, then the gram per value may not exceed 10.0 in any year. passenger automobile and light truck mile decrease for the combined (v) The annual credit report must fleet average CO2 emissions attributable passenger automobile and light truck include for every model year from 2022 to use of the default credit values in fleet must be determined according to paragraph (b)(1) of this section is 10 g/ paragraph (b)(2)(ii) of this section to through 2025, as applicable, the mi through model year 2022, and 15 g/ determine whether the applicable calculated values for the nominal mi for model years 2023 and later, limitation has been exceeded. annual credit cap in Mg and the except that manufacturers may use 15 (i) Determine the gram per mile cumulative g/mile equivalent value. g/mi in model years 2020 through 2022 decrease for the combined passenger ■ 7. Revise the section heading for if they meet the definitions in automobile and light truck fleet using § 86.1868–12 to read as follows: paragraphs (b)(4)(v)(B), (vi)(B), and the following formula:
Credits x 1,000,000 Decrease=------ [(Prodc x 195,264) + (ProdT x 225,865)]
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Where: ProdC = The number of passenger greater than 10 or 15 grams per mile (as Credits = The total of passenger automobile automobiles produced by the applicable), the total credits, in and light truck credits, in Megagrams, manufacturer and delivered for sale in Megagrams, that may be accrued by a the U.S. determined according to paragraph (f) of manufacturer using the default gram per ProdT = The number of light trucks produced this section and limited to those credits by the manufacturer and delivered for mile values in paragraph (b)(1) of this accrued by using the default gram per sale in the U.S. section shall be determined using the mile values in paragraph (b)(1) of this following formula: section. (ii) If the value determined in paragraph (b)(2)(i) of this section is
Credit (Megagrams) = [lO x ( (Practc x 195,264) + (ProdT x 225,865) )] 1,000,000
Where: active transmission warm-up means a (d) * * * ProdC = The number of passenger system that uses waste heat from the (2) * * * automobiles produced by the vehicle’s exhaust to warm the (ii) * * * manufacturer and delivered for sale in transmission fluid to an operating (A) A citation to the appropriate the U.S. temperature range using a dedicated previously approved methodology, Prod = The number of light trucks produced T heat exchanger. Active transmission including the appropriate Federal by the manufacturer and delivered for Register Notice and any subsequent sale in the U.S. warm-up may also include coolant systems that capture heat from a liquid- EPA documentation of the (iii) If the value determined in cooled exhaust manifold if the system is Administrator’s decision; paragraph (b)(2)(i) of this section is not segregated from the coolant loop in the * * * * * greater than 10 or 15 grams per mile (as engine block. ■ 9. Amend § 86.1870–12 by revising applicable), then the credits that may be (vi) Active engine warm-up means one the section heading and paragraphs accrued by a manufacturer using the of the following: (a)(2) and (b)(2) to read as follows: default gram per mile values in (A) Through model year 2019, and paragraph (b)(1) of this section do not § 86.1870–12 CO2 credits for qualifying optionally for model years 2020–2022, full-size light pickup trucks. exceed the allowable limit, and total active engine warm-up means a system * * * * * credits may be determined for each that uses waste heat from the vehicle to category of vehicles according to (a) * * * warm up targeted parts of the engine so (2) Full size pickup trucks that are paragraph (f) of this section. that it reduces engine friction losses and (iv) If the value determined in strong hybrid electric vehicles and that enables closed-loop fuel control more paragraph (b)(2)(i) of this section is are produced in the 2017 through 2025 quickly. greater than 10 or 15 grams per mile (as model years are eligible for a credit of (B) Starting in model year 2023, and applicable), then the combined 20 grams/mile. To receive this credit in optionally for model years 2020–2022, passenger automobile and light truck a model year, the manufacturer must active engine warm-up means a system credits, in Megagrams, that may be produce a quantity of strong hybrid that uses waste heat from the vehicle’s accrued using the calculations in electric full size pickup trucks such that exhaust to warm up targeted parts of the paragraph (f) of this section must not the proportion of production of such engine so that it reduces engine friction exceed the value determined in vehicles, when compared to the losses and enables closed-loop fuel paragraph (b)(2)(ii) of this section. This manufacturer’s total production of full limitation should generally be done by control more quickly. Active engine size pickup trucks, is not less than 10 reducing the amount of credits warm-up may also include coolant percent in that model year. Full size attributable to the vehicle category that systems that capture heat from a liquid- pickup trucks earning credits under this caused the limit to be exceeded such cooled exhaust manifold if the system is paragraph (a)(2) may not earn credits that the total value does not exceed the segregated from the coolant loop in the based on the production multipliers value determined in paragraph (b)(2)(ii) engine block. described in § 86.1866–12(b). of this section. * * * * * * * * * * * * * * * (x) Passive cabin ventilation means (b) * * * (4) * * * one of the following: (2) Full size pickup trucks that are (v) Active transmission warm-up (A) Through model year 2019, and produced in the 2017 through 2025 means one of the following: optionally for model years 2020–2022, model years and that achieve carbon- (A) Through model year 2019, and passive cabin ventilation means ducts, related exhaust emissions less than or optionally for model years 2020–2022, devices, or methods that utilize equal to the applicable target value active transmission warm-up means a convective airflow to move heated air determined in § 86.1818–12(c)(3) system that uses waste heat from the from the cabin interior to the exterior of multiplied by 0.80 (rounded to the vehicle to quickly warm the the vehicle. nearest gram/mile) in a model year are transmission fluid to an operating (B) Starting in model year 2023, and eligible for a credit of 20 grams/mile. A temperature range using a heat optionally for model years 2020–2022, pickup truck that qualifies for this credit exchanger, increasing the overall passive cabin ventilation means in a model year may claim this credit for transmission efficiency by reducing methods that create and maintain a maximum of four subsequent model parasitic losses associated with the convective airflow through the body’s years (a total of five consecutive model transmission fluid, such as losses cabin by opening windows or sunroof years) if the carbon-related exhaust related to friction and fluid viscosity. when the vehicle is parked outside in emissions of that pickup truck do not (B) Starting in model year 2023, and direct sunlight. increase relative to the emissions in the optionally for model years 2020–2022, * * * * * model year in which the pickup truck
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first qualified for the credit. This credit whether a pickup truck has been subject § 600.510–12 Calculation of average fuel may not be claimed in any model year to a major redesign. economy and average carbon-related exhaust emissions. after 2025. To qualify for this credit in * * * * * * * * * * a model year, the manufacturer must ■ 10. Revise the section heading of (j) * * * produce a quantity of full size pickup § 86.1871–12 to read as follows: trucks that meet the emission (2) * * * requirements of this paragraph (b)(2) § 86.1871–12 Optional early CO2 credit (v) For natural gas dual fuel model such that the proportion of production programs. types, for model years 2012 through of such vehicles, when compared to the * * * * * 2015, the arithmetic average of the manufacturer’s total production of full following two terms; the result rounded PART 600—FUEL ECONOMY AND to the nearest gram per mile: size pickup trucks, is not less than 10 GREENHOUSE GAS EXHAUST * * * * * percent in that model year. A pickup EMISSIONS OF MOTOR VEHICLES truck that qualifies for this credit in a (vii)(A) This paragraph (j)(2)(vii) applies to model year 2016 and later model year and is subject to a major ■ 11. The authority citation for part 600 natural gas dual fuel model types. redesign in a subsequent model year continues to read as follows: such that it qualifies for the credit in the Model year 2021 and later natural gas Authority: 49 U.S.C. 32901–23919q, Pub. dual fuel model types may use a utility model year of the redesign may be L. 109–58. factor of 0.5 or the utility factor allowed to qualify for an additional five ■ prescribed in this paragraph (j)(2)(vii). years (not to go beyond the 2025 model 12. Amend § 600.510–12 by revising year) with EPA approval. Use good paragraphs (j)(2)(v) introductory text * * * * * [FR Doc. 2021–16582 Filed 8–9–21; 8:45 am] engineering judgment to determine and (vii)(A) introductory text to read as follows: BILLING CODE 6560–50–P
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Vol. 86 Tuesday, No. 151 August 10, 2021
Part III
Department of Transportation
Federal Motor Carrier Safety Administration 49 CFR Parts 371 and 375 Implementation of Household Goods Working Group Recommendations; Proposed Rule
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DEPARTMENT OF TRANSPORTATION FOR FURTHER INFORMATION CONTACT: Ms. To submit your comment online, go to Monique Riddick, Commercial https://www.regulations.gov/docket/ Federal Motor Carrier Safety Enforcement and Investigations FMCSA-2020-0205/document, click on Administration Division, Office of Enforcement and this NPRM, click ‘‘Comment,’’ and type Compliance, Federal Motor Carrier your comment into the text box on the 49 CFR Parts 371 and 375 Safety Administration, 1200 New Jersey following screen. If you submit your comments by mail [Docket No. FMCSA–2020–0205] Avenue SE, Washington, DC 20590– 0001; (202) 366–0073; or hand delivery, submit them in an RIN 2126–AC35 [email protected]. If you have unbound format, no larger than 81⁄2 by questions on viewing or submitting 11 inches, suitable for copying and Implementation of Household Goods material to the docket, contact Dockets electronic filing. If you submit Working Group Recommendations Operations, (202) 366–9826. comments by mail and would like to know that they reached the facility, AGENCY: Federal Motor Carrier Safety SUPPLEMENTARY INFORMATION: This Administration (FMCSA), DOT. please enclose a stamped, self-addressed notice of proposed rulemaking (NPRM) postcard or envelope. ACTION: Notice of proposed rulemaking. is organized as follows: FMCSA will consider all comments SUMMARY: FMCSA proposes to update I. Public Participation and Request for and material received during the the Transportation of Household Goods Comments comment period and may make changes regulations to incorporate A. Submitting Comments based on your comments. B. Viewing Comments and Documents recommendations from the Household C. Privacy Act Confidential Business Information Goods Consumer Protection Working D. Advance Notice of Proposed CBI is commercial or financial Group (Working Group) contained in Rulemaking Not Required information that is both customarily and the Recommendations to the U.S. E. Comments on the Information Collection actually treated as private by its owner. Department of Transportation to II. Executive Summary Under the Freedom of Information Act Improve Household Goods Consumer A. Purpose of the Amendments (FOIA, 5 U.S.C. 552), CBI is exempt Education, Simplify and Reduce B. Summary of the Major Provisions from public disclosure. If your Paperwork, and Condense FMCSA C. Costs and Benefits comments responsive to the NPRM Publication ESA 03005 III. Abbreviations IV. Legal Basis contain commercial or financial (Recommendations Report). The Agency V. Background information that is customarily treated proposes to update the regulations to VI. Discussion of Proposed Rulemaking as private, that you actually treat as reflect those aspects of the VII. International Impacts private, and that is relevant or Recommendations Report which require VIII. Section-by-Section Analysis responsive to this NPRM, it is important a rulemaking to implement and are IX. Regulatory Analyses that you clearly designate the submitted within the Agency’s authority. The A. E.O. 12866 (Regulatory Planning and comments as CBI. Please mark each proposed updates based on these Review), E.O. 13563 (Improving page of your submission that constitutes recommendations would result in an Regulation and Regulatory Review), and CBI as ‘‘PROPIN’’ to indicate it contains aggregate reduction in costs for DOT Regulatory Policies and Procedures B. Congressional Review Act proprietary information. FMCSA will household goods motor carriers and C. Regulatory Flexibility Act (Small treat such marked submissions as provide clarity for individual shippers. Entities) confidential under the FOIA, and they DATES: Comments must be received on D. Assistance for Small Entities will not be placed in the public docket or before October 12, 2021. Comments E. Unfunded Mandates Reform Act of 1995 of the NPRM. Submissions containing F. Paperwork Reduction Act on the information collection must be CBI should be sent to Mr. Brian Dahlin, received on or before October 12, 2021. G. E.O. 13132 (Federalism) H. Privacy Chief, Regulatory Analysis Division, ADDRESSES: You may submit comments I. E.O. 13175 (Indian Tribal Governments) Office of Policy, Federal Motor Carrier identified by Docket Number FMCSA– J. National Environmental Policy Act of Safety Administration, 1200 New Jersey 2020–0205 using any of the following 1969 Avenue SE, Washington, DC 20590– methods: 0001. Any comments FMCSA receives I. Public Participation and Request for • Go to https://www.regulations.gov/ which are not specifically designated as Comments docket/FMCSA-2020-0205/document. CBI will be placed in the public docket Follow the online instructions for A. Submitting Comments for this rulemaking. submitting comments. FMCSA will consider all comments • Mail: Dockets Operations, U.S. If you submit a comment, please and material received during the Department of Transportation, 1200 include the docket number for this comment period. New Jersey Avenue SE, West Building, NPRM (Docket No. FMCSA–2020– Ground Floor, Room W12–140, 0205), indicate the specific section of B. Viewing Comments and Documents Washington, DC 20590–0001. this document to which your comment To view any documents mentioned as • Hand Delivery or Courier: Dockets applies, and provide a reason for each being available in the docket, go to Operations, U.S. Department of suggestion or recommendation. You https://www.regulations.gov/docket/ Transportation, 1200 New Jersey may submit your comments and FMCSA-2020-0205/document and Avenue SE, West Building, Ground material online or by fax, mail, or hand choose the document to review. To view Floor, Room W12–140, Washington, DC delivery, but please use only one of comments, click this NPRM, and click 20590–0001, between 9 a.m. and 5 p.m., these means. FMCSA recommends that ‘‘Browse Comments.’’ If you do not have Monday through Friday, except Federal you include your name and a mailing access to the internet, you may view the holidays. To be sure someone is there to address, an email address, or a phone docket online by visiting Dockets help you, please call (202) 366–9317 or number in the body of your document Operations in Room W12–140 on the (202) 366–9826 before visiting Dockets so that FMCSA can contact you if there ground floor of the DOT West Building, Operations. are questions regarding your 1200 New Jersey Avenue SE, • Fax: (202) 493–2251. submission. Washington, DC 20590–0001, between 9
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a.m. and 5 p.m., Monday through B. Summary of the Major Provisions be signed. These proposed changes Friday, except Federal holidays. To be The proposed rule would implement would increase protection of individual sure someone is there to help you, the majority of the Working Group’s shippers by ensuring that any please call (202) 366–9317 or (202) 366– recommendations that require a documents they are required to sign be 9826 before visiting Dockets Operations. rulemaking. These recommendations as accurate as possible at the time those would update a variety of regulatory documents are signed. C. Privacy Act This proposal would also implement requirements under 49 CFR part 375. the Working Group’s recommendation In accordance with 5 U.S.C. 553(c), The first recommendation from the to allow for virtual surveys of household DOT solicits comments from the public Working Group that is being proposed goods. By updating the definition of to better inform its rulemaking process. in this NPRM is to revise Appendix A physical survey to include virtual DOT posts these comments, without to part 375 with an updated version of the Your Rights and Responsibilities surveys, this proposed change would edit, including any personal information allow an option for motor carriers and When You Move booklet (Rights and the commenter provides, to individual shippers to use live video to Responsibilities). The updated Rights www.regulations.gov, as described in conduct surveys, rather than requiring and Responsibilities booklet would the system of records notice (DOT/ALL– motor carriers to survey the household contain the same information as the 14 FDMS), which can be reviewed at goods to be moved in-person. A related 2013 version of the booklet with some www.transportation.gov/privacy. recommendation to require motor modifications to conform with the other carriers to conduct surveys beyond a D. Advance Notice of Proposed proposed changes in this NPRM, which 50-mile radius is also being proposed. Rulemaking Not Required are discussed below, and to increase Based on the availability of virtual clarity of the information contained in This rulemaking is under the surveys, this would ensure that every the booklet. Additionally, FMCSA is authority of several provisions in title individual shipper has the option of a proposing to implement the Working 49 U.S.C., subtitle IV, part B and is not survey of their goods prior to the Group’s recommendation to require a safety rule under title 49 U.S.C., preparation of an estimate. The motor carriers to provide the Rights and subtitle VI, part B. This rulemaking is implementation of these two Responsibilities booklet at the same therefore not subject to the requirement recommendations, as proposed, would time as the estimate instead of at the under 49 U.S.C. 31136(g) to publish an reduce the burden on motor carriers for time of the order for service as currently advance notice of proposed rulemaking moves originating within 50 miles of the required. These changes to Appendix A motor carrier agent’s location by or proceed with a negotiated and the Rights and Responsibilities rulemaking. allowing them to conduct surveys booklet would ensure that the appendix remotely, while enhancing protection of E. Comments on the Information matches the information contained in individual shippers who are beyond 50 Collection the booklet and that the booklet presents miles from the motor carrier agent’s individual shippers with clear and location by offering the option for a Written comments and accurate information earlier in the survey regardless of where the recommendations for the information moving process. FMCSA is also household goods are located. collection discussed in this NPRM proposing to remove the requirement in This proposal would also implement should be sent to FMCSA within 60 section 375.213(e) for a waiver if the the Working Group’s recommendations days of publication using any of the individual shipper accesses either to remove the requirement for an order methods described in ‘‘Public Ready to Move? or the Rights and for service, update the requirements in Participation and Request for Responsibilities booklet via a hyperlink. the bill of lading, and require the bill of Comments’’ above. The next recommendation from the lading to be provided earlier in the Working Group that is being proposed II. Executive Summary moving process. This proposal in this NPRM is to remove the ability of incorporates all of the requirements that A. Purpose of the Amendments the motor carrier or individual shipper are currently part of the order for service to revise a binding estimate or a non- into the bill of lading. FMCSA also FMCSA proposes to incorporate binding estimate. Instead, FMCSA proposes to require the bill of lading to certain recommendations from the would require the preparation of a new be signed at least 3 days before the Working Group’s Recommendations binding estimate or new non-binding scheduled date of the move in order to Report into the regulations at 49 CFR estimate when the individual shipper ensure that the bill of lading is provided part 375. These recommendations, when tenders additional items or requests earlier in the moving process. This implemented, would offer streamlined additional services. This would would reduce the paperwork burden on documentation requirements and incorporate into the regulations certain motor carriers while ensuring that provide opportunity for increased provisions from the FMCSA guidance individual shippers would be given the efficiency for the transportation of titled Regulatory Guidance Concerning same level of protection as they are household goods for individual shippers Household Goods Carriers Requiring under the current regulations. by interstate household goods motor Shippers To Sign Blank or Incomplete FMCSA is also proposing to carriers and service by household goods Documents (76 FR 50537, Aug. 15, implement the Working Group’s brokers, improve consumer education 2011) (2011 guidance). FMCSA is also recommendation to replace the and protection for individual shippers proposing to incorporate other requirement for a freight bill with an in need of their services, and combat provisions from the 2011 guidance that invoice. This proposed change would fraud. The Working Group was clarify that an individual shipper may increase clarity for individual shippers established and provided never be required to sign a blank regarding any outstanding balances that recommendations pursuant to section document, and that the shipper may be must be paid while reducing repetitive 5503 of the Fixing America’s Surface required to sign an incomplete paperwork for motor carriers. Transportation Act (FAST Act), Public document only when it is missing This proposal would implement the Law 114–94, 129 Stat. 1312, 1551 (Dec. certain information that cannot be Working Group’s recommendation to 4, 2015). determined before the document must require all motor carriers who have a
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website to display prominently, at their III. Abbreviations respect to the transportation of option, a link to either Ready to Move? AMSA American Moving and Storage household goods by motor carriers (49 on the FMCSA website or to a true and Association U.S.C. 14104(a)). The Secretary also has accurate copy of Ready to Move? on ATA American Trucking Associations broad authority to prescribe regulations their own websites. This would increase ATRI American Transportation Research to carry out 49 U.S.C. subtitle IV, part the opportunity for individual shippers Institute B. 49 U.S.C. 13301(a). This authority has to become aware of the information CAGR Compound Average Growth rate been delegated by the Secretary to CE Categorical Exclusion FMCSA (49 CFR 1.87(a)). contained in Ready to Move? earlier in CFR Code of Federal Regulations the moving process. DOT Department of Transportation V. Background E.O. Executive Order In addition to proposing to implement FMCSA is an operating the Working Group’s recommendations, FAST Act Fixing America’s Surface Transportation Act administration of the United States FMCSA is proposing additional minor FMCSA Federal Motor Carrier Safety Department of Transportation (USDOT). changes to the regulations which are Administration FMCSA’s primary mission is to reduce intended to increase clarity and FOIA Freedom of Information Act crashes, injuries, and fatalities involving consistency. FR Federal Register large trucks and buses. HHG Household goods In addition to its primary safety C. Benefits and Costs ICC Interstate Commerce Commission MAP–21 Moving Ahead for Progress in the mission, FMCSA is responsible for a This proposed rule would affect 21st Century Act national household goods transportation household goods motor carriers and MCMIS Motor Carrier Management and consumer protection program that individual shippers. Some provisions in Information System promotes increased compliance through this rule would result in costs for motor MCSAP Motor Carrier Safety Assistance data analysis, investigations, carriers (i.e., providing the Rights and Program enforcement, and public education and Responsibilities booklet earlier in the NAICS North American Industry outreach activities, and is responsible Classification System for licensing and regulating more than process, and providing either in-person OMB Office of Management and Budget or virtual surveys at locations beyond 50 PIA Privacy Impact Assessment 5,000 interstate household goods motor miles from the motor carrier agent’s PII Personally Identifiable Information carriers, freight forwarders, and brokers. location), and some provisions would PTA Privacy Threshold Assessment Historically, the Interstate Commerce result in negative costs, or cost savings SAFETEA–LU Safe, Accountable, Flexible, Commission (ICC) regulated all aspects (i.e., allowing virtual surveys in place of Efficient Transportation Equity Act: A of the interstate moving process from in-person surveys, and eliminating the Legacy for Users assessing the need to permit entities to Secretary Secretary of Transportation participate in the industry, to pricing, to order for service document and STB Surface Transportation Board including its information in the bill of U.S.C. United States Code establishing how claims would be lading). The motor carrier efficiencies handled. When Congress terminated the discussed would not negatively impact IV. Legal Basis for the Rulemaking ICC in 1995 (ICC Termination Act of shippers, as the services and The purpose of this rulemaking is to 1995, Pub. L. 104–88, 109 Stat. 803 information received today would not propose changes in the regulations in 49 (Dec. 29, 1995)), it transferred change under the proposed rule. CFR part 375 applicable to the household goods regulation to the FMCSA does not anticipate that transportation of household goods for USDOT. Congress established FMCSA shippers would incur costs as a result of individual shippers in interstate in 2000 to carry out the regulation of this proposed rule. FMCSA estimates commerce. Most of the proposed commercial motor vehicles, specifically the total 10-year costs of this rule, if changes involve FMCSA’s large trucks and buses. Congress also finalized as proposed, at ¥$1.6 million implementation of the granted the Agency authority over (or $1.6 million in cost savings) recommendations of the Working consumer protection of individual discounted at 3 percent, and ¥$1.3 Group, which was established pursuant household goods shippers. million (or $1.3 million in cost savings) to section 5503 of the Fixing America’s Since FMCSA’s inception, Congress discounted at 7 percent. Expressed on Surface Transportation Act (FAST Act), has addressed the regulation of an annualized basis, this equates to Public Law 114–94, 129 Stat. 1312, 1551 household goods movers through ¥$188,000 in costs (or $188,000 in cost (Dec. 4, 2015). Additional changes are legislation to improve consumer protection and regulatory authority to savings) at both a 3 and 7 percent being proposed by FMCSA to update ensure compliance by motor carriers, discount rate. provisions in part 375 and its appendix A. brokers, and freight forwarders. The FMCSA does not expect this rule to FMCSA’s authority to provide legislation is briefly outlined below: impact safety. FMCSA does expect that protection for individual shippers of • Sections 4201–4216 of the Safe, it would result in benefits related to household goods is found in several Accountable, Flexible, Efficient consumer protection and potentially sections of 49 U.S.C. subtitle IV, part B. Transportation Equity Act: A Legacy for motor carrier fuel savings. The proposal The sections primarily involved in this Users (SAFETEA–LU), Public Law 109– would result in shippers receiving rulemaking are 49 U.S.C. 13704, 13707, 59, passed in 2005. These sections of accurate and clear information earlier in and 14104. They govern guaranteed SAFETEA–LU are also referred to as the the process, enabling them to make service and charges for transportation, ‘‘Household Goods Mover Oversight more informed and better decisions payment of rates, and surveys, Enforcement and Reform Act of 2005;’’ regarding which household goods motor estimates, and weighing of shipments, • Sections 32921–32923 of the carrier to hire. Additionally, the respectively. The Secretary of Moving Ahead for Progress in the 21st proposal would aid in obtaining more Transportation (the Secretary) has Century Act (MAP–21), Public Law accurate estimates of moving fees based specific authority to issue regulations, 112–141, passed in 2012. MAP–21 on physical surveys for those interstate including regulations protecting brought about significant updates to moves that are beyond 50 miles from a individual shippers, in order to carry licensing requirements for household motor carrier agent’s location. out 49 U.S.C. subtitle IV, part B with goods motor carriers; and
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• Section 5503 of the FAST Act, 1. Develop and maintain modern time, and manner that the new estimate Public Law 114–94, passed in 2015. The communications tools, platforms, and was accepted by the shipper. FAST Act called for the formation of the partnerships to educate consumers. 7. Change the requirement for a Working Group to develop 2. Develop online (and other) ‘‘physical’’ survey to a ‘‘visual’’ survey. recommendations on how best to education modules that are short and The term ‘‘visual survey’’ should convey relevant information to easily understood, and aligned with the include both physical and virtual consumers with respect to Federal laws different phases of the moving process. surveys. that pertain to the interstate 3. Develop and maintain modern tools 8. Movers should be required to offer transportation of household goods by to assist the moving industry with its visual surveys for all household goods motor carriers. efforts to educate consumers. shipments, including those that are The rationale for this rulemaking to 4. Provide additional funding for staff located over 50-miles from the mover’s update 49 CFR part 375 is that the rules and resources dedicated to household location. Consumers should continue to contained therein are outdated. goods consumer education. This have the option to waive in writing the funding would allow FMCSA to: visual survey if they choose, but movers Additionally, Appendix A: Your Rights • and Responsibilities When You Move is Procure full time, year-round, must offer them the option of a visual outdated. The Protect Your Move dedicated resources and personnel survey regardless of distance. website (http:// (either Federal or contracted) with the 9. The requirement for an order for www.protectyourmove.gov) displays the expertise needed to implement state-of- service should be eliminated, and the 2013 version of the Rights and the-art education utilizing the internet unique, critical items from the order for Responsibilities booklet, which did not as a tool for the purpose of consumer service should be moved to the bill of undergo change through the rulemaking protection education and outreach lading. (Note: The Working Group is efforts. process. The booklet was instead • recommending eliminating the order for approved by the FMCSA Administrator Collect data (such as intake service as a requirement of all movers, for distribution to the household goods interviews) to ensure that education and but movers that prefer to use an order industry and their customers. The outreach efforts are effective and for service should still be allowed to do booklet was shortened in 2013 to continuously improving. so.) • Collaborate and build partnerships enhance readability and contained new 10. The following changes should be with industry, the public, and other regulatory language from the Surface made to the bill of lading requirements: organizations. Transportation Board (STB) regarding • The carrier’s physical address, • Develop content delivery and valuation and insurance and the telephone number, and DOT number messaging tactics for consumer placement of this language on FMCSA- should be added to the bill of lading protection education and outreach. required transportation documents. requirements. 5. This Working Group recommends • As stated above, the FAST Act the following with regard to FMCSA– The bill of lading should continue required FMCSA to establish a working ESA–03–006, Your Rights and to require the carrier’s name, and either group to provide specific Responsibilities When You Move: the legal or trade name registered with recommendations as outlined below. • FMCSA should be acceptable. The 2013 version should be • The Working Group was comprised of formally adopted by rulemaking to The requirement to provide names, representatives of the Agency, consumer officially replace the pre-2013 version addresses, and telephone numbers of affairs experts, educators with expertise which FMCSA currently permits movers additional motor carriers involved in in how people learn most effectively, to choose to use in lieu of the formally the move should be eliminated. and representatives of the household approved wording. (However, movers should still be goods moving industry. These members • FMCSA should look for allowed to provide this information if represented all facets of the household opportunities to further condense and they choose to.) • goods industry and worked vigorously streamline this document. Any reference to the order for to produce the Recommendations • If applicable, and as other service should be removed from the bill Report. recommendations are adopted in the of lading. Specifically, the FAST Act directed future, the contents of this document • Add ‘‘Any identification or the Working Group to develop should be updated to reflect the changes registration number you assign to the recommendations for FMCSA in the that are implemented as a result of this shipment’’ to the bill of lading following areas: Working Group’s efforts. requirements (carried over from the 1. Condense FMCSA publication ESA • It should be acceptable for movers current order for service requirements). • 03005 (Ready to Move?) into a format to provide this document electronically A statement should be added that more easily used by consumers; without requiring the shipper to provide the bill of lading incorporates by 2. Use state-of-the-art education written consent to waive their right to reference all of the services and charges techniques and technologies, including a hard copy. printed on the estimate. • optimizing the use of the internet as an Movers should be required to 11. The bill of lading should be made educational tool; and provide this document earlier in the available to consumers prior to the date 3. Reduce and simplify the paperwork move process (along with the estimate of load, at least as early as the time required of motor carriers and shippers instead of before the order for service). when the order for service was in interstate transportation. 6. FMCSA’s guidance should be previously provided (before a mover formally adopted that if a consumer receives a shipment from an individual The Working Group produced a tenders additional items or requests shipper). Recommendations Report 1 with 19 additional services prior to load, and the 12. Remove the requirement for a recommendations for FMCSA, stating: mover agrees to such additions, the freight bill, and the written notices for mover should prepare a completely new a freight bill should be transferred to an 1 Available at https://www.fmcsa.dot.gov/fastact/ invoice. fast-act-hhg-working-group-report- estimate (instead of amending the recommendations. The Recommendations Report is existing one). Additionally, the mover 13. Finalize the proposed rulemaking also in the docket for this rulemaking. should maintain a record of the date, published at 79 FR 23306 (4/28/14) to
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allow for electronic delivery of all recommendations are therefore to-date information for individual required documents. considered in this proposed rule, shippers. 14. Eliminate the current requirement including recommendation 15 discussed The updated Rights and for consumers to sign a written waiver below, which FMCSA lacks statutory Responsibilities booklet would contain in order to receive their documents authority to implement. The Agency the same information provided in the electronically. will address the remaining proposed contents of appendix A in this 15. Movers should be required to recommendations separate from this rulemaking. Any comments received on provide FMCSA publication ESA 03005 rulemaking. the proposed appendix A below which (Ready to Move?) when the visual The specific proposed changes based result in changes in a final rule would survey is either scheduled or waived by on the Recommendations Report are therefore be reflected in the final the consumer. described below. version of the updated Rights and 16. The title of FMCSA publication A. Recommendations 5 and 14— Responsibilities booklet. If this NPRM is ESA 03005 should be changed from Appendix A and Electronic Documents finalized, motor carriers would be Ready to Move? to Choose Your Mover. required to provide the updated Rights 17. ESA 03005 should be made Recommendation 5 suggests that and Responsibilities booklet in order to FMCSA incorporate the 2013 version of available electronically and should be satisfy the requirements under 49 CFR the Rights and Responsibilities booklet printable. It should fit on a standard 375.213. Accordingly, the Agency into appendix A to part 375. desktop or laptop screen without would rescind the guidance titled Recommendation 5 also suggests that requiring scrolling, and it should also be Guidance on FMCSA’s Publication: FMCSA look for ways to further mobile-friendly. Consideration should Your Rights and Responsibilities When condense and streamline the 2013 be given to how the brochure can be You Move (78 FR 25782, May 2, 2013) booklet, update the document with any both visually appealing and also direct because the pre-2013 and 2013 versions changes to part 375 from the consumers’ attention to the right places. of the Rights and Responsibilities Recommendations Report, and require 18. All movers who have a website booklet would be inaccurate due to the should be required to prominently movers to provide this booklet earlier in the moving process. changes to 49 CFR part 375 in this display, at their option, either a link to rulemaking, resulting in individual the brochure (ESA 03005) on the Under current guidance titled Guidance on FMCSA’s Publication: shipper being misinformed about their FMCSA website or a true and accurate regulatory rights and responsibilities copy of ESA 03005 on their own Your Rights and Responsibilities When You Move, FMCSA permits distribution under 49 CFR part 375. websites. FMCSA proposes to amend 49 CFR 19. ESA 03005 should be condensed of both the 2013 and the pre-2013 375.213 to require motor carriers to to include only the content found in version of the Rights and provide individual shippers with the Appendix H. Responsibilities booklet (78 FR 25782, Rights and Responsibilities booklet at The Recommendations Report May 2, 2013). The Working Group noted the time the estimate is provided. The includes a discussion of potential that the 2013 version is much more regulations at 49 CFR 375.213 currently benefits to both motor carriers and streamlined than the pre-2013 version, require the Rights and Responsibilities consumers, which are attributed to the which the Working Group stated is long, booklet to be provided along with the reduction in paperwork motor carriers cumbersome, and less helpful to order for service. The statute at 49 are required to issue. The consumers. The Working Group also U.S.C. 14104(b)(2) states, in part: recommendations of the Working Group determined that the 2013 version can be seek to provide clarity for consumers, further condensed and would need to be Before the execution of a contract for allowing them to move with confidence updated to conform with any changes to service, the motor carrier shall provide the and make their moves more successful. the regulations in 49 CFR part 375. shipper copy of the Department of Finally, the Recommendations Report FMCSA proposes to revise appendix Transportation publication OCE 100, entitled A to part 375 to formally adopt an ‘‘Your Rights and Responsibilities When You states that these updates would provide Move’’ required by section 375.213 of title the opportunity for motor carriers to updated version of the Rights and Responsibilities booklet. Appendix A 49, Code of Federal Regulations (or any create a smooth moving experience for successor regulation). consumers. currently contains the contents of the pre-2013 version of the Rights and FMCSA is proposing to require the VI. Discussion of Proposed Rulemaking Responsibilities booklet. The updated Rights and Responsibilities booklet be FMCSA has reviewed the version of the Rights and provided along with the estimate, which recommendations contained in the Responsibilities booklet that would be is prior to the execution of a contract for Recommendations Report and is now incorporated into appendix A would service (the bill of lading under the proposing changes to 49 CFR part 375 contain the same information as the proposed changes in this rulemaking). to implement those recommendations 2013 version of the booklet, with further Motor carriers would likely see an that FMCSA believes require a updates to reflect the changes to 49 CFR increased burden under this proposed rulemaking. After considering the part 375 proposed by this rulemaking, change because they would be required recommendations, FMCSA found that as discussed below. These edits would to provide the Rights and recommendations 5, 6, 7, 8, 9, 10, 11, ensure that the content of the booklet Responsibilities booklet earlier in the 12, 14, 15, and 18 would require a conforms with the updated regulations. moving process and more often than change to the regulations at 49 CFR part The updated Rights and Responsibilities they are currently required. This 375 to implement.2 Those 11 booklet, and therefore appendix A, proposed change, however, would also would also include various minor increase the likelihood that individual 2 See Household Goods Consumer Protection changes intended to increase the clarity shippers would become aware of the Working Group Report To Congress. Available at of the information in the booklet for consumer protection information in the https://www.fmcsa.dot.gov/mission/policy/ individual shippers. These changes booklet earlier in the moving process, household-goods-consumer-protection-working- group-report-congress. The Household Goods would ensure that the Rights and when it would be more helpful for them Consumer Protection Working Group Report To Responsibilities booklet and appendix A to understand their rights and Congress is also in the docket for this rulemaking. are consistent and contain the most up- responsibilities.
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The Working Group Report, in its educate individual shippers, and it is be involved in the moving process. Recommendations 5 and 14, also necessary ensure that the motor carrier’s Blank and incomplete documents may suggests that FMCSA should revise its records are clear that the shipper was both be provided to the individual regulations to make it acceptable for able to access to these documents shippers for informational purposes. motor carriers to provide documents, through the provided hyperlink. Motor carriers may never require an including the Rights and B. Recommendation 6—Estimates individual shipper to sign a blank Responsibilities booklet, electronically document. Motor carriers may however without requiring the shipper to provide Recommendation 6 from the require individual shippers to sign written consent to waive their right to Recommendations Report suggested that incomplete documents only when the a hard copy. These recommendations FMCSA eliminate the motor carrier’s information omitted from the were considered by FMCSA after the ability to revise a binding estimate or a documents cannot be determined before Working Group Report in the non-binding estimate and, if additional loading, such as actual shipment weight rulemaking titled ‘‘Electronic items are tendered, require that a new or unforeseen charges incurred in Documents and Signatures’’ (NPRM, 79 binding estimate or new non-binding transit. FR 23306, (April 28, 2014), and final estimate be prepared. The Working These proposed changes fully rule, 83 FR 16210 (April 17, 2018)) Group explained that, while this incorporate FMCSA’s interpretation of which implemented provisions similar practice has been adopted in FMCSA the regulations from the 2011 guidance to the related recommendation 13 by guidance titled, Regulatory Guidance into 49 CFR part 375. The proposed ‘‘eliminating the requirement in Concerning Household Goods Carriers changes would protect individual § 375.213 for the Ready to Move Requiring Shippers To Sign Blank or shippers from motor carriers that brochure and Rights and Incomplete Documents (76 FR 50537, attempt improperly to utilize blank Responsibilities booklet to be provided Aug. 15, 2011) (2011 guidance), it documents, incomplete documents, or only in paper copy or retrieved at a should be formally adopted into the revised estimates when such use is a URL.’’ See 83 FR at 16214. regulations. violation of the regulations in 49 CFR The Electronic Documents final rule FMCSA proposes to amend 49 CFR part 375 and would provide additional retained the provisions of 49 CFR 375.403(a)(6)(ii), (a)(9), and 49 CFR clarity to motor carriers regarding 375.213(e), which provides that a 375.405(b)(7)(ii) to clarify that a motor proper use of blank and incomplete shipper may elect to waive receipt of a carrier must prepare a new binding or documents. FMCSA would rescind the copy of either Ready to Move? or the non-binding estimate when an 2011 guidance if the proposed changes Rights and Responsibilities booklet and individual shipper tenders additional discussed above are finalized. household goods or requests additional elect to access the same information via services. This proposed change would C. Recommendations 7 and 8—Surveys a hyperlink on the carrier’s website to update the regulatory language for of Household Goods the FMCSA web page. 49 CFR consistency with FMCSA’s 375.213(a) and (b)(1). When the shipper Recommendation 7 from the interpretation of the regulations issued elects to receive these documents via Recommendations Report suggested that in response to question 3 in the 2011 the hyperlink, the motor carrier is FMCSA change the requirement for a guidance. physical survey to a visual survey. The required to obtain a signed and dated Additionally, FMCSA is proposing to receipt that includes ‘‘verification of the Working Group stated that the term incorporate the rest of the 2011 visual survey should include both shipper’s agreement to access the guidance into the regulations in 49 CFR Federal consumer protection physical and virtual surveys. The part 375. The 2011 guidance refers to Working Group determined that the information on the internet.’’ 49 CFR the regulations at § 375.501(d) when term visual survey was necessary to 375.213(e)(2). discussing blank documents, ensure that movers actually see what FMCSA is proposing to remove the incomplete documents, and revised they would be moving before preparing requirement in section 375.213(e)(1) for estimates. As discussed in section VI.D. an estimate, while recognizing that a waiver in order for the individual below, FMCSA is proposing to remove technological advances would allow shipper to have the option to access 49 CFR 375.501 from the regulations remote surveys through the use of video either Ready to Move? or the Rights and and move certain items from 49 CFR capability in addition to physical Responsibilities booklet via a hyperlink. 375.501 to 49 CFR 375.505, including surveys. FMCSA is not proposing to change the the requirements that are currently FMCSA proposes to define the term requirements of section 375.213(e)(2) located at § 375.501(d). Accordingly, the physical survey to include both on-site and (3) for the motor carrier to obtain edits incorporating FMCSA’s and virtual surveys. The requirement for and retain proof that the shipper agreed interpretation of § 375.501(d) found in a physical survey originates in 49 U.S.C to access one or both of these the 2011 guidance would be made to 3 14104(b)(1)(A), which states: publications via the internet. The paragraph § 375.505(g). FMCSA is proposed change would no longer proposing to add subparagraph (3) to Except as otherwise provided in this require a waiver for the individual proposed paragraph (g) of § 375.505, subsection, every motor carrier providing shipper to access documents which would prevent a motor carrier transportation of household goods described electronically through a hyperlink, but in section 13102(10)(A) as a household goods from requiring an individual shipper to motor carrier and subject to jurisdiction would still require the motor carrier to sign a blank document. The Agency is obtain a signed receipt as proof of the under subchapter I of chapter 135 shall also proposing an additional sentence to conduct a physical survey of the household individual shipper’s acknowledgment paragraph (g)(2) of § 375.505 which goods to be transported on behalf of a that they have received access to the would allow motor carriers to omit from prospective individual shipper and shall electronic copies of these documents. documents only that information that provide the shipper with a written estimate These documents are important to cannot be determined before loading, of charges for the transportation and all such as actual shipment weight or related services. 3 Section 375.213(e) is proposed to be renumbered as section 375.213(f) with substantive unforeseen charges incurred in transit. However, there is no definition for the changes to allow the proposed insertion of a new These additional changes clarify how term physical survey in the statute and paragraph (e). blank and incomplete documents may FMCSA has not established a definition
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of the term in the regulations under 49 FMCSA proposes to remove the See also 72 FR at 36766. Even though CFR 375. FMCSA therefore proposes a provision under 49 CFR 375.401(a)(1) household goods carriers and their reasonable interpretation of the that excepts from the physical survey agents are not required to perform a statutory term physical survey in order requirement those surveys where the physical survey on goods located more to give a clear meaning to the term and household goods are located more than than 50 miles from the motor carrier to resolve any ambiguity. FMCSA would 50 miles from the motor carrier agent’s agent’s location, neither the statute nor not change the term physical survey to location. FMCSA also proposes to the regulation precludes carriers from visual survey as recommended by the remove similar language from 49 CFR conducting a physical survey in such Working Group because FMCSA does 371.113(a) to ensure consistency in the circumstances, if they choose to do so. not believe that it can replace the regulations relating to household goods For similar reasons, the statute also does statutory term with a new term. brokers. The statutory language in 49 not preclude the consideration of a However, FMCSA has sufficient U.S.C. 14104(b)(1)(C) states that the regulatory requirement for physical authority to propose a reasonable written estimate given to an individual inspection of household goods located interpretation of the term which meets shipper shall be based on a physical beyond the 50-mile radius. the functional intent of the Working survey of the household goods if the Recommendation 8 in the Group’s recommendation. household goods are located within a Recommendations Report states: FMCSA proposes to define physical 50-mile radius of the location of the Movers should be required to offer visual survey in 49 CFR 375.103 as ‘‘a survey carrier’s agent preparing the estimate. surveys for all household goods shipments, which is conducted on-site or virtually. Congress enacted this provision in including those that are located over 50-miles If the survey is performed virtually, the section 4205 of SAFETEA–LU, Public from the mover’s location. Consumers should household goods motor carrier must be Law 109–59, 119 Stat. 1144 at 1753–54 continue to have the option to waive in able to view the household goods (Aug. 10, 2005). Both the statute and writing the visual survey if they choose, but through live video that allows it to legislative history are silent on whether movers must offer them the option of a visual clearly identify the household goods to an estimate should be based on a survey regardless of distance. be transported.’’ The proposed physical survey when the household As the Recommendations Report definition of physical survey would goods are located more than 50 miles explained: allow for virtual surveys with a live from the location of the carrier’s agent. video component that would permit The Working Group also discussed the (Id., see also Sen. Rep. 109–120 at 47– current exception to the survey requirements motor carriers to see the household 48 (July 29, 2005), and H. Conf. Rep. for consumers who are over 50 miles from goods that are the subject of the survey 109–203 at 1009–1010 (July 28, 2005)). the HHG carrier’s agent. The reason for this as if the motor carrier were performing But the Senate report on SAFETEA–LU exception is because consumers living in the survey on-site. Any survey also noted that: remote areas may not be able to obtain one conducted without a video component, or more estimates if movers were required to such as verbally over the phone or Inaccurate estimates based on an inventory travel long distances to physically inspect through filling out a form, would not be provided by a prospective customer over the shipments. The Working Group determined telephone or the internet are the source of acceptable under this proposed change. that since virtual surveys are a realistic many complaints and disputes. It is hoped possibility, that consumers’ ability to obtain This definition requires both the motor that requiring an estimate be based on a carrier and the individual shipper to be a visual survey should not now be waived visual inspection of the goods to be moved automatically because of distance. Rather, if physically present on a live video in prior to the execution of a contract will consumers’ goods are located more than 50 significantly reduce such disputes. order to perform a virtual survey. miles from the mover’s agent that is This proposed change recognizes the In 2007, FMCSA adopted regulations providing the estimate, they should be given significant technological advances (e.g., to implement this statutory provision, the option of a visual survey. Consumers use of smart phones, tablets, faster among others, in Amendments To should continue to have the option to waive computers) that have occurred since the Implement Certain Provisions of the the visual survey if they choose, but movers passage of SAFETEA–LU and its Safe, Accountable, Flexible, Efficient must offer them the option of a visual survey regardless of distance. Movers will be implementing regulations, which allow Transportation Equity Act: A Legacy for for clear live videos between motor required to perform a visual survey unless Users (SAFETEA–LU), 72 FR 36760. The the consumer decides to voluntarily waive carriers and individual shippers. Agency stated that: Allowing motor carriers to use this the right for such survey. technology to conduct remote surveys of The statute permits two exceptions to the Report at 30–31 (emphasis in original). household goods reduces the burden of requirement for a physical survey. First, the In the Report to Congress in response to motor carrier need not conduct a physical those surveys on the motor carriers. survey if the household goods are located the Working Group’s recommendations Requiring a live visual component to the beyond a 50-mile radius of the location of the (submitted in September 2019 as survey process ensures that motor carrier’s household goods agent preparing the required by section 5503 of the FAST carriers provide consumers with written estimate provided to the individual Act), FMCSA addressed estimates that are as accurate as those shipper. Recommendation 8 as follows: prepared following an on-site survey. 72 FR at 36764. Because the statute FMCSA is evaluating the working group’s Recommendation 8 from the permitted, but did not require, that recommendation. If deemed appropriate by Recommendations Report suggested that estimates for household goods located the Administrator/Secretary, FMCSA will FMCSA require movers to offer visual more than 50 miles from the motor develop proposed regulatory changes for surveys for all household goods carrier agent’s location be based on a notice and comment rulemaking. This shipments, including those that are physical survey, the implementing recommendation would add a potential benefit to the consumer by preventing located over 50 miles from the motor regulation, in § 375.401(a)(1) provides: carrier agent’s location. The Working unexpected charges for additional household Group determined that, with the If the household goods are located beyond goods. a 50-mile radius of the location of the availability of virtual surveys, household goods motor carrier’s agent Report at 4. consumers’ ability to obtain a visual preparing the estimate, the requirement to As recognized in the passage above survey should no longer be limited base the estimate on a physical survey does from the Senate Report on SAFETEA– because of distance. not apply. LU, a physical inspection of the
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household goods to be moved is could be combined to reduce the currently found in § 375.501(a) which important because it provides an paperwork burden for motor carriers. are not already covered by § 375.505(b). accurate inventory, permits the creation FMCSA proposes to remove the This proposed change ensures that of a meaningful estimate (whether requirement for an order for service for § 375.505(b) would require the same binding or non-binding), and minimizes the shipment of household goods under information on a bill of lading currently the opportunity for both fraudulent Part 375. This proposed change required in an order for service. By actions by the carriers or their agents recognizes the significant overlaps in ensuring that all the information from and/or disputes with consumers. The the current order for service both documents would be included in development of technology that allows requirements in § 375.501 and the bill of the bill of lading, the proposed change virtual surveys to be conducted lading requirements in § 375.505. would provide the same level of accurately and efficiently by remote Additionally, FMCSA proposes to consumer protection while only remove all references to the order for electronic means that can be included requiring a single document and service from Part 375 and replace them within the scope of physical surveys (as therefore reducing the burden on motor with references to the bill of lading. proposed in the NPRM) enables the carriers. requirement to be extended to FMCSA proposes to delete 49 CFR household goods shippers located more 375.501 and, as discussed below, to FMCSA also proposes to update 49 than 50 miles from the motor carrier update 49 CFR 375.505 with all of the CFR 375.505 by adding the agent’s location. FMCSA is proposing to requirements currently found in requirements that are currently in 49 adopt this requirement because it has § 375.501. CFR 375.501(b) through (e). Under the concluded that 49 U.S.C. 14104(b) does Recommendation 10 from the proposed change, these sections would not preclude the application of a Recommendations Report suggested that be moved to § 375.505(e) through (h). requirement of a physical survey (either FMCSA make a variety of updates to the These sections would also be updated to bill of lading requirements: replace references to an order for service on-site or virtual, as discussed earlier in • this proposal). Even if the carrier would Add the carrier’s physical address, with references to a bill of lading. be required to offer a physical survey to telephone number, DOT number, any FMCSA also proposes an additional all individual shippers, those individual identification or registration number update to the new § 375.505(f) to clarify shippers could still waive the physical assigned to the shipment, and a that the bill of lading must be signed at survey, if desired. statement that the bill of lading both the origin and the destination of incorporates by reference all of the In addition, 49 U.S.C. 14104(a) the shipment by the motor carrier and services and charges printed on the includes a general delegation of the individual shipper. These proposed estimate; changes would ensure that the authority to the Agency to adopt • Continue to require the carrier’s regulations for the protection of name on the bill of lading, and provide regulatory requirements that are individual shippers of household goods. that either the legal or trade name (i.e., currently in 49 CFR 375.501 are fully By expanding the required use of doing business as name) registered with incorporated into 49 CFR 375.505 and physical surveys (either on-site or FMCSA is acceptable for use; would not be lost by removing the virtual) to individual shippers located • Eliminate the requirement that requirement for an order for service. beyond 50 miles, the proposed names, addresses, and telephone Additionally, FMCSA proposes to add amendment would provide more numbers of additional motor carriers § 375.505(h) to require movers to shippers with protections and increase involved in the move be provided; and provide the bill of lading to consumers the competitive alternatives available to • Remove references to the order for prior to the date of load. The Working them. Requiring a physical survey service; Group recommended that the bill of beyond 50 miles could result in motor Recommendation 11 from the lading be provided before the date of the carriers performing more surveys of Recommendations Report suggested that load, at least as early as the order for household goods than they perform FMCSA should require movers to service was provided. The current under the current regulations. FMCSA provide the bill of lading to consumers estimates however that all shippers regulations do not have a specific prior to the date of loading. requirement for when the order for located beyond 50 miles from the motor FMCSA proposes to update the service must be provided to an carrier agent’s location would take requirements for a bill of lading under individual shipper. However, advantage of the virtual survey option, 49 CFR 375.505 to include requirements § 375.501(e) mentions allowing for a 3- as discussed in section IX.A. currently found in an order for service. The proposed bill of lading day period, if possible, for the D. Recommendations 9, 10, and 11— individual shipper to rescind the order Order for Service and Bill of Lading requirements would offer the same level of protection, but with a lesser for service after it is provided by the Recommendation 9 from the paperwork burden. These updates to the motor carrier. FMCSA proposes to Recommendations Report suggested that bill of lading requirements include require motor carriers to provide a bill FMCSA should eliminate the order for almost all of the recommended changes of lading to individual shippers at least service and add any items on the order in recommendation 10. FMCSA is not 3 days prior to the date the shipment is for service that are not already on the proposing to eliminate the requirement scheduled to be loaded. This proposed bill of lading to that document. The to provide names, addresses, and approach implements recommendation Working Group explained that the telephone numbers of additional motor 11 and ensures that individual shippers requirement for an order for service carriers involved in the move, because will have sufficient time to fully read results in an additional paperwork this requirement provides the and understand the bill of lading and burden for motor carriers without individual shipper with information decide if they want to rescind it. providing any additional protection for that is often necessary to understand FMCSA specifically requests public individual shippers. The Working which motor carriers are involved in the comment on whether the bill of lading Group stated that the information shipment of their household goods. should be provided more or fewer than required by the bill of lading and order FMCSA proposes to update 3 days before the date the shipment is for service is very similar, therefore they § 375.505(b) by adding the requirements scheduled to be loaded.
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E. Recommendation 12—Invoice when the motor carrier provides the light of the removal of the order for Recommendation 12 from the estimate to the individual shipper. For service requirement. Recommendations Report suggested that this reason, FMCSA is not proposing to FMCSA proposes to update the FMCSA remove the requirement for a implement recommendation 15 at this definition of Surface Transportation freight bill, and replace references in the time. Board in 49 CFR 375.103 to reflect that Federal Motor Carrier Safety Recommendation 18 from the the STB is no longer an agency within Regulations to a freight bill with Recommendations Report suggested that DOT and is an independent references to an invoice. The Working FMCSA should require all household establishment of the United States Group stated that the freight bill goods motor carriers that have a website government. See 49 U.S.C. 1301. requirement is repetitive and to display prominently, at their option, either a link to Ready to Move? on the FMCSA proposes to require that unnecessary, evidenced by the fact that motor carriers provide a direct movers typically combine it with the FMCSA website or a true and accurate copy of Ready to Move? on their own hyperlink to Ready to Move? and the bill of lading. The Working Group Rights and Responsibilities booklet on explained that customers who have websites. The Working Group determined that this requirement would the Agency’s website if they use a already paid in full for their charges hyperlink to provide those documents find a freight bill confusing, while allow consumers to have access to this information as soon as they start to individual shippers under 49 CFR customers with a balance due after their 375.213. This proposed revision would deliveries better understand an invoice searching for movers and would ensure broader distribution. specify that the hyperlinks be direct to as a request for payment. each document and not to FMCSA’s FMCSA proposes to replace the FMCSA proposes to update 49 CFR website generally, in order to ensure requirement for a freight bill in Subpart 375.213 to include a requirement for a that individual shippers who are H of 49 CFR part 375 with a requirement motor carrier that has a website to provided with those hyperlinks are able for an invoice. This proposed change display prominently either a link to to access the required documents would reduce the need for essentially Ready to Move? on the FMCSA website without needing to search FMCSA’s duplicative documents, while or a true and accurate copy of Ready to website for the required information. increasing clarity regarding outstanding Move? on their own website. This The Agency recognizes that the location charges for individual shippers. proposed change would only apply to Accordingly, FMCSA proposes to motor carriers that already have a of documents on its website may change replace the term ‘‘freight bill’’ with the website and does not impose any as the website is updated and would word ‘‘invoice’’ throughout 49 CFR 375. requirement for motor carriers to create ensure that their location is not affected a website. Requiring motor carriers to by website updates or updates to the F. Recommendations 15 and 18—Ready update their existing website including documents themselves. To Move the hyperlink or electronic document FMCSA proposes to revise the title of Recommendation 15 from the ensures that individual shippers are 49 CFR 375.801 to read ‘‘What types of Recommendations Report suggested that more likely to become aware of Ready charges are subject to subpart H?’’ FMCSA require movers to provide to Move? earlier in the process when instead of ‘‘What types of charges apply FMCSA publication ESA 03005 (Ready they are initially looking for motor to subpart H?’’ This would clarify that to Move?) when the physical survey is carriers to contact. The Agency 49 CFR 375.801 discusses which types either scheduled or waived by the specifically requests public comment on of charges are subject to the consumer. The Working Group whether the term ‘‘display prominently’’ requirements of subpart H. determined that consumers are not provides sufficient clarity to motor Overall, the implementation of the currently receiving the brochure at the carriers regarding where to include proposed changes discussed in this right time in the moving process, and either a link to Ready to Move? on the NPRM are expected to reduce that consumers should receive the FMCSA website or a true and accurate paperwork burden, save money on information contained in the brochure copy of Ready to Move? on their own printing materials, and save time for earlier in the process, before picking a website. If the term does not provide regulated entities and stakeholders. mover. The Working Group explained sufficient clarity, the Agency Consumers would have fewer that the brochure provides critical specifically requests public comment on documents to review, approve, and sign information about how to select a mover alternative language to ensure that and potentially experience less and the best time for consumers to individual shippers can easily find the confusion in a stressful situation. receive this information is during the required link to Ready to Move? on the very early stages of the process. FMCSA website or a true and accurate VII. International Impacts FMCSA is not proposing to copy of Ready to Move? on a motor implement recommendation 15. FMCSA carrier’s website. The regulations in 49 CFR parts 371 does not believe that the statute at 49 and 375 apply only within the United U.S.C. 14104(b)(2) allows Ready to G. Additional Proposed Changes States (50 states and the District of Move? to be provided earlier than at the FMCSA proposes to make clarifying Columbia). Motor carriers and drivers time the estimate is provided. That changes to 49 CFR part 375 in addition are subject to the laws and regulations statutory provision states, in part: to the recommendations from the of the countries in which they operate, Working Group. The Agency proposes unless an international agreement states At the time that a motor carrier provides otherwise. Drivers and carriers should the written estimate required by paragraph to define bill of lading as ‘‘both the (1), the motor carrier shall provide the receipt and the contract for the be aware of the regulatory differences shipper a copy of the Department of transportation of the individual among nations. Transportation publication FMCSA–ESA– shipper’s household goods.’’ This VIII. Section-by-Section Analysis 03–005 (or its successor publication) entitled proposed definition would provide ‘‘Ready to Move?’’. additional information regarding the This section-by-section analysis FMCSA believes this language explicitly role of the bill of lading in the describes the proposed changes in requires Ready to Move? to be provided household goods moving process in numerical order.
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A. Section 371.113 May I provide copy of that document on their own services related to the transportation of individual shippers with a written websites. the household goods. estimate? In paragraph (c) the language E. Section 375.215 How must I collect regarding an order for service would be Paragraph (a) of this section would be charges? removed. revised to remove the requirement for In this section, the requirement for a household goods to be within 50 miles freight or expense bill in the first K. Section 375.501 Must I write up an of the motor carrier agent’s location sentence would be replaced with a order for service? before a physical survey is required. requirement for an invoice. This section would be deleted in its entirety. B. Section 375.103 What are the F. Section 375.217 How must I collect definitions of terms used in this part? charges upon delivery? L. Section 375.505 Must I write up a bill of lading? In this section, a definition for bill of In paragraph (b), the language lading would be added to clarify the regarding an order for service would be In this section, paragraph (a) would be role of the bill of lading as both a removed. revised to clarify that a motor carrier contract and a receipt in the must prepare and issue a bill of lading transportation of household goods. The G. Section 375.221 May I use a charge at least 3 days before receiving a current definition for order for service or credit card plan for payments? shipment of household goods to would be removed. A definition for In paragraph (c), the phrase ‘‘for a transport for an individual shipper. physical survey would also be added, freight or expense bill’’ would be Additionally, the last three sentences in which would allow for virtual surveys. removed and replaced with the phrase the paragraph would be removed. The current definition for reasonable ‘‘an invoice.’’ Removing these sentences would delete dispatch would be revised to remove a discussion of incomplete bills of H. Section 375.401 Must I estimate the reference to the order for service. lading, which would be addressed charges? The current definition for Surface under paragraph (h), as well as a Transportation Board would be updated In this section, the introductory text reference to an order for service. to reflect that the STB is no longer an of paragraph (a) would be revised to Paragraph (b) would be revised to agency within DOT, but is instead an require a physical survey for all require a bill of lading to contain 17 independent agency. shipments unless waived, and to state items, instead of the 14 items a bill of C. Section 375.211 Must I have an that the only way to waive the physical lading is currently required to contain. arbitration program? survey of household goods is through a The additional three items, as well as written agreement between an updates to the other items listed in In paragraph (a) subparagraph (2), the individual and a motor carrier. paragraph (b)(1) through (b)(17), term ‘‘order for service’’ would be Additionally, paragraph (a) would be incorporate requirements currently removed and replaced with ‘‘bill of further revised so that paragraphs found in 49 CFR 375.501(a). lading.’’ (a)(2)(i) through (a)(2)(iii) would be In paragraph (d), the word ‘‘bills’’ D. Section 375.213 What information redesignated as (a)(1) through (a)(3). would be removed and replaced with ‘‘a must I provide to a prospective Paragraph (b) would be revised by bill of lading.’’ individual shipper? removing the phrase ‘‘an order for New paragraph (e), which would service’’ and replacing it with ‘‘a bill of mirror current paragraph 49 CFR In this section, the introductory text lading.’’ In paragraph (f), the phrase 375.501(b), would be added to this of paragraph (a) would be revised and ‘‘the order for service and’’ would be section. subparagraphs (1) and (2) would be removed in both places it appears. New paragraph (f), which would added. The new paragraph (a) would mirror current paragraph 49 CFR require both Ready to Move? and the I. Section 375.403 How must I provide 375.501(c), would be added to this Rights and Responsibilities booklet to be a binding estimate? section with updates to replace all provided to the individual shipper In this section, paragraph (a)(1) would references to an order for service with along with the estimate. Subparagraphs be revised to reflect that 49 CFR language regarding a bill of lading. (1) and (2) would also include a 375.401(a) would allow for only one New paragraphs (g)(1) through (g)(3) requirement for motor carriers providing waiver procedure under the proposed would be added to this section. a hyperlink for either of the documents changes discussed above. Paragraphs Paragraphs (g)(1) and (g)(2) would to the individual shipper to provide a (a)(6)(ii) and (a)(9) would be revised to mirror current paragraphs 49 CFR hyperlink directly to those documents no longer allow for a revised binding 375.501(d)(1) and (2) with updates to on the FMCSA website. estimate and instead require the remove the reference to an order for In the introductory text of paragraph preparation of a new binding estimate service in subparagraph (1) and (b), the term ‘‘order for service’’ would when an individual shipper tenders replacing ‘‘at origin’’ with ‘‘before the be removed and replaced with ‘‘bill of additional household goods or requires shipment is loaded’’ in subparagraph lading’’ and the word ‘‘five’’ would be additional services related to the (2). Subparagraph (3) would be added to removed and replaced with ‘‘four.’’ transportation of the household goods. state that a motor carrier cannot require Paragraph (b)(1) would be deleted and an individual shipper to sign a blank paragraphs (b)(2) through (b)(5) would J. Section 375.405 How must I provide document. be renumbered as (b)(1) through (b)(4). a non-binding estimate? A new paragraph (h) would be added Paragraph (e) would be redesignated In this section, paragraph (b)(7)(ii) to this section to require the motor as paragraph (f) and a new paragraph (e) would be revised to no longer allow for carrier to provide the bill of lading at would be added, which would require a revised non-binding estimate and least 3 days before loading and provide motor carriers that have a website to would instead require the preparation of the individual shipper a 3-day period display prominently either a link to the a new non-binding estimate when an after the individual shipper signs the Ready to Move? document on the individual shipper tenders additional bill of lading to rescind the bill of FMCSA website or a true and accurate household goods or requires additional lading. It would also require a motor
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carrier to provide the individual shipper IX. Regulatory Analyses motor carriers. The U.S. Census Bureau with the opportunity to rescind the bill estimates that approximately 7.4 million A. Executive Order (E.O.) 12866 people moved interstate during 2018, of lading without any penalty for a 3- (Regulatory Planning and Review), E.O. and that the average household day period after the individual shipper 13563 (Improving Regulation and contained 2.63 people. Therefore, we signs the bill of lading. Paragraph (h) Regulatory Review), and DOT can estimate that approximately 2.8 would also state that, if a new estimate Regulatory Policies and Procedures is prepared under §§ 375.403(a)(6)(ii) or million households participated in 375.405(b)(7)(ii), ‘‘the corresponding Under section 3(f) of E.O. 12866 (58 interstate moves during 2018 (7,443,306 changes to the bill of lading from the FR 51735, October 4, 1993), Regulatory ÷ 2.63 = 2,830,154).5 However, most new estimate do not require a new 3-day Planning and Review, as supplemented interstate moves do not involve a for- period as otherwise required in this by E.O. 13563 (76 FR 3821, January 21, hire mover, and thus would not be paragraph (h).’’ 2011), Improving Regulation and affected by this rule. As discussed Regulatory Review, this NPRM does not below, the American Moving and M. Section 375.605 How must I notify require an assessment of potential costs Storage Association (AMSA) estimated an individual shipper of any service and benefits under section 6(a)(3) of that approximately 20 percent of delays? E.O. 12866. Accordingly, the Office of interstate household good moves are Management and Budget has not completed by for-hire movers.6 In paragraph (a), the term ‘‘order for reviewed it under those Orders. In service’’ would be removed and addition, this rule is not significant TABLE 1—INTERSTATE HOUSEHOLD replaced with the term ‘‘bill of lading.’’ within the meaning of DOT regulatory GOODS (HHG) MOTOR CARRIERS N. Section 375.801 What types of policies and procedures. charges apply to subpart H? Interstate HHG Affected Entities Year motor carriers The title of this section would be This proposed rule affects household 2019 ...... 4,297 changed to read ‘‘What types of charges goods motor carriers covered by the 49 CFR part 375 regulations. These 2020 ...... 4,484 are subject to subpart H?’’ to clarify that 2021 ...... 4,680 49 CFR 375.801 discusses which types regulations are based on the commercial 2022 ...... 4,884 of charges are subject to the statutes with special provisions for 2023 ...... 5,097 requirements of subpart H. household goods carriers that authorize 2024 ...... 5,319 Additionally, the term ‘‘invoice’’ would States, at their discretion, to enforce 2025 ...... 5,551 replace the term ‘‘freight bill’’ in Federal rules, but only for interstate 2026 ...... 5,793 2027 ...... 6,046 paragraph (a). household goods transportation. The motor carrier safety assistance program 2028 ...... 6,309 O. Section 375.803 How must I present (MCSAP) statutes do not require 2029 ...... 6,584 2030 ...... 6,871 my freight or expense bill? MCSAP grant recipients to adopt 2031 ...... 7,171 compatible commercial regulations for In this section, the term ‘‘invoice’’ intrastate transportation not related to Analysis Inputs would replace the term ‘‘freight bill’’ safety.4 Therefore, FMCSA anticipates everywhere it appears, including in the that this rule would affect interstate Motor Carrier Profit per Hour section title. The new title would read household goods motor carriers, and Broadly speaking, the opportunity ‘‘How must I present my invoice?’’ does not include intrastate household cost to the motor carrier (the firm) of a P. Section 375.805 If I am forced to goods motor carriers in the counts of given regulatory action is the value of relinquish a collect-on-delivery affected entities. the best alternative that the firm must shipment before the payment of ALL FMCSA obtained motor carrier count forgo in order to comply with the charges, how do I collect the balance? information from the Motor Carrier regulatory action. In this analysis, Management Information System FMCSA follows the methodology used The term ‘‘invoice’’ would replace the (MCMIS), which includes information in the Entry-Level Driver Training term ‘‘freight bill.’’ submitted to FMCSA by motor carriers rulemakings published in 2016 and the first time they apply for a DOT 2018 and values the change in time Q. Section 375.807 What actions may number, and then biennially thereafter. spent in nonproductive activity as the I take to collect the charges upon my The table below shows the counts of opportunity cost to the firm, which is freight bill? household goods motor carriers in 2019 represented by the now attainable profit, In this section, the term ‘‘invoice’’ and estimates of the number of carriers using three variables: The marginal cost would replace the term ‘‘freight bill’’ that would be affected by this rule of operating a CMV, an estimate of a annually during the analysis period of everywhere it appears, including in the typical average motor carrier profit 2022 to 2031. section title. The new title would read margin, and the change in FMCSA estimated the future baseline nonproductive time. ‘‘What actions may I take to collect the number of motor carriers by developing The American Transportation charges upon my invoice?’’ a compound average growth rate Research Institute (ATRI) report, An R. Appendix A to Part 375—Your Rights (CAGR) using historical counts from and Responsibilities When You Move 2014 through 2019. There were 3,472 5 U.S. Census Bureau. 2018: ACS 5-Year Estimates active household goods motor carriers Data Profiles. Available at: https://data.census.gov/ This appendix would be replaced in cedsci/table?d=ACS%205- in 2014, and 4,297 active household Year%20Estimates%20Data%20Profiles& its entirety with the information goods motor carriers in 2019, resulting table=DP02&tid=ACSDP5Y2018.DP02&vintage= contained in the updated Your Rights in a CAGR of 4.36 percent. 2018&hidePreview=true (accessed October 6, 2020). and Responsibilities When You Move This rule would also affect shippers, 6 The AMSA will become a conference of the booklet, which would conform with the ATA. AMSA to Become Conference of American or consumers who hire household goods Trucking Associations (Aug. 7, 2020), available at other revisions to part 375 discussed in https://www.moving.org/amsa-to-become- this proposal. 4 See 49 U.S.C. 31102(c)(2)(Q). conference-of-american-trucking-associations/.
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Analysis of the Operational Costs of net income information reported by hire moving services. The U.S. Census Trucking: 2019 Update, found that Transport Topics, with an average profit Bureau estimates that approximately 7.4 marginal operating costs were $71.78 margin of approximately 6 percent for million people moved interstate during per hour in 2018.7 These marginal costs 2018.11 The higher profit margin 2018, and that the average household include vehicle-based costs (e.g., fuel experienced in 2018 is reinforced by a contained 2.63 people. Therefore, we costs, insurance premiums, etc.), and Forbes article that found net profit can estimate that approximately 2.8 driver-based costs (i.e., wages and margin for freight trucking companies million households participated in benefits). ‘‘expanded to 6 percent in 2018, interstate moves during 2018 (7,443,306 Next, the Agency estimated the profit compared with an annual average of ÷ 2.63 = 2,830,154).14 FMCSA estimates margin for motor carriers. Profit is a between 2.5 percent and 4 percent each the growth in interstate moves using the function of revenue and operating year since 2012.’’ 12 In 2019, the data same Census data from 2010 through expenses, and the American Trucking provided by Transport Topics shows a 2018, and finds an annual average Associations (ATA) defines the similar pattern based on the 28 growth rate of 0.08 percent.15 AMSA operating ratio of a motor carrier as a companies that provided net income estimated that 550,000, or measure of profitability based on information, with an average profit approximately 20 percent, of the operating expenses as a percentage of margin of 5.8 percent.13 It is uncertain interstate household goods moves in 8 gross revenues. Armstrong & whether the recent surge in net profit 2017 were completed by for-hire Associates, Inc. (2009) states that margin will continue through the movers.16 trucking companies that cannot analysis period, so FMCSA assumes the maintain a minimum operating ratio of lower profit margin of 5 percent for Some impacts of the proposed rule 95% (calculated as operating costs ÷ net motor carriers for purposes of this would be based on the distance of the revenue) will not have sufficient analysis. shipper’s location from the motor profitability to continue operations in Using the assumed profit margin of 5 carrier. For instance, moves that are the long run.9 Therefore, Armstrong & percent for motor carriers, FMCSA within 50 miles of the motor carrier Associates states that trucking estimated the revenue gained per hour agent’s location must receive a physical companies need a minimum profit for motor carriers by multiplying the survey unless the shipper signs a margin of 5% of revenue to continue marginal cost per hour by the profit waiver. The information collection operating in the future. Transport margin. This calculation resulted in a request (ICR) supporting statement, Topics publishes data on the ‘‘Top 100’’ profit per hour of $3.59. published in November 2019, estimated for-hire carriers, ranked by revenue.10 that the motor carrier agent is within 50 For 2014, 39 of these Top 100 carriers Number of Interstate Moves per Year miles of the shipper’s location for 95 also have net income information FMCSA estimates the number of percent of interstate moves, and beyond reported by Transport Topics. FMCSA interstate moves by for-hire movers 50 miles for 5 percent of moves. The estimates that the 39 carriers with both using U.S. Census Bureau data based on table below shows the number of revenue and net income information the number of people moving interstate, household interstate moves by for-hire have an average profit margin of the average number of people per movers, and those that are within and approximately 4.3 percent for 2014. For household, and an AMSA estimate of beyond 50 miles from the motor carrier 2018, 33 of these Top 100 carriers have the number of moves that involved for- agent’s location.
TABLE 2—NUMBER OF INTERSTATE MOVES BY: HOUSEHOLDS, FOR-HIRE MOVERS, WITHIN AND BEYOND 50 MILES OF THE MOTOR CARRIER AGENT LOCATION
Total number of Number of Number of Number of interstate household interstate moves interstate moves Year moves by interstate moves by for-hire movers by for-hire movers households by for-hire movers within 50 miles beyond 50 miles
A B = A × 20% C = B × 95% D = B × 5%
2018 ...... 2,830,154 556,621 528,784 27,837 2019 ...... 2,832,418 557,066 529,207 27,859 2020 ...... 2,834,684 557,512 529,630 27,882 2021 ...... 2,836,952 557,958 530,054 27,904 2022 ...... 2,839,221 558,404 530,478 27,926 2023 ...... 2,841,493 558,851 530,902 27,949 2024 ...... 2,843,766 559,298 531,327 27,971 2025 ...... 2,846,041 559,745 531,752 27,993 2026 ...... 2,848,318 560,193 532,177 28,016
7 ATRI. An Analysis of the Operational Costs of 10 Transport Topics. 2014. Top 100 For-Hire 14 U.S. Census Bureau. 2018: ACS 5-Year Trucking: 2019 Update. October 2019. Table 10, pg. Carriers. Available at: http://ttnews.com/top100/for- Estimates Data Profiles. Available at: https:// 19. Available at: https://truckingresearch.org/wp- hire/2014 (accessed November 19, 2018). data.census.gov/cedsci/table?d=ACS%205-Year content/uploads/2019/11/ATRI-Operational-Costs- 11 Transport Topics. 2018. Top 100 For-Hire %20Estimates%20Data%20Profiles&table= of-Trucking-2019-1.pdf (accessed December 11, Carriers. Available at: https://www.ttnews.com/ DP02&tid=ACSDP5Y2018.DP02&vintage= 2019). Source data are assumed to be presented in top100/for-hire/2018 (accessed November 19, 2018). 2018&hidePreview=true (accessed October 6, 2020). 2018 dollar terms. 12 Forbes. Trucking Companies Hauling in Higher 15 0.08 percent = (average households that moved 8 ATA. American Trucking Trends 2015. Page 79. Sales. Available at: https://www.forbes.com/sites/ interstate in 2018 ÷ average household that moved 9 Armstrong & Associates, Inc. Carrier sageworks/2018/03/04/trucking-companies- 1 ¥ ∧ Procurement Insights. 2009. Pages 4–5. Available at: hauling-in-higher-sales/#40e0012f3f27 (accessed interstate in 2010) ( ⁄8) 1 . https://www.3plogistics.com/product/carrier- November 19, 2018). 16 American Moving and Storage Association. procurement-insights-trucking-company-volume- 13 Transport Topics. 2019. Top 100 For-Hire Newsroom: About our Industry. https:// cost-and-pricing-tradeoffs-2009/ (accessed January Carriers. Available at: https://www.ttnews.com/ www.moving.org/newsroom/data-research/about- 5, 2016). top100/for-hire/2019 (accessed October 14, 2020). our-industry/ (accessed December 29, 2020).
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TABLE 2—NUMBER OF INTERSTATE MOVES BY: HOUSEHOLDS, FOR-HIRE MOVERS, WITHIN AND BEYOND 50 MILES OF THE MOTOR CARRIER AGENT LOCATION—Continued
Total number of Number of Number of Number of interstate household interstate moves interstate moves Year moves by interstate moves by for-hire movers by for-hire movers households by for-hire movers within 50 miles beyond 50 miles
A B = A × 20% C = B × 95% D = B × 5%
2027 ...... 2,850,596 560,641 532,603 28,038 2028 ...... 2,852,877 561,090 533,029 28,061 2029 ...... 2,855,159 561,539 533,456 28,083 2030 ...... 2,857,443 561,988 533,882 28,106 2031 ...... 2,859,729 562,438 534,309 28,128 2032 ...... 2,862,017 562,888 534,737 28,151
Cost Impacts determined by subtracting the number rule. The difference between these two Recommendation 5—Appendix A of estimates provided from the number variables (column C) represents the of orders for service provided, and increase in the number of hard-copy FMCSA is proposing to adopt the adjusting for the preference to receive Rights and Responsibilities booklets that working group recommendation that electronic documents. The number of would be printed as a result of this rule. would require the Rights and orders for service provided is equal to The ICR supporting statement Responsibilities booklet to be provided the number of household interstate estimated that a carrier could print earlier in the process—at the time the moves by for-hire movers from Table 2. roughly 1,600 pages per hour, and that estimate is provided to the shipper. This The number of estimates provided is document contains useful information each Rights and Responsibilities booklet equal to the number of orders for service consists of 25 pages. Thus, the increase to assist a shipper in making a provided multiplied by three, determination regarding which in the number of hours needed to print accounting for the fact that shippers household goods motor carrier to hire. hard-copy Rights and Responsibilities likely request estimates from more than However, requiring the document documents is equal to the number of one motor carrier. In the ICR supporting earlier in the process, prior to when a Rights and Responsibilities documents statement, FMCSA previously estimated shipper has chosen a carrier, would from Table 3, Column C, multiplied by that 40 percent of shippers prefer to result in providing an additional two 25 pages per document, and divided by receive information in hard copy form, documents per interstate move, as 1,600 pages per hour. Column D shows and that 60 percent prefer to receive FMCSA estimates that shippers request this maximum increase in hours spent electronic information. an estimate from three household goods printing. carriers and only contract with one. As shown in columns A and B of The time spent printing additional Therefore, while FMCSA considers it Table 3 below, FMCSA multiplied the copies of the Rights and Responsibilities important to require this information number of interstate moves per year by booklet is time not spent in other early enough in the process for the 40 percent to estimate the number of revenue producing activities. As shown information to inform the shipper’s hard-copy Rights and Responsibilities in Table 3, Column E, FMCSA decision on which household goods booklets provided to shippers under the quantifies this opportunity cost of time carrier to choose, the proposed existing requirements, and multiplied using the previously discussed estimate requirement would result in costs equal the number of orders for service where of the motor carrier profit per hour, to the increase in the time required to hard-copies are provided by three (to $3.59, resulting in total 10-year costs of print the additional hard-copy Rights account for the assumption that $251,000, or $218,000 discounted at 3 and Responsibilities booklets provided. shippers seek an estimate from three percent, and $179,000 discounted at 7 FMCSA estimated this cost by first different household goods carriers) to percent. On an annualized basis, the determining the increase in the number estimate the number of hard-copy Rights costs would be $26,000 discounted at 3 of hard-copy Rights and Responsibilities and Responsibilities booklets that percent and $26,000 discounted at 7 booklets printed each year. This can be would be provided under the proposed percent.
TABLE 3—RECOMMENDATION 5: MOTOR CARRIER OPPORTUNITY COST RESULTING FROM INCREASED PRINTING OF YOUR RIGHTS AND RESPONSIBILITIES BOOKLET
Number of Number of Maximum Maximum Motor carrier orders for estimates with increase in increase in increase in Year service with hard copy of number of total hours cost for hard copy YRR provided hard copies spent printing hours spent YRR c provided provided printing
A = Interstate B = A × 3 C = B ¥ A D = C × 25 E = D × $3.59 moves by for- ÷ 1600 hire movers × 40%
2022 ...... 223,362 670,085 446,723 6,980 $25,051 2023 ...... 223,540 670,621 447,081 6,986 25,071 2024 ...... 223,719 671,158 447,438 6,991 25,092 2025 ...... 223,898 671,695 447,796 6,997 25,112
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TABLE 3—RECOMMENDATION 5: MOTOR CARRIER OPPORTUNITY COST RESULTING FROM INCREASED PRINTING OF YOUR RIGHTS AND RESPONSIBILITIES BOOKLET—Continued
Number of Number of Maximum Maximum Motor carrier orders for estimates with increase in increase in increase in Year service with hard copy of number of total hours cost for hard copy YRR provided hard copies spent printing hours spent YRR c provided provided printing
A = Interstate B = A × 3 C = B ¥ A D = C × 25 E = D × $3.59 moves by for- ÷ 1600 hire movers × 40%
2026 ...... 224,077 672,232 448,155 7,002 25,132 2027 ...... 224,257 672,770 448,513 7,008 25,152 2028 ...... 224,436 673,308 448,872 7,014 25,172 2029 ...... 224,616 673,847 449,231 7,019 25,192 2030 ...... 224,795 674,386 449,590 7,025 25,212 2031 ...... 224,975 674,925 449,950 7,030 25,232
Total 10-Year Cost ...... 251,418
Total Annualized Cost ...... 25,142 Notes: a Total cost values may not equal the sum of the components due to rounding. (The totals shown in this column are the rounded sum of unrounded components.) b Values shown in parentheses are negative values (i.e., less than zero) and represent a decrease in cost or a cost savings. c The Rights and Responsibilities booklet is abbreviated as YRR for the purposes of the tables in this section.
FMCSA also proposes to adopt the change the requirement to conduct a time for a move originating within 50 recommendation to make it acceptable survey of the shipper’s goods by miles of the motor carrier agent would for motor carriers to provide documents, redefining a ‘‘physical survey’’ to be approximately 1 hour. including the Rights and include both an ‘‘in person’’ and a Under the current requirements, Responsibilities booklet, electronically ‘‘virtual’’ survey. The physical survey physical surveys must be completed for without requiring the motor carrier to would include in-person surveys and all moves originating within 50 miles of include a waiver statement on the virtual surveys. This change does not the motor carrier agent’s location, unless written estimate. Under the existing require that shippers receive only the physical survey is waived by the requirements, when the shipper elects virtual surveys, but it does provide the individual shipper. FMCSA assumes to receive these documents via the option and allows the shipper to that under the proposal, some portion of hyperlink, the motor carrier is required determine whether a physical or virtual shippers would voluntarily request a to obtain a signed waiver of the survey would better suit their needs. virtual survey but is unable to estimate shipper’s right to a hard copy via a In the event of a virtual survey, the the exact number of virtual surveys that statement on the written estimate, as motor carrier would likely spend the would be conducted under the proposal. well as a signed and dated receipt that same amount of time completing the FMCSA developed an estimate of the includes ‘‘verification of the shipper’s survey but would not need to travel to number of surveys that would be agreement to access the Federal and from the shipper’s location. This conducted virtually using a range from consumer protection information on the reduction in travel would allow that 25 percent to 75 percent, with a primary internet.’’ The proposal would remove time to be put to other productive uses, estimate of 50 percent. As shown in the the requirement in 49 CFR 375.213(e)(1) resulting in a motor carrier cost savings table below, the motor carrier cost for the shippers to include a waiver equal to the now attainable profit that savings are estimated by multiplying the statement on the written estimate, but can be earned during that time. FMCSA number of virtual surveys originating would retain the requirement to obtain estimates this cost savings using three within 50 miles, by the 1 hour of time a receipt. FMCSA expects that removing variables; the reduction in travel time savings, and by the motor carrier profit the waiver statement would be a de per completed survey, the number of per hour of $3.59. FMCSA estimates that minimis one-time cost savings for motor completed surveys that would now be providing virtual surveys would result carrier, but requests comment on the virtual, and the motor carrier hourly in in costs of $9.6 million over 10 years current process for obtaining the waiver profit. The distance and time required to (or $9.6 million in cost savings), $8.1 statement and receipt required in 49 travel to and from a move site varies million (or $8.1 million in cost savings) CFR 375.213(e), and whether removing with each survey. However, the survey discounted at 3 percent, and $6.7 the requirement to obtain a waiver requirement is in place for moves million (or $6.7 million in cost savings) would result in measurable cost savings. originating within 50 miles from the discounted at 7 percent. On an motor carrier agent’s location. annualized basis, the costs would be Recommendation 7—Survey of Therefore, we can estimate that the time $955,000 (or $955,000 in cost savings) Household Goods savings would accrue to those moves discounted at 3 percent and $955,000 In agreement with the originating within 50 miles. FMCSA (or $955,000 in cost savings) discounted recommendations, FMCSA proposes to estimated the average round-trip travel at 7 percent.
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TABLE 4—RECOMMENDATION 7: MOTOR CARRIER OPPORTUNITY COST SAVINGS FOR PROVIDING VIRTUAL SURVEYS WITHIN 50 MILES
Motor carrier Motor carrier Motor carrier Number of virtual Number of virtual Number of virtual opportunity opportunity opportunity Year surveys surveys surveys cost cost cost (low) (primary) (high) (low) (primary) (high)
A B C D = A × $3.59 E = B × $3.59 F = C × $3.59 × ¥1 hour × ¥1 hour × ¥1 hour
2022 ...... 132,619 265,239 397,858 ($475,971) ($951,942) ($1,427,914) 2023 ...... 132,726 265,451 398,177 (476,352) (952,704) (1,429,056) 2024 ...... 132,832 265,663 398,495 (476,733) (953,466) (1,430,199) 2025 ...... 132,938 265,876 398,814 (477,114) (954,229) (1,431,343) 2026 ...... 133,044 266,089 399,133 (477,496) (954,992) (1,432,488) 2027 ...... 133,151 266,302 399,452 (477,878) (955,756) (1,433,634) 2028 ...... 133,257 266,515 399,772 (478,260) (956,521) (1,434,781) 2029 ...... 133,364 266,728 400,092 (478,643) (957,286) (1,435,929) 2030 ...... 133,471 266,941 400,412 (479,026) (958,052) (1,437,078) 2031 ...... 133,577 267,155 400,732 (479,409) (958,818) (1,438,228)
Total 10-Year Cost Savings ...... (4,776,884) (9,553,767) (14,330,651)
Total Annualized Cost Savings ...... (477,688) (955,377) (1,433,065) Notes: a Total cost values may not equal the sum of the components due to rounding. (The totals shown in this column are the rounded sum of unrounded components.) b Values shown in parentheses are negative values (i.e., less than zero) and represent a decrease in cost or a cost savings.
Recommendation 8—Survey of carrier agent’s location. Often, a agent’s location would take advantage of Household Goods; beyond 50 miles consumer will discuss the shipment the virtual survey option. These surveys load and the mover will provide an would take about 1.5 hours each, and In agreement with the estimate based on the discussion, FMCSA monetizes this time using the recommendations, FMCSA is proposing without visually inspecting the amount motor carrier profit margin of $3.59 per to require that movers offer physical or weight of goods for transport. The hour. As shown below, FMCSA surveys for all household goods purpose of the survey is to develop a estimates the cost of providing virtual shipments, including those that are more accurate estimate of moving fees surveys to be approximately $1.5 located over 50 miles from the motor and to prevent unexpected charges from million over 10 years, $1.3 million at a carrier agent’s location. surfacing later in the move process. 3 percent discount rate, and $1.1 Currently, motor carriers are not Because FMCSA lacks data on how million at a 7 percent discount rate. On required to offer physical surveys for behavior would change, FMCSA an annualized basis, the cost would be household goods shipments that are estimates that all shippers located $151,000 annualized at both a 3 and 7 located beyond 50 miles from the motor beyond 50 miles from the motor carrier percent discount rate.
TABLE 5—RECOMMENDATION 8: MOTOR CARRIER OPPORTUNITY COST FOR PROVIDING VIRTUAL SURVEYS BEYOND 50 MILES
Number of moves beyond Motor carrier Motor carrier Motor carrier Year 50 miles with a opportunity cost opportunity cost opportunity cost virtual survey 3% discount rate 7% discount rate
A A = B × 1.5 hours × $3.59
2022 ...... 27,926 $150,342 $145,963 $140,506 2023 ...... 27,949 150,462 141,825 131,419 2024 ...... 27,971 150,582 137,804 122,920 2025 ...... 27,993 150,703 133,898 114,971 2026 ...... 28,016 150,823 130,102 107,535 2027 ...... 28,038 150,944 126,413 100,580 2028 ...... 28,061 151,065 122,830 94,076 2029 ...... 28,083 151,186 119,347 87,991 2030 ...... 28,106 151,307 115,964 82,301 2031 ...... 28,128 151,428 112,676 76,978
Total 10-Year Cost Savings ...... 1,286,822 1,059,278
Total Annualized Cost Savings ...... 150,855 150,817 Notes: a Total cost values may not equal the sum of the components due to rounding. (The totals shown in this column are the rounded sum of unrounded components.) b Values shown in parentheses are negative values (i.e., less than zero) and represent a decrease in cost or a cost savings.
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Recommendation 9—Order for Service information they are provided. estimates that eliminating the order for ¥ In agreement with the working group Currently, each interstate move requires service would result in costs of $10 recommendation, FMCSA is proposing both an order for service and a bill of million over 10 years (or cost savings of to eliminate the order for service. Much lading. Each document takes 30 minutes $10 million), ¥$8.6 million (or $8.6 of the information provided on the order to prepare. Under the proposal, a motor million in cost savings) discounted at 3 for service is also on the bill of lading, carrier would be able to save 30 minutes percent, and ¥$7.1 million (or $7.1 and is therefore duplicative.17 of time for each interstate move by no million in cost savings) discounted at 7 Eliminating the order for service would longer drafting an order for service. percent. On an annualized basis, the reduce the amount of paperwork FMCSA monetized this time using the costs would be ¥$1.0 million (or $1.0 consumers are required to review, but motor carrier hourly profit margin of million in cost savings) discounted at 3 would not reduce the necessary $3.59. As shown below, FMCSA percent and 7 percent.
TABLE 6—RECOMMENDATION 9: MOTOR CARRIER OPPORTUNITY COST FOR ELIMINATING THE ORDER FOR SERVICE
Motor carrier Number of Motor carrier opportunity Motor carrier Year interstate moves opportunity cost opportunity by for-hire cost discounted cost movers at 3% discounted at 7%
A B = A × ¥0.5 hours × $3.59
2022 ...... 558,404 ($1,002,056) ($972,870) ($936,501) 2023 ...... 558,851 (1,002,858) (945,290) (875,935) 2024 ...... 559,298 (1,003,660) (918,491) (819,286) 2025 ...... 559,745 (1,004,463) (892,453) (766,300) 2026 ...... 560,193 (1,005,267) (867,152) (716,741) 2027 ...... 560,641 (1,006,071) (842,569) (670,388) 2028 ...... 561,090 (1,006,876) (818,682) (627,032) 2029 ...... 561,539 (1,007,681) (795,473) (586,480) 2030 ...... 561,988 (1,008,487) (772,922) (548,550) 2031 ...... 562,438 (1,009,294) (751,010) (513,074)
Total 10- Year Cost Savings ...... (8,576,911) (7,060,287)
Total Annualized Cost Savings ...... (1,005,476) (1,005,226) Notes: a Total cost values may not equal the sum of the components due to rounding. (The totals shown in this column are the rounded sum of unrounded components.) b Values shown in parentheses are negative values (i.e., less than zero) and represent a decrease in cost or a cost savings.
Document Production Cost change in the cost of materials for 10-year materials cost to total $16 The ICR supporting statement also printing the Rights and Responsibilities million, or $13.6 million discounted at estimated printing costs of $0.15 per booklet and the Orders for Service by 3 percent, and $11.2 million discounted page for both the Rights and multiplying the change in the number of at 7 percent. On an annualized basis, the Responsibilities booklet and the Order pages by the $0.15 cost per page. As costs would be $1.6 million discounted for Service. FMCSA estimates the shown in Table 7, FMCSA estimates a at both 3 and 7 percent.
TABLE 7—DOCUMENT PRODUCTION COST
Recommendation 9— Recommendation 5— Eliminating the order Total change in Total cost for Year Increase in pages for for service number of pages producing documents hard copy YRR (reduction in pages)
A B C = A + B D = C × $0.15
2022 ...... 11,168,084 ¥558,404 10,609,680 $1,591,452 2023 ...... 11,177,018 ¥558,851 10,618,167 1,592,725 2024 ...... 11,185,960 ¥559,298 10,626,662 1,593,999 2025 ...... 11,194,909 ¥559,745 10,635,163 1,595,275 2026 ...... 11,203,865 ¥560,193 10,643,671 1,596,551 2027 ...... 11,212,828 ¥560,641 10,652,186 1,597,828 2028 ...... 11,221,798 ¥561,090 10,660,708 1,599,106 2029 ...... 11,230,775 ¥561,539 10,669,237 1,600,386 2030 ...... 11,239,760 ¥561,988 10,677,772 1,601,666 2031 ...... 11,248,752 ¥562,438 10,686,314 1,602,947
17 FMCSA is revising the requirements for a bill an order for service, including non-duplicative of lading to incorporate all of the requirements from information.
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TABLE 7—DOCUMENT PRODUCTION COST—Continued
Recommendation 9— Recommendation 5— Eliminating the order Total change in Total cost for Year Increase in pages for for service number of pages producing documents hard copy YRR (reduction in pages)
A B C = A + B D = C × $0.15
Total 10-Year Cost Savings ...... 15,971,934
Total Annualized Cost Savings ...... 1,597,193 Notes: a Total cost values may not equal the sum of the components due to rounding. (The totals shown in this column are the rounded sum of unrounded components.) b Values shown in parentheses are negative values (i.e., less than zero) and represent a decrease in cost or a cost savings.
Total Costs million (or $1.6 million in cost savings) an annualized basis, this equates to discounted at 3 percent, and $1.3 ¥$188,000 in costs (or $188,000 in cost As shown below, FMCSA estimates million (or $1.3 million in cost savings) savings) at both a 3 and 7 percent the total costs of this final rule at $1.6 discounted at 7 percent. Expressed on discount rate. TABLE 8—TOTAL 10-YEAR AND ANNUALIZED COSTS OF THE PROPOSED RULE [Thousands of 2018$]
Rec. 7: Rec. 8: Rec. 5: Virtual Survey of Rec. 9: Document Total cost Total cost Total cost Year Appendix survey HHG Order for produc- (primary) discounted discounted A c of HHG beyond service f tion g at 3% at 7% (primary) d 50 miles e
2022 ...... $25.1 ($951.9) 150.3 (1,002.1) 1,591.5 (187.2) (181.7) (174.9) 2023 ...... 25.1 (952.7) 150.5 (1,002.9) 1,592.7 (187.3) (176.6) (163.6) 2024 ...... 25.1 (953.5) 150.6 (1,003.7) 1,594.0 (187.5) (171.5) (153.0) 2025 ...... 25.1 (954.2) 150.7 (1,004.5) 1,595.3 (187.6) (166.7) (143.1) 2026 ...... 25.1 (955.0) 150.8 (1,005.3) 1,596.6 (187.8) (162.0) (133.9) 2027 ...... 25.2 (955.8) 150.9 (1,006.1) 1,597.8 (187.9) (157.4) (125.2) 2028 ...... 25.2 (956.5) 151.1 (1,006.9) 1,599.1 (188.1) (152.9) (117.1) 2029 ...... 25.2 (957.3) 151.2 (1,007.7) 1,600.4 (188.2) (148.6) (109.5) 2030 ...... 25.2 (958.1) 151.3 (1,008.5) 1,601.7 (188.4) (144.4) (102.5) 2031 ...... 25.2 (958.8) 151.4 (1,009.3) 1,602.9 (188.5) (140.3) (95.8) Total 10-Year Cost Savings ...... (1,878.3) (1,601.9) (1,318.6)
Total Annualized Cost Savings ...... (187.8) (187.8) (187.8)
Notes: a Total cost values may not equal the sum of the components due to rounding. (The totals shown in this column are the rounded sum of unrounded components.) b Values shown in parentheses are negative values (i.e., less than zero) and represent a decrease in cost or a cost savings. c (Increase in Number of Hard Copy YRR Booklets Provided) × (25 ÷ 1600) × ($3.59). d (Number of Virtual Surveys) × ($3.59) × (¥1 hour). e (Interstate Moves beyond 50 miles by For-Hire Movers) × (¥0.5 hours) × ($3.59). f (Interstate Moves by For-Hire Movers) × (¥0.5 hours) × ($3.59). g ((Increase in Pages for YRR Booklet) + (Decrease in Pages for Elimination of Order for Service)) × $0.15.
Benefit Impacts information received today would not survey. However, the survey change under the proposed rule. requirement is in place for moves FMCSA does not expect this rule to FMCSA anticipates that providing within 50 miles from the motor carrier impact safety, but does expect that it virtual surveys for those moves within agent’s location, and we can estimate would result in benefits related to 50 miles of a motor carrier agent’s that any potential fuel savings would consumer protection and fuel savings. location would not only result in motor only accrue to those moves. FMCSA Recommendation 5 would result in carrier time savings quantified above, assumes the average mileage for these shippers receiving accurate and clear but could potentially result in fuel moves would be approximately 25 information earlier in the process, savings if motor carriers drive fewer miles, or 50 miles round-trip. Based on allowing them to make more informed miles, which could produce a small data provided by the Bureau of and better decisions regarding which reduction in CO2 emissions. It is Transportation Statistics, light-duty household goods motor carrier to hire, important to note that FMCSA is not vehicles averaged approximately 22 and would allow shippers to obtain anticipating a change in CMV vehicle miles per gallon in 2017, resulting in more accurate estimates of moving fees miles traveled, as the rule does not just over 2 gallons saved per trip (22.27 ÷ based on physical surveys for those affect the number of interstate moves miles per gallon 50 miles per trip = 18 interstate moves beyond 50 miles from occurring per year, but recognizes that 2.24 gallons per trip). The U.S. Energy a motor carrier agent’s location. The motor carriers could reduce miles 18 U.S. Department of Transportation, Bureau of motor carrier efficiencies discussed driven in light-duty vehicles used for providing estimates to shippers. The Transportation Statistics. Table 4–23: Average Fuel above would not negatively impact Efficiency of U.S. Light Duty Vehicles. Available at: distance and fuel required to travel to shippers, as the services and https://www.bts.gov/content/average-fuel- and from a move site varies with each efficiency-us-light-duty-vehicles
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Information Administration forecasts C. Regulatory Flexibility Act (Small estimated receipts by revenue size of the real petroleum prices for motor gasoline, Entities) firm. The most recent data available are and estimates an average price per The Regulatory Flexibility Act of 1980 from the 2012 County Business Patterns 22 gallon over the analysis period of $3.28 (5 U.S.C. 601 et seq.) as amended by the and the 2012 Economic Census. The 19 in 2018 dollars. Therefore, FMCSA Small Business Regulatory Enforcement revenue size categories used in the 2012 estimates that each virtual survey could Fairness Act of 1996 (Pub. L. 104–121, Economic Census do not exactly align result in $7.37 in avoided fuel costs with the SBA size standard, but they do × 110 Stat. 857), requires Federal agencies (2.24 gallons per trip $3.28 per gallon). to consider the effects of the regulatory allow FMCSA to develop a good Any potential fuel savings would result action on small business and other estimate of the percentage of small from a reduction in vehicle miles small entities and to minimize any entities within the NAICS industry traveled in light-duty vehicles. The significant economic impact. The term group 48421. The 2012 Economic Agency is uncertain how motor carriers ‘‘small entities’’ comprises small Census reported that there were 5,718 would respond to the proposed change businesses and not-for-profit firms operating for the entire year allowing virtual surveys, and whether organizations that are independently within NAICS industry group 48421 they would be involved in other owned and operated and are not (household goods and office goods driving-related activities which could dominant in their fields, and moving). Of those firms that operated diminish or negate any potential fuel governmental jurisdictions with for the entire year, 5,663 firms (99 savings. For these reasons, FMCSA is populations of less than 50,000 (5 U.S.C. percent), had annual revenues of less not quantifying any potential fuel 601(6)). Accordingly, DOT policy than $25 million, and 5,692 firms (100 impacts but requests comment on how requires an analysis of the impact of all percent) had annual revenues less than motor carriers would adjust their regulations on small entities, and $50 million. FMCSA concludes that this operations in response to this proposed mandates that agencies strive to lessen rule will impact a substantial number of rule. Similarly, while these potential any adverse effects on these businesses. small entities. The RFA does not define a threshold fuel savings, if realized, would result in Section 605 of the RFA allows an for determining whether a specific a reduction of CO2 emissions that is Agency to certify a rule, in lieu of regulation results in a significant directly proportional to the amount of preparing an analysis, if the rulemaking impact. However, the SBA, in guidance fuel saved, the Agency is not is not expected to have a significant to government agencies, provides some quantifying those potential savings in economic impact on a substantial objective measures of significance that this proposed rule due to the number of small entities. the agencies can consider using.23 aforementioned uncertainty with This rule affects shippers and Revenue is one measure that could be respect to how motor carriers would household goods motor carriers. used to illustrate a significant impact, adjust their operations. If FMCSA Shippers, or consumers that hire specifically, if the cost of the regulation receives data that enables the household good motor carriers, are not exceeds one percent of the average quantification of fuel savings in the considered small entities because they annual revenues of small entities in the context of the development of a do not meet the definition of a small subsequent final rule, the Agency would sector. entity in Section 601 of the RFA. Examining the 2012 Economic Census monetize the commensurate reduction Specifically, shippers are considered in CO2 emissions consistent with the data discussed above, FMCSA found neither a small business under Section that affected entities had average social cost of carbon values, as 601(3) of the RFA, nor are they established by the White House and the revenues ranging from $55,000 to $35 considered a small organization under million. The cost of the regulation Interagency Working Group on the Section 601(4) of the RFA. Social Cost of Greenhouse Gases. would thus need to exceed $550 per The SBA defines the size standards carrier in any one year in order to be B. Congressional Review Act used to classify entities as small. SBA considered a significant impact on the establishes separate standards for each entities within the smallest revenue size Pursuant to the Congressional Review industry, as defined by the North Act (5 U.S.C. 801, et seq.), the Office of category. The exact impact per motor American Industry Classification carrier is dependent on many variables Information and Regulatory Affairs 21 System (NAICS). Household goods throughout the year (e.g., the number of designated this rule as not a ‘‘major motor carriers would fall under rule,’’ as defined by 5 U.S.C. 804(2).20 hard-copy Rights and Responsibilities Subsector Industry 48421, household booklets provided, the number of virtual good and office goods moving, which 19 U.S. Energy Information Administration. surveys provided for those moves Petroleum and Other Liquids Prices, has an SBA size standard based on within 50 miles of the motor carrier Transportation, Motor Gasoline: Reference Case, annual revenue of $30 million. agents’ locations, and the number of years 2022—2031, inflated to 2018$. Available at: FMCSA examined data from the U.S. virtual surveys completed for moves https://www.eia.gov/outlooks/aeo/data/browser/#/ Census Bureau to determine the number ?id=12-AEO2015®ion=0-0&cases= beyond 50 miles of the motor carrier ref2015∼highmacro∼lowmacro∼highprice∼ of small entities within the identified 5- agents’ locations), and cannot be lowprice&start=2020&end=2034&f=A& digit NAICS industry group. The Census ∼ estimated with precision. While FMCSA linechart=ref2015-d021915a.3-12-AEO2015 Bureau collects and publishes data on cannot provide the exact impact per highmacro-d021915a.3-12-AEO2015∼lowmacro- the number of firms, establishments, d021915a.3-12-AEO2015∼highprice-d021915a.3-12- AEO2015∼lowprice-d021915a.3-12- employment, annual payroll, and 22 U.S. Department of Commerce, U.S. Census AEO2015&sourcekey=0 (accessed October, 15 Bureau. Establishment and Firm Size: Summary 2020). effects on competition, employment, investment, Statistics by Revenue Size of Firms for the U.S. 20 A ‘‘major rule’’ means any rule that the productivity, innovation, or on the ability of United Release date March, 2016. Available at: https:// Administrator of Office of Information and States-based enterprises to compete with foreign- www2.census.gov/econ2012/EC/sector48/ Regulatory Affairs at the Office of Management and based enterprises in domestic and export markets EC1248SSSZ4.zip (accessed September 18, 2020). Budget finds has resulted in or is likely to result (5 U.S.C. 804(2)). 23 SBA, Office of Advocacy. ‘‘A Guide for in (a) an annual effect on the economy of $100 21 Executive Office of the President, OMB. ‘‘North Government Agencies. How to Comply with the million or more; (b) a major increase in costs or American Industry Classification System.’’ 2017. Regulatory Flexibility Act.’’ 2017. Available at: prices for consumers, individual industries, Federal Available at: https://www.census.gov/eos/www/ https://www.sba.gov/sites/default/files/advocacy/ agencies, State agencies, local government agencies, naics/2017NAICS/2017_NAICS_Manual.pdf How-to-Comply-with-the-RFA-WEB.pdf (accessed or geographic regions; or (c) significant adverse (accessed January 15, 2020). on December 30, 2020).
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motor carrier, it is possible to evenly determine the average impact per motor not exceed $550 in any year, and distribute the total cost of the rule carrier. As shown in the table below, the therefore is not a significant impact. across all affected motor carriers to estimated impact per motor carrier does
TABLE 8—ESTIMATED IMPACT PER MOTOR CARRIER
Household Total cost Estimated Year goods (discounted at impact motor carriers 7%) per motor carrier
2022 ...... 4,884 ($174,909.9) ($35.8) 2023 ...... 5,097 (163,597.9) (32.1) 2024 ...... 5,319 (153,017.6) (28.8) 2025 ...... 5,551 (143,121.5) (25.8) 2026 ...... 5,793 (133,865.4) (23.1) 2027 ...... 6,046 (125,208.0) (20.7) 2028 ...... 6,309 (117,110.4) (18.6) 2029 ...... 6,584 (109,536.5) (16.6) 2030 ...... 6,871 (102,452.5) (14.9) 2031 ...... 7,171 (95,826.6) (13.4)
Consequently, I certify that the State, local, or Tribal government, in the Household Goods Consumer Protection proposed action would not have a aggregate, or by the private sector of Working Group. These proposed significant economic impact on a $168 million (which is the value changes include further revisions to substantial number of small entities. equivalent of $100 million in 1995, streamline the Rights and adjusted for inflation to 2019 levels) or Responsibilities booklet which would D. Assistance for Small Entities more in any one year. Though this be incorporated in appendix A of the In accordance with section 213(a) of NPRM would not result in such an regulations, requiring new binding or the Small Business Regulatory expenditure, the Agency does discuss non-binding estimates when an Enforcement Fairness Act of 1996, the effects of this rule elsewhere in this individual shipper tenders more goods FMCSA wants to assist small entities in preamble. or requests additional service instead of understanding this NPRM so they can a revised estimate, allowing a motor F. Paperwork Reduction Act better evaluate its effects on themselves carrier to provide a virtual survey, and participate in the rulemaking The Paperwork Reduction Act of 1995 removing the exception from the survey initiative. If the NPRM would affect (44 U.S.C. 3501–3520) requires that an requirement for moves where the your small business, organization, or agency consider the impact of household goods are located more than governmental jurisdiction and you have paperwork and other information 50 miles from the motor carrier agent’s questions concerning its provisions or collection burdens imposed on the location, eliminating the order for options for compliance; please consult public. An agency is prohibited from service and incorporating that document the person listed under FOR FURTHER collecting or sponsoring an information into the bill of lading, and making other INFORMATION CONTACT. collection, as well as imposing an minor updates to increase the clarity of Small businesses may send comments information collection requirement, the regulations. These proposed changes on the actions of Federal employees unless it displays a valid OMB control are intended to reduce the paperwork who enforce or otherwise determine number (5 CFR 1320.8(b)(3)(vi)). burden on household goods motor compliance with Federal regulations to This proposed rule would amend the carriers and reduce confusion for the Small Business Administration’s existing approved information individual shippers. FMCSA Small Business and Agriculture collection titled ‘‘Transportation of summarizes the resulting changes from Regulatory Enforcement Ombudsman Household Goods; Consumer the existing ICR below. and the Regional Small Business Protection,’’ OMB control number 2126– Regulatory Fairness Boards. The 0025, which expires on November 30, IC–1: Required Information for Ombudsman evaluates these actions 2022. Specifically, FMCSA seeks Prospective Individual Shippers annually and rates each agency’s approval for the revision of the FMCSA is proposing to require the responsiveness to small business. If you information collection request (ICR) due Rights and Responsibilities booklet to be wish to comment on actions by to the Agency’s development of this provided earlier in the process, when employees of FMCSA, call 1–888–REG– NPRM. In accordance with 44 U.S.C. the estimate is provided to the shipper, FAIR (1–888–734–3247). DOT has a 3507(d), FMCSA will submit the which would result in providing an policy regarding the rights of small proposed information collection additional two documents per interstate entities to regulatory enforcement amendments to the Office of move. This is because FMCSA estimates fairness and an explicit policy against Information and Regulatory Affairs that shippers request an estimate from retaliation for exercising these rights. (OIRA) at OMB for its approval. three household goods carriers but Title: Transportation of Household contract with only one. FMCSA E. Unfunded Mandates Reform Act of Goods; Consumer Protection. multiplied the average number of 1995 OMB Control Number: 2126–0025. interstate moves per year by 40 percent The Unfunded Mandates Reform Act Type of Review: Revision of a to estimate the number of hard-copy of 1995 (2 U.S.C. 1531–1538) requires currently-approved information Rights and Responsibilities booklets Federal agencies to assess the effects of collection. provided to shippers under the existing their discretionary regulatory actions. In Summary: FMCSA is proposing to requirements (558,851 × 40 percent = particular, the Act addresses actions make various changes to the household 223,540 copies). FMCSA then that may result in the expenditure by a goods regulations recommended by multiplied the number of orders for
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service where hard-copies are provided IC–3: Pick Up of Shipments of information to be collected; (3) the by three, to account for the assumption Household Goods accuracy of FMCSA’s estimate of the that shippers seek an estimate from FMCSA is proposing to eliminate the burden of this information collection; three different household goods carriers, and (4) how the Agency can minimize × order for service because much of the (223,540 3 = 670,621 copies). The information provided on the order for the burden of the information number of additional hard copies that service is also provided on the bill of collection. would be provided as a result of this If you have comments on the ¥ lading. Currently, each interstate move rule is 447,081 (670,621 223,540 = requires both an order for service and a collection of information, you must 447,081 copies). It is estimated that a bill of lading and it takes 30 minutes to send those comments to FMCSA as carrier could print roughly 1,600 pages prepare each document. As such, outlined under the PUBLIC per hour and each Rights and removing the order for service form PARTICIPATION AND REQUEST FOR Responsibilities booklet consists of 25 requirement would save 30 minutes per COMMENTS section at the beginning of pages. The increase in the number of move. The Agency assumes all tasks this NPRM. hours needed to print hard-copy Rights would be completed by a cargo agent G. E.O. 13132 (Federalism) and Responsibilities booklets would be with a loaded hourly wage of $33.80. the additional hard copies multiplied by A rule has implications for federalism × With the annual average of 558,851 total under Section 1(a) of E.O. 13132 if it has 25 pages per document (447,081 25 = interstate moves and 30 minute time 11,177,021 pages) divided by 1,600 ‘‘substantial direct effects on the States, ÷ savings, motor carriers would save on the relationship between the national pages per hour (11,177,021 1,600 = 279,426 burden hours (558,851 6,986 hours). The Agency assumes × government and the States, or on the interstate moves –0.5 hours = distribution of power and printing and storing these booklets ¥279,426 burden hours). The estimated would be completed by an office clerk responsibilities among the various cost savings would be $9,445,421 levels of government.’’ with a loaded hourly wage of $33.31. (¥279,426 burden hours × $33.80 = Therefore, the increase in burden hours ¥ FMCSA has determined that this rule $9,445,421). would not have substantial direct costs would be 6,986 and the increase in cost Estimated Number of Respondents: resulting from the proposed rule is on or for States, nor would it limit the × 5,100. policymaking discretion of States. $232,705, (6,986 burden hours $33.31 Estimated Responses: 558,851. = $232,693). ¥ Nothing in this document preempts any Estimated Burden Hours: 279,426. State law or regulation. Therefore, this Estimated Number of Respondents: Estimated Cost Savings: $9,445,421. rule does not have sufficient federalism 5,100. Document Production implications to warrant the preparation Estimated Responses: 447,081. of a Federalism Impact Statement. The estimates of the costs of Estimated Burden Hours: 6,986. producing required documents is based H. Privacy Estimated Cost: $232,693. on the total number of pages movers The Consolidated Appropriations Act, IC–2: Estimating Charges would need to produce multiplied by a 2005,24 requires the Agency to conduct flat rate of $0.15 per page. With the a privacy impact assessment (PIA) of a The proposed rule would require that estimated annual average of 670,621 regulation that will affect the privacy of movers offer surveys for all household ‘‘Your Rights and Responsibilities’’ individuals. This NPRM would not goods shipments, including those that documents printed, there would be require the collection of personally are located over 50 miles from the motor 16,765,531 total pages printed (670,621 × identifiable information (PII). The carrier agent’s location. Currently, documents printed 25 pages per Agency will complete a Privacy household goods motor carriers are not document = 16,765,531 total pages Threshold Assessment (PTA) to evaluate required to offer surveys for household printed). The estimated total annual the risks and effects the proposed goods shipments that are located printing cost to respondents is $2.5 rulemaking might have on collecting, beyond 50 miles from the motor carrier million (16,765,531 total pages printed × storing, and sharing personally agent’s location. FMCSA estimates that $0.15 per page = $2.5 million). identifiable information. The PTA will all shippers located beyond 50 miles In removing the order for service be submitted to FMCSA’s Privacy from the motor carrier agent’s location form, which is a one page document, the Officer for review and preliminary would take advantage of the survey Agency estimates that there would be adjudication and to DOT’s Privacy option. There is an annual average of 558,851 fewer documents printed. This Officer for review and final 27,949 moves beyond 50 miles, of those results in an estimated annual cost adjudication. moves that currently receive non- savings to respondents of $83,828 binding surveys. These surveys would (558,851 documents printed × 1 page I. E.O. 13175 (Indian Tribal take about 1.5 hours each, and FMCSA per document × $0.15 per page = Governments) assumes all tasks will be completed by $83,828). This rule does not have Tribal a first line supervisor of a transportation Estimated Number of Respondents: implications under E.O. 13175, and material moving worker with a 5,100. Consultation and Coordination with loaded hourly wage of $44.11, resulting Estimated Responses: 1,229,472. Indian Tribal Governments, because it in an increase of 41,923 burden hours Estimated Cost: $2,431,002. does not have a substantial direct effect and an increased cost of $1,849,045 FMCSA asks for comment on the on one or more Indian Tribes, on the × × (27,959 1.5 hours $44.11 = information collection requirements of relationship between the Federal $1,849,045). this proposed rule. Specifically, the Government and Indian Tribes, or on Estimated Number of Respondents: Agency asks for comment on: (1) the distribution of power and 5,100. Whether the proposed information responsibilities between the Federal collection is necessary for FMCSA to Estimated Responses: 27,949. Government and Indian Tribes. perform its functions; (2) how the Estimated Burden Hours: 41,923. Agency can improve the quality, 24 Public Law 108–447, 118 Stat. 2809, 3268, note Estimated Cost: $1,849,045. usefulness, and clarity of the following 5 U.S.C. 552a (Dec. 4, 2014).
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J. National Environmental Policy Act of written agreement, as specified in ■ 5. Amend § 375.211 by revising the 1969 § 371.115 of this subpart. introductory text of paragraph (a)(2) to read as follows: FMCSA analyzed this proposed rule * * * * * for the purpose of the National PART 375—TRANSPORTATION OF § 375.211 Must I have an arbitration Environmental Policy Act of 1969 (42 HOUSEHOLD GOODS IN INTERSTATE program? U.S.C. 4321 et seq.) and determined this COMMERCE; CONSUMER (a) * * * action is categorically excluded from PROTECTION REGULATIONS (2) Before execution of the bill of further analysis and documentation in lading, you must provide notice to the an environmental assessment or ■ 3. The authority citation for part 375 individual shipper of the availability of environmental impact statement under continues to read as follows: neutral arbitration, including all three of FMCSA Order 5610.1 (69 FR 9680, Authority: 49 U.S.C. 13102, 13301, 13501, the following items: March 1, 2004), Appendix 2, paragraphs 13704, 13707, 13902, 14104, 14706, 14708; * * * * * 6.m. and 6.l. The Categorical Exclusions subtitle B, title IV of Pub. L. 109–59; and 49 ■ 6. Amend § 375.213 by: (CEs) in paragraphs 6.m. and 6.l., CFR 1.87. ■ a. Revising paragraph (a); respectively, cover regulations requiring ■ 4. Amend § 375.103 by: ■ b. Revising the introductory text of every motor carrier to issue and keep a ■ a. Adding, in alphabetical order, paragraph (b); receipt or bill of lading (or record) for definitions for ‘‘Bill of lading’’ and ■ c. Removing paragraph (b)(1); property tendered for transportation in ‘‘Physical survey’’; ■ d. Redesignating paragraphs (b)(2) interstate or foreign commerce, and ■ b. Removing the definition for ‘‘Order through (5) as paragraphs (b)(1) through regulations implementing procedures for service’’; and (4); applicable to the operations of ■ c. Revising the definitions for ■ e. Redesignating paragraph (e) as household good carriers engaged in the ‘‘Reasonable dispatch’’ and ‘‘Surface paragraph (f); transportation of household goods. The Transportation Board’’. ■ f. Adding new paragraph (e); and proposed requirements in this rule are The additions and revisions read as ■ g. Revising newly redesignated covered by these CEs, and the proposed follows: paragraph (f). rule would not have any effect on the § 375.103 What are the definitions of terms The revisions and addition read as quality of the environment. The CE used in this part? follows: determination is available for inspection * * * * * or copying in the docket. § 375.213 What information must I provide Bill of lading means both the receipt to a prospective individual shipper? List of Subjects and the contract for the transportation of (a) When you provide the written the individual shipper’s household 49 CFR 371 estimate to a prospective individual goods. shipper, you must also provide the Brokers, Motor carriers, Reporting and * * * * * individual shipper with the following recordkeeping requirements. Physical survey means a survey which documents: is conducted on-site or virtually. If the 49 CFR 375 (1) The DOT publication titled ‘‘Ready survey is performed virtually, the to Move?—Tips for a Successful Advertising, Consumer protection, household goods motor carrier must be Interstate Move’’ (Department of Freight, Highways and roads, Insurance, able to view the household goods Transportation publication FMCSA– Motor carriers, Moving of household through live video that allows it to ESA–03–005, or its successor goods, Reporting and recordkeeping clearly identify the household goods to publication). You must provide the requirements. be transported. individual shipper with either a copy or Accordingly, FMCSA proposes to * * * * * provide a hyperlink on your internet amend 49 CFR chapter 3, parts 371 and Reasonable dispatch means the website to the web page on the FMCSA 375 as follows: performance of transportation on the website containing that publication. dates, or during the period, agreed upon (2) The contents of appendix A of this PART 371—BROKERS OF PROPERTY by you and the individual shipper and part, titled ‘‘Your Rights and shown on the bill of lading. For Responsibilities When You Move’’ ■ 1. The authority citation for part 371 example, if you deliberately withhold (Department of Transportation continues to read as follows: any shipment from delivery after an publication FMCSA–ESA–03–006, or its Authority: 49 U.S.C. 13301, 13501, and individual shipper offers to pay the successor publication). You must 14122; subtitle B, title IV of Pub. L. 109–59; binding estimate or 110 percent of a provide the individual shipper with and 49 CFR 1.87. non-binding estimate, you have not either a copy or provide a hyperlink on transported the goods with reasonable ■ 2. Amend § 371.113 by revising your internet website to the web page on dispatch. The term ‘‘reasonable paragraph (a) to read as follows: the FMCSA website with the dispatch’’ excludes transportation publication ‘‘Your Rights and § 371.113 May I provide individual provided under your tariff provisions Responsibilities When You Move.’’ shippers with a written estimate? requiring guaranteed service dates. You (b) Before you execute a bill of lading (a) You may provide each individual will have the defenses of force majeure, for a shipment of household goods, you shipper with an estimate of i.e., superior or irresistible force, as must furnish to your prospective transportation and accessorial charges. construed by the courts. individual shipper all four of the If you provide an estimate, it must be in * * * * * following documents: writing and must be based on a physical Surface Transportation Board means * * * * * survey of the household goods an independent agency of the United (e) If you have a website, you are conducted by the authorized motor States that regulates household goods required to display prominently either a carrier on whose behalf the estimate is carrier tariffs, among other economic link to the DOT publication titled provided. The estimate must be regulatory responsibilities. ‘‘Ready to Move?—Tips for a Successful prepared in accordance with a signed, * * * * * Interstate Move’’ (Department of
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Transportation publication FMCSA– transported and provide the prospective you also may require payment at ESA–03–005, or its successor individual shipper with a written delivery of charges for impracticable publication) on the FMCSA website or estimate, based on the physical survey, operations (as defined in your carrier a true and accurate copy of that of the charges for the transportation and tariff) not to exceed 15 percent of all document on your website. all related services. An individual other charges due at delivery. You must (f) If an individual shipper elects to shipper may elect to waive a physical bill and collect from the individual access the Federal consumer protection survey. The waiver agreement is subject shipper any applicable charges not information via the hyperlink on the to the following requirements: collected at delivery in accordance with internet as provided in paragraphs (a)(1) (1) It must be in writing; subpart H of this part. and (2) of this section: (2) It must be signed by the shipper * * * * * (1) You must obtain a signed, dated before the shipment is loaded; and ■ 12. Amend § 375.405 by revising receipt showing the individual shipper (3) You must retain a copy of the paragraphs (b)(7)(ii) and (c) to read as has received either or both of the waiver agreement as an addendum to follows: publications that includes verification the bill of lading with the understanding of the shipper’s agreement to access the that the waiver agreement will be § 375.405 How must I provide a non- Federal consumer protection subject to the same record retention binding estimate? information on the internet. requirements that apply to bills of * * * * * (2) You must maintain the signed lading, as provided in § 375.505(d). (b) * * * receipt required by paragraph (f)(1) of (b) Before you execute a bill of lading (7) * * * this section for one year from the date for a shipment of household goods for (ii) Prepare a new non-binding the individual shipper signs the receipt. an individual shipper, you must provide estimate which must be signed by the You are not required to maintain the a written estimate of the total charges individual shipper. signed receipt when you do not actually and indicate whether it is a binding or * * * * * transport household goods or perform a non-binding estimate, as follows: (c) If you furnish a non-binding related services for the individual * * * * * estimate, you must enter the estimated shipper who signed the receipt. (f) You must determine charges for charges upon the bill of lading. ■ 7. Revise § 375.215 to read as follows: any accessorial services such as * * * * * elevators, long carries, etc., before § 375.215 How must I collect charges? § 375.501 [Removed and Reserved] preparing the bill of lading for binding ■ You must issue an honest, truthful or non-binding estimates. If you fail to 13. Remove and reserve § 375.501. ■ 14. Amend § 375.505 by revising invoice that includes all the information ask the shipper about such charges and paragraphs (a), (b) introductory text, required by subpart A of part 373 of this fail to determine such charges before (b)(1), (6), and (14 through (17), and (d), chapter. All rates and charges for the preparing the bill of lading, you must and adding paragraphs (e) through (h) to transportation and related services must deliver the goods and bill the shipper read as follows: be in accordance with your after 30 days for the additional charges. appropriately published tariff * * * * * § 375.505 Must I write up a bill of lading? provisions in effect, including the ■ 11. Amend § 375.403 by revising method of payment. (a) Before you receive a shipment of paragraphs (a)(1), (a)(6)(ii), and (a)(9) to ■ 8. Amend § 375.217 by revising household goods you will transport for read as follows: paragraph (b) to read as follows: an individual shipper, you must prepare and issue a bill of lading. The bill of § 375.403 How must I provide a binding § 375.217 How must I collect charges upon estimate? lading must contain the terms and delivery? conditions of the contract. (a) * * * * * * * * (b) On a bill of lading, you must (1) You must base the binding (b) You must specify the same form of include the following 17 items: estimate on the physical survey unless payment provided in paragraph (a) of (1) Your legal or trade name (i.e., waived as provided in § 375.401(a). this section when you prepare the bill doing business as name) as it is of lading. * * * * * registered with FMCSA, to include your (6) * * * physical address. * * * * * (ii) Prepare a new binding estimate (2) The names, telephone numbers, ■ 9. Amend § 375.221 by revising prior to loading. The new estimate must addresses, and USDOT numbers of any paragraph (c) to read as follows: be signed by the individual shipper. motor carriers, when known, who will § 375.221 May I use a charge or credit card You should maintain a record of the participate in transportation of the plan for payments? date, time, and manner that the new shipment. * * * * * estimate was prepared. (3) The individual shipper’s name, (c) If you allow an individual shipper * * * * * address, and, if available, telephone to pay an invoice by charge or credit (9) If the individual shipper requests number(s). card, you are deeming such payment to additional services after the bill of * * * * * be the same as payment by cash, lading has been issued, you must inform (6) For non-guaranteed service, the certified check, money order, or a the individual shipper of the additional agreed date or period of time for pickup cashier’s check. charges involved. The individual of the shipment and the agreed date or * * * * * shipper must agree to the new charges. period of time for the delivery of the ■ 10. Amend § 375.401 by revising You must prepare a new binding shipment. paragraphs (a), (b) introductory text, and estimate and have the new binding * * * * * (f) to read as follows: estimate signed by the individual (14) A complete description of any shipper. You may require full payment special or accessorial services ordered § 375.401 Must I estimate charges? at destination for these additional and minimum weight or volume charges (a) You must conduct a physical services and for 100 percent of the applicable to the shipment, subject to survey of the household goods to be original binding estimate. If applicable, the following two conditions:
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(i) If you provide service for cannot be determined before loading, Appendix A to Part 375—Your Rights individual shippers on rates based upon such as actual shipment weight in the and Responsibilities When You Move the transportation of a minimum weight case of shipments moved under non- General Requirements or volume, you must indicate on the bill binding estimates or unforeseen charges of lading the minimum weight- or incurred in transit. The Federal Motor Carrier Safety Administration’s (FMCSA) regulations volume-based rates, and the minimum (3) You may not require an individual protect consumers of interstate moves and charges applicable to the shipment. shipper to sign a blank document. define the rights and responsibilities of (ii) If you do not indicate the (h) The bill of lading must be consumers (shippers) and household goods minimum rates and charges, your tariff provided to, signed, and dated by the motor carriers (movers). must provide how you will compute the individual shipper at least 3 days before The household goods motor carrier gave final charges relating to such a shipment the shipment is scheduled to be loaded. you this booklet to provide information about based upon the actual weight or volume You must provide the individual your rights and responsibilities as an of the shipment. shipper the opportunity to rescind the individual shipper of household goods. Your primary responsibilities are to ensure that (15) Each attachment to the bill of bill of lading without any penalty for a you understand the terms and conditions of lading. Each attachment is an integral 3-day period after the individual the moving contract (bill of lading), and part of the bill of lading contract. If not shipper signs the bill of lading. If the know what to do in case problems arise. provided elsewhere to the shipper, the individual shipper tenders additional The primary responsibility for protecting following two items must be added as items to be moved or requires additional your move lies with you in selecting a an attachment to the bill of lading. services on the day of the move, reputable household goods mover or (i) The binding or non-binding resulting in a new binding estimate household goods broker, and making sure estimate. under § 375.403(a)(6)(ii) or a new non- you understand the terms and conditions of your contract and the remedies that are (ii) The inventory. binding estimate under available to you in case problems arise. (16) Any identification or registration § 375.405(b)(7)(ii), the corresponding number you assign to the shipment. changes to the bill of lading from the Definitions and Common Terms (17) A statement that the bill of lading new estimate do not require a new 3-day Accessorial (Additional) Services—These incorporates by reference all the period as otherwise required in this are services such as packing, unpacking, services included on the estimate. paragraph. appliance servicing, or piano carrying, that you request to be performed or are necessary * * * * * ■ 15. Amend § 375.605 by revising paragraph (a) introductory text to read because of landlord requirements or other (d) You must retain a copy of the bill special circumstances. of lading for each move you perform for as follows: Advanced Charges—Charges for services at least 1 year from the date you created § 375.605 How must I notify an individual performed by someone other than the mover. the bill of lading. shipper of any service delays? A professional, craftsman, or other third (e) You, your agent, or your driver party may perform these services at your must inform the individual shipper if (a) When you are unable to perform request. The mover pays for these services you reasonably expect a special or either the pickup or delivery of a and adds the charges to your bill of lading. accessorial service is necessary to safely shipment on the dates or during the Agent—A local moving company periods specified in the bill of lading authorized to act on behalf of a larger transport a shipment. You must refuse national company. to accept the shipment when you and as soon as the delay becomes apparent to you, you must notify the Appliance Service by Third Party—The reasonably expect a special or preparation of major electrical appliances to accessorial service is necessary to safely individual shipper of the delay, at your expense, in one of the following six make them safe for transportation. Charges transport a shipment and the individual for these services may be in addition to the shipper refuses to purchase the special ways: line-haul charges. or accessorial service. You must make a * * * * * Bill of Lading—The receipt for your shipment and the contract for its written note if the shipper refuses any § 375.801 [Amended] special or accessorial services that you transportation. ■ Broker—A company that arranges for the reasonably expect to be necessary. 16. Amend § 375.801 by removing the words ‘‘freight or expense bill’’ and transportation of household goods by a (f) You and the individual shipper registered moving company. must sign the bill of lading prior to the adding, in their place, the word ‘‘invoice’’. Collect on Delivery (COD)—This means shipment being loaded. The bill of payment is required at the time of delivery lading must be signed at both the origin § 375.803 [Amended] at the destination residence (or warehouse). Certified Scale—Any scale designed for and the destination. You must provide ■ 17. Amend § 375.803 by removing the a dated copy of the bill of lading to the weighing motor vehicles, including trailers or words ‘‘freight or expense bill’’ and semitrailers not attached to a tractor, and individual shipper at the time you sign adding, in their place, the word the bill of lading. certified by an authorized scale inspection ‘‘invoice’’. and licensing authority. A certified scale may (g)(1) You may provide the individual also be a platform or warehouse type scale shipper with blank or incomplete § 375.805 [Amended] that is properly inspected and certified. estimates, bills of lading, or any other ■ 18. Amend § 375.805 by removing the Commercial Zone—A commercial zone is blank or incomplete documents words ‘‘freight bill’’ and adding, in their roughly equivalent to the local metropolitan pertaining to the move. place, the word ‘‘invoice’’. area of a city or town. Moves that cross state (2) You may require the individual lines within these zones are exempt from shipper to sign an incomplete document § 375.807 [Amended] FMCSA’s commercial jurisdiction and, prior to the shipment being loaded ■ 19. Amend § 375.807 by removing the therefore, the moves are not subject to provided it contains all relevant words ‘‘freight bill’’ and adding, in their FMCSA household goods regulations. For example, a move between Brooklyn, New shipping information except the actual place, the word ‘‘invoice’’ in the section York, and Hackensack, New Jersey, would be shipment weight and any other heading and paragraphs (a) and (c)(1) within the New York City commercial zone. information necessary to determine the through (4). Although it crossed states lines, this move final charges for all services performed. ■ 20. Revise appendix A to part 375 to would not be subject to FMCSA household You may omit only that information that read as follows: goods regulations.
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Estimate, Binding—This is a written complete pickup or delivery of your transported for you. Your mover’s verbal agreement made in advance with your mover. shipment. A mover may require payment of quote of charges is not an official estimate It guarantees the total cost of the move based additional charges for services required due since it is not in writing. Your mover must upon the quantities and services shown on to impracticable operations, even if you do provide you with a written estimate of all the estimate. not request these services. The specific charges including transportation, and Estimate, Non-Binding—This is what your services considered to be impracticable accessorial and advanced charges (defined at mover believes the cost will be, based upon operations by your mover are defined in your the end of this booklet). This written estimate the estimated weight of the shipment and the mover’s tariff. must be dated and signed by you and the services requested. A non-binding estimate is Inventory—The detailed list of your mover. not binding on the mover. The final charges household goods showing the quantity and The estimate your mover provides you will will be based upon the actual weight of your condition of each item. include a statement notifying you of two shipment, the services provided, and the Line-Haul Charges—The charges for the options of liability coverage for your tariff provisions in effect. transportation portion of your move when a shipment: Full Value Protection and Waiver Expedited Service—An agreement with the household goods mover transports your of Full Value Protection, Released Value of mover to perform transportation by a set date shipment. 60 cents per pound per article. in exchange for an agreed upon additional Household goods brokers or movers must Your mover must provide an estimate charge. provide you with basic information before based upon a physical survey of your Flight Charge—An additional charge for you move. You should expect to receive the household goods. A physical survey means a carrying items up or down flights of stairs. following information: survey which is conducted on-site or Charges for these services may be in addition • A written estimate virtually, that allows your mover to see the to the line-haul charges. • The ‘‘Ready to Move’’ Brochure (or a web household goods to be transported. A Full Value Protection—The liability link to access the document) physical survey must be performed unless coverage option you are to receive for your • Information about the mover’s arbitration you waive this requirement in writing. shipment unless you waive this option in program Please be aware that a household goods writing. It means your mover will process • Written notice about access to the mover’s broker may only provide an estimate on a your loss and damage claim by replacing or tariff mover’s behalf if the broker has a written repairing the item to restore its original like, • The process for handling claims agreement with the mover and uses the kind, and quality. • This booklet, ‘‘Your Rights and mover’s published tariff. Guaranteed Pickup and/or Delivery Responsibilities When You Move’’ (or a You and your mover may agree to change Service—An additional level of service web link to access the document) an estimate of charges based on changed featuring guaranteed dates of service. Your You should avoid brokers and movers that circumstances, but only before your mover will provide reimbursement to you for are not registered with FMCSA or refuse to shipment is loaded. Your mover may not delays. This service may be subject to perform a physical survey of your household change an estimate after loading the minimum weight requirements. goods. If a broker or mover requires cash, shipment. There is more information about High-Value Article—These are items FMCSA advises you to retain all receipts and changes to estimates in the following valued at more than $100 per pound. supporting documents associated with the sections. Household Goods—As used in connection transaction. with transportation, household goods are the Binding Estimates personal effects or property used, or to be Customer’s Responsibilities A binding estimate guarantees that you used, in a dwelling, when part of the As a customer, you have responsibilities cannot be required to pay more than the equipment or supplies of the dwelling belong both to your mover and to yourself. They amount on the estimate at the time of to an individual shipper. Transporting of the include: delivery. However, if you add additional household goods must be arranged for and • Reading all moving documents issued by items to your shipment or request additional paid by you or another individual on your the mover or broker. services, you and your mover may: behalf. • Being available at the time of pickup and • Agree to abide by the original binding Household Goods Motor Carrier—A motor delivery of your shipment. If you are not estimate; carrier that, in the normal course of its available, you should appoint a • prepare a new binding estimate; or business of providing transportation of representative to act on your behalf. • agree to convert the binding estimate household goods, offers some or all the • Promptly notifying your mover if into a non-binding estimate. following additional services: (1) Binding something has changed regarding your If you and the mover do not agree to one and non-binding estimates, (2) Inventorying, shipment (i.e., move dates, additional items). of the three options listed above, the mover (3) Protective packing and unpacking of • Making payment in the amount required is not required to service the shipment. If the individual items at personal residences, and and in the form agreed to with the mover mover does not give you a new binding (4) Loading and unloading at personal based on the bill of lading document. estimate in writing, or agree in writing to residences. The term does not include a • Promptly filing claims for loss, damage, convert the binding estimate to a non-binding motor carrier when the motor carrier or delays with your mover, if necessary. estimate before your goods are loaded, the provides transportation of household goods original binding estimate is reaffirmed. in containers or trailers that are entirely Estimates Under these circumstances, your mover loaded and unloaded by an individual (other The two most important things to should not charge or collect more than the than an employee or agent of the motor understand for your interstate move are: The amount of the original binding estimate at carrier). types of estimates offered and the mover’s delivery for the quantities and services Individual Shipper—Any person who: liability in the event of loss or damage. As included in the estimate. 1. Is the shipper, consignor, or consignee you read further, you will discover that If there are unforeseen circumstances (such of a household goods shipment; movers offer two different types of as elevators, stairs, or required parking 2. Is identified as the shipper, consignor, estimates—binding and non-binding. The permits) at the destination the mover can bill or consignee on the face of the bill of lading; type of estimate you select determines how you for these additional expenses after 30 3. Owns the household goods being the charges for your shipment will be days from delivery. Charges for services transported; and calculated. The estimate provided by your required because of impracticable operations 4. Pays his or her own tariff transportation mover will notify you of the two liability (defined at the end of this booklet) are due charges. coverage options: Option 1—Full Value at delivery, but may not exceed 15 percent Impracticable Operations—Conditions Protection and Option 2—Waiver of Full of all other charges due at delivery; any which make it physically impossible for the Value Protection (60 cents per pound). The remaining charges will be billed to you with mover to perform pickup or delivery with its mover’s liability is discussed in detail in the payment due in 30 days from delivery. normally assigned road-haul equipment so next section. If you are unable to pay 100 percent of the that the mover is required to use specialized FMCSA requires your mover to provide charges on a binding estimate at delivery, equipment and/or additional labor to written estimates on every shipment your mover may place your shipment in
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storage at your expense. In an effort to uploads/files/docs/householdGoodsMoving/ (10 pounds × $ .60). Obviously, you should schedule delivery of your shipment from 41845.pdf. In addition, your mover may, but think carefully before agreeing to such an storage, you will have to pay the required is not required to, offer to sell you separate arrangement. charges and storage fees, if listed in the third-party liability insurance. tariffs, after your shipment arrives at the All moving companies are required to Third Party Insurance residence. assume liability for the value of the If you purchase separate third party cargo Your mover may charge a fee to prepare a household goods they transport. However, liability insurance through your mover, the binding estimate. there are two different levels of liability that mover is required to issue a policy or other apply to interstate moves: Full Value written record of the purchase and to provide Non-Binding Estimates Protection and Waiver of Full Value you with a copy of the policy or other A non-binding estimate is intended to Protection—Released Value. It is important document at the time of purchase. If the provide you with an estimate of the cost of you understand the charges that apply and mover fails to comply with this requirement, your move. A non-binding estimate is not a the amount of protection provided by each the mover is liable for any claim for loss or guarantee of your final costs, but it should be level. damage. reasonably accurate. The estimate must Full Value Protection Shipments transported under a mover’s bill indicate that your final charges will be based of lading may be subject to arbitration in the upon the actual weight of your shipment, the This is the most comprehensive option event of a dispute over loss or damage services provided, and the mover’s published available to protect your household goods, claims. However, disputes with third party tariff. Therefore, the amount of your mover’s but it will increase the cost of your move. insurance companies are not subject to non-binding estimate may be different than The initial cost estimate of charges that you FMCSA regulations. the amount you ultimately must pay to receive from your mover must include this receive your shipment. level of protection. Your shipment will be Reducing Your Mover’s Normal Liability A non-binding estimate must be in writing transported at this level of liability unless The following are some actions that may and clearly describe the shipment and all you waive Full Value Protection. Under your limit or reduce your mover’s liability for loss services provided. Under a non-binding mover’s Full Value Protection level of or damage to your household goods: estimate, the mover cannot require you to liability, subject to the allowable exceptions 1. Your acts or omissions cause the loss or pay more than 110 percent of the non- in your mover’s tariff, if any article is lost, damage to occur. For example, improper binding estimate at the time of delivery. This destroyed, or damaged while in your mover’s packing of containers you pack yourself do does not excuse you from paying all the custody, your mover will, at its option, either not provide sufficient protection or you charges due on your shipment. The mover (1) repair the article to the extent necessary include perishable, dangerous, or hazardous will bill you for any remaining charges after to restore it to the same condition as when materials in your shipment without your 30 days from delivery. it was received by your mover, or pay you mover’s knowledge. Federal law forbids you On the day of pick-up, if you have for the cost of such repairs; or (2) replace the to ship hazardous materials in your additional items to move, your mover must article with an article of like, kind and household goods boxes or luggage without do one of two things prior to loading: quality, or pay you for the cost to replace the • Reaffirm your non-binding estimate; or items. informing your mover. • prepare a new non-binding estimate to The exact cost for your shipment, 2. You chose the Waiver of Full Value include all the items that are being moved. including Full Value Protection, may vary by Protection—Released Value level of liability If you and the mover do not agree to one mover and may be further subject to various (60 cents per pound per article) but ship of the two options listed above, the mover is deductible levels. Full Value Protection will household goods valued at more than 60 not required to service the shipment. If you increase the cost of your move above the cents per pound per article. are unable to pay 110 percent of the charges basic transportation cost. The minimum 3. You declare a value for your shipment on a non-binding estimate at delivery, your valuation level for determining the cost of which is less than the actual value of the mover may place your shipment in storage at Full Value Protection of your shipment is articles in your shipment. your expense. In order to schedule delivery $6.00 per pound times the weight of your 4. You fail to notify your mover in writing of your shipment from storage, you will shipment. Your mover may use a higher of articles valued at more than $100 per likely have to agree to pay the required minimum value or you may declare a higher pound. (If you do notify your mover, you will charges and storage fees, if listed in the value for your shipment (at an additional be entitled to full recovery up to the declared tariffs, after your shipment arrives at the cost). The charges that apply for providing value of the article or articles, not to exceed residence. Full Value Protection must be shown in your the declared value of the entire shipment.) Your mover must give you possession of mover’s tariff. Ask your mover for the details Loss and Damage Claims your shipment if you pay 110 percent of a under its specific program. non-binding estimate or 100 percent of a Under this option, movers are permitted to Movers customarily take every precaution binding estimate, plus 15 percent of the limit their liability for loss or damage to to make sure that, while your shipment is in impracticable operations charges (if articles of extraordinary value, unless you their possession, no items are lost, damaged applicable). If your mover does not specifically list these articles on the shipping or destroyed. However, despite the relinquish possession, the mover is holding documents. An article of extraordinary value precautions taken, articles are sometimes lost your shipment hostage in violation of Federal is any item whose value exceeds $100 per or destroyed during the move. You have the law. pound (for example, jewelry, silverware, right to file a claim with your mover to be china, furs, antiques, oriental rugs, and compensated for loss or damage. Your Mover’s Liability and Your Claims computer software). Ask your mover for a You have 9 months from the date of In general, your mover is legally liable for complete explanation of this limitation delivery (or in the event of loss for the entire loss or damage that occurs during the before your move. It is your responsibility to shipment, from the date your shipment transportation of your shipment and all study this provision carefully and to make should have been delivered) to file your related services identified on the bill of the necessary declaration. claim. lading. The claim must be submitted in writing to The extent of your mover’s liability is Waiver of Full Value Protection (Released your mover or to your mover’s third party governed by the Surface Transportation Value of 60 Cents per Pound per Article) insurer for claim processing. After you Board’s Released Rates Order. The Surface Released Value is minimal protection; submit your claim, your mover has 30 days Transportation Board is an independent however, it is the most economical protection to acknowledge receipt of it. The mover then Federal agency that has jurisdiction over available as there is no charge to you. Under has 120 days to provide you with a HHG motor carrier tariffs and valuation for this option, the mover assumes liability for disposition. The mover might be entitled to lost or damaged goods. You may obtain a no more than 60 cents per pound, per article. 60-day extensions if the claim cannot be copy of the current Released Rates Order by For example, if a 10-pound stereo component processed or disposed of within 120 days. If visiting the Surface Transportation Board’s valued at $1,000 was lost or destroyed, the an extension is necessary, your mover must website at: https://prod.stb.gov/wp-content/ mover would be liable for no more than $6.00 notify you in writing.
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Delay Claims copy. Keep it available until your shipment when you transport under a collect-on- Delay claims are processed when you have is delivered, all charges are paid, and all delivery basis. contracted with your mover for guaranteed claims, if any, are settled. 12. The valuation statements provided in service for pickup and delivery. Your mover IT IS YOUR RESPONSIBILITY TO READ the Surface Transportation Board (STB)’s will outline on the bill of lading any penalty THE BILL OF LADING BEFORE YOU released rates order. These statements require or per diem entitlements when there is a ACCEPT IT individual shippers either to accept Full Value Protection for their liability or to waive pickup delay and/or delivery delay. The bill of lading requires the mover to the Full Value Protection in favor of the provide the service you requested and Moving Paperwork STB’s released rates. The released rates may requires you to pay the charges for the be increased annually by the motor carrier Do not sign entirely blank documents. And service. It is your responsibility to based on the U.S. Department of Commerce’s only sign incomplete documents where the understand the bill of lading before you sign Cost of Living Adjustment. Contact the STB only incomplete sections are for information it. If you do not agree with something on the for a copy of the Released Rates of Motor that cannot be determined prior to loading, bill of lading, do not sign it until you are specifically the actual weight of your satisfied it is correct. Carrier Shipments of Household Goods. If the shipment, in the case of a non-binding The bill of lading serves to identify the individual shipper waives your Full Value estimate, and unforeseen charges that occur mover and specifies when the transportation Protection in writing on the STB’s valuation in transit or at destination. is to be performed. Be sure that the portions statement, you must include the charges, if any, for optional valuation coverage (other Inventory of the bill of lading that note the dates when pickup and delivery are to be performed are than Full Value Protection). Your mover must prepare an inventory of completed and that you agree with the dates. 13. Evidence of any insurance coverage your shipment. This is usually done at the The bill of lading also specifies the terms and sold to or procured for the individual shipper time the mover loads your shipment. The conditions for payment of the total charges from an independent insurer, including the mover is required to list any damage or and the maximum amount required to be amount of the premium for such insurance. unusual wear to any items. The purpose is paid at the time of delivery for shipments 14. A complete description of any special to make a record of the existence and moving under a binding estimate. In the case or accessorial services ordered and minimum condition of each item before it is moved. of shipments moving under non-binding weight or volume charges applicable to the After completing the inventory, both you estimates, the bill of lading will not include shipment, subject to the following two and the mover must sign each page of the a final calculation of charges because that conditions: inventory. It is important that before signing cannot be determined until the shipment is (i) If your mover provides service for you you make sure the inventory lists every item weighed. However, the bill of lading must on rates based upon the transportation of a in your shipment and that entries regarding contain all relevant shipment information— minimum weight or volume, your mover the condition of each item are correct. You except the shipment weight that will be must indicate on the bill of lading the have the right to note any disagreement. determined after the shipment has been minimum weight- or volume-based rates, and When your shipment is delivered, if an item weighed and any unforeseen charges that the minimum charges applicable to the is missing or damaged, your ability to recover occur in transit or at destination. shipment. from the mover for any loss or damage may The bill of lading must include the (ii) If your mover does not indicate the depend on the notations made on this form. following 17 items: minimum rates and charges, your mover’s The mover will give you a copy of each 1. The legal or trade name (i.e., doing tariff must provide information to compute page of the inventory. Attach the complete business as name) of the mover as it is the final charges relating to such a shipment inventory to your copy of the bill of lading. registered with FMCSA, to include its based upon the actual weight or volume of It is your receipt for the shipment. physical address. the shipment. At the time your shipment is delivered, it 2. The names, telephone numbers, 15. Each attachment to the bill of lading is is your responsibility to check the items addresses, and USDOT Numbers of any an integral part of the contract. That includes delivered against the items listed on your motor carriers, when known, who will the binding or non-binding estimate, inventory. If new damage is discovered, make participate in transportation of the shipment. inventory and any signed waiver documents a record of it on the inventory form. Call the 3. Your name, address, and, if available, associated with the shipment. damage to the attention of the mover and telephone number(s). 16. Any identification or registration request that a record of the damage be made 4. The form of payment the mover and its number assigned to the shipment. on the mover’s copy of the inventory. agents will honor at delivery. The payment 17. A statement that the bill of lading After the complete shipment is unloaded, information must be the same that was incorporates by reference all the services the mover will request that you sign the entered on the estimate. included on the estimate, including any new mover’s copy of the inventory to show that 5. When transportation is on a collect-on- estimate prepared by the mover. you received the items listed. Do not sign delivery basis, the name, address, and if The bill of lading must be signed and dated until you have assured yourself that it is furnished, the telephone number, facsimile by you and your mover at origin and accurate and that proper notations have been number, or email address of a person to destination. entered regarding any missing or damaged notify about the charges. The notification Invoice items. Movers are prohibited from having may also be made by overnight courier or you sign documents that release the mover certified mail, return receipt requested. At the time of payment of transportation from all liability for loss or damage to the 6. For non-guaranteed service, the agreed charges, your mover must give you an shipment in exchange for delivery. date or period of time for pickup of the invoice identifying the service provided and shipment and the agreed date or period of the charge for each service. It is customary Bill of Lading time for the delivery of the shipment. for most movers to use a copy of the bill of Your mover is required by law to prepare 7. For guaranteed service, subject to tariff lading as the invoice. a bill of lading for your shipment. The bill provisions, the dates for pickup and delivery, Except in those instances where a of lading is the contract between you and the and any penalty or per diem entitlements due shipment is moving on a binding estimate, mover for the transportation of your to you. the invoice must specifically identify each shipment. This document is issued at least 3 8. The actual date of pickup. service performed, the rate or charge per days prior to the pickup date. The 9. The company or motor carrier service performed, and the total charges for information on the bill of lading is required identification number of the vehicle(s) that each service. If this information is not on the to include all the information and charges will transport your shipment. invoice, do not accept or pay the invoice. associated with the transportation of your 10. The terms and conditions for payment Your mover must deliver your shipment shipment. The driver who loads your of the total charges, including notice of any upon payment of 100 percent of a binding shipment must give you a copy of the bill of minimum charges. estimate or 110 percent of a non-binding lading before or at the time of loading your 11. The maximum amount your mover will estimate, plus the full cost of any additional shipment. The bill of lading is an important demand at the time of delivery in order for services that you required after the contract document. Do not lose or misplace your you to obtain possession of the shipment, was executed and any charges for
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impracticable operation, not to exceed 15 performed in conjunction with impracticable responsibility to be available to accept percent of all other charges due at delivery. operations, not to exceed 15 percent of all delivery on any of those dates. The same If you do not pay the transportation charges other charges due at delivery. Your mover applies when you and the mover agree to due at the time of delivery, your mover has will bill you after your shipment is delivered alternate delivery dates. the right, under the bill of lading, to refuse for any remaining services. Do not agree to have your shipment picked to deliver your shipment. The mover may You should verify in advance what method up or delivered ‘‘as soon as possible.’’ The place your shipment in storage, at your of payment your mover will accept. Your dates or periods you and your mover agree expense, until the charges are paid. mover must note in writing on the bill of upon should be definite. On shipments paid in advance, your mover lading the forms of payment it accepts at If you request the mover to change the must present its invoice for all transportation delivery. Do not assume your mover will dates for your shipment, most movers will charges within 15 days of the date your accept payment by credit card unless it is agree to do so if the change will not result mover delivered the shipment. This period clearly indicated on the bill of lading. in unreasonable delay to their equipment or excludes Saturdays, Sundays, and Federal If you do not pay the charges due at the interfere with another customer’s move. holidays. time of delivery, the mover has the right to However, the mover is not required to change On shipments paid upon delivery, your refuse to deliver your shipment and to place the dates and can place your shipment in mover must present its invoice for all it into storage at your expense until the storage at your expense if you are unwilling transportation charges on the date of charges are paid. It is standard procedure for or unable to accept delivery on the agreed delivery, or, at its discretion, within 15 days you to pay the charges due at delivery prior dates. calculated from the date the shipment was to the mover unloading the shipment at The only reason your mover would be delivered at your destination. This period destination, in accordance with the terms excused from providing a service as excludes Saturdays, Sundays, and Federal specified on the bill of lading. described in the bill of lading is because of holidays. Bills for additional charges based If your shipment is transported by two or ‘‘force majeure.’’ This is a legal term which on the weight of the shipment will be more trucks, the mover may require payment means an unforeseen change of presented after 30 days from delivery; for each portion as it is delivered. You mover circumstances beyond the control of the charges for impracticable operations not paid may delay the collection of all the charges mover. For example, if there were a major at delivery are due within 30 days of the until the entire shipment is delivered, at its snow storm that prevented your mover from invoice. discretion. When you confirm your shipment servicing your shipment as outlined in the Your mover’s invoice and accompanying transportation with your mover, you should bill of lading, your mover would not be written notices must state the following five ask the mover about this policy. responsible for damages resulting from its items: Your mover can only collect the charges on nonperformance. the percentage of the shipment that was If your mover fails to pick up or deliver 1. Penalties for late payment successfully delivered. For example, if you your shipment on the agreed date or during 2. The period of time for any credit extended receive a binding estimate of $1,000 to move the delivery spread, and you have expenses 3. Service or finance charges 1,000 pounds of your goods, and 50 percent that you otherwise would not have, you may 4. Collection expense charges of that shipment is lost, then the mover can be able to recover these expenses from the 5. Any applicable discount terms only collect 50 percent of the estimate or mover through a delay of shipment claim. Weight Tickets $500. If the estimate is non-binding then only Ask your mover before you move what 50 percent of the actual charges, not to payment or other arrangements you can Your mover must obtain weight tickets if exceed 110 percent of the estimate, can be expect if your shipment is delayed through your shipment is moving under a non- collected, which would be $550. the fault of the mover. binding estimate. Each time your shipment is Your mover is forbidden from collecting, or Your mover must transport your household weighed, a separate weight ticket must be requiring you to pay, any freight charges goods in a timely manner. This is also known obtained and signed by the weigh master. If (including any charges for accessorial or as ‘‘reasonable dispatch service.’’ If you have both weighings are performed on the same terminal services) when your shipment is arranged for a guaranteed delivery date, the scale, one weight ticket may be used to totally lost or destroyed in transit, unless the terms of that agreement with your mover record both weighings. The weight tickets loss or destruction was due to an act or apply. must be presented with the invoice. Each omission by you. However, if you receive When your mover is unable to meet either weight ticket must contain the following six Full Value Protection on your shipment, you the pickup or delivery dates or provide items: will be required to pay the premium to service during the periods of time specified 1. The complete name and location of the process your claim for the total loss. in the bill of lading, your mover must notify scale. Transportation of Your Shipment you of the delay. The mover must advise you 2. The date of each weighing. of the dates or periods of time it may be able 3. The identification of the weight entries Pickup and Delivery to pick up and/or deliver your shipment. as being the tare, gross, or net weights. Before you move, be sure to reach an Your mover must provide this information in 4. The company or mover identification of agreement with your mover on the dates for writing. the vehicle. pickup and delivery of your shipment. It is Early Delivery 5. The last name of the individual shipper your responsibility to determine on what as it appears on the bill of lading. date your shipment will be picked up and the If you are unable to accept delivery before 6. The mover’s shipment registration or bill date or timeframe you require delivery. Once the first day of the delivery spread, then your of lading number. an agreement is reached, your mover must mover may place your shipment in storage in Additional information regarding weighing enter those dates on the bill of lading. Upon a warehouse located in proximity to the shipments is located later in this booklet. loading your shipment, your mover is destination. If your mover exercises this Collection of Charges contractually bound to provide the service option, your mover must immediately notify described in the bill of lading. you of the name and address of the Your mover must issue you an honest and The mover might use the term ‘‘delivery warehouse where your mover places your truthful invoice for each shipment spread’’ as the timeframe in which you can shipment. Your mover has full responsibility transported. When your shipment is expect your shipment to be delivered. This for the charges for re-delivery, handling, and delivered, you will be expected to pay either: means that your shipment could arrive storage until it makes the final delivery. (1) 100 percent of the charges on your anytime during the delivery spread. The binding estimate, or (2) 110 percent of the mover is required to give you a 24-hour Storage in Transit charges on your non-binding estimate. You advance notice of when they plan to arrive You may request your mover to store your will also be requested to pay the charges for with your shipment. At that time, you must household goods before delivering them. any services that you requested (for example, be available to accept delivery or your Your mover must notify you in writing or in waiting time, an extra pickup or delivery, shipment could be placed in storage at your person at least 10 days before the expiration storage) after the contract with your mover expense. date of: was executed that were not included in the When you and the mover agree to a 1. The specified period of time when your estimate, and any charges for services delivery date, or to a range of dates, it is your mover is to hold your shipment in storage.
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2. The maximum period of time provided accurate, you have the right to request that 3. At the top of the screen click on in its tariff for storage-in-transit. the shipment be reweighed before it is CHOOSE MENU OPTION, for the drop-down If your mover holds your household goods unloaded. The mover is not permitted to box and select CARRIER SEARCH, then press in storage-in-transit for less than 10 days, charge you for the reweighing, but the final GO. your mover must notify you, 1 day before the charges due will be based on the reweigh 4. Type in the USDOT or MC number for storage-in-transit period expires of the same weight, even if it is more than the initial the motor carrier. information specified above. weight. 5. Click on HTML. When the storage period is about to expire, If you request notification of the actual 6. Scroll to the bottom of the page, see your mover must notify you in writing about weight and charges of your shipment, your BLANKET COMPANY, and click on the link. the following four items: mover must comply with your request if it is 7. You will see a list of process agents by 1. The date when storage-in-transit will moving your household goods on a collect- State, locate the process agent for your State. covert to permanent storage. on-delivery basis. This requirement is The FMCSA cannot settle your dispute 2. The existence of a 9-month period after conditioned upon you supplying your mover with your mover. You must resolve your own the date of conversion to permanent storage, with contact information. loss and damage and/or moving charge disputes with your mover. during which you may file claims against Notification of Delivery your mover for loss or damage occurring to You entered into a contractual agreement your goods while in transit or during the You must receive the mover’s notification with your mover. Therefore, you are bound storage-in-transit period. at least 24-hours before the scheduled by each of the following terms and 3. When your mover’s liability will end for delivery, excluding Saturdays, Sundays, and conditions: loss and damage. Federal holidays. 1. The terms and conditions you accepted 4. When your shipment will become Your mover may disregard this 24-hour when you signed the bill of lading. subject to the rules, regulations, and charges notification requirement on shipments 2. The terms and conditions you accepted of the management of the storage facility. subject to one of the following three when you signed for delivery of your situations: shipment. Weighing Shipments 1. When your mover weighs your shipment 3. Any additional terms and conditions If your mover transports your household at destination. you agreed to with your mover. goods on a non-binding estimate, your mover 2. When pickup and delivery encompasses If your mover refuses to deliver your must determine the actual weight of your two consecutive weekdays, if you agree. shipment unless you pay an amount the shipment on a certified scale in order to 3. When the maximum payment at time of mover is not entitled to charge, contact calculate its lawful tariff charge. If your delivery is 110 percent of the estimated FMCSA immediately at (888) 368–7238. charges, if you agree. mover provided a binding estimate, the Important Points To Remember weight of the shipment will not affect the Resolving Disputes With Your Mover 1. Movers must give written estimates. The charges you will pay, so there is no The FMCSA maintains regulations to estimates may be either binding or non- requirement to weigh shipments moving govern the processing of loss and damage binding. Non-binding estimates are under binding estimates. claims; however, we cannot resolve these ‘‘approximations’’ only, and the actual Most movers have a minimum weight claims on your behalf. If you cannot reach a transportation charges you are eventually charge for transporting a shipment. If your settlement with your mover, you have the required to pay may be higher than the shipment appears to weigh less than the right to request arbitration from your mover. estimated price. mover’s minimum weight, your mover must All movers are required to participate in an 2. Do not sign blank documents. Verify the state the minimum cost on the bill of lading. arbitration program, and your mover is document is complete before you sign. In Should your mover fail to advise you of the required to provide you with a summary of limited situations, it may be appropriate to minimum charges and your shipment is less its arbitration program before you sign the sign an incomplete document if the only than the minimum weight, your mover must bill of lading. information that does not appear in your base your final charges upon the actual Arbitration gives you the opportunity to moving paperwork is the actual weight of weight, not upon the minimum weight. resolve loss or damage claims and certain your shipment (in the case of a non- binding Usually, your shipment will be weighed in types of disputed charges through a neutral estimate) and unforeseen charges that occur the city or local area where the shipment arbitrator. You may find submitting your in transit or at destination. originates. The driver has the truck weighed claim to arbitration is a less expensive and 3. Be sure you understand the mover’s before coming to your residence and then has more convenient way to seek recovery of responsibility for loss or damage. For more it weighed again after your shipment has your claim than filing a lawsuit. You are not information see FMCSA’s brochure titled, been loaded. The difference in these two required to submit to arbitration in the event ‘‘Understanding Valuation and Insurance weights is the weight of your shipment. of a dispute. However, if you request Options’’ https://www.fmcsa.dot.gov/protect- The mover may also weigh your shipment arbitration for a claim for $10,000 or less, the your-move/valuation-insurance. at its destination when the shipment is mover must agree to arbitration and the 4. Understand the type of liability to which delivered. The driver will have the truck arbitrator’s decision is binding on the parties. you agree. Ask yourself if 60 cents per pound weighed with your shipment on board and Further, the mover is not required to agree to is enough coverage for your household goods then weighed a second time after your arbitration if the claim exceeds $10,000. If or whether you need to purchase additional shipment has been unloaded. Each time a the mover does agree, the arbitrator’s valuation. weighing is performed, the driver is required decision will be binding on both you and the 5. Notify your mover if you have high to obtain an official weight ticket signed by mover. value items. High value items are valued at the weigh master of a certified scale and a You may choose to pursue a civil action in more than $100 per pound. copy of the weight tickets must accompany a court of appropriate jurisdiction in lieu of 6. You have the right to be present each your copy of the bill of lading. Shipments of arbitration. Legal action may be initiated by time your shipment is weighed. You also less than 3,000 pounds may be weighed on filing a claim in your State and serving have the right to request a reweigh at no a certified warehouse scale. papers on the mover’s process agent in your charge. You have the right, and your mover must State. You may file in State court or (if the 7. Confirm with your mover the types of inform you of your right, to observe all amount of the claim is more than $10,000) in payment acceptable prior to the delivery of weighing of your shipment. Your mover must Federal court. You may obtain the mover’s your shipment. tell you where and when each weighing will process agent information in your State by 8. Consider requesting arbitration to settle occur. Your mover must give you a contacting FMCSA at (800) 832–5660. You disputed claims with your mover. reasonable opportunity to be present to may also obtain the name of the mover’s 9. You should know if the company you observe the weighing. You may waive your process agent via the internet by following are dealing with is a household goods motor right to observe weighing; however, you must the instructions below. carrier (mover) or household goods broker, waive that right in writing. 1. Go to http://li-public.fmcsa.dot.gov. and if they are registered with FMCSA. Go If your shipment is weighed at origin and 2. Scroll to the bottom of the page and click to www.protectyourmove.gov for this you believe that the weight may not be on CONTINUE. information.
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10. Do not sign the delivery receipt if it signing, or refuse delivery if the mover Issued under authority delegated in 49 CFR contains any language releasing or refuses to provide a proper delivery receipt. 1.87. discharging your mover or its agents from Meera Joshi, liability. Strike out such language before Deputy Administrator. [FR Doc. 2021–13889 Filed 8–5–21; 4:15 pm] BILLING CODE 4910–EX–P
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Vol. 86 Tuesday, No. 151 August 10, 2021
Part IV
Department of Transportation
Pipeline and Hazardous Materials Safety Administration 49 CFR Parts 171, 172, 173, et al. Hazardous Materials: Harmonization With International Standards; Proposed Rule
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DEPARTMENT OF TRANSPORTATION any personal information provided. If H. Unfunded Mandates Reform Act of 1995 sent by mail, comments must be I. Environment Assessment Pipeline and Hazardous Materials submitted in duplicate. Persons wishing J. Privacy Act Safety Administration K. Executive Order 13609 and International to receive confirmation of receipt of Trade Analysis their comments must include a self- L. National Technology Transfer and 49 CFR Parts 171, 172, 173, 175, 176, addressed stamped postcard. Advancement Act 178, and 180 Docket: For access to the dockets to List of Subjects read background documents (including [Docket No. PHMSA–2019–0030 (HM–215P)] the Preliminary Regulatory Impact I. Executive Summary RIN 2137–AF46 Analysis (PRIA)) or comments received, As discussed in further detail later in go to http://www.regulations.gov or this NPRM (see the Section-By-Section Hazardous Materials: Harmonization DOT’s Docket Operations Office (see Review of NPRM Proposals), the With International Standards ADDRESSES). Pipeline and Hazardous Materials Safety Confidential Business Information: Administration (PHMSA) proposes to AGENCY: Pipeline and Hazardous Confidential Business Information (CBI) amend certain sections of the Hazardous Materials Safety Administration is commercial or financial information Materials Regulations (HMR; 49 CFR (PHMSA), Department of Transportation that is both customarily and actually parts 171 to 180) to maintain alignment (DOT). treated as private by its owner. Under with international regulations and ACTION: Notice of proposed rulemaking the Freedom of Information Act (FOIA; standards by adopting various (NPRM). 5 U.S.C. 552), CBI is exempt from public amendments, including changes to disclosure. If your comments responsive proper shipping names, hazard classes, SUMMARY: PHMSA proposes to amend to this NPRM contain commercial or packing groups, special provisions, the Hazardous Materials Regulations to financial information that is customarily packaging authorizations, air transport maintain alignment with international treated as private, that you actually treat quantity limitations, and vessel stowage regulations and standards by adopting as private, and that is relevant or requirements. various amendments, including changes responsive to this NPRM, it is important PHMSA expects adoption of the to proper shipping names, hazard that you clearly designate the submitted regulatory amendments proposed in this classes, packing groups, special comments as CBI. Please mark each NPRM will maintain the high safety provisions, packaging authorizations, air page of your submission containing CBI standard currently achieved under the transport quantity limitations, and as ‘‘PROPIN.’’ Submissions containing HMR, facilitate the safe transportation of vessel stowage requirements. CBI should be sent to Candace Casey, critical vaccines and other medical Additionally, PHMSA proposes an U.S. Department of Transportation, 1200 materials associated with response to amendment to the Hazardous Materials New Jersey Avenue SE, Washington, DC the coronavirus disease 2019 (COVID– Regulations that would allow for better 20590–0001. Any commentary that 19) public health emergency, and align alignment with Transport Canada’s PHMSA receives which is not HMR requirements with anticipated Transportation of Dangerous Goods specifically designated as CBI will be increases in the volume of lithium Regulations. placed in the public docket for this batteries transported in interstate DATES: Comments must be received by rulemaking. commerce from electrification of the transportation and other economic October 12, 2021. To the extent FOR FURTHER INFORMATION CONTACT: possible, PHMSA will consider late- sectors. PHMSA also notes that because Candace Casey, Standards and harmonization of the HMR with filed comments while a final rule is Rulemaking, or Aaron Wiener, developed. international consensus standards as International Program, at (202) 366– proposed could reduce delays and ADDRESSES: You may submit comments 8553, Pipeline and Hazardous Materials interruptions of hazardous materials by any of the following methods: Safety Administration, U.S. Department during transportation, the proposed • Federal Rulemaking Portal: http:// of Transportation, 1200 New Jersey NPRM amendments may also lower www.regulations.gov. Follow the online Avenue SE, East Building, 2nd Floor, greenhouse gas (GHG) emissions and instructions for submitting comments. Washington, DC 20590–0001. safety risks to minority, low-income, • Fax: 1–202–493–2251. SUPPLEMENTARY INFORMATION: underserved, and other disadvantaged • Mail: Docket Management System; Table of Contents populations and communities in the U.S. Department of Transportation, vicinity of interim storage sites and Docket Operations, M–30, Ground I. Executive Summary transportation arteries and hubs. Floor, Room W12–140, 1200 New Jersey II. Background The following list summarizes the Avenue SE, Washington, DC 20590– III. Incorporation by Reference Discussion more noteworthy proposals set forth in 0001. Under 1 CFR part 51 this NPRM: • IV. Amendments Not Being Considered for • Hand Delivery: U.S. Department of Adoption in this NPRM Incorporation by Reference: Transportation, Docket Operations, M– V. Section-by-Section Review of NPRM PHMSA proposes to incorporate by 30, Ground Floor, Room W12–140, 1200 Proposals reference updated versions of the New Jersey Avenue SE, Washington, DC VI. Regulatory Analyses and Notices following international hazardous 20590–0001 between 9 a.m. and 5 p.m., A. Statutory/Legal Authority for This materials regulations and standards: the Monday through Friday, except Federal Rulemaking 2021–2022 Edition of the International holidays. B. Executive Order 12866 and DOT Civil Aviation Organization Technical Instructions: Include the agency name Regulatory Policies and Procedures Instructions for the Safe Transport of and docket number PHMSA–2019–0030 C. Executive Order 13132 Dangerous Goods by Air (ICAO D. Executive Order 13175 (HM–215P) or RIN 2137–AF46 for this E. Regulatory Flexibility Act, Executive Technical Instructions); Amendment rulemaking at the beginning of your Order 13272, and DOT Policies and 40–20 to the International Maritime comment. Note that all comments Procedures Dangerous Goods Code (IMDG Code); received will be posted without change F. Paperwork Reduction Act the 21st revised edition of the United to http://www.regulations.gov including G. Regulation Identifier Number (RIN) Nations Recommendations on the
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Transport of Dangerous Goods—Model scrap (UN2216) on passenger and cargo use of that technology in the Regulations (UN Model Regulations); aircraft. Currently, when transported as transportation and other economic and the International Atomic Energy a Class 9 material, stabilized fish meal sectors. Agency (IAEA) ‘‘Specific Safety or fish scrap is only authorized for • Definition of SADT (Self- Requirements Number SSR–6: transportation by vessel. As a part of accelerating decomposition Regulations for the Safe Transport of this proposal, PHMSA is also expanding temperature) and SAPT (Self- Radioactive Material 2018 Edition’’ the applicability of the stabilization accelerating polymerizing temperature): (SSR–6, Ref. 1). PHMSA also proposes requirements currently in place for PHMSA proposes to amend the the incorporation by reference of several shipments of these materials by vessel. definitions of SADT and SAPT to clarify new or updated International • UN3549 Category A Medical that the lowest temperature at which the Organization for Standardization (ISO) Wastes: PHMSA proposes to create a these may occur can take place in a standards as well as an updated version new entry in the HMT for ‘‘UN3549, packaging, IBC or portable tank. of the Organization for Economic Medical Waste, Category A, Affecting • Periodic inspection for chemicals Cooperation and Development (OECD) Humans, solid or Medical Waste, under pressure: PHMSA proposes to Guidelines for the Testing of Chemicals Category A, Affecting Animals only, extend the periodic inspection, from Test No. 431: In vitro skin corrosion: solid.’’ This entry provides an five to ten years, for cylinders that are reconstructed human epidermis (RHE) additional shipping description for solid filled with hazardous materials test method. materials meeting the Category A described as ‘‘UN3500, Chemicals under • Transport Canada temporary classification criteria that are not pressure, n.o.s.’’ that are also used as certificates: PHMSA proposes appropriate for classification in existing fire extinguishing agents. amendments to the HMR that would entries/classes ‘‘UN2814, Infectious • Technical name requirements for authorize the motor carrier or rail substance, affecting humans’’ or marine pollutants: PHMSA proposes to transportation of a hazardous material ‘‘UN2900, Infectious substance, amend provisions pertaining to the within the United States pursuant to a affecting animals only.’’ Solid medical addition of technical names to the temporary certificate issued under waste containing Category A infectious shipping description when transporting Transport Canada’s Transportation of substances generated from the medical hazardous materials that contain marine Dangerous Goods Regulations (TDG treatment of humans or veterinary pollutants. These amendments aim to Regulations). treatment of animals (e.g., disposable provide flexibility with regard to • Hazardous Materials Table: personal protective equipment) may be documentation and marking PHMSA proposes amendments to the assigned to UN3549. Although PHMSA requirements, which currently require Hazardous Materials Table (HMT; 49 is not adopting certain packaging identifying the technical names of CFR 172.101) to add, revise or remove provisions adopted in the UN Model marine pollutant components in those certain proper shipping names, hazard Regulations, it proposes assigning materials. Additionally, PHMSA classes, packing groups, special Special Provision 131, which directs proposes to amend §§ 172.203(l) and provisions, packaging authorizations, shippers to request a special permit 172.322 to limit the applicability of bulk packaging requirements, and prior to transportation, to UN3549. requirements for specific marine passenger and cargo aircraft maximum Additionally, PHMSA proposes pollutant constituents for generic entries quantity limits. amending certain parts of § 173.134, (indicated by the letter ‘‘G’’ in column • Data loggers: PHMSA proposes which provides definitions and 1 of the Hazardous Materials Table) and exception from certain regulations for exceptions for Class 6, Division 6.2 those containing ‘‘n.o.s.’’ as part of the lithium batteries in equipment that are hazardous materials, to include proper shipping names. attached to or contained in packagings, references to this new UN number and • Stability tests for nitrocellulose: large packagings, intermediate bulk proper shipping name. PHMSA proposes to add stability testing containers (IBCs), or cargo transport • Additional packagings for requirements for nitrocellulose, to units as equipment in use or intended ‘‘UN2211, Polymeric beads, expandable, require that these materials meet the for use during transport, such as data evolving flammable vapor’’ and criteria of the Bergmann-Junk test or loggers. This would clarify regulations ‘‘UN3314, Plastic molding compound in methyl violet paper test in the UN applicable to data loggers and cargo dough, sheet or extruded rope form Manual of Tests and Criteria, Appendix tracking devices powered by lithium evolving flammable vapor’’: PHMSA 10. batteries that are attached to or proposes to expand the authorized Some of the proposed amendments contained in, and in use or intended for packagings for polymeric beads and represent improvements in safety (e.g., use during transport. Additionally, in plastic molding compound to include nitrocellulose stability testing, response to the COVID–19 public health combination packagings rather than additional closures for packagings emergency, and consistent with limiting packaging options to single intended for pyrophoric materials, on revisions to the 2021–2022 ICAO packagings. deck stowage requirements for lithium Technical Instructions, PHMSA • Miscellaneous revisions of batteries transported by vessel, etc.). All proposes exceptions specific to the air requirements pertaining to the the proposed amendments are expected transportation of these items used in transportation of lithium batteries: to maintain the HMR’s high safety association with shipments of COVID– PHMSA proposes a number of revisions standard for the public and the 19 pharmaceuticals, including vaccines. to HMR requirements, including, but environment. Additionally, PHMSA • Removal of metal wall thickness not limited to, minimum size markings anticipates that there are safety benefits requirements for certain metal IBCs: and modification of stowage to be derived from improved PHMSA proposes to remove the requirements for lithium batteries compliance related to consistency minimum wall thickness requirements including those offered as damaged/ amongst domestic and international for metal IBCs that have a capacity of defective or for disposal/recycling. regulations. PHMSA solicits comment 1500 liters (L) or less. PHMSA expects the revisions will on the amendments proposed in this • Stabilized fish meal or fish scrap by contribute to the safe transportation of NPRM pertaining to: need, benefits and air: PHMSA proposes to permit the increased volumes of lithium batteries costs of the proposed HMR revisions; transport of stabilized fish meal or fish anticipated as a result of the increased impact on safety and the environment;
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impact on environmental justice and undue burdens on the regulated the ongoing global COVID–19 public equity; and any other relevant community. health emergency, on December 31, information. In addition, PHMSA In a final rule published December 21, 2020 and February 23, 2021, ICAO solicits comment regarding approaches 1990,1 PHMSA’s predecessor, the published addenda to the 2021–2022 to reducing the costs of this rule while Research and Special Programs Edition of the ICAO Technical maintaining or increasing safety Administration (RSPA), Instructions to provide additional benefits. As further explained in the comprehensively revised the HMR for provisions and exceptions to reduce PRIA, PHMSA expects that the aggregate greater consistency with the UN Model regulatory compliance burdens for the benefits of the amendments proposed in Regulations. The UN Model Regulations transport of certain hazardous materials, this NPRM justify their aggregate costs. constitute a set of recommendations such as alcohols and aerosols used for Nonetheless, PHMSA solicits comment issued by the United Nations Sub- hygienic purposes, by air. PHMSA on specific changes (e.g., greater Committee of Experts (UNSCOE) on the proposes to include those changes to flexibility with regard to a particular Transport of Dangerous Goods and on international standards in this NPRM. proposal) that might improve the rule. the Globally Harmonized System of Finally, PHMSA proposes to incorporate Classification and Labelling of by reference these new international II. Background Chemicals (GHS). The UN Model regulations and standards as well as The Federal hazardous materials Regulations are amended and updated new requirements from the IAEA, transportation law (49 U.S.C. 5101 et biennially by the UNSCOE and serve as ‘‘Specific Safety Requirements Number seq.) directs PHMSA to participate in the basis for national, regional, and SSR–6: Regulations for the Safe relevant international standard-setting international modal regulations, Transport of Radioactive Material 2018 bodies and encourages alignment of the including the ICAO Technical Edition’’ (SSR–6, Ref. 1); several new or HMR with international transport Instructions and IMDG Code. updated ISO standards; and an updated standards as consistent with promotion PHMSA has evaluated recent updates version of the OECD Guidelines for the of safety and the public interest. See 49 to the international standards, and Testing of Chemicals Test No. 431: In U.S.C. 5120. This statutory mandate proposes to revise the HMR to adopt vitro skin corrosion: reconstructed reflects the importance of international changes consistent with revisions to the human epidermis (RHE) test method. standard-setting activity in light of the 2021–2022 Edition of the ICAO The standards incorporated by reference Technical Instructions, Amendment 40– globalization of commercial are authorized for use for domestic 20 to the IMDG Code,2 and the 21st transportation of hazardous materials. transportation, under specific revised edition of the UN Model Harmonization of the HMR with those conditions, by part 171, subpart C of the Regulations, all of which were efforts can reduce the costs and other HMR. published by or in effect on January 1, burdens of complying with multiple or Contemporaneously with PHMSA’s 2021. PHMSA issued an enforcement inconsistent safety requirements development of the NPRM, the discretion on October 1, 2020, stating between nations. Consistency between President has issued a series of that while PHMSA is considering the the HMR and current international Executive Orders coordinating Federal 2021–2022 Edition of the ICAO standards can also enhance safety by (1) response to the COVID–19 public health Technical Instructions and amendment emergency, a handful of those are ensuring that the HMR is informed by 40–20 of the IMDG Code for potential the latest best practices and lessons pertinent to this NPRM. Specifically, adoption into the HMR, PHMSA and section 2 of Executive Order 13987 learned; (2) improving understanding of other Federal agencies that enforce the and compliance with pertinent (‘‘Organizing and Mobilizing the United HMR (the Federal Railroad States Government to Provide a Unified requirements; (3) facilitating the smooth Administration, the Federal Aviation flow of hazardous materials from their and Effective Response to Combat Administration (FAA), the Federal COVID–19 and To Provide United States points of origin to their points of Motor Carrier Safety Administration, destination, thereby avoiding risks to Leadership on Global Health and and the United States Coast Guard) will Security’’) 4 contemplates broad-based the public and the environment from not take enforcement action against any release of hazardous materials from action across the Federal Government to offeror or carrier who uses these ‘‘produce, supply, and distribute delays or interruptions in the standards as an alternative to complying personal protective equipment, transportation of those materials; and (4) with current HMR requirements when vaccines, tests, and other supplies for enabling consistent emergency response all or part of the transportation is by air the Nation’s COVID–19 response.’’ procedures in the event of a hazardous with respect to the ICAO Technical Similarly, Executive Order 14002 materials incident. Instructions, or by vessel with respect to (‘‘Economic Relief Related to COVID–19 PHMSA participates in the the IMDG Code. In addition, PHMSA Pandemic’’) 5 directs Federal agencies development of international and its partners will not take like PHMSA to respond to the economic regulations and standards for the enforcement action against any offeror harm caused by the COVID–19 public transportation of hazardous materials. It or carrier who offers or accepts for health emergency by promptly also adopts within the HMR domestic or international transportation identifying actions they can take within international standards consistent with by any mode packages marked or existing authorities to provide economic PHMSA’s safety mission. PHMSA labeled in accordance with these relief to affected persons and reviews and evaluates each standards. This notice remains in effect international standard it considers for until withdrawn or otherwise 3 https://www.phmsa.dot.gov/sites/phmsa.dot.gov/ incorporation within the HMR on its modified. Additionally, in response to files/2020-10/Notice%20of%20 own merits, to include the effects on Enforcement%20Policy%20Regarding transportation safety, the environmental 1 55 FR 52401 (Dec. 21, 1990). %20International%20Standards% impacts, and any economic impact. 2 Amendment 40–20 to the IMDG Code may be 20Oct%201%202020.pdf. PHMSA expects that it PHMSA’s goal is to harmonize with voluntarily complied with as of January 1, 2021; may withdraw this enforcement discretion should however, Amendment 39–18 will remain effective the HMR amendments proposed here be adopted in international standards without through May 31, 2022. a final rule. diminishing the level of safety currently 3 PHMSA, Notice of Enforcement Policy 4 86 FR 7019 (Jan. 20, 2021). provided by the HMR or imposing Regarding International Standards (Oct. 1, 2020), 5 86 FR 7229 (Jan. 21, 2021).
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businesses. Lastly, the President has regulated entities to provide input. (Dangerous Goods List) and the UN announced ambitious reductions in During the rulemaking process, PHMSA Model Regulations. However, PHMSA is national GHG emissions to combat must also obtain approval from the not proposing to revise the HMR/HMT climate, change, identifying Office of the Federal Register to to incorporate the corresponding electrification of the transportation and incorporate by reference any new packaging instructions for these other economic sectors—to include materials. The Office of the Federal materials. Instead, PHMSA plans to enabling more widespread use of Register issued a rulemaking on continue to approve the packaging and electric storage technologies (such as November 7, 2014 that revised 1 CFR transport of these materials through a lithium batteries) — as a critical element 51.5 to require that agencies detail in special permit. Maintaining approval of of that effort.6 the preamble of an NPRM the ways the these shipments under a special permit materials it proposes to incorporate by allows for oversight of the grantees in III. Incorporation by Reference reference are reasonably available to that PHMSA can conduct a fitness Discussion Under 1 CFR Part 51 interested parties, or how the agency evaluation prior to granting a special According to the Office of worked to make those materials permit and data on the number of Management and Budget (OMB), reasonably available to interested shipments made under a special permit Circular A–119, ‘‘Federal Participation parties. are provided to PHMSA. in the Development and Use of The UN Model Regulations, the UN • Issue #2: In the 2021–2022 Edition Voluntary Consensus Standards and in Manual of Tests and Criteria, the IAEA of the ICAO Technical Instructions, Conformity Assessment Activities,’’ Regulations for the Safe Transport of Special Provision A201 was revised to government agencies must use Radioactive Material, and the OECD provide provisions for transport of voluntary consensus standards Guidelines for the Testing of Chemicals lithium batteries on a passenger aircraft wherever practical in the development Test No. 431: In vitro skin corrosion: with the prior approval of the State of of regulations. reconstructed human epidermis (RHE) Origin and the operator, provided the PHMSA currently incorporates by test method are free and easily batteries were intended for urgent reference into the HMR all or parts of accessible to the public on the internet, medical need. PHMSA is not proposing several standards and specifications with access provided through the parent to make a corresponding amendment to developed and published by standard organization websites. The ICAO the HMR because PHMSA added development organizations (SDO). In Technical Instructions, IMDG Code, and § 173.185(g) in an interim final rule general, SDOs update and revise their all ISO standard references are available (HM–224I) published on March 6, published standards every 2 to 5 years for interested parties to purchase in 2019 7 in response to a statutory to reflect modern technology and best either print or electronic versions mandate in the FAA Reauthorization technical practices. The National through the parent organization Act of 2018. Pub. L. 115–254 (Oct. 5, Technology Transfer and Advancement websites. The price charged for those 2018). That HMR amendment provided Act of 1995 (NTTAA; Pub. L. 104–113) not freely available helps to cover the limited exceptions from HMR directs Federal agencies to use cost of developing, maintaining, hosting prohibitions permitting air standards developed by voluntary and accessing these standards. The transportation of medical device consensus standards bodies in lieu of specific standards are discussed in batteries with the approval of the government-written standards whenever greater detail in Section V. Associate Administrator. A final rule possible. Voluntary consensus standards covering the issues adopted on an IV. Amendments Not Being Considered bodies develop, establish, or coordinate interim basis in HM–224I is currently for Adoption in this NPRM technical standards using agreed-upon under development. procedures. OMB issued Circular A–119 As documented below, PHMSA has • Issue #3: The 21st revised edition of to implement section 12(d) of the determined that certain elements of the UN Model Regulations, the 2021– NTTAA relative to the utilization of updated international regulations and 2022 edition of the ICAO Technical consensus technical standards by standards that are the subject of this Instructions, and Amendment 40–20 to Federal agencies. This circular provides rulemaking should not be adopted into the IMDG Code amended various guidance for agencies participating in the HMR because the structure of the radioactive transportation requirements voluntary consensus standards bodies HMR is such that it makes adoption to harmonize with the IAEA Regulations and describes procedures for satisfying unnecessary, or PHMSA has deemed it for the Safe Transport of Radioactive the reporting requirements in the is a safer approach to authorize certain Material, No. SSR–6. While PHMSA NTTAA. Accordingly, PHMSA is transport requirements through a special proposes to incorporate by reference responsible for determining which permit rather than adopting into the Regulations for the Safe Transport of currently referenced standards should HMR. Use of a special permit allows for Radioactive Material, No. SSR–6, be updated, revised, or removed, and greater oversight and development of PHMSA is not proposing to harmonize which standards should be added to the transport history and data prior to the HMR with the remainder of the HMR. Revisions to materials determining adoption within the HMR. changes made by the various incorporated by reference in the HMR The following is a list of elements of international regulations (i.e., ICAO are handled via the rulemaking process, updated international standards that Technical Instructions, UN Model which allows for the public and PHMSA is not considering for adoption Regulations, IMDG Code) regarding in this NPRM, and the rationale for that radioactive materials requirements. 6 See, e.g., White House, ‘‘Fact Sheet: President decision: PHMSA plans to address domestic Biden Sets 2030 Greenhouse Gas Pollution • Issue #1: As discussed previously, radioactive harmonization issues in a Reduction Target Aimed at Creating Good-Paying Union Jobs and Securing U.S. Leadership on Clean PHMSA proposes to add a new HMT future rulemaking (HM–250A, under Energy Technologies’’ (Apr. 21, 2021), https:// entry for ‘‘UN3549 Medical Waste, RIN137–AF42) in coordination with the www.whitehouse.gov/briefing-room/statements- Category A, Affecting Humans, solid or Nuclear Regulatory Commission. releases/2021/04/22/fact-sheet-president-biden- Medical Waste, Category A, Affecting • Issue #4: The 21st revised edition of sets-2030-greenhouse-gas-pollution-reduction- target-aimed-at-creating-good-paying-union-jobs- Animals only, solid’’ for consistency the UN Model Regulations contains an and-securing-u-s-leadership-on-clean-energy- with updates to the Dangerous Goods technologies/. Lists of the ICAO Technical Instructions 7 84 FR 8006 (Mar. 6, 2019).
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amendment to general requirements packaged in accordance with the new standards of safety for control of the permitting the use of the proper UN packing instruction requirements in radiation, criticality, and thermal shipping name ‘‘Articles containing P801 or to add these stainless steel hazards to people, property, and the dangerous goods, n.o.s.’’ Specifically, boxes or plastic bins to the current environment that are associated with this amendment authorizes the use of packaging authorizations in the HMR. the transport of radioactive materials. Notable changes from the previous this entry for articles containing V. Section-By-Section Review of NPRM edition include clarification of marking explosives if the article is excluded from Proposals Class 1 (explosives) by meeting certain requirements, a new group of surface exclusion criteria identified in section The following is a section-by-section contaminated objects SCO–III for 2.1.3.6.4 of the UN Model Regulations. review of the amendments proposed in UN2914, and amendments to basic However, PHMSA is not proposing a this NPRM. radionuclide values (activity of the corresponding amendment to § 173.232 A. Part 171 radionuclide as listed in § 173.435) for because PHMSA does not permit seven specific radionuclides (Ba-135m, shippers to self-exclude a potential Section 171.7 Ge-69, Ir-193m, Ni-57, Sr-83, Tb-149 explosive (i.e., an article) from Class 1. Section 171.7 provides a listing of all and Tb-161). The Regulations for the Rather, § 173.56 of the HMR requires voluntary consensus standards Safe Transport of Radioactive Material shippers to submit explosives to incorporated by reference into the HMR, are available for download and purchase PHMSA-approved explosives test labs, as directed by the NTTAA. For this in hard copy on the IAEA website at: which perform evaluations to determine rulemaking, PHMSA evaluated updated https://www.iaea.org/publications/ whether the explosive meets the international consensus standards 12288/regulations-for-the-safe- exclusion criteria and then recommend pertaining to proper shipping names, transport-of-radioactive-material. • a classification to PHMSA for explosives hazard classes, packing groups, special In paragraph (t)(1), incorporate by submitted to them for review. If an provisions, packaging authorizations, air reference the 2021–2022 edition of the article is excluded from Class 1, a transport quantity limitations, and ICAO Technical Instructions, to replace document would be issued by PHMSA vessel stowage requirements. PHMSA the 2019–2020 Edition, which is that indicates it is not an explosive, but contributed to the development of those currently referenced in §§ 171.8; 171.22; must be classified based on any other standards—each of which build on the 171.23; 171.24; 172.101; 172.202; hazard presented by the article. In this well-established and documented safety 172.401; 172.407; 172.512; 172.519; case, the shipper would be required to histories of earlier editions — as it 172.602; 173.56; 173.320; 175.10, pick the most appropriate proper participated in the discussions and 175.33; and 178.3. The ICAO Technical shipping name, which could include the working group activities associated with Instructions specify detailed appropriate ‘‘Articles, n.o.s.’’ entry. their proposal, revision, and approval. instructions for the safe international transport of dangerous goods by air. The • Issue #5: The 21st revised edition of Those activities in turn have informed PHMSA’s evaluation of the effect those requirements in the 2021–2022 edition the UN Model Regulations contains have been amended to align better with amendments to Packing Instruction updated consensus standards would have on safety when incorporated by the 21st revised edition of the United P801, applicable to used batteries Nations Recommendations on the assigned the following UN numbers: reference and provisions adopted into the HMR. Further, PHMSA notes that Transport of Dangerous Goods and the ‘‘UN2794, Batteries, wet, filled with IAEA Regulations for the Safe Transport acid, electric storage’’; ‘‘UN2795, some of the consensus standards proposed for incorporation by reference of Radioactive Material. Notable Batteries, wet, filled with alkali, electric changes in the 2021–2022 edition of the storage’’; and ‘‘UN3028, Batteries, dry, within the HMR in this rulemaking have already been adopted into the regulatory ICAO Technical Instructions include containing potassium hydroxide solid, new packing and stowage provisions, electric storage.’’ These amendments schemes of other countries; note again that PHMSA itself has issued an new and revised entries on the were adopted to correct issues Dangerous Goods List, and editorial pertaining to requirements unique to the enforcement discretion authorizing their use as an interim strategy for complying corrections. The 2021–2022 edition of UN Model Regulations for the use of the ICAO Technical Instructions are with current HMR requirements. stainless steel boxes and plastic bins as available for purchase on the ICAO PHMSA is not aware of adverse safety packaging for those used batteries. In website at https://store.icao.int/en/ impacts from that operational contrast, the HMR does not specify such shop-by-areas/safety/dangerous-goods. packagings for used UN2794/2795/3028 experience. For these reasons, PHMSA • In paragraph (v)(2), incorporate by batteries, nor does this NPRM propose expects their adoption will maintain the reference the 2020 edition of the IMDG to amend the HMR to authorize such high safety standard currently achieved Code, Incorporating Amendment 40–20 packaging. Existing HMR packaging under the HMR. Therefore, PHMSA (English Edition), to replace requirements in § 173.159 for such proposes to add or revise the following Incorporating Amendment 39–18, 2018 incorporation by reference materials: 8 batteries are adequately protective. The • Edition, which is currently referenced HMR allows used batteries that are not In paragraph (s)(1), incorporate by in §§ 171.22; 171.23; 171.25; 172.101; damaged or leaking to be offered for reference the 2018 edition of the IAEA 172.202; 172.203 172.401; 172.407; transportation in accordance with the Regulations for the Safe Transport of 172.502; 172.519; 172.602; 173.21; general packaging requirements in Radioactive Material, Safety Standards 173.56; 176.2; 176.5; 176.11; 176.27; § 173.159(a)–(e) or paragraph (k) for Series No. SSR–6 (Rev.1), to replace the 176.30; 176.83; 176.84; 176.140; damaged batteries. Because of the 2012 edition, which is currently 176.720; 176.906; 178.3; and 178.274. combination of general packaging referenced in §§ 171.22; 171.23; 171.26; The IMDG Code is a unified requirements in 49 CFR part 173, 173.415; 173.416; 173.417; 173.435; and international code that outlines subpart B, and the battery specific 173.473. The IAEA regulations establish standards and requirements for the packaging requirements in § 173.159, transport of dangerous goods by sea. 8 All other standards that are set out as part of the PHMSA does not believe there is a regulatory text of § 171.7(w) were previously Notable changes in Amendment 40–20 safety justification to limit approved for incorporation by reference and no include new packing and stowage transportation of used batteries to those changes are proposed. provisions, new and revised entries on
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the Dangerous Goods List, and editorial document (i.e., ISO 10297: 2014) to 11114–1:2012/Amd 1:2017(E)). corrections. Distributors of the IMDG clarify valve requirements for tubes PHMSA proposes to revise the HMR Code can be found on the International and pressure drums and to correct likewise, by amending Special Maritime Organization (IMO) website at: errors found in the 2014 version. Provision 379, § 173.301b and https://www.imo.org/en/publications/ PHMSA proposes to reference this § 178.71 where ISO 11114–1:2012(E) Pages/Distributors-default.aspx. amendment in §§ 173.301b and is permitted or required, to also • In paragraph (w), incorporate by 178.71, where use of ISO 10297:2014 require compatibility with ISO reference or remove the following ISO is required. PHMSA reviewed this 11114–1:2012/Amd 1:2017(E). documents to include new and updated document and determined that the —ISO 11119–1:2012(E), ‘‘Gas standards for the specification, design, amendments it adds would provide cylinders—Refillable composite gas construction, testing, and use of gas additional safety benefits for cylinders and tubes—Design, cylinders: hazardous materials in transportation. construction and testing— Part 1: —ISO 10156:2017, ‘‘Gas cylinders— —ISO 10462:2013, ‘‘Gas cylinders — Hoop wrapped fibre reinforced Gases and gas mixtures— Transportable cylinders for dissolved composite gas cylinders and tubes up Determination of fire potential and acetylene — Periodic inspection and to 450 l’’, found in paragraph (w)(55). oxidizing ability for the selection of maintenance.’’ PHMSA proposes to This document specifies requirements cylinder valve outlets’’ in paragraph delete this second edition of ISO for composite gas cylinders and tubes (w)(38) and referenced in § 173.115. 10462 currently in paragraph (w)(44) between 0.5 L and 450 L water from the list of materials incorporated ISO 10156 specifies methods for capacity, for the storage and by reference. PHMSA requires the use conveyance of compressed or determining whether a gas or gas of ISO 10462 for the requalification of liquefied gases. ISO 11119–1:2012(E) mixture is flammable in air and a dissolved acetylene cylinder in is currently incorporated by reference whether a gas or gas mixture is more § 180.207. In final rule HM–215N,9 in § 178.71; however, PHMSA is or less oxidizing than air under PHMSA incorporated by reference the proposing to additionally incorporate atmospheric conditions. It is intended updated third edition of ISO 10462; by reference in § 178.75. to be used for the classification of however, the rule included a sunset —ISO 11119–2:2012(E), ‘‘Gas gases and gas mixtures including the provision to allow continued use of cylinders—Refillable composite gas selection of gas cylinder valve outlets. this second edition until December cylinders and tubes—Design, This amendment would remove ISO 31, 2018. Because this date has since construction and testing—Part 2: 10156:2010, third edition, and the passed, and the second edition is no Fully wrapped fibre reinforced associated corrigendum (ISO longer authorized for use under composite gas cylinders and tubes up 10156:2010/Cor.1:2010(E)), from the § 180.207, PHMSA proposes removing to 450 l with load-sharing metal HMR and add the revised ISO reference to this edition in § 171.7, as liners’’ found in paragraph (w)(57). 10156:2017(E), fourth edition, as the well as a making a conforming ISO 11119–2:2012 specifies former documents have been revision to remove the sunset requirements for composite gas withdrawn by ISO and replaced with provision in § 180.207. cylinders and tubes between 0.5 L and updated 2017 versions. As part of the —ISO 11114–1:2012/Amd 1:2017(E), 450 L water capacity, for the storage five-year periodic review of all ‘‘Gas cylinders—Compatibility of and conveyance of compressed or standards, ISO reviewed ISO cylinder and valve materials with gas liquefied gases. ISO 11119–2:2012(E) 1056:2010 and published an updated contents—Part 1: Metallic materials— is currently incorporated by reference version, ISO 10156:2017, which was Amendment 1,’’ in paragraph (w)(47), in § 178.71; however, PHMSA is published in September 2017 and which PHMSA proposes to reference proposing to additionally incorporate adopted in the 21st revised edition of in § 172.102, § 173.301b, and § 178.71. by reference in § 178.75. the UN Model Regulations. While This 2017 document supplements ISO —ISO 11119–2:2012/Amd.1:2014(E), many of the edits in this 2017 version 11114–1:2012(E), which provides Gas cylinders—Refillable composite were editorial changes made to suit requirements for the selection of safe gas cylinders and tubes—Design, the ISO publication rules, the combinations of metallic cylinder and construction and testing—Part 2: standard has also been supplemented valve materials, and cylinder gas Fully wrapped fibre reinforced with a test method to determine the contents. As part of ISO’s regular five- composite gas cylinders and tubes up flammability limits of gases and gas year review of its standards, the 2012 to 450 l with load-sharing metal mixtures in air and a calculation version of this document was liners, Amendment 1, found in method to determine the lower amended through the issuance of this paragraph (w)(58). ISO 11119–2:2012/ flammability limit of a gas mixture. supplemental document, ISO 11114– Amd. 1:2014(E) is currently PHMSA expects that the latter change 1:2012/Amd 1:2017(E). This 2017 incorporated by reference in § 178.71; will enhance safety by providing document amends the 2012 version however, PHMSA is proposing to improved instruction on by providing more explicit additionally incorporate by reference determination of flammability of gases instructions on the permissible in § 178.75. This supplemental and gas mixtures which would aid in concentrations of gases containing amendment was published to align the proper selection of a valve. (see halogens in aluminum cylinders. It the drop test originally provided in § 173.115 of the Section-by-Section also provides amended requirements ISO 11119–2 with the drop test Review for additional discussion of for butylene, hydrogen cyanide, outlined in ISO 11119–3 ‘‘Gas this proposed change). hydrogen sulfide and nitric oxide. cylinders of composite construction— —ISO 10297: 2014/Amd 1:2017, ‘‘Gas Consequently, the 21st revised edition Specification and test methods—Part cylinders — Cylinder valves— of the UN Model Regulations updated 3: Fully wrapped fibre reinforced Specification and type testing’’ in all references to the 2012 edition to composite gas cylinders with non- paragraph (w)(42) and referenced in include a reference to the load-sharing metallic or non-metallic § 173.301b and § 178.71. ISO supplemental amendment (ISO liners’’. published this supplemental —ISO 11119–3:2013(E), ‘‘Gas cylinders amendment to the 2014 version of this 9 82 FR 15796 (Mar. 30, 2017). of composite construction—
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Specification and test methods—Part 178.71 of the Section-by-Section 172.202; 172.401; 172.407; 172.502; 3: Fully wrapped fibre reinforced Review for additional discussion on 172.519; 173.22; 173.24; 173.24b; composite gas cylinders with non- this proposal. 173.40; 173.56; 173.192; 173.302b; load-sharing metallic or non-metallic —ISO 17879:2017, ‘‘Gas cylinders— 173.304b; 178.75; and 178.274. The liners’’ listed in paragraph (w)(60). Self-closing cylinder valves— Model Regulations provide framework This document is currently Specification and type testing,’’ in provisions promoting uniform incorporated by reference in § 178.71; paragraph (w)(75). PHMSA proposes development of national and however, PHMSA is proposing to to add a reference to this standard in international regulations governing additionally incorporate by reference § 173.301b and § 178.71. This the transportation of hazardous in § 178.75. ISO 11119–3:2013 standard provides the design, type materials by various modes of specifies requirements for composite testing, marking, and manufacturing transport. At its ninth session on gas cylinders up to 150 l water tests and examinations requirements December 7, 2018, the UNSCOE on capacity and composite tubes above for self-closing cylinder valves the Transport of Dangerous Goods and 150 L water capacity and up to 450 L intended to be fitted to refillable on the GHS adopted amendments to water capacity, for the storage and transportable gas cylinders used to the UN Model Regulations conveyance of compressed or transport compressed, liquefied or concerning, inter alia, electric storage liquefied gases. dissolved gases. systems (including lithium batteries —ISO 11119–4:2016, ‘‘Gas cylinders— —ISO 20475:2018, ‘‘Gas cylinders— installed in cargo transport units and Refillable composite gas cylinders— Cylinder bundles—Periodic defective batteries), explosives, Design, construction and testing—Part inspection and testing’’ in paragraph infectious waste of Category A, waste 4: Fully wrapped fibre reinforced (w)(77). This standard provides the gas cartridges, harmonization with the composite gas cylinders up to 150 L requirements for the periodic 2018 edition of IAEA’s Regulations for with load-sharing welded metallic inspection and testing of cylinder the Safe Transport of Radioactive liners,’’ in (w)(61), which PHMSA bundles containing compressed, Material, listing of dangerous goods, proposes to add a new reference to in liquefied, and dissolved gas. PHMSA update of LC50 values for some toxic § 178.71 and 178.75. This standard proposes to add a reference to this gases and use of in vitro skin provides requirements for composite standard in § 180.207, which provides corrosion methods for classification. gas cylinders with load-sharing the requirements for requalification of The 21st revised edition of the UN welded liners between 0.5 L and 150 UN pressure receptacles. Model Regulations is available online L water capacity and a maximum test All ISO standards are available for at: https://unece.org/rev-21-2019. pressure of 450 bar 10 for the storage preview and purchase at: https:// and conveyance of compressed or —The Manual of Tests and Criteria, 7th www.iso.org/standards.html. revised edition (2019), in paragraph liquefied gases. PHMSA proposes • In paragraph (aa)(3), incorporate by requiring UN composite cylinders and (dd)(2), which is referenced in reference the updated 2016 version of tubes to conform to this standard in §§ 171.24, 172.102; 173.21; 173.56; the OECD Guidelines for the Testing of § 178.71. See 178.71 of Section-by- 173.57; 173.58; 173.60; 173.115; Chemicals ‘‘Test No. 431: In vitro skin Section Review for additional 173.124; 173.125; 173.127; 173.128; corrosion: reconstructed human discussion on this new incorporation 173.137; 173.185; 173.220; 173.221; Epidermis (RHE) test method.’’ PHMSA by reference. 173.224; 173.225; 173.232; part 173, —ISO 14246:2014/Amd 1:2017, ‘‘Gas proposes to update the version of OECD appendix H; 175.10; 176.905; and cylinders—Cylinder valves— Guidelines for the Testing of Chemicals 178.274. The Manual of Tests and Manufacturing tests and Test No. 431 referenced in § 173.137, to Criteria contains instruction for the examinations—Amendment 1,’’ in maintain alignment with the UN Model classification of hazardous materials paragraph (w)(72). PHMSA proposes Regulations. This document is used for for purposes of transportation to add a reference to this document in the identification of corrosive chemical according to the UN Model § 178.71. This one page amendment, substances and mixtures. This updated Regulations. PHMSA proposes to published in 2017, is intended for use edition includes in vitro methods replace the sixth revised edition in conjunction with ISO 14246:2014, allowing for better differentiation (2015) and the sixth revised edition, which specifies the procedures and between hazard categories, which had Amendment 1 (2017) with the seventh acceptance criteria for manufacturing not been possible under earlier editions revised edition. The amendments testing and examination of cylinder due to the limited set of well-known in adopted in 2018 for the seventh valves that have been manufactured to vivo corrosive sub-category chemicals revised edition include: A full review achieve type approval. This 2017 against which to validate in vitro testing of the text of the Manual to facilitate document amends the 2014 version results. Therefore, this updated test its use in the context of the GHS; a by updating the pressure test and protocol may provide clearer new test under test series 8 to leakproofness test specifically for distinctions between severe and less determine the sensitiveness of a acetylene valves. Consequently, the severe skin corrosives. OECD test candidate ammonium nitrate, 21st revised edition of the UN Model methods can be found in the OECD emulsion or suspension, or gel, Regulations updated all references to iLibrary available at https://www.oecd- intermediate for blasting explosive, to the 2014 edition to include a ilibrary.org/. the effect of intense localized thermal • reference to the supplemental In paragraph (dd), incorporate by ignition under high confinement; new amendment (ISO 14246/Amd 1:2017). reference United Nations standards provisions addressing classification of Therefore, PHMSA proposes to do including: polymerizing substances for transport; likewise by adding a reference to this —‘‘The Recommendations on the stability tests for nitrocellulose supplement in § 178.71, where Transport of Dangerous Goods— mixtures (new Appendix 10); and a inspection and testing in accordance Model Regulations,’’ 21st revised compilation of classification results with ISO 14246:2014 are required. See edition (2019), Volumes I and II, in on industrial nitrocellulose in paragraph (dd)(1), which are accordance with Chapter 2.17 of the 10 1 Bar = 100 kPa = 14.504 psi. referenced in §§ 171.8; 171.12; GHS, which can be used for the
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classification of industrial amendments. In addition to a new identify and resolve (with input from nitrocellulose based products (new title, the 2020 edition of this stakeholders) impediments to cross- Appendix 11). Additionally, the document includes amendments border transportation of hazardous Committee considered that the necessary to ensure harmonization of materials. Among the initiatives agreed reference to the ‘‘Recommendations ADR with the UN Model Regulations, upon by PHMSA and Transport Canada on the Transport of Dangerous Goods’’ additional amendments adopted by within the RCC was modification of in the title of the manual was no the Working Group on Tanks as well their respective regulations to ensure longer appropriate, and decided that as amendments proposed by the reciprocal recognition of special permits the manual should be entitled Working Group on Standards. (PHMSA) and certificates (Transport ‘‘Manual of Tests and Criteria.’’ PHMSA proposes to remove Canada) specifying the terms and Therefore, PHMSA proposes to amend references to the 2019 edition of the conditions authorizing deviations from the title of this document in the list ADR, ECE/TRANS/257, and add their respective regulatory requirements of reference material in § 171.7 to references to volumes I and II of the governing transportation of hazardous reflect this change. The seventh 2020 edition, ECE/TRANS/300. The materials. revised edition of the ‘‘Manual of ADR can be accessed at: https:// Subsequently, Transport Canada Tests and Criteria’’ can be accessed at: www.unece.org/trans/danger/publi/ recognized PHMSA’s special permits, https://unece.org/rev7-files. adr/adr_e.html. which are issued based on either being —‘‘Globally Harmonized System of Section 171.8 in the public interest or on the basis that Classification and Labelling of the permit provides a demonstrable Chemicals’’, eighth revised edition Section 171.8 defines terms used equivalent level of safety. See (2019) in paragraph (dd)(3), which is throughout the HMR that have broad or § 107.105(d). In HM–215N, PHMSA referenced in § 172.401. The GHS multi-modal applicability. Currently, revised the HMR to recognize standard provides a basic scheme to the definitions provided in § 171.8 for equivalency certificates by Transport identify the hazards of substances and SADT, i.e., ‘‘self-accelerating Canada on the basis of a finding of mixtures and to communicate the decomposition temperature’’ and SAPT, safety equivalence with the TDG hazards. At its ninth session on i.e., ‘‘self-accelerating polymerization Regulations. That rulemaking did not, December 7, 2018, the Committee temperature’’ only spell out the however, reflect the fact that Transport adopted a set of amendments to the abbreviations and direct users to Canada also issues temporary seventh revised edition of the GHS § 173.21—Forbidden materials and certificates authorizing deviation from which include, inter alia: new packages—for the actual defining the TDG Regulations on a finding that classification criteria, hazard criteria. PHMSA proposes to make transportation of certain hazardous communication elements, decision editorial changes to improve the utility materials is in the public interest. logics, and guidance for chemicals of the definitions of SADT and SAPT by Transport Canada issues temporary under pressure; new provisions for providing a clear explanation of these certificates after a technical review by the use of in vitro/ex vivo data and terms in the context of packaging within its subject matter experts of an non-test methods to assess skin the HMR. applicant’s supporting documentation corrosion and skin irritation; Section 171.12 demonstrating shipment of the miscellaneous amendments to clarify hazardous material is in the public the classification criteria for Specific Paragraph (a) of § 171.12 prescribes requirements for the use of the TDG interest. Temporary certificates are of Target Organ Toxicity; revised and limited duration and specify terms and further rationalized precautionary Regulations for hazardous materials transported from Canada to the United conditions—often extensive—to statements and an editorial revision of mitigate risks to public safety and the Sections 2 and 3 of Annex 3; new States, from the United States to Canada, or through the United States to environment. Transport Canada posts examples of precautionary pictograms all temporary certificates to its publicly- to convey the precautionary statement Canada or a foreign destination. PHMSA 12 proposes to amend § 171.12(a)(1) to available website. ‘‘Keep out of reach of children’’; a PHMSA has evaluated Transport authorize the use of a temporary new example in Annex 7 addressing Canada’s practices in reviewing and certificate issued by Transport Canada labelling of sets or kits; and guidance issuing temporary certificates and for motor carrier or rail transportation of on the identification of dust explosion expects that PHMSA’s recognition of a hazardous material. hazards and the need for risk those certificates for motor carrier or rail assessment, prevention, mitigation, In a 2017 rulemaking, HM–215N,11 PHMSA authorized hazardous materials transportation of hazardous materials and hazard communication. The will not adversely affect safety. As noted eighth revised edition of the GHS can to be offered for transportation or transported by motor carrier and rail in above, Transport Canada issues those be accessed at https://unece.org/ghs- certificates only after a technical review rev8-2019. accordance with an equivalency is completed by its own subject matter —‘‘European Agreement concerning the certificate issued by Transport Canada, experts to mitigate residual risks to International Carriage of Dangerous as an alternative to transportation of Goods by Road’’, in (dd)(4), which is these items under the TDG Regulations public safety and the environment as referenced in § 171.23. The European as provided in § 171.22. The HMR outlined by the certificates’ terms and Agreement concerning the amendment resulted from negotiations conditions, including limiting duration International Carriage of Dangerous by the U.S.-Canada Regulatory of those temporary certificates. Goods by Road (ADR) outlines Cooperation Council (RCC), a Additionally, other regulatory regulations concerning the government-to-government forum requirements (of Transport Canada or international carriage of dangerous established in 2011 by the President of PHMSA) not excepted by a temporary goods by road within the EU and the United States and the Canadian certificate remain in effect. PHMSA other countries that are party to the Prime Minister for PHMSA and 12 See Transport Canada, ‘‘Approvals—Search by agreement. This publication presents Transport Canada, respectively, to Certificate Number,’’ https://wwwapps.tc.gc.ca/Saf- the European Agreement, the Protocol Sec-Sur/3/approvals-approbations/ Signatures, the annexes, and the 11 82 FR 15796 (Mar. 30, 2017). SearchCertificates.aspx (last visited Apr. 16, 2021).
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further notes that, consistent with the and other countries that are member to amendments to the HMT include the HMR’s existing authorization in the agreement, and this publication following: § 171.12 for reliance on the TDG contains the European Agreement, the New HMT Entries Regulations to authorize certain Protocol Signatures, the annexes, and shipments in the United States, the the amendments. Specifically, • UN0511 Detonators, electronic proposed new authorization to use a § 171.23(a) authorizes cylinders that programmable for blasting • temporary certificate applies only for comply with the requirements of UN0512 Detonators, electronic programmable for blasting the duration of a shipment. In other Packing Instruction P200 (packing • words, once a shipment offered in instruction for cylinders, tubes, pressure UN0513 Detonators, electronic accordance with a temporary certificate drums, and bundles of cylinders) or programmable for blasting • UN3549 Medical Waste, Category reaches its destination, any subsequent P208 (packing instruction for Class 2 A, Affecting Humans, solid or Medical offering of packages imported under a adsorbed gases) and 6.2 (requirements Waste, Category A, Affecting Animals Transport Canada temporary certificate for the construction and testing of only, solid would have to be completed in full pressure receptacles, aerosol dispensers, compliance with the HMR. PHMSA’s small receptacles containing gas (gas The UN Model Regulations contain a proposed revisions to § 171.12 would cartridges), and fuel cell cartridges new entry to its Dangerous Goods List further mitigate risk to public safety and containing liquefied flammable gas) of for regulated medical waste in Category the environment by applying only to the ADR, published in 2019 as A (see above list for UN3549). PHMSA motor carrier and rail. document ECE/TRANS/257. Upon proposes to add this new entry for this The proposed recognition of review of the 2020 edition of this proper shipping name and UN number, Transport Canada-issued temporary document, ECE/TRANS/300, PHMSA and assigning Special Provision 131 to certificates would improve cross-border did not find any substantive changes to inform offerors that an approval is movement of hazardous materials from the provisions in 6.2, P200, or P208, and required when shipping this material. efforts responding to the COVID–19 therefore, does not expect that PHMSA also proposes to assign a new public health emergency or other future incorporating by reference ECE/TRANS/ special provision, Special Provision emergencies. For example, among the 300 will impose any safety risk or 430, to specify the appropriate use of temporary certificates recently issued by economic impact. However, updating this proper shipping name. The addition Transport Canada are several the version incorporated by reference to of a proper shipping name that more authorizing exceptions from TDG reflect the edition that is currently in specifically describes the material in Regulations to enable movement of force would facilitate access to foreign transportation is expected to reduce hand sanitizer chemicals and COVID–19 markets by U.S. manufacturers and regulatory burdens in shipping this test samples.13 Revision of the HMR as businesses. material internationally and proposed would help to ensure that, The proposed regulatory text domestically. And by limiting the scope should Transport Canada issue references European Directive 2010/35/ of transport by way of special provision additional temporary certificates EU, which was previously approved for approval requirements for each responding to the COVID–19 public incorporation by reference in this shipment, PHMSA can exercise greater health emergency or another cross- section, and no changes are proposed oversight of the transport of these border threat to public safety or the for this standard. materials to, from, or within the United environment, the HMR will not be an States. B. Part 172 PHMSA also proposes to add three obstacle to those efforts. Section 172.101 Hazardous Materials new entries for the proper shipping Section 171.23 Table (HMT) name ‘‘Detonators, electronic Section 171.23 outlines the programmable for blasting’’ with the The HMT summarizes terms and following new UN numbers: UN0511, requirements for specific materials and conditions governing transportation of packagings transported under the ICAO UN0512, and UN0513. These entries certain hazardous materials under the were added in the 21st revised edition Technical Instructions, IMDG Code, HMR. For each entry, the HMT Transport Canada TDG Regulations, or of UN Model Regulations as result of a identifies information such as the proposal from the Australian Explosives the IAEA Regulations. It also includes proper shipping name, UN provisions that authorize the use, under Industry and Safety Group (AEISG) and identification number, and hazard class. ensuing discussions held by the UN specific conditions, of pi-marked The HMT specifies additional pressure vessels, which are pressure Working Group on Explosives (EWG) of information or reference requirements the Sub-Committee of Experts on the vessels and pressure receptacles that in the HMR such as hazard comply with ECE/TRANS/257, the ADR, Transport of Dangerous Goods in 2017 communication, packaging, quantity 14 and the EU Directive 2010/35/EU, and and 2018. AEISG proposed adding limits aboard aircraft, and stowage of new entries in the Model Regulations marked with a pi (p) symbol to denote hazardous materials aboard vessels. such compliance. PHMSA proposes to for electronic detonators to distinguish PHMSA proposes to amend certain them from electric detonators, which amend § 171.23(a) to update the entries in the HMT to reflect the reference to ECE/TRANS/257 to: (1) have significantly different design proposed regulatory amendments characteristics. Reference the 2020 edition of this discussed below in the Section by document, ECE/TRANS/300, and (2) The HMT has nine entries for Section review. For purposes of the detonators (not used for ammunition) reference both volumes I and II of the Government Publishing Office’s ADR. The ADR outlines the regulations which include: ‘‘Detonators, non- typesetting procedures, proposed electric for blasting,’’ ‘‘Detonators, concerning the international carriage of changes to the HMT appear under three dangerous goods by road within the EU electric for blasting,’’ and ‘‘Detonator sections of the HMT: ‘‘remove,’’ ‘‘add,’’ assemblies, non-electric for blasting,’’ and ‘‘revise.’’ Certain entries in the 13 See Transport Canada, ‘‘Temporary which may fall in to one of three hazard Certificates,’’ https://tc.canada.ca/en/dangerous- HMT, such as those with revisions to goods/temporary-certificates (last visited Apr. 16, the proper shipping names, appear as a 14 https://unece.org/fileadmin/DAM/trans/doc/ 2021). ‘‘remove’’ and ‘‘add.’’ Proposed 2018/dgac10c3/ST-SG-AC.10-C.3-2018-58e.pdf.
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classes (1.1B, 1.4B, 1.4S). Under the Instructions. While reviewing this Additionally, for the entry ‘‘UN2522, hazardous materials classification amendment, PHMSA found that all of 2-Dimethylaminoethyl methacrylate,’’ scheme, based on the existing available these entries except for ‘‘UN3360, PHMSA proposes to add the word entries, electronic detonators are Fibers, vegetable, dry,’’ are also ‘‘stabilized’’ to this proper shipping required to be transported as identified as only being regulated for air name to identify this material as a ‘‘Detonators, electric for blasting’’ which and vessel transportation as denoted by polymerizing substance. Discussions is not the most accurate description. the symbols ‘‘A’’ and ‘‘W’’ in column held by the UNSCOE identified While using this name does not pose (1). For UN3360, the symbols ‘‘I’’ and ‘‘UN2522, 2-Dimethylaminoethyl- inherent risks during transportation, it ‘‘W’’ are presently assigned in column methacrylate’’ as having a similar creates potential for risks in down- (1) and the quantity limit in column (9) molecular structure and polymerization stream storage, use, and handling is ‘‘No Limit’’ for both passenger and behaviors to ‘‘UN 3302, 2- operations. Because electronic cargo air. This is inconsistent with the Dimethylaminoethyl acrylate, detonators are significantly different ICAO Technical Instructions which stabilized.’’ Under the HMR and from other electric and non-electric forbid this material for transport by air. international regulations, polymerizing detonators, PHMSA proposes new Therefore, consistent with the ICAO substances require verification that a entries for these devices rather than Technical Instructions for the UN3360 sufficient level of stabilization is including them within the existing entry, PHMSA proposes to add the provided prior to transportation. This entries for electric detonator types. As symbol ‘‘A’’ to column (1) and amend requirement for stabilization is also with other explosives, the proper column (9) to read ‘‘Forbidden.’’ This is indicated by assignment of Special classification of these devices would further consistent with the entries for Provision 387 in the HMT, which depend on packaging and testing, hence similar materials ‘‘UN1372, Fibers, PHMSA proposes to add for UN2522. new entries must include all possible animal or Fibers, vegetable’’ and Finally, for the entry ‘‘UN3171, hazard classifications (1.1B, 1.4G, and ‘‘UN1373, Fibers or Fabrics, animal or Battery-powered vehicle or Battery- 1.4S). For other newly added hazardous vegetable or Synthetic, n.o.s.’’ that are powered equipment,’’ PHMSA proposes materials assigned a UN number on the also assigned the symbol ‘‘A’’ in column to make an editorial change to italicize Dangerous Goods List in the UN Model (1) and ‘‘Forbidden’’ in column (9). the ‘‘or’’ in the hazardous material Regulations, PHMSA proposes to add: PHMSA expects that this change will description. Currently, the ‘‘or’’ is in UN0511 (1.1B), UN0512 (1.4B), and facilitate international air transportation roman type and not italicized. Section UN0513 (1.4S) to the HMT to facilitate and save shippers time and costs by 172.101(c) introductory text instructs proper classification and handling preventing delayed and rejected that proper shipping names are limited across governmental and modal shipments. to those in roman type. Moreover, the jurisdictions. PHMSA expects that this current form of the entry is such that a Column (2) Hazardous Materials change would provide clarity and person may confuse the proper shipping Descriptions and Proper Shipping enhance safety by adding more specific name with the whole description and Names proper shipping names to describe not the option of ‘‘Battery-powered electric detonators. Section 172.101(c) describes column vehicle’’ or ‘‘Battery-powered (2) of the HMT and the requirements for equipment.’’ Therefore, PHMSA Column (1) Symbols hazardous materials descriptions and proposes revising the entry to read Section 172.101(b) describes column proper shipping names. The UN Model ‘‘Battery-powered vehicle or Battery- (1) of the HMT and symbols providing Regulations contain the entry ‘‘UN3363, powered equipment.’’ for additional requirements for Dangerous Goods in Articles or transportation of listed hazardous Dangerous Goods in Machinery or Column (5) Packing Group materials that may be indicated in the Dangerous Goods in Apparatus,’’ in its Section 172.101(f) describes column column. As provided in § 172.101(b)(1): Dangerous Goods List; however, the (5) of the HMT, which specifies one or (1) The symbol ‘‘A’’ identifies a material HMT entry UN3363 does not include more packing groups (PG I, II or III), that is subject to the requirements of the ‘‘Dangerous Goods in Articles or,’’ in the assigned to certain materials. A PG HMR only when offered or intended for proper shipping name. PHMSA indicates the required level of packaging transportation by aircraft; (2) the symbol proposes to add ‘‘Dangerous Goods in according to the degree of danger ‘‘W’’ identifies a material that is subject Articles or,’’ to the proper shipping presented by hazardous materials. PG I to the requirements of the HMR only name. This change provides flexibility indicates the greatest level of danger, PG when offered or intended for for shippers selecting the most II corresponds to a medium level of transportation by vessel; and (3) the appropriate proper shipping name by danger, and PG III corresponds to a symbol ‘‘I’’ identifies proper shipping adding a third option in the proper minor danger. names which are appropriate for shipping name associated with this UN For consistency with the UN Model describing materials in international Number. Additionally, for the proper Regulations, PHMSA proposes to transportation. The UN Model shipping name ‘‘Fuel system remove the assignment of PG II as Regulations were amended for components (including fuel control indicated in column (5) for the entry consistency with the ICAO Technical units (FCU), carburetors, fuel lines, fuel ‘‘UN3291, Regulated medical waste, Instructions to indicate that in addition pumps)’’ which currently directs HMT n.o.s. or Clinical waste, unspecified, to being regulated by vessel, the users to ‘‘see Dangerous Goods in n.o.s. or (BIO) Medical waste, n.o.s. or following entries are also regulated for Apparatus or Dangerous Goods in Biomedical waste, n.o.s., or Medical air transport: ‘‘UN1372, Fibers, animal Machinery’’, PHMSA proposes to Waste n.o.s.’’ This entry is the only or Fibers, vegetable burnt, wet or amend the directions to include a entry with a Division 6.2 classification damp,’’ ‘‘UN1387, Wool waste, wet,’’ reference to ‘‘Dangerous Goods in that has PG II assigned in column (5). ‘‘UN1856, Rags, oily,’’ ‘‘UN1857, Textile Articles.’’ PHMSA expects that these Amending this entry not to include PG waste, wet,’’ and ‘‘UN3360, Fibers, changes will improve hazard II would align with international vegetable, dry.’’ In the case of these communication by including a more regulations and § 172.101(f), which particular entries, they are forbidden for specific description for articles specifically states that Division 6.2 air transport in the ICAO Technical containing hazardous materials. materials are not assigned packing
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groups in the HMR. For packing provision amendments addressed in this provides additional instructions for purposes, any requirement for a specific NPRM. hazardous materials stabilized by packaging performance level is set out chemical or temperature controls to Special Provision 196: in the applicable packing authorizations ensure a level of stabilization prior to of part 173. Instead of having PG II PHMSA proposes to add new Special transportation sufficient to prevent the indicated in Column (5), packing Provision 196 to the following HMT material from dangerous provisions for these materials would entries to outline thermal stability polymerization. The rationale for this continue to be outlined in § 173.197. testing requirements for their change is discussed further below. transportation: PHMSA expects this editorial change Portable Tank Special Provisions will maintain the current level of safety • UN0340, Nitrocellulose, dry or wetted as no packing provisions are changing. with less than 25 percent water (or PHMSA proposes to remove Special Provisions TP39 and T41 for the entries Column (6) Label Codes alcohol), by mass • UN0341, Nitrocellulose, unmodified ‘‘UN2381, Dimethyl disulfide’’ and Section 172.101(g) describes column or plasticized with less than 18 ‘‘UN3148, Water-reactive liquid, n.o.s.’’ (6) of the HMT, which contains label percent plasticizing substance, by respectively, as the transition period has 16 codes representing the hazard warning mass expired. In HM–215L, PHMSA added labels required for specific hazardous • UN0342, Nitrocellulose, wetted with Special Provisions TP39 and TP41. materials in the HMT. In the HM–215O not less than 25 percent alcohol, by Special Provision TP39 was assigned to final rule,15 PHMSA added twelve HMT mass HMT entry UN2381 and Special entries as part of a classification scheme • UN0343, Nitrocellulose, plasticized Provision TP41 was assigned to HMT for articles containing hazardous with not less than 18 percent entry UN3148. PHMSA added these two materials not otherwise specified by plasticizing substance, by mass. special provisions to provide more time name (i.e., n.o.s. entries) in the HMR. for portable tank transporters to The entries were inadvertently added Special Provision 197 transition their fleets in compliance without label codes in column (6). PHMSA proposes to assign new with portable-tank specific requirements PHMSA proposes to correct the entries Special Provision 197 to the following in Special Provisions T4 and T9. Special here by adding the appropriate label entries in the HMT to outline thermal Provision TP39 authorized continued codes to the following: stability testing requirements for their use of portable tank requirements in • UN3537 Articles containing transportation: Special Provision T4 until December 31, 2018. Special Provision TP41 flammable gas, n.o.s. • UN2555, Nitrocellulose with water authorized the continued use of portable • UN3538 Articles containing non- with not less than 25 percent water, tank instruction T9 until December 31, flammable, non-toxic gas, n.o.s. by mass • UN3539 Articles containing toxic • UN2556, Nitrocellulose with alcohol 2018. Since that date has passed, TP39 gas, n.o.s. with not less than 25 percent alcohol and TP41 are no longer necessary. • UN3540 Articles containing by mass, and with not more than 12.6 Column (9) Quantity Limitations flammable liquid, n.o.s. percent nitrogen, by dry mass • UN3541 Articles containing • Section 172.101(j) explains the UN2557, Nitrocellulose, with not purpose of column (9) in the HMT. flammable solid, n.o.s. more than 12.6 percent nitrogen, by • UN3542 Articles containing a Column (9) specifies quantity dry mass mixture with or without limitations for packages transported by substance liable to spontaneous plasticizer, with or without pigment combustion, n.o.s. air and rail. Column (9) is divided into • UN3380, Desensitized explosives, two columns: Column (9A) provides UN3543 Articles containing a solid, n.o.s. substance which in contact with quantity limits for passenger aircraft/ water emits flammable gases, n.o.s. Special Provision 360 rail; and column (9B) provides quantity • limits for cargo aircraft. The proposed UN3544 Articles containing PHMSA proposes to assign Special revisions only address transportation by oxidizing substance, n.o.s. Provision 360 to the following HMT • aircraft, as the UN Model Regulations UN3545 Articles containing organic entries: did not contemplate any changes to the peroxide, n.o.s. • • UN3546 Articles containing toxic UN3481, Lithium ion batteries, limitations for transport via rail. substance, n.o.s. contained in equipment or packed The ICAO Technical Instructions have • UN3547 Articles containing with equipment including lithium ion added provisions allowing ‘‘UN2216, polymer batteries Fish meal, stabilized or Fish scrap, corrosive substance, n.o.s. • • UN3548 Articles containing UN3091, Lithium metal batteries, stabilized’’ to be transported by aircraft miscellaneous dangerous goods, n.o.s. contained in equipment or packed when also meeting the provisions of with equipment including lithium ICAO Special Provision A219. Column (7) Special Provisions alloy batteries Consistent with the ICAO Technical Section 172.101(h) describes column Special Provision 360 instructs that Instructions, PHMSA proposes to (7) of the HMT, which assigns special vehicles only powered by lithium amend Column 9 for this entry to provisions for each HMT entry. Section batteries must be assigned the indicate quantity limits for passenger 172.102 provides for the meaning and identification number UN3171. See and cargo aircraft of 100 kg and 200 kg, requirements of the special provisions Section 172.102 Special Provisions for respectively. assigned to entries in the HMT. The further discussion of Special Provision As a conforming amendment, PHMSA proposed revisions to column (7) of 360. is also proposing to revise the § 173.218 certain entries in the HMT are discussed packaging requirements for fish meal below. Also, see § 172.102 of the Special Provision 387 and fish scrap to reflect the Section-By-Section Review below for a PHMSA proposes to assign Special authorization to transport this material detailed discussion of the special Provision 387 to the HMT entry for by aircraft in addition to vessel. See ‘‘UN2522, 2-Dimethylaminoethyl 15 85 FR 27810 (May 11, 2020). methacrylate.’’ Special Provision 387 16 78 FR 987; (Jan. 1, 2013).
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SECTION 173.218 of the Section-By- HMR for these materials. However, PHMSA proposes adding stowage Section Review for further detail. alcoholates are strong alkaline code 156 to the lithium battery entries substances that react vigorously with ‘‘UN3090, Lithium metal batteries,’’ Column (10) Vessel Stowage acids. Stowage code 52 would be ‘‘UN3091, Lithium metal batteries Section 172.101(k) explains the assigned to the following HMT entries: contained in equipment, or Lithium purpose of Column (10) of the HMT and • UN1289, Sodium methylate solutions metal batteries packed with prescribes the vessel stowage and in alcohol equipment,’’ ‘‘UN3480, Lithium ion segregation requirements for specific • UN1431, Sodium methylate batteries,’’ and ‘‘UN3481, Lithium ion entries. Column (10) is divided into two • UN3206, Alkali metal alcoholates, batteries contained in equipment or columns: Column (10A) [Vessel self-heating, corrosive, n.o.s. Lithium ion batteries packed with stowage] specifies the authorized • UN3274, Alcoholates solution, n.o.s., equipment’’ in the HMT in column stowage locations on board cargo and in alcohol (10B). This new stowage code passenger vessels; and Column (10B) For the entries ‘‘UN2900, Infectious assignment requires that, in lieu of the [Other provisions] specifies special substances, affecting animals only’’ and stowage category A assigned in column stowage and segregation provisions. (10A) in the current HMR which allows In Column (10A) for the entry for ‘‘UN2814, Infectious substances, affecting humans,’’ PHMSA proposes stowage ‘‘on deck’’ or ‘‘under deck,’’ ‘‘UN3135, Water-reactive solid, self- lithium batteries that are offered in heating, n.o.s, PG I,’’ consistent with the adding stowage codes 13 and 95 and new stowage code 155. Stowage codes transportation for purposes of disposal IMDG Code, PHMSA proposes to amend or recycling, or that are offered under the assigned stowage category from ‘‘E’’ 13 and 95 require keeping material as dry as reasonably practicable and damaged or defective provisions (see to ‘‘D.’’ This proposed change means the § 173.185(f) of the HMR), would be material must be stowed ‘‘on deck only’’ stowage ‘‘separated from’’ foodstuffs. The IMDG Code has varying levels of required to be stowed in accordance on a cargo vessel or on a passenger with stowage category C which requires stowage either ‘‘away from’’ or vessel carrying a number of passengers ‘‘on deck only’’ stowage on cargo and ‘‘separated from’’ foodstuffs depending limited to the greater of 25 passengers passenger vessels. PHMSA expects that on the type of shipment (e.g., total or one passenger for each 3 meters this new stowage code will enhance the containerized or break-bulk). PHMSA of overall vessel length; transport would safety of shipment of lithium batteries proposes the more restrictive ‘‘separated be prohibited on a passenger vessel in expected from anticipated increases in from,’’ regardless of the type of which those passenger limits have been use of lithium batteries in the shipment, and specifically solicits exceeded. Stowage category ‘‘E’’ is transportation and other economic comments on this proposal. The currently assigned to this material sectors in the years ahead. which allows ‘‘under deck’’ storage. stowage of these materials separated PHMSA proposes adding stowage This proposed change is consistent with from foodstuffs is expected to prevent code 157 to column (10B) for numerous the stowage category for other Division inadvertent cross contamination of food entries in the HMT. Stowage code 157 4.3, PG I, materials with subsidiary stuffs. New stowage code 155 requires would require aerosols, small hazards that are also assigned stowage vessel carriers to keep handling of the receptacles containing gas, or gas category ‘‘D’’ for ‘‘on deck only’’ packages to a minimum and to inform cartridges transported for purposes of stowage. The IMDG Code removed the appropriate authority or veterinary recycling or disposal, to be stowed in approval requirements (Special authority where persons or animals may accordance with stowage category C, Provision 76) from this material and the have been exposed to the package which requires ‘‘on deck only’’ stowage, assignment of appropriate transport contents. Additionally, this handling and to be clear of living quarters. This provisions. restriction and communication stowage code requirement is in lieu of For the ‘‘UN2900, Infectious requirement may facilitate reducing the stowage category A assigned in substances, affecting animals only’’ and exposure and contract tracing column (10A) in the current HMR ‘‘UN2814, Infectious substances, surrounding UN2814 packages that allowing ‘‘on deck’’ or ‘‘under deck’’ affecting humans,’’ PHMSA proposes to contain COVID–19 materials. With the stowage. PHMSA proposes to add new amend the assigned stowage category exception of the general ‘‘separated stowage code 157 to the following from ‘‘B’’ to ‘‘E.’’ This proposed change from’’ proposed language, these entries in the HMT: would allow ‘‘on deck’’ or ‘‘under deck’’ proposals are consistent with IMDG • UN1950, Aerosols, corrosive, Packing stowage, but would not allow stowage Code requirements. Group II or III, (each not exceeding 1 Additionally, for the PG II and III onboard when the number of passengers L capacity) exceeds 25. This proposed change aligns entries of ‘‘UN3129, Water-reactive • UN1950, Aerosols, flammable, (each with the IMDG Code assignment of this liquid, corrosive, n.o.s,’’ ‘‘UN3132, not exceeding 1 L capacity) stowage category to these materials and Water-reactive solid, flammable, n.o.s,’’ • UN1950, Aerosols, flammable, n.o.s. is not expected to materially change the and ‘‘UN3135, Water-reactive solid, self- (engine starting fluid) (each not nature of authorized transport options heating, n.o.s,’’ which are all water exceeding 1 L capacity) for these materials. reactive Division 4.3 materials, PHMSA • UN1950, Aerosols, non-flammable, Additionally, consistent with changes proposes adding stowage code 85 to (each not exceeding 1 L capacity) to the IMDG Code, PHMSA proposes column (10B). Stowage code 85 requires • UN1950, Aerosols, poison, Packing numerous changes to the special ‘‘under deck’’ stowage in mechanically Group III (each not exceeding 1 L stowage and segregation provisions ventilated spaces. This proposal is capacity) indicated in column (10B) of the HMT, intended to ensure that if the cargo is • UN2037, Gas cartridges, (flammable) labeled ‘‘other provisions.’’ PHMSA stowed under deck, adequate without a release device, non- proposes to assign stowage code 52, mechanical ventilation is provided. refillable which requires stowage ‘‘separated Mechanical ventilation is important to • UN2037, Receptacles, small, from’’ acids, to several entries in the ensure any potential dangerous gases or containing gas or gas cartridges HMT that are in a group of chemicals vapors released are expelled from the (flammable) without release device, called alcoholates. Segregation from cargo hold and not allowed to build up not refillable and not exceeding 1 L acids is currently not required by the below deck. capacity
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• UN2037, Receptacles, small, be excepted from the HMR, ‘‘small inner proper shipping name for vehicles with containing gas or gas cartridges (non- packagings consisting of sealed packets internal combustion engines powered flammable) without release device, and articles containing less than 10 mL by various fuel sources, such as a not refillable and not exceeding 1 L of a Class 3 liquid in Packing Group II flammable gas, flammable liquid, or fuel capacity or III absorbed onto a solid material are cell. PHMSA proposes to amend Special • UN2037, Receptacles, small, not subject to this subchapter provided Provision 135 to specify that lithium containing gas or gas cartridges there is no free liquid in the packet or batteries installed in cargo transport (oxidizing), without release device, article.’’ The phrasing is ambiguous units (UN3536), which are designed not refillable and not exceeding 1 L enough that shippers may misinterpret only to provide power external to the capacity the language as instructing them to pack transport unit, may not be classified as Section 172.102 Special Provisions small inner packagings with the sealed an internal combustion engine installed packets or articles. Instead, the intent of in a vehicle. PHMSA expects that Section 172.102 lists special ‘‘small inner packagings’’ was to adding this clarifying language will provisions applicable to the describe sealed packets and articles. The avoid misclassifying lithium batteries in transportation of specific hazardous amendment to Special Provision A46 in cargo transport units. Additionally, materials. Special provisions contain the ICAO Technical Instructions is consistent with changes to Special various provisions including packaging consistent with other provisions in the Provision 134, PHMSA proposes to requirements, prohibitions, and ICAO Technical Instructions; for amend the language in this special exceptions applicable to particular example, Special Provision A158 clearly provision to replace the phrase quantities or forms of hazardous states that sealed packets and articles ‘‘consigned under’’ with the phrase materials. PHMSA proposes the containing less than 10 mL of an ‘‘described using’’ to the entries to following revisions to the special environmentally hazardous liquid are provide consistency across similar provisions in this section: not subject to the requirements when provisions and improve understanding Special Provision 47 certain conditions are met. PHMSA of the requirement. agrees with the amendment made in the Special Provision 136 Special Provision 47 allows mixtures ICAO Technical Instructions removing of solids that are not subject to the HMR the reference to ‘‘small inner Special Provision 136 provides and Class 3 flammable liquids to be packagings’’ to avoid confusion and instructions regarding the use of the transported as flammable solid material proposes to make the same revision in HMT entry ‘‘UN3363, Dangerous Goods described as ‘‘UN3175, Solids Special Provision 47 to clarify the in Apparatus or Dangerous Goods in containing flammable liquid, n.o.s., exception within the HMR. PHMSA Machinery’’ and indicates that this UN 4.1,’’ without applying the Division 4.1 expects this clarification of its number and the associated proper classification criteria. This classification regulations will facilitate the transport shipping names are only applicable to is permitted provided that there is no of hygienic products intended to machinery and apparatus containing free liquid visible at the time the prevent the spread of COVID–19. hazardous materials as an integral material is loaded or at the time the element of the machinery or apparatus. packaging is closed. In addition to Special Provision 134 In light of the proposed addition of providing classification testing relief for Special Provision 134 provides ‘‘Dangerous Goods in Articles’’ to the these items, this special provision instruction on the use of the HMT entry list of acceptable proper shipping names provides further relief from the HMR for ‘‘UN3171, Battery-powered vehicle or for UN3363 (see § 172.101 of the packets and articles, generally referred Battery-powered equipment,’’ Section-By-Section Review), PHMSA to as small inner packagings, if they stipulating that it applies only to proposes to revise this special provision contain less than 10 mL of a Class 3 vehicles or equipment powered by wet to add the words ‘‘articles’’ where liquid (in Packing Group II or III) and if batteries, sodium batteries, lithium machinery and apparatus are the liquid is absorbed (i.e., no free liquid metal batteries, or lithium ion batteries mentioned. PHMSA expects this in the packet or article) onto a solid that are transported with these batteries proposed change to improve material. This special provision is installed. PHMSA proposes to amend consistency across HMR provisions widely used for articles such as alcohol language in Special Provision 134 to where UN3363 is discussed. wipes, and due to the ongoing COVID– clarify its use in connection with Special Provision 147 19 public health emergency, these items lithium batteries installed in cargo are being transported in increasing transport units. Under the proposed Special Provision 147, assigned to numbers to meet demand. While many amendment, these items would be UN3375, provides instruction on the of these wipes, depending how they are described by a separate entry in the description and classification criteria for packed, meet the conditions of this HMT, specifically, ‘‘UN3536, Lithium non-sensitized emulsions, suspensions, special provision and qualify for batteries installed in cargo transport and gels consisting mostly of exception from regulation, confusion unit’’ for which there are unique ammonium nitrate and fuel, intended to around the wording of the packaging transportation requirements that do not produce a Type E blasting explosive conditions to qualify for the exception apply to transport of battery-powered only after further processing prior to has led to an editorial amendment in the vehicles or equipment. PHMSA is also use, which are transported as ‘‘UN3375, ICAO Technical Instructions. amending the language in this special Ammonium nitrate emulsion or On December 31, 2020, in an provision to replace the phrase Ammonium nitrate suspension or addendum to the 2021–2022 edition of ‘‘consigned under’’ with the phrase Ammonium nitrate gel, intermediate for the ICAO Technical Instructions, ‘‘described using’’ to provide a more blasting explosives.’’ Currently, the Special Provision A46 was amended to easily-accessible, plain language HMR requires applicants to pass Test remove a reference to ‘‘small inner understanding of the requirement. Series 8(a), (b), and (c) of the UN packaging’’ related to the sealed packets Manual of Tests and Criteria, when and articles. Prior to this amendment, Special Provision 135 requesting an approval for and as currently provided in the HMR Special Provision 135 provides transportation under UN3375. However, in Special Provision 47, it reads that to instruction for selecting the appropriate PHMSA proposes to revise the last
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sentence of Special Provision 147 by Special Provision 360 Special Provision 370 removing the specific requirement to Special Provision 360 provides Special Provision 370 is currently pass Tests 8(a), (b), and (c), so that it can assigned to ‘‘UN0222, Ammonium be met by passing any test in Test Series instruction to aid in proper identification of a battery-powered nitrate, with more than 0.2 percent 8 of the UN Manual of Tests and combustible substances, including any Criteria. Modifying Special Provision vehicle that contains lithium batteries. Currently, Special Provision 360 states organic substance calculated as carbon, 147 as proposed would align with the to the exclusion of any other added equivalent special provision in the UN that vehicles powered solely by lithium batteries must be identified as ‘‘UN3171, substance.’’ The entry UN0222 (1.1D) is Model Regulations (SP 309) which was intended for certain ammonium nitrates amended similarly. PHMSA proposes Battery-powered vehicle or Battery- powered equipment.’’ In HM–215O, that are not a commercially this change to reflect and allow for the manufactured product and this entry is inclusion of an additional test in the PHMSA added a new UN entry, ‘‘UN3536, Lithium batteries installed in typically used to identify contaminated Test Series 8 provided in the UN ammonium nitrate or ammonium nitrate Manual of Tests and Criteria. In the 7th cargo transport unit lithium ion batteries or lithium metal batteries.’’ PHMSA fertilizers that give a positive result revised edition UN Manual of Tests and proposes to revise Special Provision 360 when tested in accordance with Test Criteria Test Series 8 was expanded to to better distinguish between the Series 2 of the UN Manual of Tests and include Test 8(e) as an alternative to various types of equipment with lithium Criteria. However, Special Provision 370 8(c). This change in testing was the batteries. The revised language would currently states that a hazardous result of technical discussions and specify that lithium batteries that are material may also be classified as amendment proposals held during installed in cargo transport units which UN0222 even if it has more that 0.2 UNSCOE meetings. At the 47th session are designed only to provide power percent combustible substances. of the United Nations Sub-Committee of external to the transport unit must be PHMSA proposes to amend special Experts on the Transport of Dangerous transported as ‘‘UN3536, Lithium provision 370 to better clarify when the Goods, the EWG concluded that the UN batteries installed in a cargo transport entry for UN0222 may be applied. Test 8(c) was unsuitable for ammonium unit lithium ion batteries or lithium Clarifying this classification instruction nitrate emulsions (ANEs) due to a flaw metal batteries,’’ making them subject to is necessary to ensure that more readily in the method which could lead to a packaging provisions and exceptions transported materials, such as false positive under certain ammonium nitrate mixed with fuel oil 17 outlined in Special Provision 389. The conditions. intent of this language is to clarify (ANFO), are not improperly transported PHMSA expects that removing this further that these batteries should not be as UN0222, which should be reserved requirement to specifically pass the 8(c) described and transported as ‘‘UN3091, for special non-commercial purposes. test will mitigate the risk of receiving a Lithium metal batteries, contained in Given that inappropriately classified false positive result and consequently equipment including lithium alloy items pose an inherent safety risk to inaccurate classification. It would also batteries’’ or ‘‘UN3481, Lithium ion emergency responders, PHMSA allow shippers the ability to perform batteries, contained in equipment proposes to revise Special Provision 370 additional classification testing as including lithium ion polymer to provide clarifying language to ensure provided in the seventh revised edition batteries.’’ that certain ammonium nitrate materials of the UN Manual Test Criteria. (such as ANFO) are not described and Furthermore, Special Provision 360 classified as ‘‘UN0222, Ammonium Special Provisions 196 and 197 was originally assigned to the HMT nitrate.’’ Specifically, the amendment to entry ‘‘UN3091, Lithium batteries, this special provision stipulates that this PHMSA proposes to add Special contained in equipment,’’ however, in UN entry should not be used when Provisions 196 and 197 pertaining to final rule HM–224F,18 PHMSA adopted other applicable proper shipping names transportation of nitrocellulose. These separate entries based on the lithium exist. new special provisions would require battery chemistry, i.e., ‘‘UN3091, that manufacturers of nitrocellulose Lithium metal batteries, contained in Special Provision 379 products ensure that these Class 1 and equipment including lithium alloy Special Provision 379 provides Class 4 materials employ certain tests batteries’’ or ‘‘UN3481, Lithium ion conditions for exception from full verifying that the materials meet batteries, contained in equipment regulation under the HMR for specific stability requirements to avoid including lithium ion polymer anhydrous ammonia adsorbed or the danger of self-ignition. Those test batteries.’’ In doing so, PHMSA absorbed on a solid contained in methods determine whether a material inadvertently did not make a ammonia dispensing systems or is stable when subjected to elevated conforming revision to assign Special receptacles intended to form part of temperatures in transportation, which is Provision 360 to these separate such systems. Among these conditions, critical to the safe transportation of descriptions in the HMT. Consistent Special Provision 379 requires that materials such a nitrocellulose. Special with the proposed revisions to Special receptacles containing adsorbed or Provision 196 applies to nitrocellulose Provision 360 to clarify appropriate use absorbed ammonia must be made of a of Class 1 (explosive) nitrocellulose of descriptions for lithium battery material compatible with ammonia as materials (UN0340, UN0341, UN0342, equipment, PHMSA proposes to assign specified in ISO 11114–1:2012(E), ‘‘Gas and UN0343), and specifically excepts this special provision to the two lithium cylinders—Compatibility of cylinder those materials from Type 3(c) thermal battery descriptions for contained in and valve materials with gas contents— stability testing. Special Provision 197 is equipment and packed with equipment. Part 1: Metallic materials.’’ PHMSA assigned to nitrocellulose materials in Finally, PHMSA is also revising the text proposes to revise language in Special Class 4 (UN2555, UN2556, UN2557, and ‘‘assigned to’’ to read ‘‘described using’’ Provision 379 to add a reference to an UN3380). to improve understanding of the special amendment to ISO standard 11114– provision instruction. 1:2012(E), specifically, ISO 11114– 17 https://unece.org/fileadmin/DAM/trans/doc/ 1:2012/Amd 1:2017(E) and correct the 2018/dgac10c3/UN-SCETDG-53-INF22e.pdf. 18 79 FR 46012 (Aug. 16, 2014). unintentional omission of the (E) to
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indicate the English language edition. Regulations and the HMT, when generic acceptable technical names for marine As part of ISO’s regular five-year review proper shipping names (e.g., n.o.s. pollutants transported under UN3077 of its standards, the 2012 version of this proper shipping names) are used, a and UN3082 by adding a new Special document was amended through the technical name must be provided as part Provision 441 to the HMR. This special issuance of document ISO 11114– of the basic description to provide provision would provide the same 1:2012/Amd 1:2017(E). The amended additional information for hazard shipping description flexibility ISO standard provides more explicit communication related to the material specifically for marine pollutants by instructions on the permissible being shipped. For example, the HMT removing the requirement to concentrations of gases containing entry ‘‘UN1760, Corrosive liquid, supplement the proper shipping name halogens in aluminum cylinders. It also n.o.s.,’’ provides a generic description of associated with UN3077 and UN3082 provides amended requirements for a corrosive liquid and, therefore, with a technical name. PHMSA also butylene, hydrogen cyanide, hydrogen marking and shipping papers proposes modifying §§ 172.203(l) and sulfide, and nitric oxide. Consequently, requirements necessitate a technical 172.322 to maintain alignment with the the 21st revised edition of the UN name pertaining to the corrosive liquid IMDG Code with regard to the Model Regulations updated all (e.g., octanoyl chloride). documentation and marking references to the 2012 edition to include The new exception in Special requirements when marine pollutant a reference to the amendment (ISO Provision 274 modifies the requirement components are present in hazardous 11114–1:2012/Amd 1:2017(E)). PHMSA to supplement the proper shipping materials. In addition to providing proposes similar conforming revisions. name with a technical name. The logistical benefits for shippers, PHMSA See SECTION 171.7 Section-by-Section revision, which is specifically for expects that the use of readily discussion. Therefore, PHMSA also materials shipping under UN3077 or recognizable common commodity proposes to revise this special UN3082, allows the use of a proper names instead of technical names will provision. In the course of its review of shipping name found on the Dangerous facilitate emergency response by making the 2017 amendment for ISO standard Goods List (the IMDG Code and UN the hazardous material more quickly 11114, PHMSA determined that it Model Regulations’ equivalent of the and easily identifiable. See §§ 172.203(l) enhances safety of transport and HMT) to be used in place of a technical and 172.322 of the Section-By-Section therefore, is appropriate for inclusion as name, provided that it does not: (1) Review for additional discussions on an updated condition for transport of Include ‘‘n.o.s.’’ as part of the proper proposals related to this amendment. ammonia dispensing systems or shipping name and; (2) is not an entry Special Provisions TP39 and TP 41 receptacles intended to form part of assigned Special Provision 274. In such systems. practice, this means that items, such as PHMSA proposes to remove portable paint, that might be shipped as tank special provisions TP39 and TP 41. Special Provision 430 ‘‘UN3082, Environmentally hazardous The sunset provisions in special PHMSA proposes to add Special substance n.o.s.,’’ are no longer required provisions TP39 and TP41 allowing use Provision 430 and assign it to the new to include a supplemental technical of other portable tank special provisions HMT entry ‘‘UN3549, Medical Waste, name, and instead are permitted to expired on December 31, 2018, and Category A, Affecting Humans, solid or include the more readily-recognizable thus, PHMSA proposes removing them Medical Waste, Category A, Affecting name of the commodity (paint) on from the HMR to prevent the use of Animals only, solid’’ discussed above. markings and shipping papers. For these expired provisions. See § 172.101 As with other special provisions that common commodities such as paint of the Section-By-Section Review for provide instruction pertaining to with various chemical components, further detail of the deletion of these appropriate use of proper shipping emergency responders rely less on portable tank special provisions from names, PHMSA proposes to add Special determining the specific chemical for the HMR. Provision 430 to stipulate that only performance of emergency response and Section 172.203 solid medical waste of Category A, respond to the known hazards of the which is being transported for disposal, commodity. PHMSA expects Section 172.203 prescribes additional may be described using this entry. The streamlining the hazardous material description requirements for shipping intent of this added language is to description requirements in this manner papers. PHMSA proposes to revise simplify the regulations and ensure will help facilitate appropriate paragraphs (i)(2) and (l)(1), and add new proper classification of medical wastes emergency response without a reduction paragraphs (i)(4) and (q). Each proposed to ensure safe transportation. in safety. change is further described below, along While the UN Model regulations with PHMSA’s rationale for proposing Special Provision 441 broadly provided this relief for UN3077 the changes. The UN Model Regulations and the and UN3082, environmentally In paragraph (i), which provides IMDG Code contain an exception in hazardous materials classified under requirements specific to vessel their Special Provision 274 pertaining to these UN numbers are applicable to a transportation, PHMSA proposes to ‘‘UN3077, Environmentally hazardous narrower scope of materials under the clarify that the documentation of the substance, solid, n.o.s.’’ and ‘‘UN3082, IMDG Code. Under the IMDG Code, flashpoint on shipping papers, as Environmentally hazardous substance, ‘‘environmentally hazardous required in paragraph (i)(2), is only liquid, n.o.s.’’ Special Provision 274 substances’’ are those that are pollutants required for liquid hazardous materials requires a proper shipping name to be specifically for aquatic environments that have a primary or subsidiary hazard supplemented with a technical name, in (which is equivalent to marine of Class 3 and a flashpoint of 60°C or the same manner as the letter ‘‘G’’ is pollutants under the HMR) whereas the below (in °C closed-cup (c.c.)). This assigned in the HMT. When a ‘‘G’’ is UN model regulations are broadly change aims to prevent the shipping listed in Column (1) of the HMT in applicable to aquatic and other delays resulting from confusion on how association with a particular entry, the environments. this documentation requirement applied proper shipping name must be PHMSA proposes to mirror expansion to items for which flashpoint is not an supplemented with a technical name. by the UN Model Regulations and IMDG appropriate classification criterion (e.g., For context, in both the UN Model Code’s Special Provision 274 of aerosols and flammable solids).
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Furthermore, limiting the flashpoint (i.e., the combination of the UN number, preventing unexpected venting while in information to a narrower subset of proper shipping name, hazard class, and transportation, which could lead to hazardous materials ensures identifying packing group) on a shipping paper. exposure to and risks associated with a information of the materials in transport Currently, § 172.203(l) specifies that, hazardous material release as well as the better aligns with the material when the proper shipping name for a loss of product. Including this properties of those materials because hazardous material which is a marine information on the shipping paper flashpoint is a safety-relevant criterion pollutant does not identify the would aid in managing the only for dangerous goods that are component that makes the hazardous transportation of refrigerated liquefied liquids with a main or subsidiary hazard material a marine pollutant, the name of gases to ensure the material arrives of Class 3. PHMSA does not expect any the marine pollutant constituent must safely at its destination without an reduction in safety as a result of this appear in parentheses within the basic unintended release of hazardous editorial change given that this change description. PHMSA proposes to revise materials, including those that are ensures that information regarding the paragraph (l)(1) to limit the scope of this known greenhouse gases (GHGs) (e.g., flashpoint is only provided for items in requirement to make it applicable only nitrous oxide). PHMSA anticipates that which flashpoint is a safety-relevant to generic HMT entries (as indicated by establishing this requirement to provide criterion; avoidance of the delays in the G in Column 1 on the HMT) as well this information for portable tanks will transportation experienced in the past as those that have ‘‘n.o.s.’’ as part of the improve safety of international transport also reduces the risks associated with proper shipping name. The intent of this of refrigerated liquefied gases in that transportation. proposed amendment is to extend the portable tanks. PHMSA also proposes adding a new documentation and marking flexibility Section 172.301 paragraph (i)(4), that would require provided by Special Provision 441 shipments of lithium batteries that are (which currently applies only to Section 172.301 prescribes general offered into transportation for purposes environmentally hazardous substances marking requirements for non-bulk of disposal or recycling, or offered (UN3077 and UN 3082)) and to other packagings. PHMSA proposes to amend under the damaged or defective hazardous materials that may contain paragraph (a)(1) to clarify that the provisions in § 173.185(f), to indicate on components(s) that are marine exception permitting reduced size shipping papers one of the following pollutants. For example, under the marking requirements are applicable to disclaimers, as appropriate: current HMR, if ‘‘UN1263, Paint’’ packages with either 5L or less capacity, or those with a 5 kilograms (kg) or less ‘‘DAMAGED/DEFECTIVE,’’ ‘‘LITHIUM contains marine pollutants, the basic net mass. The current HMR text states BATTERIES FOR DISPOSAL,’’ or description required on shipping papers that the exception is applicable to ‘‘LITHIUM BATTERIES FOR and markings would have to include the packages with a maximum capacity of 5 RECYCLING.’’ This proposed change is specific marine polluting component(s) kg or 5 L or less, rather than the consistent with changes adopted in the that are present in the paint, in addition maximum net mass, which is the more IMDG Code, and associated with an to the words ‘‘marine pollutant’’ (e.g., appropriate measure for packages additional proposed revision to § 176.84 ‘‘UN1263, Paint, 3 (propyl acetate, di-n- containing solids. A person shipping a of the HMR to require lithium batteries butyltin di-2-ethylhexanoate) MARINE solid material may unnecessarily apply that are damaged or defective, or those POLLUTANT’’). But under this that are being transported for disposal or the volume limitation, when a net mass proposed amendment, the basic limit is intended. This proposal clarifies recycling, to be stowed in accordance description for ‘‘UN1263, Paint’’ would with stowage category C requirements that packages for solid material may no longer require the addition of the authorizing ‘‘on deck only’’ stowage have a maximum net mass of 5 kg or ‘‘marine pollutant’’ language. Given that instead of the currently-authorized ‘‘on less. This editorial change is intended to emergency responders do not depend on deck’’ or ‘‘under deck’’ options. This reduce confusion over the application of the specific technical name provided in additional shipping paper requirement the exception at § 172.301(a)(1) in that association with the shipping would help communicate information for solid materials, the quantity limit is description to effectively respond to about the batteries to individuals based on the net amount of solid emergencies, PHMSA expects making stowage plans for the vessel, material and not the capacity of the streamlining the description to provide provide a mechanism for ensuring the packaging the material is placed in. This more readily recognizable and usable ‘‘on deck’’ stowage of these materials, clarification is consistent with similar and allow for more easily identifiable information that reflects the hazardous provisions for solids (net mass) and and effective response actions in the materials involved may facilitate liquids (capacity) throughout the HMR. event of a fire involving lithium emergency response. Ensuring the appropriate application of batteries onboard a vessel. PHMSA Finally, PHMSA proposes to add a the reduced size marking allowance expects that these revised shipping new paragraph (q) to this section to provides consistency across persons requirements will contribute to the safe require documentation of the holding using the reduced-size marking and transportation of increased volumes of time for refrigerated liquefied gases therefore, is expected to improve safety damaged/defective/exhausted lithium transported in portable tanks. Holding of transport. batteries anticipated as a result of the time is the span of time, as determined Section 172.315 increased use of lithium batteries in the by testing, that elapses from the time of transportation and other economic loading until the pressure of the Section 172.315 prescribes the sectors. For additional information on contents, under equilibrium conditions, marking requirements for packages of this stowage requirement, see Section reaches the set point for the lowest limited quantities. Currently, the HMR 176.84 of the Section-By-Section pressure control valve or pressure relief require that the limited quantity mark Review. valve setting. PHMSA proposes to be applied on at least one side or one In paragraph (l)(1), PHMSA proposes require including the specific date at end of the outer packaging. The 2021– to revise the scope of hazardous which the holding time ends on the 2022 ICAO Technical Instructions materials for which a specific marine shipping paper for refrigerated liquefied clarified that marks, in particular those polluting component must be identified gases transported in portable tanks. that are applied in a similar manner to in association with the basic description Knowing the holding time assists in self-adhesive labels, must be applied on
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one side of a package (i.e., not folded smaller labels to accommodate smaller help ensure that any packages over an edge). Prior to these packagings, PHMSA appreciates the containing COVID–19 materials have amendments, only hazard need for readily visible hazard appropriate visibility and thus, ensure communication labels were required to communication by air. Therefore, for the the safe transport of such materials. be applied to a single side of a package sake of harmonizing with the ICAO Section 172.447 and prohibited from being folded Technical Instructions, and to ensure around the edge of a package. This visibility to communicate hazards to the Section 172.447 prescribes requirement was extended to markings greatest extent possible, PHMSA specifications for labels used for lithium to ensure visibility and to communicate proposes to add specific restrictions on batteries. PHMSA proposes to remove hazard(s) to the greatest extent possible. wrapping marks and labels for and reserve paragraph (c), which Consistent with the ICAO Technical shipments that are transported by air. contains an expired transitional Instructions, PHMSA proposes adding a During a review of the specific exception allowing for continued use of new paragraph (b)(3) to require, for air marking requirements that were added labels in conformance with the transport, that the entire limited in the 2021–2022 ICAO Technical requirements that had been in place on quantity mark must appear on one side Instructions, PHMSA found that the December 31, 2016 until December 31, of the package. For detail on the HMR do not contain the same express 2018. Since December 31, 2018 has rationale for this proposed requirement, limitation on ‘‘folding’’ of a part of a passed, the continued use of an see Section 172.406 of the Section-by- label around the edges of a package such outdated label is no longer allowed. Section Review. that the entirety of a label would have to be on a single side. PHMSA expects C. Part 173 Section 172.322 that adopting both the pre-existing Section 173.4a Section 172.322 prescribes the ICAO single side requirement for labels, marking requirements for hazardous and the recent requirement that marks Part 173 contains general materials that are also marine must be on a single side of a package requirements for shippers regarding pollutants. PHMSA proposes, consistent will provide increased visibility of shipments and packagings. Section with proposed changes in Special hazard communication on the smaller 173.4a prescribes transportation Provision 441 and § 172.203(l)(1) package types that are frequently used requirements for excepted packages. For discussed above, to limit the scope of in air transport. These measures would consistency with the ICAO Technical hazardous materials, which are marine also reduce ambiguity for air operator Instructions, PHMSA proposes adding a pollutants, that are subject to this employees conducting acceptance new paragraph (g)(3) to require for air technical name marking requirement. checks as to whether the package transport that the entire excepted Specifically, PHMSA proposes to apply appropriately indicates the hazards quantity mark must be appear on one the technical name marking to proper without having to make a subjective side of the package. For detail on the shipping names that have a ‘‘G’’ determination. rationale for this proposed requirement, assigned in column (1) of the § 172.101 Therefore, PHMSA proposes to see Section 172.406 of the Section-by- Hazardous Materials Table or have the require in a new paragraph (a)(1)(iii), Section Review for discussion of the text ‘‘n.o.s.’’ as part of the proper that for air transport, the entirety of a proposed requirement to display a mark shipping name. PHMSA also proposes required label must be displayed on one on a single side. to add language directing shippers using side of a package. For cylindrical Section 173.14 ‘‘UN3077, Environmentally hazardous packages not containing a traditional substance, solid, n.o.s.’’ or ‘‘UN3082, side, the labels and/or package must be PHMSA proposes to add a new Environmentally hazardous substance, of such dimensions that a label would section, § 173.14, to provide exceptions liquid, n.o.s.,’’ to Special Provision 441 not overlap itself. In the case of from the HMR for certain devices or for additional requirements. cylindrical packages containing equipment containing hazardous radioactive materials, which require two materials that are in actual use or which Section 172.406 identical labels, these labels must be are intended for use during transport. Section 172.406 specifies the centered on opposite points of the Examples of such devices include cargo requirements for the placement of labels circumference and must not overlap tracking devices and data loggers on a package. The 2021–2022 ICAO each other. If the dimensions of the attached to, or placed in, packages, Technical Instructions clarified that package are such that two identical overpacks, containers, or load marks, in particular those that are labels cannot be affixed without compartments. These items often applied in a similar manner to self- overlapping each other, one label is contain component hazardous materials, adhesive labels, must be applied on one acceptable provided it does not overlap such as lithium batteries or fuel cells, side of a package. The ICAO Technical itself. necessary to power the device or Instructions have long required that all In addition, PHMSA proposes to add equipment. The proposed exception hazard communication labels not be requirements that marks must not be would provide clarity for these types of folded (around the edge of a packages) folded for: the limited quantity mark in devices which are not offered into and be applied to a single side. This § 172.315(b); the excepted quantity mark transportation as part of the requirement was introduced to ensure in § 173.4a(g); and the UN3373 Category consignment but instead accompany it visibility and communicate hazard(s) to B infectious substance mark in to collect or disseminate information the greatest extent possible. In a § 173.199(a). The ICAO Technical during transport. Eligibility for the working group session, the ICAO Instructions were also amended to exceptions would be limited to Dangerous Goods Panel agreed that require that the lithium battery handling equipment that meets conditional safety extending this labeling requirement to mark be applied on a single side of a requirements. These include marks was appropriate as marks, like package; however, this is already requirements that the component labels, provide hazard communication. prescribed in § 173.185(c)(3)(i), hazardous material (e.g., lithium While PHMSA has not specifically applicable to all modes of transport. batteries) meet the applicable prohibited extending labels onto other Regarding the Category B infectious construction and test requirements sides of packaging and allows the use of substance mark, the proposal would specified in the HMR, and that the
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equipment can withstand the shocks other vaccines or more generally classified as hazardous materials solely and vibrations normally encountered medicines). because of their risk to the environment (i.e., they are not capable of posing a during transport. The equipment must Section 173.27 also be safe for use in different risk to health, safety, or property when environmental conditions that it may be Section 173.27 provides the general transported by air). When this exception exposed to during transport such as requirements for transportation by was added in the HM–215K rulemaking, temperature variations, inclement aircraft. PHMSA proposes a number of the text was placed in paragraph corrections and revisions as follows: (1) weather, and conditions in which (f)(2)(vii), thereby inadvertently Revise paragraph (c)(2) to clarify that all explosive atmospheres caused by gases, narrowing the exception to limited package types containing ‘‘UN3082, vapors, mists, or air/dust mixtures may quantity materials. In the 2011–2012 Environmentally hazardous substance, edition of the ICAO Technical occur. The proposed text also clarifies liquid, n.o.s.’’ are excepted from the that the exceptions are not applicable Instructions that the HM–215K pressure differential requirements and rulemaking intended to align with, the when this type of equipment is itself not only limited quantities; (2) revise offered as cargo such that normal HMR exception from the pressure differential the paragraph (f) introductory text to requirements applied to both requirements pertaining to packaging, clarify the inner packaging quantity shipping papers, marking and labeling combination packagings in PI 964 and limits prescribed in Table 1 and Table limited quantity packagings in PI Y964. would apply. 2 apply to combination packages and Therefore, PHMSA proposes to amend This proposed new section is not only to excepted quantity packages; paragraph (c)(2) to except shipments of consistent with provisions adopted in (3) in paragraph (f)(3) Table 1 and Table ‘‘UN3082, Environmentally hazardous the UN Model Regulations and the 2 add inner package limits for certain substance, liquid, n.o.s.’’ from the IMDG Code. Additionally, in response Class 9 HMT entries consistent with the pressure differential packaging to the ongoing global COVID–19 public ICAO Technical Instructions; and (4) in requirements applicable for health emergency, on December Table 1 and Table 2 remove the ‘‘no transportation by aircraft. This proposed 31,2020 19 and February 23, 2021,20 limit’’ quantity limits and add them to change would align the pressure ICAO published addenda to the 2021– the paragraph (f) introductory text for a differential exceptions for UN3082 clearer description of the requirement 2022 Edition of the ICAO Technical material with those found in the ICAO for materials authorized to exceed 220 L Instructions to provide a limited Technical Instructions and excepts or 200 kg in accordance with columns exception for lithium battery-powered these shipments, in all authorized (9A) and (9B) of the 172.101 table. The packaging types, from the pressure data loggers and cargo tracking devices 2021–2022 edition of the ICAO differential requirements in paragraph to facilitate the transport and Technical Instructions contains editorial (c)(2). distribution of COVID–19 corrections to exceptions for ‘‘UN3082, pharmaceuticals, including vaccines. Environmentally hazardous substance, Further, PHMSA proposes to amend Specifically, the 2021–2022 ICAO liquid, n.o.s.’’ from differential pressure paragraph (f), which specifies Technical Instructions except these testing requirements in Packing requirements for combination devices from lithium battery marking Instructions 964 and Y964 (limited packagings intended for transportation and documentation requirements when quantity). When reviewing the clarifying aboard an aircraft. A combination transported by aircraft. Consequently, editorial correction 21 to the ICAO packaging, for transport purposes, PHMSA proposes exceptions in this exception, PHMSA found that although consists of one or more inner packagings section of the HMR to cover all modes the same update is not needed in the secured in a non-bulk outer packaging. of transportation for certain devices or HMR, the corresponding exceptions in Paragraph (f)(3) contains Table 1 and equipment containing hazardous § 173.27 are not consistent with those Table 2 indicating the maximum net materials that are in actual use or which provided for in the latest version of capacity allowed for the inner are intended for use during transport. Packing Instructions 964 and Y964. packagings of the combination However, the exceptions associated PHMSA proposes revising § 173.27 to packaging on passenger-carrying and with aircraft transportation are limited correct this discrepancy and align with cargo aircraft, respectively. PHMSA to marking and documentation for the updated version of the ICAO proposes to revise paragraph (f) by lithium ion and lithium metal battery- Technical Instructions. moving the references to Table 1 and powered devices or equipment that In a previous final rule, HM–215K,22 Table 2 from paragraph (f)(1), applicable accompany shipments of COVID–19 PHMSA revised § 173.27 to align with to excepted quantities, to the paragraph pharmaceuticals, including vaccines. the amendments made to the 2011–2012 (f) introductory text. The intent of this PHMSA requests comments on whether edition of the ICAO Technical revision is to clarify that the inner this exception for air transport should Instructions. That earlier edition of the packaging limits specified in paragraph be expanded to additional medical ICAO Technical Instructions had (f)(3) Table 1 and Table 2 apply to all supplies not related to COVID–19 (e.g., included exceptions applicable to combination packages used to transport UN3082 from the pressure differential hazardous material by aircraft and not requirements in Packing Instructions just to excepted packages (i.e., packages 19 ICAO, Addendum No.1 to the 2021–2022 of the ICAO Technical Instructions for the Safe Transport 964 and Y964 for fully regulated and for which exceptions from certain of Dangerous Goods by Air (Dec. 31, 2020), https:// limited quantity packages. The provisions are provided in the HMR). As www.icao.int/safety/DangerousGoods/Addendum exceptions were added because UN3082 it currently reads, the instruction for all Corrigendum%20to%20the%20Technical%20 materials assigned to Class 9 do not combination packagings is imbedded in Instructions/Doc%209284-2021-2022.Addendum No1.en.pdf. meet the criteria for classification as any the paragraph (f)(1), which outlines 20 ICAO, Addendum No.2 to the 2021–2022 of the other hazard class or division and are provisions for excepted packages, thus ICAO Technical Instructions for the Safe Transport making it appear that Tables 1 and 2 of Dangerous Goods by Air (Feb. 23, 2021),https:// 21 Report of the ICAO Working Group 19 apply only to excepted packages. www.icao.int/safety/DangerousGoods/Addendum (paragraph 3.2.11) (May, 2019), https://www.icao. Corrigendum%20to%20the%20Technical%20 int/safety/Dangerousfxsp0;Goods/WG19/ Correcting the reference in paragraph (f) Instructions/Doc%209284-2021-2022.Addendum DGPWG.19.fxsp0;WP.030.en.pdf. would provide regulatory clarity by No2.en.pdf. 22 76 FR 3308 (Jan. 19, 2011). properly aligning packaging limits in
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the HMR with the ICAO Technical greater flexibility in packaging options Therefore, PHMSA proposes to Instructions. to transport these materials without a incorporate by reference ISO Additionally, the first column of degradation of safety. 10156:2017 in § 173.115(k). Tables 1 and 2 provides the maximum Section 173.59 Section 173.134 net quantity per package from Column (9A) of the HMT. PHMSA proposes to Section 173.59 provides informational Section 173.134 provides replace the rows in Tables 1 and 2 descriptions of terms for explosives. classification criteria and exceptions for noting that there are no maximum net PHMSA proposes to amend the Division 6.2 infectious substances. capacity limits for quantities greater description of the term ‘‘detonators’’ to PHMSA proposes to revise paragraph (a) than 220 L for liquids and greater than include a reference to electronic to include references to ‘‘UN3549, 200 kg for solids with an instruction in programmable detonators. Additionally, Medical Waste, Category A, Affecting the revised paragraph (f) introductory PHMSA proposes to add a separate term Humans, solid or Medical Waste, text conveying the same information. and description for ‘‘Detonators, Category A, Affecting Animals only, Finally, PHMSA discovered that for electronic programmable for blasting.’’ solid.’’ Specifically, paragraphs (a)(1), certain Class 9 (miscellaneous These changes correspond to the (a)(1)(i), and (a)(5) would be revised by hazardous) materials, the authorized proposed addition of the UN0511, including UN3549 among the list of UN inner packaging limit in the ICAO UN0512, and UN0513 (Detonators, numbers to use for description of an Technical Instructions is greater than electronic programmable for blasting) to infectious substance. These proposed the limit currently allowed in Tables 1 the HMT. PHMSA intends to changes are consistent with the and 2 at § 173.27(f)(3). Therefore, distinguish between ‘‘electronic proposed addition of this new PHMSA proposes to revise paragraph detonators’’ and ‘‘electric detonators,’’ hazardous materials description to the (f)(3), Table 1 and Table 2 to address as each has different design HMT. Additionally, PHMSA proposes to this inconsistency with the ICAO characteristics, by adding these new remove the term rickettsiae from the list Technical Instructions. Specifically, entries in the HMT and the editorial of types of microorganisms in paragraph PHMSA proposes to revise, for amendments in § 173.59. PHMSA (a)(1). Rickettsiae are a specific group of consistency with the inner packaging expects this additional precision in bacteria, and this specific type of limits provided in Packing Instructions shipping descriptions will provide a bacteria is redundant because bacteria 956, 958, and 964 of the ICAO Technical safety benefit. See § 172.101 of the Section-By-Section Review for are already listed as a type of potential Instructions, inner packaging net additional discussion on electric and pathogenic microorganism. capacity limits for the following Class 9 electronic detonators. materials: Section 173.137 • UN1841 Acetaldehyde ammonia Section 173.115 Section 173.137 prescribes the • UN1931 Zinc dithionite or Zinc Section 173.115 outlines classification requirements for assigning a PG to Class hydrosulphite criteria for Class 2 (gas) materials. 8 (corrosive) materials. The HMR • UN1941 Dibromodifluoromethane PHMSA proposes to update the version requires offerors to classify Class 8 • UN1990 Benzaldehyde of ISO 10156:2010, ‘‘Gases and gas material and assign a PG based on tests • UN2071 Ammonium nitrate fertilizers mixtures—Determination of fire conducted in accordance with the OECD • UN2216 Fish meal, stabilized or Fish potential and oxidizing ability for the Guidelines for the Testing of Chemicals. scrap, stabilized selection of cylinder valve outlets,’’ that One of the tests currently authorized in • UN2315 Polychlorinated biphenyls, is incorporated by reference in the HMR is the 2015 OECD Guideline liquid paragraph (k), which specifies how the for the Testing of Chemicals ‘‘Test No. • UN2590 Asbestos, chrysotile oxidizing ability of a Division 2.2 (non- 431: In vitro skin corrosion: • UN2969 Castor beans or Castor flake flammable) gas should be calculated. reconstructed human epidermis (RHE) or Castor meal or Castor pomace Currently the HMR incorporates by test method’’ which may be used to • UN3077 Environmentally hazardous reference the 2010 edition of this ISO determine that a material is not substance, solid, n.o.s. standard and its associated technical corrosive to human skin. PHMSA • UN3082 Environmentally hazardous corrigendum in § 171.7. As part of ISO’s proposes to incorporate by reference the substance, liquid, n.o.s. regular periodic review of each 2016 version of OECD Guidelines for the • UN3151 Polyhalogenated biphenyls, standard, ISO standard 10156:2010 was Testing of Chemicals ‘‘Test No. 431: In liquid or Polyhalogenated terphenyls, reviewed and updated and a new vitro skin corrosion: reconstructed liquid or Halogenated revised ISO 10156:2017 was published human epidermis (RHE) test method.’’ monomethyldiphenylmethanes, September 2017. The 2017 edition This document was updated to liquid supersedes and replaces ISO introduce sub-categorization for skin • UN3152 Polyhalogenated biphenyls, 10156:2010, which had been technically corrosion and adopted by the OECD in solid or Polyhalogenated terphenyls, revised through ISO 10156:2010/Cor 2013 and further revised in 2014, 2015, solid or Halogenated 1:2010. PHMSA now proposes to update and 2016, as Guidelines for the Testing monomethyldiphenylmethanes, solid the incorporation by reference of ISO of Chemicals ‘‘Test No. 431: In vitro skin • UN3334 Aviation regulated liquid, 10156, to the 2017 edition. The updated corrosion: reconstructed human n.o.s. document includes technical revisions epidermis (RHE) test method.’’ • UN3335 Aviation regulated solid, pertaining to the flammability of gases According to the OECD, this updated n.o.s. and gas mixtures in air as well as a new test method permits subcategorization of • UN3432 Polychlorinated biphenyls, calculation method for determining the corrosive chemicals into three solid lower flammability limit of gas categories: sub-category 1A and sub- These materials have a history of safe mixtures. PHMSA reviewed the category 1B/C, which correspond to PG transport under less restrictive inner calculation method and agrees that it I, PG II, and PG III, respectively. packaging limits in accordance with the will assist shippers in properly However, prior to the 2016 edition of ICAO Technical Instructions. The classifying a Division 2.2 gas, without the OECD Guidelines, the ability to proposed revisions would offer shippers introducing any adverse safety risks. clearly distinguish between PG II and
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PG III had previously never been sentence of each paragraph which states Section 173.185 formally evaluated or validated due to that the ‘‘primary containment of the Section 173.185 prescribes the lack of high quality reference in vivo fuel within this vessel must consist of requirements for transportation of data against which to benchmark the in a welded aluminum bladder having a lithium cells and batteries. Paragraph (c) vitro results. maximum internal volume of 46 L (12 prescribes requirements for smaller cells Changes to the UN Model Regulations gallons).’’ These editorial revisions to or batteries and paragraph (c)(3) were made as a result of the additional clarify that the maximum quantity of specifies hazard communication level of sub-categorization and fuel authorized applies to both the fuel requirements including the use of the differentiation that is possible using this within the vessel and completed lithium battery mark. PHMSA proposes updated test method. Accordingly, package (primary containment) rather to revise the minimum size of the PHMSA also proposes to allow than the hydraulic power unit itself. lithium battery mark from 120 corrosive materials that are tested using This change would align the language millimeters (mm) wide by 110 mm high OECD Guidelines for the Testing of for this packaging exception in the HMR to 100 mm by 100 mm. This reduction Chemicals Test No. 431 to be assigned with the language that was similarly in size requirements for this mark to PG II without further in vivo testing amended in the 2021–2022 ICAO would be consistent with the existing if the test method does not clearly Technical Instructions and the 21st minimum size requirements for the distinguish between PG II or PG III. limited quantity and excepted quantity Since the packing group assignment revised edition of the UN Model Regulations. PHMSA does not expect marks in the HMR (see §§ 172.315 & indicates the required level of packaging 173.4a) and does not diminish the according to the degree of danger this change to adversely affect safety benefits. ability to read or recognize the marking. presented by hazardous materials, this The reference to the shape of the mark would relegate corrosive material that Section 173.181 would be amended to include ‘‘square’’ cannot be clearly distinguished between to account for the new minimum a medium danger PG II and a low Section 173.181 prescribes packaging dimensions while also maintaining the danger PG III to be subject to the more requirements for liquid pyrophoric existing shape of a ‘‘rectangle’’ to conservative packaging requirement materials. Specifically, § 173.181 continue authorized use of the lithium associated with PG II material unless provides the requirements on closures battery mark with 120 mm by 110 mm additional testing is conducted. PHMSA for metal or glass receptacles when used dimensions. In addition, the minimum anticipates that the use of the 2016 as inner packagings (i.e., receptacles) in size of the lithium battery mark for version of the OECD Guidelines for the combination packagings. The UN Model packages too small to display the Testing of Chemicals Test No. 431 will Regulations contains Packing revised 100 mm by 100 mm dimensions, benefit shippers of potential corrosives Instruction P404 which includes would be revised from 105 mm wide by by clarifying corrosivity determinations provisions for resealing inner 74 mm high to 100 mm wide by 70 mm or exclusions, and eliminating excessive receptacles with threaded closures. high. Additionally, an informal working testing to distinguish between PG II and Currently, § 173.181 does not include paper 23 submitted to the 54th Session of PG III. provisions for resealing of inner The proposed regulatory text the UNSCOE noted that due to the large receptacles with threaded closure. The volume of lithium batteries shipped in references OECD Guidelines for the safety concern when resealing inner Testing of Chemicals Test No. 404, 430, small packages, the reduction in the size receptacles that contain liquid of the mark could reduce the quantity of and 435, which are already approved for pyrophoric materials is that small incorporation by reference in this packagings produced and consequently amounts of residue may adhere to the section, and no change is proposed for the quantity of empty packagings sent threads and present a hazard upon these standards. for disposal or recycling. This proposed closing of the inner packaging and that minimum size would not invalidate use Section 173.172 friction generated from screwing the cap of larger marks meeting the currently Section 173.172 specifies the back onto the receptacle may cause the authorized minimum size requirements. residue to react critically (e.g., self- eligibility conditions for exception from Section 173.187 packaging requirements for certain fuel heating or spontaneous combustion). tanks used on aircraft hydraulic power Based on this concern, the UN Model Section 173.187 prescribes packaging units. PHMSA proposes editorial Regulations now permit closures of requirements and other provisions for changes to these provisions to clarify inner receptacles to be either threaded ‘‘pyrophoric solids, metals, or alloys, packaging limits for the fuel tanks that or physically held in place by any n.o.s.’’ The 21st revised edition of the power hydraulic power units. The fuel means capable of preventing back-off or UN Model Regulations includes an tanks addressed in this section are loosening of the closure under amendment to Packing Instruction P404 comprised of a primary containment for conditions normally incident to to address concerns with threaded the fuel in the hydraulic power unit. transportation (e.g., vibration during closures when resealing inner The primary containment must consist transport). PHMSA is also concerned receptacles after partial removal of of a welded aluminum bladder as well about this potential hazard and product. The amendment addresses as an outer vessel, which is packed in proposes to authorize an alternative small amounts of residue of pyrophoric non-combustible cushioning material in method of closure to prevent this materials that may adhere to the threads a strong, tightly-closed metal outer potential hazard. Therefore, PHMSA and present a hazard upon closing of an packaging. Currently paragraphs (a) and proposes to revise the requirements of § 173.181 for closures of inner 23 Rechargeable Battery Association (PRBA) & the (b) of this section state that the Advanced Rechargeable & Lithium Batteries ‘‘Maximum quantity of fuel per unit and packagings for liquid pyrophoric Association (RECHARGE), Proposal on the package is 42 L (11 gallons).’’ PHMSA materials to specify that they may have Dimensions of the Lithium Battery Mark Submitted proposes to replace the word ‘‘unit’’ in closures that are physically held in to the UN Subcommittee of Experts on the place by any means capable of Transport of Dangerous Goods at the 54th Session this sentence in paragraphs (a) and (b) (Dec. 3, 2018), https://www.unece.org/fileadmin/ with the word ‘‘primary containment’’ preventing back-off or loosening during DAM/trans/doc/2018/dgac10c3/UN-SCETDG-54- for consistency with the second transportation. INF55.e.pdf.
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inner receptacle. As with liquid revise this provision to authorize the well above the minimum amounts pyrophoric materials, discussed above, transport of this material by air. This currently shown in section § 173.218 as there is concern that friction generated change responds to changes in the fish common industry practice. from screwing the cap back onto the meal or fish scrap market which has Section 173.221 inner receptacle may cause the residue experienced an increased demand for to react critically (e.g., self-heating or more timely shipments of samples of Section 173.221 prescribes spontaneous combustion). Based on this this item for evaluation by potential transportation requirements and concern, the UN Model Regulations now purchasers. Adding provisions to permit exceptions therefrom for ‘‘UN2211, allow closures of inner receptacles to be shipment by air, rather than limiting to Polymeric beads expandable’’ and either threaded or physically held in shipment by vessel, would relieve ‘‘UN3314, Plastic molding compound,’’ place by a means capable of preventing frustration in the market for fish meal or which are both Class 9 (miscellaneous) back-off or loosening of the closure fish scrap by allowing shipments of materials. Historically, transportation of under conditions normally incident to small amounts of this material to be these materials has been limited to transportation (e.g., impact or vibration expedited by air. This change is single packagings under both the HMR during transport). consistent with amendments adopted in and in Packing Instruction 957 of the After reviewing this issue, PHMSA is the 2021–2022 version of the ICAO ICAO Technical Instructions. However, also concerned about this potential Technical Instructions, which have been these limitations are inconsistent with hazard and proposes to amend § 173.187 revised to allow the transport by air of the UN Model Regulations and the to authorize an alternate method of non-bulk packages of fish meal or fish general provisions of the ICAO closure to prevent this potential hazard. scrap, subject to quantity limitations Technical Instructions, which permit Specifically, PHMSA proposes to revise and stabilization requirements. combination packagings when single the requirements for closures of inner As proposed, UN2216 material would packagings are authorized. These receptacles for solid pyrophoric be permitted on passenger aircraft and packagings are constructed with inner materials to specify that they may have cargo aircraft in amounts up to 100 kg packagings made of glass, plastic, metal, threaded closures or other closures that and 200 kg, respectively, and in UN paper, or fiber and with outer are physically held in place by a means performance packaging that aligns with packagings utilizing drums, boxes, and capable of preventing back-off or the ICAO Technical Instructions. jerricans made of various materials. This loosening. Additionally, to ensure the safe conflict in permitted packagings has transport of this material by air, PHMSA been corrected in the most recent Section 173.199 proposes adding stabilization edition of the ICAO Technical Section 173.199 prescribes the requirements similar to those that are in Instructions. packaging requirements for Division 6.2, place for shipments by vessel. PHMSA PHMSA finds that allowing Category B infectious substances. proposes fish meal or fish scrap combination packaging for these Class 9, Consistent with the ICAO Technical transported by air must have been low hazard materials is consistent with Instructions, PHMSA proposes to revise stabilized at production, and within the general packaging authorizations paragraph (a)(5) to require that for air twelve months prior to transportation. throughout the HMR. In general, transport the entire UN3373 mark must Given the safeguard provided by combination packaging is allowed for appear on one side of the package. stabilization of this material prior to materials that are more hazardous as PHMSA expects that placing marks on transportation, as well as the proposed long as the minimum packaging a single side of a package will provide packaging and quantity restrictions, performance requirements are achieved. increased visibility of hazard PHMSA expects that there will be no Single packaging and combination communication on the smaller package degradation of transportation safety in packaging are subject to the same types that are frequently used in air authorizing air transportation. performance standards, meaning an transport. These measures would also In addition to adding these equivalent level of safety is achieved. reduce ambiguity for air operator stabilization requirements for air Therefore, PHMSA proposes conforming employees conducting acceptance transportation, PHMSA proposes changes to § 173.221 to allow the use of checks as to whether the package amending the stabilization requirements combination packagings (i.e., appropriately indicates the hazards that are currently in place for vessel packagings that use a combination of without having to make a subjective shipments. The HMR currently requires inner and outer packagings for determination. Regarding the Category B shipments of fish meal or fish scrap by containment) for these materials. This infectious substance mark, the proposal vessel to contain at least 50 parts per change would provide packaging would help ensure that any packages million (ppm) (mg/kg) of ethoxyquin, selection flexibility as well as containing infectious substances, 100 ppm (mg/kg) of butylated consistency with UN Model Regulations including COVID–19 materials, have hydroxytoluene (BHT) or 250 ppm (mg/ and revised ICAO Technical appropriate visibility and thus, ensure kg) of tocopherol based antioxidant at Instructions without any impact on safe the safe transport of such materials. For the time of shipment for bulk shipments transport of these materials. details on the rationale for this proposed when transported in freight containers. Section 173.222 requirement, see the discussion of PHMSA proposes extending these § 172.406 in the Section-By-Section stabilization requirements to all vessel Section 173.222 specifies the non- Review. shipments, as required by the IMDG bulk packaging requirements for Code. While the change in language ‘‘UN3363, Dangerous goods in Section 173.218 would make the stabilization machinery or apparatus.’’ As discussed Section 173.218 contains packaging requirement more widely applicable, in connection to proposed changes to and product stabilization requirements PHMSA expects that the impact on the § 172.101, PHMSA proposes to modify for transporting stabilized fish meal or regulated community will be minimal as the proper shipping name associated fish scrap (UN2216) as a Class 9 fishmeal and fish scrap shipments with UN3363 to include ‘‘dangerous material. Currently, the provisions of offered for transport (in non-bulk and goods in articles,’’ in addition to this section are limited to shipments by bulk) are already typically treated with ‘‘dangerous goods in machinery or vessel; however, PHMSA proposes to quantities of stabilizer (antioxidants) apparatus.’’ In the HM–215O final rule,
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PHMSA added new entries for articles ‘‘UN3116, Organic peroxide type D, pressure receptacle and valve materials containing hazardous materials that are solid, temperature controlled’’ to prescribed for metallic materials in ISO not otherwise specified by name in the ‘‘UN3118, Organic peroxide type E, 11114–1:2012(E), Gas cylinders— HMT (e.g., ‘‘UN3547, Articles solid, temperature controlled’’; and (2) Compatibility of cylinder and valve containing corrosive substance, n.o.s.’’). changing the packing method from OP7 materials with gas contents—Part 1: These new entries addressed to OP8. Metallic materials. This document transportation scenarios where various An organic peroxide Type D is an provides compatibility requirements for hazardous materials or residues are organic peroxide that: (1) Detonates only the selection of combinations of metallic present in articles above the quantities partially, but does not deflagrate rapidly cylinder and valve materials for use currently authorized for machinery or and is not affected by heat when with gas or gas mixtures. In the interest apparatus transported as ‘‘UN3363, confined; (2) does not detonate, of providing uniformity with regard to Dangerous goods in machinery or deflagrates slowly, and shows no violent reference standards used domestically Dangerous goods in apparatus.’’ In effect if heated when confined; or (3) and internationally, PHMSA proposes to addition to adding these new entries to does not detonate or deflagrate, and revise the compatibility requirements to the HMT, PHMSA added packaging shows a medium effect when heated include a reference to the 2017 provisions in § 173.232, as well as a under confinement. An organic amendment (ISO 11114–1:2012/Amd definition for articles. The definition peroxide Type E is an organic peroxide 2017(E)), which ISO published as a states that ‘‘article means machinery, which neither detonates nor deflagrates supplement to ISO 11114–1:2012(E). apparatus, or other devices containing and shows low or no effect when heated This supplement provides enhanced one or more hazardous materials (or under confinement. Di-(4-tert- instructions on the permissible residues thereof) that are an integral butylcyclohexyl) peroxydicarbonate was concentrations of certain gases to ensure element of the article, necessary for its identified as a Type E organic peroxide safe transport of a wider variety of gases functioning, and that cannot be removed based on evaluation of new test data in newly developed types of metallic for the purpose of transport.’’ This within the classification scheme for self- cylinders and valves. addition created regulatory reactives and organic peroxide in Figure Second, PHMSA proposes to revise discrepancies between articles that 20.1 of the UN Model Regulations. paragraph (c)(1), which specifies valve cannot be defined as machinery or Finally, PHMSA proposes to revise the requirements for pressure receptacles. apparatus but also do not qualify as packing method from OP7 to OP8 Currently in the HMR, paragraph (c)(1) ‘‘Articles containing hazardous consistent with the revised requires valves for pressure receptacles materials, n.o.s.’’ even as there is no classification of Di-(4-tert- (excluding quick release cylinder safety basis to exclude such articles butylcyclohexyl) peroxydicarbonate to a valves, which must conform to the from the scope of § 173.222 provisions. lesser hazard Type E organic peroxide. requirements in ISO 17871:2015(E)) to Therefore, PHMSA proposes to revise The packaging method indicates the conform to various editions of ISO the provisions in § 173.222 to reflect the largest size authorized for packaging of 10297, ‘‘Gas cylinders—Cylinder addition of dangerous goods in articles a particular organic peroxide. valves—Specification and type testing’’, to the current HMT entry for ‘‘UN3363, Specifically, for Di-(4-tert- including the 1999, 2006 and 2014 Dangerous Goods in Machinery or butylcyclohexyl) peroxydicarbonate, editions. ISO 10297:2014 specifies Dangerous Goods in Apparatus’’ as assignment of OP8 would allow up to design, type testing, and marking discussed in connection with the 400 kg for solids and combination requirements for certain cylinder valves proposed changes to § 172.101 above. packagings, and up to 225 L for liquids. intended to be fitted to refillable These proposed changes are intended to See Section 173.225 Section-by-Section transportable gas cylinders which provide flexibility in the choice of the Review for further detail of packing convey compressed, liquefied or most appropriate modifier to be selected methods for organic peroxides. dissolved gases. PHMSA proposes to as a proper shipping name (e.g., article, PHMSA also proposes to revise the modify the valve requirements in this machinery, or apparatus). This Organic Peroxide IBC Table in paragraph such that when the use of a flexibility in selecting the most paragraph (e) to maintain alignment valve is prescribed, the valve must appropriate description of the with the 21st revised edition of UN conform to the requirements of ISO hazardous material would help ensure Model Regulations by adding new 10297:2014 as well as the supplemental appropriate packaging selection and entries for ‘‘tert-Amyl peroxypivalate, amendment, ISO 10297:2014/Amd hazard communication, thus enhancing not more than 42% as a stable 1:2017. ISO 10297:2014/Amd 1:2017 safety. dispersion in water’’ and ‘‘tert-Butyl corrects errors in ISO 10297:2014 and peroxypivalate, not more than 42% in a also includes modifications for valves Section 173.225 diluent type A’’ and identifying it as for tubes and pressure drums. For Section 173.225 prescribes packaging ‘‘UN3119, Organic peroxide type F, consistency with the UN Model requirements and other provisions for liquid, temperature controlled.’’ Regulations, PHMSA also proposes to organic peroxides. As a result of new PHMSA expects that adding provisions add a sunset date of December 31, 2022, peroxide formulations becoming for the transport of these newly for the authorization of the use of ISO commercially available, the 21st revised available peroxide formulations will 10297:2014 when not used in edition of the UN Model Regulations allow better oversight for safe and conjunction with the supplemental 2017 includes updates to the list of identified consistent shipment of these hazardous amendment. PHMSA has reviewed this organic peroxides and new packing materials. supplemental amendment as part of its instructions for these materials. To regular participation in the review of maintain consistency with the UN Section 173.301B amendments proposed for the UN Model Regulations, PHMSA proposes to Section 173.301b outlines additional Model Regulations and does not expect update the Organic Peroxide Table in general requirements when shipping any degradation of safety standards in § 173.225(c) to revise the entry ‘‘Di-(4- gases in UN pressure receptacles (e.g., association with the use of these two tert-butylcyclohexyl) peroxydicarbonate cylinders). Paragraph (a)(2) of this documents. [as a paste],’’ by (1) changing the section requires that the gases or gas Lastly, paragraph (c)(2) of this section classification of the material as mixtures be compatible with the UN outlines certain requirements for valves
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on UN pressure receptacles. low pressure liquefied gases. As Receptacles, small, containing gas or gas Specifically, by following one of the currently provided in paragraph (b) of cartridges’’ for recycling or disposal. listed methods or standards in this 173.304b, the term ‘‘filling factor’’ is These proposed provisions include paragraph, valves are required to be currently used to describe the filling packaging requirements, conditions for protected from damage that could cause limit in terms of the maximum mass of exception, and maximum gross weight inadvertent release of their contents. contents in kg of the gas per liter of limits, applicable to small receptacles or PHMSA proposes to introduce an water capacity, which is intended to cartridges containing gas not exceeding additional option by allowing the use of have the same meaning as the ‘‘filling 1.0 L (0.3 gallons) capacity. PHMSA valves designed and constructed in ratio.’’ To increase clarity of the HMR, expects that codifying these provisions accordance with Annex A of ISO PHMSA proposes to revise paragraph will create a regulatory framework for 17879:2017 for UN pressure receptacles (b)(2) by deleting the term ‘‘filling transporting these materials for with self-closing valves with inherent factor’’ and only using the performance recycling or disposal and reduce the protection (except those in acetylene standard of ‘‘maximum mass of contents administrative burden that would service). Annex A of ISO 17870:2017 is per liter of water capacity’’ so that this otherwise apply to fully regulated gas a new standard which establishes is not misunderstood as being different receptacles. Further, reducing this design, type testing, marking, and from the defined term ‘‘filling ratio.’’ administrative burden may lead to other manufacturing tests and examination This change is consistent with the same environmental benefits by facilitating requirements for self-closing valves editorial correction made is the 21st shipments destined for recycling or fitted to refillable transportable gas revised edition of the UN Model disposal. PHMSA solicits comments on cylinders conveying compressed, Regulations. The term ‘‘filling factor’’ is the need to expand these provisions to liquefied, or dissolved gases (other than used in the context of the UN Model other types of authorized packagings acetylene). PHMSA has determined that Regulations and could be mentioned in this section. misunderstood as being different from incorporating ISO 17879 fulfills the Section 173.335 need for a standard that governs self- the defined term ‘‘filling ratio.’’ PHMSA closing valves on cylinders, which are expects that clarifying the language Section 173.335 specifies packaging typically used in the calibration, pertaining to the filling ratio will requirements for hazardous materials beverage, and medical gas industries provide a safety benefit by eliminating transported as chemicals under pressure and mirrors requirements for impact confusion about the definition of the (e.g., ‘‘UN3500, Chemical under pressure, n.o.s.’’). Chemicals under testing and burst testing specified in ISO term ‘‘filing factor’’ or ‘‘filing ratio.’’ pressure are regulated as gases but differ 10297. PHMSA has experience with Section 173.306 in that they are liquids, pastes, or permitting the use of valves constructed Section 173.306 provides exceptions powders, and pressurized with a to ISO 17879 through special permit,24 from HMR requirements for propellant that meets the definition of a which has occurred without incident transportation of limited quantities of gas in § 173.115. Materials transported since 2019. Incorporating this ISO compressed gases. Paragraph (f) of this under UN3500 may include those that standard would eliminate the need and section provides exceptions for the are widely used in fire suppression associated burden for manufacturers to transportation of accumulators, which systems and other items used for fire request a special permit to use the are transported under ‘‘UN3164, control. valves as they become more widely Articles, pressurized pneumatic or PHMSA proposes to provide an transported as a result of their hydraulic.’’ Accumulators are devices in extended periodic inspection period for authorization by other competent which a fluid is kept under pressure as cylinders containing fire extinguishing authorities. a means of storing energy. PHMSA agents transported under UN3500. This The proposed regulatory text proposes to revise paragraphs (f)(2) and amendment would be consistent with a references the following standards that (f)(3) to allow robust accumulators to be new special packing provision, PP97, are already approved for incorporation transported unpackaged, in crates, or in added in the 21st revised edition of the by reference in this section and no overpacks that provide equivalent UN Model Regulations to provide a test change is proposed for these standards: protection to the hazardous material period of 10 years for tubes (cylinders) ISO 11114–1:2012(E); ISO 11114– being transported. The term robust is that have a capacity of 450 L or less and 2:2013; ISO 10297:2014; ISO used to describe articles that are strong that are filled with fire extinguishing 17871:2015; ISO 11117:2008 and enough to withstand the shocks and agents. The intent of this change was to Technical Corrigendum 1; ISO loadings normally encountered during resolve the discrepancy in inspection 11117:1998; ISO 16111:2008. transport, including trans-shipment periods between (1) gas-filled cylinders Section 173.304B between cargo transport units and intended for installation in fire between cargo transport units and suppression systems and (2) cylinders Section 173.304b contains warehouses, as well as any removal used for the same purpose, but which requirements for shipment of liquefied from a pallet for subsequent manual or contain a fire extinguishing agent (e.g., compressed gases in UN pressure mechanical handling. PHMSA expects a liquid) in combination with a gas used receptacles. In this section, paragraph that the proposed amendments will as a propellant. Gases transported under (b) describes the filling limits for UN increase flexibility for shippers and ‘‘UN1956, compressed gas n.o.s.’’ have a pressure receptacles expressed in terms harmonize with revisions to the UN maximum test period for periodic of ‘‘filling ratio,’’ or the ratio of the mass Model Regulations which limits the inspection of 10 years, whereas the of gas in the cylinder compared to the packaging required for ‘‘UN3164, maximum test period for UN3500, water capacity of the cylinder. Articles, pressurized pneumatic or chemical under pressure, n.o.s.’’ is only Paragraph (b)(2) of this section provides hydraulic’’ when afforded equivalent five years. However, the updated UN the maximum allowable filling limits for protection by the article being Model Regulations extended the transported. inspection period for cylinders 24 See, e.g., Special Permit 20876 (Apr. 21, 2021), https://cms7.phmsa.dot.gov/approvals-and- Additionally, PHMSA proposes to containing fire extinguishing agents permits/hazmat/file-serve/authorization/ add a new paragraph (n) to include transported under UN3500 because they 2019045387_SP20876.pdf/2019045387/SP20876. provisions for the transport of ‘‘UN2037, are typically (1) inert chemicals with no
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subsidiary risks and (2) they are D. Part 175 transport and use of this exception. typically filled at lower pressures than PHMSA expects this proposed HMR Section 175.8 cylinders containing UN1956 materials. amendment will promote broader use of Additionally, these fire extinguishing Part 175 of the HMR prescribes the exception for organ preservation materials and devices are maintained requirements that apply to the units. Finally, it facilitates international and stored in a manner that minimizes transportation of hazardous materials in movement of these devices by commerce aboard aircraft, including the degradation of the cylinder (e.g., in harmonizing with ICAO Technical items carried by air passengers and protected indoor environments). Instructions which allow lithium crew, as well as items carried by the batteries as a power sources for the A recent PHMSA rulemaking, HM– aircraft operator in accordance with devices while still ensuring safe 234,25 broadened the scope of cylinders airworthiness requirements and transport. eligible to be classified as ‘‘UN1044, fire operating regulations, or in support of extinguishers’’ and the intent was to in-flight service. Section 175.8 provides Section 175.10 permit cylinders charged with fire exceptions from the HMR for certain Section 175.10 specifies the extinguishing agents intended for use in equipment and materials used by conditions under which passengers, fire suppression systems to be described aircraft operators that are regulated as crew members or an operator may carry and transported under ‘‘UN1044, fire hazardous materials. PHMSA proposes hazardous materials aboard a passenger extinguishers.’’ However, cylinders to amend paragraph (b) to provide a new aircraft. PHMSA proposes to amend charged solely with a compressed gas or exception for alcohol-based hand paragraph (a)(1)(ii) of this section to liquefied gas and used in a fire sanitizers and alcohol-based cleaning permit Division 2.2 aerosols with no suppression system solely to expel a products carried aboard an aircraft by subsidiary hazard in addition to those separately stored extinguishing agent the operator for the purposes of that are not for medicinal or personal passenger and crew hygiene. The toiletry use as carry-on items (see are not eligible for transportation under proposed changes align the HMR with § 175.10(a)(1)(i) in the HMR for UN1044. Furthermore, with respect to amendments made to the ICAO provisions pertaining to non-radioactive the UN Model Regulations, cylinders Technical Instructions, as amended in medicinal and toilet articles). Currently, charged with a fire extinguishing agent Addendum 1, on December 31, 2020, in these materials (2.2 non-flammable and intended for use in a fire response to the COVID–19 public health gases) are only authorized in checked suppression are specifically excluded emergency. The intent of this baggage. Additionally, PHMSA proposes from transportation as ‘‘UN1044, fire amendment is to ensure that air to add a conditional requirement to new extinguisher.’’ Therefore, while HM–234 operators are able to equip aircraft with paragraph (a)(1)(iv) that the material in added provisions that may allow alcohol-based sanitizers for use in the the Division 2.2 aerosols must not cause hazardous materials in cylinders that cabin for the purposes of passenger and extreme annoyance or discomfort, in the have historically been described and crew hygiene without the regulatory event of an unintentional release, to transported as UN1956 or UN3500 to be burden of documentation and packaging crew members so as to inhibit transported as ‘‘UN1044, fire otherwise associated with the transport performance of their assigned duties. extinguisher’’, amending § 173.335 is of Class 3 flammable liquid hazardous The proposed changes align the HMR still necessary to maintain alignment materials. This proposal is beneficial to with amendments made to the ICAO with the UN Model Regulations because public interest given that it assists in Technical Instructions. In addition, the UN Model Regulations still do not limiting the spread and contraction of these proposed changes are consistent 26 allow cylinders intended for use in fire viruses such as COVID–19 without an with special permit DOT–SP 21021, suppression systems to be transported anticipated decrease in transportation which was issued in response to the safety. COVID–19 public health emergency to under UN1044. ensure flight crews could carry-on Section 175.9 Because of this conflict in sanitizing aerosol products that may not classification for similar items, PHMSA Section 175.9 provides exceptions have been considered as items for proposes to extend the periodic from Subchapter C of the HMR for personal use. PHMSA has determined inspection period for cylinders certain special aircraft operations. that this proposal is beneficial and in containing gases or liquid/gas mixtures Paragraph (b)(5) excepts organ the public interest because it expands that are used as fire extinguishing agents preservation units necessary to protect the use of the passenger and under UN3500, to facilitate human organs when carried in the crewmember exceptions applicable to international shipment of these items by aircraft cabin, provided certain Division 2.2 aerosols by allowing such aligning the § 173.335 periodic conditions are met. As written, the aerosols in carry-on baggage. This is inspection requirements with the current provisions only allow for particularly beneficial for sanitizers to periodic inspection period adopted in devices powered by non-spillable aid in preventing the potential spread the UN Model Regulations. Recognizing batteries. However, the technology for and contraction of viruses such as powering such devices has evolved to that these items UN3500 and UN1044 COVID–19 without an anticipated include lithium batteries. To maintain decrease in transportation safety.27 are functionally the same but classified consistency with the ICAO Technical Section 175.10(a)(11) outlines the differently outside of the United States, Instructions, PHMSA proposes to add provisions for self-inflating personal PHMSA expects that establishing provisions for organ preservation units parallel inspections periods for similar powered by lithium batteries (both 26 DOT Special Permit 21021 (May 29, 2020), items will facilitate international metal and ion). Specifically, lithium https://www.phmsa.dot.gov/approvals-and-permits/ movement and continued use of these hazmat/file-serve/offer/SP21021.pdf/2020034999/ metal or lithium ion cells or batteries SP21021. cylinders domestically and must meet the general provisions 27 PHMSA notes that, apart from the revisions to internationally. prescribed in § 173.185(a) and spare § 175.10 of the HMR proposed here, transportation lithium batteries would need to be of aerosols in carry-on baggage and for any other purpose may be subject to limitations imposed by individually protected to prevent short other regulators, including (but not limited to) the 25 85 FR 85380 (Dec., 28, 2020). circuits when not in use to ensure safe Transportation Security Administration.
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safety devices and currently allows for a Cargo Aircraft Only label in and the stowage notes unique to vessel the carriage of only one device with the accordance with § 172.402(c) must be shipments of Class 1 explosives, which approval of the aircraft operator. loaded in an accessible manner (i.e., a are defined in the table in paragraph PHMSA proposes to increase the manner accessible to the cargo aircraft’s (c)(2). PHMSA has determined that the allowance from a single self-inflating crew or other authorized person). This following proposed revisions will personal safety device to two devices in longstanding requirement of the HMR is improve safety by ensuring that response to an increase in passengers buried in the Quantity and Loading hazardous materials are properly stowed seeking to travel with their own devices. Table of paragraph (f). Air carrier on vessels. PHMSA clarifies that each self-inflating stakeholders have suggested to PHMSA First, PHMSA proposes to revise safety device may be fitted with no more and FAA that the stowage requirements stowage provision 4 in paragraph (b). than two small gas cartridges and that would be clarified if this important Existing stowage provision 4 directs an additional two spare cartridges per requirement were explicitly stated in shippers to ‘‘Stow ‘Separated from’ device may be carried with the devices. § 175.75. Therefore, PHMSA proposes to liquid organic materials.’’ PHMSA In addition, PHMSA proposes to add the specify this requirement in the stowage proposes to modify the language in this text ‘‘intended to be worn by a person’’ requirements as subparagraph (b)(4). code for clarity and to facilitate proper to specify that this provision is only • Correction of an inadvertent error in stowage. In a proposal submitted to the intended for self-inflating personal the Quantity and Loading Table of IMO, it was noted that many liquid safety devices that are designed to be paragraph (f), Note 1, that removed organic materials are not dangerous worn by a person and does not apply to Division 6.2 material from eligibility for goods and that it is difficult to identify other types of safety devices. PHMSA exception from the inaccessible loading these commodities for purposes of expects this proposal will promote use restriction for Cargo Aircraft Only segregation.29 Furthermore, the of the self-inflating personal safety packages. This inadvertent error distinction between organic and devices. Specifically, it provides occurred in a corrections and response inorganic substances cannot be easily passengers more flexibility when to administrative appeals final rule.28 discovered by persons responsible for carrying self-inflating devices such as PHMSA revised requirements for the packing of a cargo transport unit. life-jackets, motorcycle jackets and Division 6.1 material among the list of PHMSA has determined that requiring a horse riding vests. Further, PHMSA eligible materials but in doing so determination as to whether a cargo is does not expect transportation safety inadvertently removed reference to an organic or inorganic substance will be compromised as these devices Division 6.2 material. This change was should be amended with a more readily are designed with multiple initiation not intended and; therefore, PHMSA understood requirement to characterize processes required for inflation to occur, proposes to reinsert reference to these items as combustible materials. thereby inhibiting unintentional Division 6.2 material in Note 1. This clarification would aid in ensuring • activation. PHMSA has not identified Insertion of an Oxford comma in safe segregation of materials assigned any incidents involving unintentional the Quantity and Loading Table of this stowage provision. Therefore, activation of self-inflating personal paragraph (f), Note 1, item d. to more PHMSA proposes to amend stowage safety devices inflight. clearly indicate that Class 9 material, provision 4 to require materials assigned limited quantity material, and excepted Section 175.75 this code to ‘‘not be stowed’’ with quantity material all qualify for this combustible materials in the same cargo Section 175.75 provides quantity provision. PHMSA and FAA are aware transport unit. limitations and stowage location that some air carrier stakeholders have Second, PHMSA proposes to add new requirements for air transportation. expressed confusion with the language stowage provisions under codes 155, During internal review of the stowage in Note 1, item d., and acknowledge that 156, and 157: requirements found in § 175.75, PHMSA the omission of a comma between • New stowage code 155 is assigned and FAA concluded that several ‘‘Limited Quantity’’ and ‘‘Excepted to ‘‘UN2814, Infectious substances, editorial revisions would increase the Quantity’’ may create the impression affecting humans’’ and ‘‘UN2900, clarity of this section, and therefore that only Class 9 limited or excepted Infectious substances, affecting animals enhance the safety or hazardous quantity material are eligible for this only.’’ This new stowage provision materials transported by aircraft. These exception. Note 1, item d. has always advises vessel carriers to avoid handling proposed revisions do not substantively included all eligible hazard classes of of an infectious package or keep change current requirements of this limited quantity and excepted quantity handling of the package to a minimum section. They are intended only for material. and to inform the appropriate public purposes of increasing the E. Part 176 health authority or veterinary authority understanding of air stowage where persons or animals may have requirements. The proposed editorial Section 176.84 been exposed to the package contents. revisions to this section are discussed as Part 176 contains requirements This provision may improve safety for follows: • associated with transportation of packages that may be used to transport The current structure for paragraph hazardous materials by vessel. Section COVID–19 related material. Stowage (b) outlines three distinct stowage 176.84 prescribes the meanings of code 155 would apply particularly to requirements in a single paragraph. To numbered or alphanumeric vessel any cargo offered in the traditional increase readability, PHMSA proposes transport stowage provisions that are manner (i.e., break-bulk). The proposed to revise paragraph (b) by separating the assigned to hazardous materials and stowage code advises cargo handling three requirements into three which are listed in column (10B) of the personnel to limit interaction with subparagraphs each addressing a single HMT. The provisions in § 176.84 are packages of Division 6.2 materials to a stowage requirement. • separated into general stowage minimum. The requirement to notify the Insertion of an additional distinct provisions, which are defined in the appropriate public health authority or sentence in the aforementioned ‘‘table of provisions’’ in paragraph (b), proposed revised format of paragraph 29 International Maritime Organization Sub- (b) to highlight the existing requirement 28 78 FR 65453 (Oct. 31, 2013). This rule affected Committee on the Carriage of Cargoes and in § 175.75 that all packages displaying rules HM–215K, HM–215L, HM218G, and HM–219. Containers CCC 5/6/3.
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veterinary authority where persons or they are offered for transportation. The Additionally, PHMSA is proposing to animals may have been exposed to change from stowage category A to amend the exception for reducing the package contents is intended to ensure category C means these materials being size of the required package marking appropriate medical attention can be offered for recycling or disposal would applicable to packagings with a capacity provided in the event of an exposure be required to be stowed ‘‘on deck only’’ of 5 L or less, or of 5 kg maximum net and any potential further contamination instead of the currently authorized ‘‘on mass. The existing HMR text only refers as a result of contact with the material deck or under deck.’’ This proposed to capacity, and the proposed use of is controlled. This new stowage code change in stowage requirements for ‘‘maximum net mass’’ is a more serves to ensure vessel carriers are aerosols and receptacles small appropriate standard for packagings aware of the potential hazard of these containing gas provides more restrictive intended for solids. This editorial packages and to ensure they follow all stowage requirements for these articles change is intended to reduce confusion protocols related to handling such that have been utilized and are being over the application of the reduce size packages. offered for transportation under marking requirements as they apply to • New stowage code 156 is assigned generally more relaxed packaging packagings used for solid materials. The to ‘‘UN3090, Lithium metal batteries,’’ standards than if they were being quantity limit should be based on the ‘‘UN3091, Lithium metal batteries offered as new articles. This more net amount of solid material and not the contained in equipment, or Lithium restrictive stowage requirement would capacity of the packaging the material is metal batteries packed with more easily facilitate a response effort placed in. This clarification is equipment,’’ ‘‘UN3480, Lithium ion should one be required aboard a vessel. consistent with similar provisions for batteries,’’ and ‘‘UN3481, Lithium ion Third, in the paragraph (c)(2) table, solids (net mass) and liquids (capacity) batteries contained in equipment or PHMSA proposes amending stowage throughout the HMR. Ensuring the Lithium ion batteries packed with provisions for notes 19E and 22E. When appropriate application of the reduced equipment.’’ This new stowage assigned to an HMT entry, these existing size marking allowance provides provision would require damaged or notes require separation ‘‘away from’’ consistency across persons using the defective lithium batteries that are explosives containing chlorates or reduce sized marking and therefore, offered for transportation in accordance perchlorates and ‘‘away from’’ improves safety of transport. with § 173.185(f) or being transported ammonium compounds and explosives Section 178.71 for purposes of disposal or recycling in containing ammonium compounds or accordance with proposed salts. PHMSA proposes to amend these Section 178.71 prescribes § 172.203(i)(4), to be stowed in stowage provisions to specify a more specifications for UN pressure accordance with stowage category C. demanding ‘‘separated from’’ stowage receptacles. To maintain consistency Stowage category C requires on deck requirement. The terms ‘‘away from’’ with the UN Model Regulations, stowage instead of the currently and ‘‘separated from’’ have various PHMSA proposes to update four ISO authorized on deck or under deck meanings based on the type of shipment documents incorporated by reference in stowage of these types of lithium (e.g., break-bulk, shipments within a this section. First, PHMSA proposes to amend batteries. This proposal harmonizes container, or container to container). paragraph (d)(2), which outlines the HMR stowage requirements for lithium Generally speaking, the term ‘‘separated configuration and design requirements batteries that are damaged/defective and from’’ requires more stringent for a cylinder’s service equipment, and those that are being offered for disposal segregation. As an example, for or recycling with the IMDG Code includes items that prevent the release segregation from one container to of the pressure receptacle contents stowage requirements. This proposed another if ‘‘away from’’ applies, the stowage change to require on deck during handling and transportation. containers cannot be stowed one on top Currently this paragraph requires that stowage would allow for more easily of the other. If ‘‘separated from’’ is identifiable and effective response valves for service equipment must assigned, the containers cannot be conform to the 1999, 2006 and 2014 actions in the event of a fire involving stowed in the same vertical line. For lithium batteries onboard a vessel. editions of ISO 10297. ISO 10297 more information on the applicability of specifies design, type testing and PHMSA expects that these revised these terms please, see § 176.83 of the shipping requirements will contribute to marking requirements for cylinder HMR. This proposal also harmonizes the safe transportation of increased valves fitted to refillable transportable the HMR with the IMDG Code and volumes of lithium batteries anticipated gas cylinders, main valves for cylinder aligns with HMR stowage requirements as a result of the increased use of those bundles, and cylinder valves or main for shipments of ammonium nitrates, technologies in the transportation and valves with an integrated pressure chlorates, and perchlorates. These other economic sectors. regulator (VIPR), which convey • New stowage code 157 is assigned proposed changes provide additional compressed, liquefied, or dissolved to the five HMR UN1950 aerosol entries segregation between loads of gases. PHMSA proposes to modify the and the three UN2037 receptacles; incompatible materials and decrease the valve conformance requirements in this small, containing gas or gas cartridges likelihood of a reaction if a release were paragraph such that when the use of a entries. This new stowage provision to occur onboard a vessel. valve is prescribed, the valve must would require aerosols and receptacles F. Part 178 conform to the requirements of ISO for gas transported for recycling or 10297:2014 and the supplemental disposal to be stowed in accordance Section 178.3 amendment, ISO 10297:2014/Amd with vessel stowage category C and clear Part 178 contains specifications for 1:2017. ISO 10297:2014/Amd 1:2017 of living quarters. The HMR does not packagings. Section 178.3 prescribes corrects errors in ISO 10297:2014 and currently contain separate stowage marking requirements for specification also includes modifications for valves provisions for aerosols or receptacles packagings. PHMSA proposes to amend for tubes and pressure drums. PHMSA small containing gas that are being paragraph (a)(4) to clarify the marking has reviewed this supplemental offered for disposal or recycling. These size requirement for packagings amendment as part of its regular materials are assigned stowage category transporting solids with a 30 kg (66 participation in the review of A if they are new and never used, or if pounds) maximum net mass. amendments proposed for the UN
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Model Regulations and does not expect of 450 bar for the storage and cylinders and valves without any degradation of safety standards in transportation of compressed or compromising safety. association with the use of these two liquefied gases. PHMSA incorporates by Section 178.75 documents. Additionally, PHMSA reference the first three parts of the ISO proposes to add an end date of 11119 series, which cover various Section 178.75 prescribes December 31, 2022 to the authorization designs of composite cylinders with a specifications for multiple-element gas to use ISO 10297:2014 when not used in seamless liner. This fourth part defines containers (MEGCs), which are conjunction with the supplemental 2017 the requirements for design, assemblies of UN cylinders, tubes, or amendment, ISO 10297:2014/Amd construction, and testing of composite bundles of cylinders interconnected by 1:2017. cylinders with a welded metallic liner. a manifold and assembled within a Also in this paragraph, PHMSA Incorporating this ISO standard would framework. The term includes all proposes to amend references to ISO eliminate the need and associated service equipment and structural 14246, ‘‘Gas cylinders—Cylinder burden for manufacturers to request a equipment necessary for the transport of valves—Manufacturing tests and special permit to construct fully gases including hazardous materials examinations.’’ Currently paragraph wrapped fiber reinforced composite gas marked as Division 2.1 (such as (d)(2) states that valves must be initially cylinders with load-sharing welded compressed hydrogen). PHMSA inspected and tested in accordance with steel liners.30 proposes to revise paragraph (d) to ISO 14246:2014(E), ‘‘Gas cylinders— Finally, PHMSA proposes to amend permit explicitly the use of composite Cylinder valves—Manufacturing tests paragraph (o)(1) of this section to update construction, which is allowed for other and examinations.’’ However, in 2017, the reference to ISO 11114–1:2012(E), pressure vessels (i.e., cylinders), rather ISO published ISO 14246:2014/Amd ‘‘Gas cylinders—Compatibility of than limiting authorized material of 1:2017, ‘‘Gas cylinders—Cylinder cylinder and valve materials with gas construction for an MEGC to seamless valves—Manufacturing tests and contents—Part 1: Metallic materials.’’ steel as in the current HMR. Composite examinations,’’ which provides ISO 11114–1:2012 provides cylinders are constructed of carbon, supplemental amendments pertaining to requirements for the selection of safe fiberglass, or a hybrid composite with specific pressures to be used in the combinations of metallic cylinder and high-strength aluminum liners. When pressure test and leakproofness test of valve materials and cylinder gas the specifications for MEGCs were acetylene valves. PHMSA proposes to content. PHMSA proposes to amend the originally created, there were no require the use of this amended compatibility requirements to also standards for composite pressure document in § 178.71 to require require compatibility with the 2017 receptacles in the international acetylene valve users to use the updated supplement to ISO 11114–1:2012, (ISO transport standards or the HMR. In the values in ISO 14246:2014/Amd 1:2017. 11114–1:2012/Amd 1:2017) for material decades since standards for the use of PHMSA has reviewed these documents compatibility requirements. Permitting ISO composite pressure receptacles as part its regular participation in the the use of this document would allow have since been developed and review of amendments proposed for the shippers to safely transport a wider authorized. International standards did UN Model Regulations and does not variety of gases in newly developed not consider a corresponding allowance expect any degradation of safety types of metallic cylinders and valves. to use these composite pressure standards in association with the use of PHMSA has reviewed this document as receptacles as elements of MEGCs when these two documents. PHMSA also part of its regular participation in the the specifications were originally proposes to add analogous compliance review of amendments proposed for the adopted. The 21st revised edition of the requirements for self-closing valves to 21st revised edition of the UN Model UN Model Regulations have since been paragraph (d)(2). ISO 17879:2017—Gas Regulations and expects that adding it updated to include such an cylinders—Self-closing cylinder to the HMR will enhance the current authorization and PHMSA proposes to valves—Specification and type testing, safety of hazardous materials in similarly allow the use of composite specifies the design, type testing, transportation, in addition to pressure receptacles in MEGCs. marking, and manufacturing tests and harmonizing the HMR with To that end, PHMSA is adding examinations requirements for self- international requirements. This references to the following ISO design closing cylinder valves intended to be amendment provides compatibility standards for composite MEGCs: ISO fitted to refillable transportable gas requirements for the selection of 11119–1:2012(E), ‘‘Gas cylinders— cylinders which convey compressed, combinations of metallic cylinder and Refillable composite gas cylinders and liquefied, or dissolved gases. valve materials for use with gas or gas tubes—Design, construction and Additionally, PHMSA proposes to mixtures. In the interest of providing testing—Part 1: Hoop wrapped fibre amend paragraph (l)(1), which specifies uniformity with regard to reference reinforced composite gas cylinders and the design and construction standards used domestically and tubes up to 450 L,’’ ISO 11119– requirements for UN composite internationally, PHMSA proposes to 2:2012(E), ‘‘Gas cylinders—Refillable cylinders and tubes. The proposed revise the compatibility requirements to composite gas cylinders and tubes— Design, construction and testing—Part change would add a new subparagraph also refer to the 2017 amendment of this 2: Fully wrapped fibre reinforced (iv) to reference ISO 11119–4:2016, ISO standard. This 2017 supplemental composite gas cylinders and tubes up to ‘‘Gas cylinders—Refillable composite amendment provides more explicit 450 l with load-sharing metal liners,’’ gas cylinders—Design, construction and instructions on the permissible and ISO 11119–3:2013(E), ‘‘Gas testing—Part 4: Fully wrapped fibre concentrations of certain gases. PHMSA cylinders—Refillable composite gas reinforced composite gas cylinders up to has determined that permitting the use cylinders and tubes—Design, 150 L with load-sharing welded metallic of this updated document would allow construction and testing—Part 3: Fully liners.’’ This document, which was safe transport of a wider variety of gases wrapped fibre reinforced composite gas adopted in the UN Model Regulations, in newly developed types of metallic specifies requirements for composite gas cylinders and tubes up to 450 L with cylinders with load-sharing welded 30 See, e.g., Special Permit 14457 (Dec. 16, 2019), non-load-sharing metallic or non- liners between 0.5 L and 150 L water which served as the technical basis for the metallic liners.’’ The 19th revised capacity and a maximum test pressure development of ISO 11119–4:2016. edition of the Model Regulations
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amended the definition of a tube to Section 178.505 PHMSA has determined measures need include composite construction and this Section 178.505 prescribes to be taken to ensure the packaging is change also included standards for the specifications for aluminum drums and compatible with the contents. Further, construction of composite tubes. Due to paragraph (b) prescribes the the general requirements for packagings the lack of any technical or safety construction requirements for those in the HMR include a compatibility concerns, the 21st revised edition of the aluminum drums. PHMSA proposes to requirement such that even though UN Model Regulations included an add a new paragraph (b)(6) to specify certain packagings are specified in the amendment to the definition of MEGCs conditions when internal protective HMR, it is, nevertheless, the which provides for composite coatings or treatments must be applied responsibility of the person offering a construction, in addition to stainless to these drums—consistent with hazardous material for transportation to ensure that such packagings are steel construction and were not requirements for other metal compatible with their contents. This intended to exclude MEGCs. With these packagings, such as steel drums, as applies particularly to corrosivity, proposed revisions, PHMSA expects provided in § 178.504(b)(7) and permeability, softening, premature that this will provide flexibility and aluminum and steel jerricans in aging, and embrittlement (see opportunities for cost savings for § 178.511(b)(5). PHMSA agrees that, § 173.24(e)). However, PHMSA expects manufacturers of MEGCs while not since metals are susceptible to corrosion that codifying specific conditions in compromising safety. Additionally, from exposure to certain chemicals (e.g., which internal protective coatings or authorizing alternative MEGC packaging sodium hydroxide solution, or alkaline treatments must be applied to metal construction would provide flexibility liquids), measures need to be taken to drums that are not constructed of steel in packaging selection for shippers that ensure the packaging is compatible with could facilitate the transportation of or aluminum will provide needed the contents. Further, the general consistency by providing uniform safety hydrogen or other gases that may be requirements for packagings in the HMR used to support clean energy standards for similar packagings across include a compatibility requirement the HMR and ensure safe packaging and alternatives. such that even though certain transport within these metal drums. packagings are specified in the HMR, it Section 178.275 is, nevertheless, the responsibility of the Section 178.609 Section 178.275 outlines requirements person offering a hazardous material for Section 178.609 provides test and definitions pertaining to UN transportation to ensure that such requirements for packagings for portable tanks intended for the packagings are compatible with their infectious substances. PHMSA proposes transportation of liquid and solid contents. This applies particularly to an editorial amendment in paragraph (g) hazardous materials. Paragraph (i) corrosivity, permeability, softening, to clarify the performance testing specifies the capacity requirements for premature aging, and embrittlement (see requirements for infectious substances pressure relief devices that must be on § 173.24(e)). Therefore, PHMSA packaging. Specifically, PHMSA these portable tanks. The HMR specify proposes to add conditions when proposes to amend paragraph (g) to a formula that can be used to determine internal protective coatings or clarify that only one additional test is the required total capacity for these treatments must be applied to metal required for packages for infectious pressure relief devices. The formula drums that are not constructed of steel substances containing dry ice. The 21st defines variable ‘‘U’’ as ‘‘thermal or aluminum. This addition is revised edition of the UN Model conductance of the insulation.’’ consistent with international standards Regulations made a similar clarification Discussions held by the UNSCOE 31 led covering UN packages 1B1 and 1B2 regarding the testing requirements for to the conclusion that usage of the aluminum drums. PHMSA expects that these packagings and PHMSA has phrase ‘‘thermal conductance’’ this proposal will improve consistency determined that the current HMR also associated with the variable ‘‘U’’ in this with regard to safety standards (e.g., contains conflicting language in formula is misleading because, in packaging integrity) across similar § 178.609. Currently paragraph (g), general scientific usage, ‘‘conductance’’ packagings. which specifies additional testing requirement for packagings intended to is expressed in ‘‘kW. K¥1’’, and is not Section 178.506 a surface factor. Leaving the formula contain dry ice, may be interpreted to Section 178.506 prescribes description as it currently appears in the either require five additional samples specifications for metal drums that are HMR may cause confusion for those dropped once each, or one additional not made of steel or aluminum, and who use it given that the correct term sample packaging dropped five times. paragraph (b) prescribes the for the unit given is ‘‘heat transfer However, requiring one sample to be construction requirements for these coefficient.’’ PHMSA proposes to dropped five times in one orientation drums. PHMSA proposes to add a new replace the phrase ‘‘thermal would not be consistent with drop paragraph (b)(6) to specify conditions conductance’’ with ‘‘heat transfer testing requirements applicable to other when internal protective coatings or coefficient’’ so that ‘‘U’’ is defined as packagings. PHMSA proposes to amend treatments must be applied to metal ‘‘heat transfer coefficient of the paragraph (g) to clearly state only one drums that are not constructed of steel insulation’’ which is more appropriate additional sample must be dropped in a or aluminum consistent with this single orientation; namely, the for what is being calculated and is requirement for specifications of other orientation the tester determines would consistent with use of the formula in the metal packagings. This new requirement be most likely to result in failure of the UN Model Regulations. This would would mirror the requirements to apply packaging in light of the properties of ensure proper calculation of the total suitable internal protective coatings or the packaging and the test surface. capacity for the pressure relief devices treatments in § 178.504(b)(7) for steel PHMSA does not consider this change for these portable tanks. drums and § 178.511(b)(5) for aluminum to be technical, but editorial, with the and steel jerricans. Since metals are intent of conveying the testing protocol, 31 ‘‘Use of the terms ‘‘conductivity’’ and ‘‘conductance’’ in chapter 6.7’’ https:// susceptible to corrosion from exposure as it was designed, more clearly. For www.unece.org/fileadmin/DAM/trans/doc/2018/ to certain chemicals (e.g., sodium that reason, PHMSA does not expect dgac10c3/ST-SG-AC.10-C.3-2018-56e.pdf. hydroxide solution, or alkaline liquids), any change in level of safety than what
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was originally intended. This change performance testing requirements’ (i.e., transportation of metal IBCs with a would simply result in a package being drop, stack and vibration) ability to capacity of 1500 L or less when that tested in line with the design of the demonstrate the integrity of the package, transportation is made in accordance original packaging test method. the 21st revised edition of the UN with the ICAO Technical Instructions, Model Regulations include an IMDG Code, Transport Canada TDG Section 178.703 amendment which now provides that Regulations, or the IAEA Regulations. Section 178.703 outlines the marking minimum wall thickness requirements PHMSA also solicits comments on that requirements for intermediate bulk apply only to metal IBCs that have a potential prohibition. containers (IBCs). PHMSA proposes to capacity of more than 1500 L (396 G. Part 180 amend two marking requirements in gallons), while metal IBCs with a this Section. volume of 1500 L or less are no longer Section 180.207 In paragraph (b)(6), which specifies subject to previous prescriptive Section 180.207 outlines the additional marking requirements for minimum wall thickness requirements. requirements for the requalification of composite IBCs, the amendment would Therefore, PHMSA proposes to revise UN pressure receptacles. Paragraph (d) specify that the required markings on the minimum wall thickness specifies the requalification procedures inner receptacles of these packagings requirements for metal IBCs with a for various types of UN cylinders but, must either be readily visible while in volume of 1500 L or less to provide consistent with historical approach of the outer casing or duplicated on the additional design and construction the UN Model Regulations, does not outer casing to facilitate inspection flexibility with regards to IBC designs. include any procedures for the periodic verifying compliance with the This amendment would harmonize with inspection of UN cylinder bundles. applicable package performance the 21st revised edition of the UN However, the 21st revised edition of the standard marking requirements. Model Regulations. PHMSA solicits UN Model Regulations addressed that In paragraph (b)(7), which outlines comments on the following safety and gap by adding a new reference the marking requirements for IBCs that economic impacts regarding this document entitled ISO 20475: 2018 are designed to be stacked, PHMSA proposed amendment: • ‘‘Gas cylinders—Cylinder bundles— proposes to revise language in Does the reliance on the Periodic inspection and testing.’’ ISO paragraph (b)(7)(iv) to clarify the performance testing system and the 20475 provides detailed procedures for maximum stacking load requirements elimination of a prescriptive minimum maintenance and periodic inspection of pertaining to each marking requirement. wall thickness for metal IBC’s with a cylinder bundles. Currently paragraph (b)(7)(iv) indicates capacity of 1500 L or less present an PHMSA proposes to add paragraph that the maximum permitted stacking unnecessary safety risk (e.g., reduced (d)(7) to reference ISO 20475:2018, ‘‘Gas load ‘‘applicable when the IBC is in corrosion protection, ability to prevent cylinders—Cylinder bundles—Periodic use,’’ must be displayed. PHMSA has punctures or ruptures resulting from inspection and testing’’ to provide a determined that this phrase may be conditions normally incident to requalification standard for UN cylinder transportation)? Explain. misinterpreted to mean that the stacking • bundles because requalification load applies only to transportation, Do manufacturers primarily use a procedures may differ for bundles of leading to these packagings being reference steel or are other steels cylinders versus individual cylinders. stacked inappropriately when not in commonly used? If so, which ones? This document was developed based on • If the minimum thickness transportation, such as in warehouse the need for a standard specific to requirement were removed for metal storage. PHMSA proposes to remove the cylinder bundles which would allow IBCs with a capacity of 1500 L or less, words ‘‘applicable when the IBC is in them to be reintroduced into service for what calculations will the use,’’ to clarify that stacking loads an extended period of time. PHMSA manufacturers use to determine the should never be exceeded whether in expects that incorporating by reference design minimum thickness for the IBCs transportation or in storage. PHMSA has a safety standard for requalification will made from the reference steel? determined that clarifying the regulatory reduce business costs and • What is an approximate number of text regarding the proper use of these environmental effects by allowing metal IBC design types and the number packagings will provide an enhanced existing cylinders to be reintroduced of IBCs manufactured in accordance level of safety both during transport and into service for continued use. As a with these design types that could during storage. participant on the UNSCOE, this reasonably expected to be in standard was reviewed by PHMSA and Section 178.705 transportation? • What is the expected cost savings other international bodies for inclusion Section 178.705 prescribes from the removal of a minimum wall in the UN Model Regulations based on specifications for metal IBCs. Paragraph thickness requirement for IBCs at or its need and safety merit. Incorporating (c) outlines construction requirements below the proposed 1500 L capacity? by reference ISO 20475 in the HMR is and paragraph (c)(1)(iv) specifies the • What are the expected impacts of necessary, not only for international minimum wall thickness requirements not harmonizing HMR requirements for harmonization, but also to address the for metal IBCs. Metal IBCs are currently metal IBCs with a capacity of 1500 L or lack of such a standard in the HMR. the only type of IBCs for which there are less? Additionally, PHMSA proposes to minimum wall thickness requirements, As an alternative to the proposed rule, remove a reference to the outdated, which is likely a holdover from PHMSA is also considering a change to third edition of ISO 10462(E), ‘‘Gas regulations for cubical tank containers, § 171.23, which prescribes requirements cylinders—Transportable cylinders for from which the metal IBCs were once for specific materials and packagings dissolved acetylene—Periodic 32 derived. In contrast, because of transported under incorporated inspection and maintenance’’ in international standards to prohibit paragraph (d)(3) used for the 32 Stainless Steel Container Association, Proposal transportation or offering for requalification of dissolved acetylene on Minimum Wall Thickness for Metal IBCs cylinders. Requalification is required in Submitted to the Sub-Committee of Experts on the Transport of Dangerous Goods During the 54th fileadmin/DAM/trans/doc/2018/dgac10c3/ST-SG- accordance with the third edition of ISO Session (Sep. 7, 2018), https://www.unece.org/ AC.10-C.3-2018-96e.pdf. 10462:2013(E); however, requalification
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in accordance with the second edition by international authorities. The notice. PHMSA has developed a more was authorized until December 31, 2018 Secretary has delegated the authority detailed analysis of these costs and in 180.207(d)(3). This date has since granted in the Federal hazardous benefits in the preliminary regulatory passed and, therefore, PHMSA proposes materials transportation law to the impact analysis (PRIA), a copy of which removing reference from this Section of PHMSA Administrator at 49 CFR has been placed in the docket. PHMSA the HMR. Consistent with this revision, 1.97(b). seeks public comment on its proposed the incorporation by reference of the revisions to the HMR and the B. Executive Order 12866 and DOT second edition is removed from preliminary cost and benefit analyses in Regulatory Policies and Procedures § 171.7(w) of the HMR. Additionally, the PRIA. acetylene cylinders requalified in Executive Order 12866 (‘‘Regulatory PHMSA proposes to amend the HMR accordance with the second edition Planning and Review’’) 33 requires to maintain alignment with before December 31, 2018, must be agencies to regulate in the ‘‘most cost- international regulations and standards, subsequently requalified in accordance effective manner,’’ to make a ‘‘reasoned thereby maintaining the high safety with referenced third edition. PHMSA determination that the benefits of the standard currently achieved under the expects that these amendments will intended regulation justify its costs,’’ HMR, facilitating the safe transportation enhance safety by providing cylinder and to develop regulations that ‘‘impose of critical vaccines and other medical users with the necessary guidelines for the least burden on society.’’ Similarly, materials associated with the response the continued use of UN cylinders. DOT Order 2100.6A (‘‘Policies and to the COVID–19 public health The proposed regulatory text Procedures for Rulemakings’’) requires emergency, and aligning HMR references ISO 10462:2013(E), which that PHMSA rulemaking actions include requirements with anticipated increases was previously approved for ‘‘an assessment of the potential benefits, in the volume of lithium batteries incorporation by reference in this costs, and other important impacts of transported in interstate commerce from section, and no changes are proposed the regulatory action,’’ and (to the extent electrification of the transportation and for this standard. practicable) the benefits, costs, and any other economic sectors. PHMSA VI. Regulatory Analyses and Notices significant distributional impacts, examined the likely impacts of including any environmental impacts. finalizing and implementing the A. Statutory/Legal Authority for This Executive Order 12866 and DOT provisions proposed in the NPRM in Rulemaking Order 2100.6A require that PHMSA order to assess the benefits and costs of This NPRM is published under the submit ‘‘significant regulatory actions’’ these amendments. This analysis authority of Federal hazardous materials to the Office of Management and Budget allowed PHMSA to quantitatively assess transportation law. Section 5103(b) (OMB) for review. This rulemaking is the material effects of three of the authorizes the Secretary of not considered a significant regulatory proposed amendments in the Transportation to prescribe regulations action under section 3(f) of Executive rulemaking. The effects of six remaining for the safe transportation, including Order 12866 and, therefore, was not proposed amendments are not security, of hazardous materials in formally reviewed by OMB. This quantified but are assessed qualitatively. intrastate, interstate, and foreign rulemaking is also not considered a PHMSA estimates that the annualized commerce. Additionally, 49 U.S.C. 5120 significant rule under DOT Order quantified net cost savings of this authorizes the Secretary to consult with 2100.6A. rulemaking, using a 7 percent discount interested international authorities to The following is a brief summary of rate, are approximately $23.5 to $28.5 ensure that, to the extent practicable, costs, savings and net benefits of some million per year. The following table regulations governing the transportation of the amendments proposed in this presents a summary of the monetized of hazardous materials in commerce are impacts that these proposed changes consistent with the standards adopted 33 58 FR 51735 (Oct. 4, 1993). may have upon codification.
VerDate Sep<11>2014 19:16 Aug 09, 2021 Jkt 253001 PO 00000 Frm 00031 Fmt 4701 Sfmt 4702 E:\FR\FM\10AUP4.SGM 10AUP4 jbell on DSKJLSW7X2PROD with PROPOSALS4 43874 Federal Register / Vol. 86, No. 151 / Tuesday, August 10, 2021 / Proposed Rules ($115,562) 0 ($88,040) ,833 890,958 3,932,833 ,833 890,958 24,696,648 22,682,900 24,696,648 24,696,648 0 = 7%, 2022–2031 ATE R ISCOUNT 200,269,837 88,040 115,562 23,573,858 28,629,482 23,485,818 28,513,919 , D AVINGS S 0 ($618,355) ($811,662) $88,040 $115,562 [$2019] OST C 0 EGULATORY R ET N ABLE OF T 10 year costs 10 year cost savings 10 year net cost savings Annual costs Annual cost savings Annual net cost savings Low High Low High Low High Low High Low High Low High Low High Low High Low Low High High Low UMMARY S Rule amendments Total ...... 618,355 811,662 165,572,913 201,081,499 164,954,558 Amendment 2: Electric and Electronic Detonators ...... Amendment 5: Lithium Battery Mark ...... $618,355 $811,662 Amendment 7: Data Loggers ...... 0 0 0 159,315,195 0 173,458,922 159,315,195 6,257,717 173,458,922 27,622,576 6,257,717 0 27,622,576 0 0 22,682,900 0 890,958 3,932
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The safety and environmental benefits related to the number, contents, and generally, PHMSA does not expect it of the proposed rule have not been placement of those documents; would entail disproportionately high quantified. However, PHMSA expects (4) The written notification, adverse risks for Tribal communities. the proposed amendments would help recording, and reporting of the For these reasons, PHMSA does not to improve public safety and reduce the unintentional release in transportation expect the funding and consultation risk of environmental harm by of hazardous material; and requirements of Executive Order 13175 maintaining consistency between these (5) The design, manufacture, and DOT Order 5301.1 to apply. international regulations and the HMR. fabrication, inspection, marking, However, PHMSA solicits comment Harmonization of the HMR with maintenance, recondition, repair, or from Native American Tribal international consensus standards as testing of a packaging or container governments and communities on proposed could reduce delays and represented, marked, certified, or sold potential impacts of the proposed interruptions of hazardous materials as qualified for use in transporting rulemaking. during transportation, thereby lowering hazardous material in commerce. This proposed rule addresses covered E. Regulatory Flexibility Act and GHG emissions and safety risks to Executive Order 13272 communities (including minority, low- subject items (1), (2), (3), (4), and (5) income, underserved, and other above and would preempt State, local, The Regulatory Flexibility Act (5 disadvantaged populations and and Tribal requirements not meeting the U.S.C. 601 et seq.) requires agencies to communities) in the vicinity of interim ‘‘substantively the same’’ standard. In review proposed regulations to assess storage sites and transportation arteries this instance, the preemptive effect of their impact on small entities, unless and hubs. the proposed rule is limited to the the agency head certifies that a minimum level necessary to achieve the proposed rulemaking will not have a C. Executive Order 13132 objectives of the hazardous materials significant economic impact on a PHMSA analyzed this rulemaking in transportation law under which the substantial number of small entities accordance with the principles and final rule is promulgated. Therefore, the including small businesses, not-for- criteria contained in Executive Order consultation and funding requirements profit organizations that are 13132 (‘‘Federalism’’) 34 and the of Executive Order 13132 do not apply. independently owned and operated and are not dominant in their fields, and Presidential memorandum D. Executive Order 13175 governmental jurisdictions with (’’Preemption’’) that was published in PHMSA analyzed this rulemaking in 35 populations under 50,000. The the Federal Register on May 22, 2009. accordance with the principles and Executive Order 13132 requires agencies Regulatory Flexibility Act directs criteria contained in Executive Order agencies to establish exceptions and to assure meaningful and timely input 13175 (‘‘Consultation and Coordination by State and local officials in the differing compliance standards for small with Indian Tribal Governments’’) 36 businesses, where possible to do so and development of regulatory policies that and DOT Order 5301.1 (‘‘Department of still meet the objectives of applicable may have ‘‘substantial direct effects on Transportation Policies, Programs, and regulatory statutes. Executive Order the States, on the relationship between Procedures Affecting American Indians, 13272 (‘‘Proper Consideration of Small the national government and the States, Alaska Natives, and Tribes’’). Executive Entities in Agency Rulemaking’’) 37 or on the distribution of power and Order 13175 and DOT Order 5301.1 requires agencies to establish responsibilities among the various require DOT Operating Administrations procedures and policies to promote levels of government.’’ to assure meaningful and timely input compliance with the Regulatory The rulemaking may preempt State from Native American Tribal Flexibility Act and to ‘‘thoroughly and local, and Native American Tribe government representatives in the review draft rules to assess and take requirements, but does not propose any development of rules that significantly appropriate account of the potential regulation that has substantial direct or uniquely affect Tribal communities impact’’ of the rules on small effects on the States, the relationship by imposing ‘‘substantial direct businesses, governmental jurisdictions, between the national government and compliance costs’’ or ‘‘substantial direct and small organizations. The DOT posts the States, or the distribution of power effects’’ on such communities or the its implementing guidance on a and responsibilities among the various relationship and distribution of power dedicated web page.38 levels of government. The Federal between the Federal government and This proposed rulemaking has been hazardous materials transportation law Native American Tribes. developed in accordance with Executive contains an express preemption PHMSA assessed the impact of the Order 13272 and with DOT’s procedures provision at 49 U.S.C. 5125(b) that rulemaking and determined that it and policies to promote compliance preempts State, local, and Tribal would not significantly or uniquely with the Regulatory Flexibility Act to requirements on certain covered affect Tribal communities or Native ensure that potential impacts of draft subjects, unless the non-Federal American Tribal governments. The rules on small entities are properly requirements are ‘‘substantively the changes to the HMR proposed in this considered. This proposed rule same’’ as the Federal requirements, NPRM are facially neutral and would facilitates the transportation of including the following: have broad, national scope; PHMSA, hazardous materials in international (1) The designation, description, and therefore, expects this rulemaking not to commerce by providing consistency classification of hazardous material; significantly or uniquely affect Tribal with international standards. It applies (2) The packing, repacking, handling, communities, much less impose to offerors and carriers of hazardous labeling, marking, and placarding of substantial compliance costs on Native materials, some of whom are small hazardous material; American Tribal governments or entities, such as chemical (3) The preparation, execution, and mandate Tribal action. And because manufacturers, users, and suppliers, use of shipping documents related to PHMSA expects the rulemaking would hazardous material and requirements not adversely affect the safe 37 67 FR 53461 (Aug. 16, 2002). 38 DOT, ‘‘Rulemaking Requirements Related to transportation of hazardous materials Small Entities,’’ https://www.transportation.gov/ 34 64 FR 43255 (Aug. 10, 1999). regulations/rulemaking-requirements-concerning- 35 74 FR 24693 (May 22, 2009). 36 65 FR 67249 (Nov. 9, 2000). small-entities (last accessed June 17, 2021).
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packaging manufacturers, distributors, OMB Control Number 2137–0051, G. Regulation Identifier Number and training companies. As discussed at ‘‘Rulemaking, Special Permits, and length in the PRIA in the rulemaking Preemption Requirements,’’ currently A regulation identifier number (RIN) docket, the amendments in this accounts for burden associated with is assigned to each regulatory action proposed rule should result in net cost petitions for rulemaking, special permit listed in the Unified Agenda of Federal savings that would ease the regulatory applications, and preemption requests. Regulatory and Deregulatory Actions compliance burden for those and other PHMSA proposes to authorize certain (‘‘Unified Agenda’’). The Regulatory entities engaged in domestic and ISO standard valves in § 173.301b(c)(2) Information Service Center publishes international commerce, including and expand § 175.10 to allow passenger the Unified Agenda in April and trans-border shipments within North and crewmembers to carry certain October of each year; the most recent America. Additionally, the changes Division 2.2 aerosols in carry-on version was published in June 2021. proposed in this NPRM would relieve baggage, both of which eliminate the The RIN contained in the heading of U.S. companies, including small entities need for use of a special permit. While this document can be used to cross- competing in foreign markets, from the PHMSA expects these proposals to reference this action with the Unified burden of complying with a dual system reduce the burden associated with this Agenda. of regulations. Therefore, PHMSA information collection, PHMSA expects that these amendments will not, anticipates the reduction is negligible in H. Unfunded Mandates Reform Act of if adopted, have a significant economic relation to the total burden hours 1995 impact on a substantial number of small associated with special permit The Unfunded Mandates Reform Act entities. However, PHMSA solicits applications. of 1995 (UMRA; 2 U.S.C. 1501 et seq.) comments on the anticipated economic PHMSA accounts for the burden from requires agencies to assess the effects of approval applications in OMB Control impacts to small entities. Federal regulatory actions on State, Number 2137–0557, ‘‘Approvals for local, and Tribal governments, and the F. Paperwork Reduction Act Hazardous Materials.’’ PHMSA proposes private sector. For any NPRM or final Under the Paperwork Reduction Act to add a new HMT entry for ‘‘UN3549, rule that includes a Federal mandate of 1995 (44 U.S.C. 3501 et seq.), no Medical Waste, Category A, Affecting that may result in the expenditure by person is required to respond to an Humans, solid or Medical Waste, information collection unless it has Category A, Affecting Animals only, State, local, and Tribal governments, or been approved by OMB and displays a solid’’ and require an approval for by the private sector of $100 million or valid OMB control number. Pursuant to transportation in accordance with more in 1996 dollars in any given year, 44 U.S.C. 3506(c)(2)(B) and 5 CFR Special Provision 131, which PHMSA the agency must prepare, amongst other 1320.8(d), PHMSA must provide expects would increase the number of things, a written statement that interested members of the public and annual approval applicants. PHMSA qualitatively and quantitatively assesses affected agencies with an opportunity to also proposes to add new entries to the the costs and benefits of the Federal comment on information collection and § 173.225 Organic Peroxide Table, mandate. recordkeeping requests. which PHMSA expects would decrease As explained in the PRIA, this PHMSA has analyzed this NPRM in the number of annual approval proposed rulemaking does not impose accordance with the Paperwork applicants. However, PHMSA expects unfunded mandates under the UMRA. It Reduction Act. PHMSA currently that these proposed changes are does not result in costs of $100 million accounts for shipping paper burdens negligible to the overall impact of the or more in 1996 dollars to either State, under OMB Control Number 2137–0034, total burden in relation to the number local, or Tribal governments, or to the ‘‘Hazardous Materials Shipping Papers of burden hours associated with this private sector, in any one year. A copy and Emergency Response Information.’’ information collection. of the PRIA is available for review in the PHMSA proposes a number of PHMSA requests comments on the docket. amendments that may impact the information collection and burden accounted for in OMB Control recordkeeping burdens associated with I. Environmental Assessment Number 2137–0034. They include developing, implementing, and requiring the word ‘‘stabilized’’ as a part maintaining the proposed requirements The National Environmental Policy of the proper shipping name for in this NPRM. Address written Act of 1969 (NEPA; 42 U.S.C. 4321 et ‘‘UN2522, 2-Dimethlaminoethl comments to the DOT Docket seq.), requires that Federal agencies methacrylate,’’ adding the applicable Operations Office identified in the analyze proposed actions to determine term ‘‘DAMAGED/DEFECTIVE,’’ ADDRESSES section of this rulemaking. whether the action would have a ‘‘LITHIUM BATTERIES FOR PHMSA must receive comments significant impact on the human DISPOSAL’’ or ‘‘LITHIUM BATTERIES regarding information collection environment. The Council on FOR RECYCLING’’, excepting marine burdens prior to the close of the Environmental Quality implementing pollutants from the requirement to comment period identified in the DATES regulations (40 CFR parts 1500–1508) supplement the proper shipping name section of this rulemaking. Requests for require Federal agencies to conduct an with a technical name for UN3077 and a copy of this information collection environmental review considering (1) UN3082, and requiring documentation should be directed to Steven Andrews the need for the action, (2) alternatives of the holding time for refrigerated or Shelby Geller, Standards and to the action, (3) probable liquefied gases transported in portable Rulemaking Division (PHH–10), environmental impacts of the action and tanks. However, while PHMSA Pipeline and Hazardous Materials Safety alternatives, and (4) the agencies and estimates that there will be some impact Administration, 1200 New Jersey persons consulted during the in the annual burden related to shipping Avenue SE, Washington, DC 20590– consideration process. DOT Order papers, PHMSA expects the overall 0001. If these proposed requirements are 5610.1C (‘‘Procedures for Considering impact to annual burden is negligible in adopted in a final rule, PHMSA will Environmental Impacts’’) establishes relation to the number of burden hours submit the revised information departmental procedures for evaluation currently associated with this collection and recordkeeping of environmental impacts under NEPA information collection. requirements to OMB for approval. and its implementing regulations.
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1. Purpose and Need proposed amendments included in this pertaining to lithium batteries (which This NPRM would amend the HMR to alternative are more fully discussed in touch on multiple stages in the lifecycle maintain alignment with international the preamble and regulatory text of a lithium battery) are intended to consensus standards by incorporating sections of this NPRM. ensure that expansion occurs safely. Similarly, PHMSA understands that the into the HMR various amendments, 3. Reasonably Foreseeable including changes to proper shipping response to the COVID–19 public health Environmental Impacts of the emergency will result in sustained names, hazard classes, packing groups, Alternatives special provisions, packaging demand for shipments of refrigerated authorizations, air transport quantity No Action Alternative packages employing data loggers limitations, and vessel stowage If PHMSA were to select the No transporting vaccines, as well as requirements. PHMSA notes that the Action Alternative, the HMR would increased volumes of sanitizing amendments proposed in this NPRM are remain unchanged and no provisions chemicals and medical waste from intended to result in cost savings and would be amended or added. However, diagnosis, treatment, and sanitization reduced regulatory burden for shippers any economic benefits gained through efforts; the HMR amendments within engaged in domestic and international harmonization of the HMR with the Proposed Action Alternative are commerce, including trans-border updated international consensus intended to address the risks associated shipments within North America. standards (including, but not limited to, with those COVID-related changes in Absent adoption of the amendments the 21st revised edition of the UN transportation demand. The No Action proposed in the NPRM, U.S. Model Regulations, the 2021–2022 Alternative, in contrast, would not amend the HMR to account for these companies—including numerous small ICAO Technical Instructions and emerging trends in demand for entities competing in foreign markets— amendment 40–20 of the IMDG Code) transportation of hazardous materials. may be at an economic disadvantage governing shipping of hazardous because of their need to comply with a PHMSA notes that the No Action materials would not be realized. Alternative would avoid any risks to dual system of regulations. Further, Additionally, the No Action among the HMR amendments public safety and the environment from Alternative would not adopt enhanced the NPRM’s proposed authorization of introduced in this rulemaking are those and clarified regulatory requirements facilitating the transportation of critical shipments of hazardous materials expected to maintain the high level of offered pursuant to temporary vaccines and other medical materials safety in transportation of hazardous associated with response to the COVID– certificates issued by Transport Canada. materials provided by the HMR. As While the transportation of hazardous 19 public health emergency, and others explained in the preamble to the NPRM, aligning HMR requirements with materials always entails risk, allowing consistency between the HMR and the transportation of hazardous anticipated increases in the volume of current international standards can lithium batteries transported in materials pursuant to temporary enhance safety by (1) ensuring that the certificates issued by Transport Canada interstate commerce from electrification HMR is informed by the latest best of the transportation and other could facilitate shipments of hazardous practices and lessons learned; (2) materials that are not otherwise economic sectors. improving understanding of and As explained at greater length above compliant with the HMR and do not compliance with pertinent meet an equivalent standard of safety. in the preamble of this NPRM and in the requirements; (3) enabling consistent PRIA (each of which are incorporated by Arguably, this allowance could entail emergency response procedures in the greater risks to public safety and the reference in this discussion of the event of a hazardous materials incident; environmental impacts of the Proposed environment. However, based on years and (4) facilitating the smooth flow of of collaboration, PHMSA considers Action Alternative), PHMSA expects the hazardous materials from their points of adoption of the regulatory amendments Transport Canada to be a partner in origin to their points of destination, hazardous materials safety and has proposed in this NPRM would maintain thereby avoiding risks to the public and the high safety standard currently confidence in the technical expertise the environment from release of and judgement of the hazardous achieved under the HMR. PHMSA has hazardous materials from delays or evaluated the safety each of the materials safety SMEs at Transport interruptions in the transportation of Canada. PHMSA further submits that amendments proposed in this NPRM on those materials. PHMSA would not its own merit, as well as the aggregate any risks are mitigated by (1) the capture those benefits if it were to pass technical review by Transport Canada impact on transportation safety from on incorporating updated international adoption of those amendments. subject matter experts to determine any standards into the HMR under the No shipments would be in the public 2. Alternatives Action Alternative. interest, (2) the limited duration of those In proposing this rulemaking, PHMSA Additionally, some of the proposed temporary certificates, (3) the terms and is considering the following HMR amendments are expected to better conditions imposed in those certificates, alternatives: accommodate than the current HMR the (4) other regulatory requirements under safe transportation of emerging the TDG Regulations or the HMR that No Action Alternative technologies (in particular lithium may remain applicable, and (5) If PHMSA were to select the No battery technologies), and facilitate safe PHMSA’s limitation of its recognition of Action Alternative, current regulations shipment of vaccines and other temporary certificates to transportation would remain in place and no hazardous materials associated with via motor carrier and rail during the provisions would be amended or added. efforts to combat the COVID–19 public particular shipment authorized by a health emergency. As explained in the temporary certificate. Proposed Action Alternative PRIA, PHMSA expects a significant PHMSA expects that the No Action This alternative is the current increase in the volume of shipments of Alternative could have a modest impact proposal as it appears in this NPRM, lithium batteries over time as more on GHG emissions. Because PHMSA applying to transport of hazardous sectors of the U.S. domestic and expects the differences between the materials by various transport modes international economies electrify; HMR and international standards for (highway, rail, vessel and aircraft). The PHMSA’s proposed HMR amendments transportation of hazardous materials
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could result in transportation delays or evidence that hazardous material environment submitted by members of interruptions, PHMSA anticipates that incidents have occurred as a result of or the public, state and local governments, there could be modestly higher GHG under the authority of temporary tribal communities and industry. emissions from some combination of (1) certificates. Further, PHMSA notes that 5. Proposed Finding of No Significant transfer of delayed hazardous materials the suite of other factors (including Impact to and from interim storage, (2) return Transport Canada’s review process, of improperly shipped materials to their certificate terms and conditions, and PHMSA expects the adoption of the point of origin, and (3) re-shipment of otherwise applicable regulatory Proposed Action Alternative’s returned materials. PHMSA notes that it requirements of the TDG Regulations regulatory amendments will maintain is unable to quantify such GHG and the HMR) would mitigate residual the HMR’s current high level of safety emissions because of the difficulty in risks to public safety and the for shipments of hazardous materials identifying the precise quantity or environment. transported by highway, rail, aircraft, characteristics of such interim storage or PHMSA expects that Proposed Action and vessel, and as such finds the HMR returns/re-shipments. The less Alternative could realize modest amendments in the NPRM would have demanding holding time documentation reductions in GHG emissions. Because no significant impact on the human requirements for refrigerated hazardous PHMSA expects the differences between environment. PHMSA expects that the gasses under the current HMR could the HMR and international standards for Proposed Action Alternative will avoid also result in more frequent venting of transportation of hazardous materials adverse safety, environmental justice, GHGs (including nitrous oxide, a potent could result in delays or interruptions, and GHG emissions impacts of the No GHG) from portable tanks during delays PHMSA anticipates that the No Action Action Alternative. Furthermore, based in transportation. PHMSA also submits Alternative could result in modestly on PHMSA’s analysis of these that, as explained at greater length in higher GHG emissions from some provisions described above, PHMSA Section IV.J., to the extent that there are combination of (1) transfer of delayed proposes to find that codification and any delays arising from inconsistencies hazardous materials to and from interim implementation of this rule would not between the HMR and recently updated storage, (2) return of improperly result in a significant impact to the international standards, there could also shipped materials to their point of human environment. be adverse impacts from the No Action origin, or (3) re-shipment of returned Alternative for minority populations, materials. The Proposed Action PHMSA welcomes any views, data, or low-income populations, or other Alternative avoids those risks resulting information related to environmental underserved and other disadvantaged from divergence of the HMR from impacts that may result from NPRM’s communities. updated international standards. proposed requirements, the No Action PHMSA notes, however, that it is unable Alternative, and other viable Proposed Action Alternative to quantify any GHG emissions benefits alternatives and their environmental As explained further in the because of the difficulty in identifying impacts. discussions in each of the No Action the precise quantity or characteristics of J. Environmental Justice Alternative above, the preamble, and the such interim storage or returns/re- PRIA, PHMSA anticipates the changes shipments. PHMSA also noted that the DOT Order 5610.2C (Department of proposed under the Proposed Action less demanding holding time Transportation Actions to Address Alternative will maintain the high safety documentation requirements for Environmental Justice in Minority standards currently achieved under the refrigerated hazardous gasses under the Populations and Low-Income HMR. Harmonization of the HMR with current HMR could also result in more Populations’’) and Executive Orders updated international consensus frequent venting of GHGs (including 12898 (‘‘Federal Actions to Address standards is also expected to capture nitrous oxide, a potent GHG) from Environmental Justice in Minority economic efficiencies gained from portable tanks during delays in Populations and Low-Income avoiding shipping delays and transportation than would occur under Populations’’),39 13985 (‘‘Advancing compliance costs associated with having the Proposed Action Alternative. Lastly, Racial Equity and Support for to comply with divergent U.S. and PHMSA also submits that, as explained Underserved Communities Through the international regulatory regimes for at greater length in Section IV.J., the Federal Government’’),40 13990 transportation of hazardous materials. Proposed Action Alternative would (‘‘Protecting Public Health and the Further, PHMSA expects revision of the avoid any delayed or interrupted Environment and Restoring Science To HMR as proposed in the NPRM will shipments arising from the divergence Tackle the Climate Crisis’’),41 and 14008 accommodate safe transportation of of the HMR from updated international (‘‘Tackling the Climate Crisis at Home emerging technologies (in particular standards under the No Action and Abroad’’) 42 require DOT agencies to lithium battery technologies), and Alternative that could result in adverse achieve environmental justice as part of facilitate safe shipment of vaccines and impacts for minority populations, low- their mission by identifying and other hazardous materials critical in income populations, or other addressing, as appropriate, efforts to combat the COVID–19 public underserved and other disadvantaged disproportionately high and adverse health emergency. communities. human health or environmental effects, PHMSA acknowledges that the including interrelated social and 4. Agencies Consulted Proposed Action Alternative could economic effects of their programs, introduce risks to public safety and the PHMSA has coordinated with the policies, and activities on minority environment from authorization of Federal Aviation Administration, the populations, low-income populations, shipments of hazardous materials Federal Motor Carrier Safety and other underserved and pursuant to temporary certificates Administration, the Federal Railroad disadvantaged communities. issued by Transport Canada. As Administration, and the U.S. Coast explained in the above discussion of the Guard in the development of this 39 59 FR 7629 (Feb. 11, 1994). No Action Alternative, PHMSA proposed rule. PHMSA solicits, and will 40 86 FR 7009 (Jan. 20, 2021). understands that risk to be largely consider, comments on the NPRM’s 41 86 FR 7037 (Jan. 20, 2021). theoretical; PHMSA is unaware of potential impacts on the human 42 86 FR 7619 (Feb. 1, 2021).
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PHMSA has evaluated this proposed Statement is in the Federal Register Order 13609 and PHMSA’s obligations rule under the above Executive Orders published on April 11, 2000,43 or on under the Trade Agreements Act. and DOT Order 5610.2C. PHMSA does DOT’s website at http://www.dot.gov/ M. National Technology Transfer and not expect the proposed rule, if privacy. Advancement Act finalized, to cause disproportionately high and adverse human health and L. Executive Order 13609 and The NTTAA directs federal agencies environmental effects on minority, low- International Trade Analysis to use voluntary consensus standards in income, underserved, and other Executive Order 13609 (‘‘Promoting their regulatory activities unless doing disadvantaged populations and International Regulatory so would be inconsistent with communities. The rulemaking is facially Cooperation’’) 44 requires that agencies applicable law or otherwise impractical. neutral and national in scope; it is consider whether the impacts associated Voluntary consensus standards are neither directed toward a particular with significant variations between technical standards (e.g., specification population, region, or community, nor domestic and international regulatory of materials, test methods, or is it expected to adversely impact any approaches are unnecessary or may performance requirements) that are particular population, region, or impair the ability of American business developed or adopted by voluntary community. And because PHMSA to export and compete internationally. consensus standard bodies. This expects the rulemaking would not In meeting shared challenges involving rulemaking involves multiple voluntary adversely affect the safe transportation health, safety, labor, security, consensus standards which are of hazardous materials generally, environmental, and other issues, discussed at length in the discussion on PHMSA does not expect the proposed international regulatory cooperation can § 171.7. See Section 171.7 of the revisions would entail identify approaches that are at least as Section-by-Section Review for further disproportionately high adverse risks for protective as those that are or would be details. minority populations, low-income adopted in the absence of such N. Executive Order 13211 populations, or other underserved and cooperation. International regulatory Executive Order 13211 (‘‘Actions other disadvantaged communities. cooperation can also reduce, eliminate, PHMSA submits that the proposed Concerning Regulations That or prevent unnecessary differences in Significantly Affect Energy Supply, rulemaking could in fact reduce risks to regulatory requirements. minority populations, low-income Distribution, or Use’’) 45 requires Similarly, the Trade Agreements Act Federal agencies to prepare a Statement populations, or other underserved and of 1979 (Pub. L. 96–39), as amended by other disadvantaged communities. of Energy Effects for any ‘‘significant the Uruguay Round Agreements Act Because the proposed HMR energy action.’’ Executive Order 13211 (Pub. L. 103–465) (as amended, the amendments could avoid the release of defines a ‘‘significant energy action’’ as Trade Agreements Act), prohibits hazardous materials and reduce the any action by an agency (normally agencies from establishing any frequency of delays and returned/ published in the Federal Register) that standards or engaging in related resubmitted shipments of hazardous promulgates, or is expected to lead to activities that create unnecessary materials resulting from conflict the promulgation of, a final rule or obstacles to the foreign commerce of the between the current HMR and updated regulation that (1)(i) is a significant United States. Pursuant to the Trade international standards, the proposed regulatory action under Executive Order Agreements Act, the establishment of rule could reduce risks to populations 12866 or any successor order and (ii) is and communities—including any standards is not considered an likely to have a significant adverse effect minority, low-income, underserved and unnecessary obstacle to the foreign on the supply, distribution, or use of other disadvantaged populations and commerce of the United States, so long energy (including a shortfall in supply, communities—in the vicinity of interim as the standards have a legitimate price increases, and increased use of storage sites and transportation arteries domestic objective, such as providing foreign supplies); or (2) is designated by and hubs. Additionally, as explained in for safety, and do not operate to exclude the Administrator of the Office of the above discussion of NEPA, PHMSA imports that meet this objective. The Information and Regulatory Affairs expects that its proposed HMR statute also requires consideration of (OIRA) as a significant energy action. amendments will yield modest GHG international standards and, where This proposed rule is not a significant emissions reductions, thereby reducing appropriate, that they be the basis for action under Executive Order 12866, the risks posed by anthropogenic U.S. standards. nor is it expected to have an annual climate change to minority, low-income, PHMSA participates in the effect on the economy of $100 million. underserved, and other disadvantaged establishment of international standards Further, this action is not expected to populations and communities. to protect the safety of the American have a significant adverse effect on the PHMSA solicits comment from public, and it has assessed the effects of supply, distribution, or use of energy in minority, low-income, underserved, and the proposed rule to ensure that it does the United States. The Administrator of other disadvantaged populations and not cause unnecessary obstacles to OIRA has not designated the proposed communities on potential impacts of the foreign trade. In fact, the proposed rule rule as a significant energy action. For proposed rulemaking. is expected to facilitate international additional discussion of the anticipated trade by harmonizing U.S. and economic impact of this rulemaking, K. Privacy Act international requirements for the please review the PRIA posted in the In accordance with 5 U.S.C. 553(c), transportation of hazardous materials so rulemaking docket. DOT solicits comments from the public as to reduce regulatory burdens and List of Subjects to better inform its rulemaking process. minimize delays arising from having to DOT posts these comments, without comply with divergent regulatory 49 CFR Part 171 edit, including any personal information requirements. Accordingly, this Exports, Hazardous materials the commenter provides, to rulemaking is consistent with Executive transportation, Hazardous waste, www.regulations.gov, as described in Imports, Incorporation by reference, the system of records notice (DOT/ALL– 43 65 FR 19477 (Apr. 11, 2000). 14 FDMS). DOT’s complete Privacy Act 44 77 FR 26413 (May. 4, 2012). 45 66 FR 28355 (May 22, 2001).
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Reporting and recordkeeping (s) * * * (45) ISO 10692–2:2001(E), Gas requirements. (1) IAEA Regulations for the Safe cylinders—Gas cylinder valve Transport of Radioactive Material, connections for use in the micro- 49 CFR Part 172 Safety Standards Series No. SSR–6 electronics industry—Part 2: Education, Hazardous materials (Rev.1), 2018 Edition, into §§ 171.22; Specification and type testing for valve transportation, Hazardous waste, 171.23; 171.26; 173.415; 173.416; to cylinder connections, First Edition, Incorporation by reference, Labeling, 173.417; 173.435; 173.473. 2001–08–01, into §§ 173.40; 173.302c. Markings, Packaging and containers, * * * * * (46) ISO 11114–1:2012(E), Gas Reporting and recordkeeping (t) * * * cylinders—Compatibility of cylinder requirements. (1) Technical Instructions for the Safe and valve materials with gas contents— 49 CFR Part 173 Transport of Dangerous Goods by Air Part 1: Metallic materials, Second (ICAO Technical Instructions), 2021– edition, 2012–03–15, into §§ 172.102; Hazardous materials transportation, 2022 Edition, copyright 2020 into 173.301b; 178.71. Incorporation by reference, Packaging §§ 171.8; 171.22; 171.23; 171.24; (47) ISO 11114–1:2012/Amd and containers, Radioactive materials, 172.101; 172.202; 172.401; 172.407; 1:2017(E), Gas cylinders—Compatibility Reporting and recordkeeping 172.512; 172.519; 172.602; 173.56; of cylinder and valve materials with gas requirements, Uranium. 173.320; 175.10, 175.33; 178.3. contents—Part 1: Metallic materials— Amendment 1, Second Edition, 2017– 49 CFR Part 175 * * * * * 01–01, into §§ 172.102, 173.301b, (v) * * * Air carriers, Hazardous materials 178.71. (2) International Maritime Dangerous transportation, Radioactive materials, (48) ISO 11114–2:2013(E), Gas Goods Code (IMDG Code), Incorporating Reporting and recordkeeping cylinders—Compatibility of cylinder Amendment 40–20 (English Edition), requirements. and valve materials with gas contents— Volumes 1 and 2, 2020 Edition, into Part 2: Non-metallic materials, Second 49 CFR Part 176 §§ 171.22; 171.23; 171.25; 172.101; edition, 2013–04–01, into §§ 173.301b; Maritime carriers, Hazardous 172.202; 172.203 172.401; 172.407; 178.71. materials transportation, Incorporation 172.502; 172.519; 172.602; 173.21; (49) ISO 11117:1998(E): Gas by reference, Radioactive materials, 173.56; 176.2; 176.5; 176.11; 176.27; cylinders—Valve protection caps and Reporting and recordkeeping 176.30; 176.83; 176.84; 176.140; valve guards for industrial and medical requirements. 176.720; 176.906; 178.3; 178.274. gas cylinders—Design, construction and 49 CFR Part 178 (w) * * * tests, First edition, 1998–08–01, into (38) ISO 10156:2017(E), Gas Hazardous materials transportation, § 173.301b. cylinders—Gases and gas mixtures— (50) ISO 11117:2008(E): Gas Incorporation by reference, Motor Determination of fire potential and vehicle safety, Packaging and cylinders—Valve protection caps and oxidizing ability for the selection of valve guards—Design, construction and containers, Reporting and recordkeeping cylinder valve outlets, Fourth edition, requirements. tests, Second edition, 2008–09–01, into 2017–07–01, into § 173.115. § 173.301b. 49 CFR Part 180 (39) ISO 10297:1999(E), Gas (51) ISO 11117:2008/Cor.1:2009(E): cylinders—Refillable gas cylinder Hazardous materials transportation, Gas cylinders—Valve protection caps valves—Specification and type testing, and valve guards—Design, construction Motor carriers, Motor vehicle safety, First Edition, 1995–05–01, into Packaging and containers, Railroad and tests, Technical Corrigendum 1, §§ 173.301b; 178.71. 2009–05–01, into § 173.301b. safety, Reporting and recordkeeping (40) ISO 10297:2006(E), Transportable requirements. (52) ISO 11118(E), Gas cylinders— gas cylinders—Cylinder valves— Non-refillable metallic gas cylinders— In consideration of the foregoing, Specification and type testing, Second Specification and test methods, First PHMSA proposes to amend 49 CFR Edition, 2006–01–15, into §§ 173.301b; edition, October 1999, into § 178.71. chapter I as follows: 178.71. (53) ISO 11118:2015(E), Gas (41) ISO 10297:2014(E), Gas PART 171—GENERAL INFORMATION, cylinders—Non-refillable metallic gas cylinders—Cylinder valves— REGULATIONS, AND DEFINITIONS cylinders—Specification and test Specification and type testing, Third methods, Second edition, 2015–09–15, ■ 1. The authority citation for part 171 Edition, 2014–07–15, into §§ 173.301b; into § 178.71. continues to read as follows: 178.71. (54) ISO 11119–1(E), Gas cylinders— (42) ISO 10297:2014/Amd 1:2017(E), Authority: 49 U.S.C. 5101–5128, 44701; Gas cylinders of composite Pub. L. 101–410 section 4; Pub. L. 104–134, Gas cylinders—Cylinder valves— construction—Specification and test section 31001; Pub. L. 114–74 section 4 (28 Specification and type testing— methods—Part 1: Hoop-wrapped U.S.C. 2461 note); 49 CFR 1.81 and 1.97. Amendment 1: Pressure drums and composite gas cylinders, First edition, tubes, Third Edition, 2017–03, into ■ 2. Amend § 171.7 by: May 2002, into § 178.71. ■ a. Revising paragraphs (s)(1), (t)(1), §§ 173.301b; 178.71. (55) ISO 11119–1:2012(E), Gas (43) ISO 10461:2005(E), Gas and (v)(2); cylinders—Refillable composite gas ■ b. Revising paragraphs (w)(38) cylinders—Seamless aluminum-alloy cylinders and tubes—Design, through (77) and adding paragraphs gas cylinders—Periodic inspection and construction and testing— Part 1: Hoop (w)(78) through (81); and testing, Second Edition, 2005–02–15 wrapped fibre reinforced composite gas ■ c. Revising paragraphs (aa)(3), and and Amendment 1, 2006–07–15, into cylinders and tubes up to 450 L, Second (dd)(1) through (4). § 180.207. edition, 2012–08–01, into §§ 178.71; The revisions and additions read as (44) ISO 10462:2013(E), Gas 178.75. follows: cylinders—Acetylene cylinders— (56) ISO 11119–2(E), Gas cylinders— Periodic inspection and maintenance, Gas cylinders of composite § 171.7 Reference Material. Third edition, 2013–12–15, into construction—Specification and test * * * * * § 180.207. methods—Part 2: Fully wrapped fibre
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reinforced composite gas cylinders with (66) ISO 11623(E), Transportable gas 1000 litres, First edition, 2015–04–01, load-sharing metal liners, First edition, cylinders—Periodic inspection and into § 178.71. May 2002, into § 178.71. testing of composite gas cylinders, First (80) ISO 22434:2006(E), Transportable (57) ISO 11119–2:2012(E), Gas edition, March 2002, into § 180.207. gas cylinders—Inspection and cylinders—Refillable composite gas (67) ISO 11623(E), Transportable gas maintenance of cylinder valves, First cylinders and tubes—Design, cylinders—Periodic inspection and Edition, 2006–09–01, into § 180.207. construction and testing—Part 2: Fully testing of composite gas cylinders, (81) ISO/TR 11364:2012(E), Gas wrapped fibre reinforced composite gas Second edition, 2015–12–01, into cylinders—Compilation of national and cylinders and tubes up to 450 l with § 180.207. international valve system/gas cylinder load-sharing metal liners, Second (68) ISO 13340:2001(E), Transportable neck threads and their identification edition, 2012–07–15, into §§ 178.71; gas cylinders—Cylinder valves for non- and marking system, First Edition, 178.75. refillable cylinders—Specification and 2012–12–01, into § 178.71. (58) ISO 11119–2:2012/ prototype testing, First edition, 2004– * * * * * Amd.1:2014(E), Gas cylinders— 04–01, into §§ 173.301b; 178.71. (aa) * * * Refillable composite gas cylinders and (69) ISO 13736:2008(E), (3) Test No. 431: In Vitro Skin tubes—Design, construction and Determination of flash point—Abel Corrosion: Reconstructed Human testing—Part 2: Fully wrapped fibre closed-cup method, Second Edition, Epidermis (RHE) Test Method, OECD reinforced composite gas cylinders and 2008–09–15, into § 173.120. Guidelines for the Testing of Chemicals, tubes up to 450 l with load-sharing (70) ISO 14246:2014(E), Gas 29 July 2016, into § 173.137. metal liners, Amendment 1, 2014–08– cylinders—Cylinder valves— * * * * * Manufacturing tests and examination, 15, into §§ 178.71; 178.75. (dd) * * * (59) ISO 11119–3(E), Gas cylinders of Second Edition, 2014–06–15, into (1) UN Recommendations on the composite construction—Specification § 178.71. Transport of Dangerous Goods, Model and test methods—Part 3: Fully (71) ISO 14246:2014/Amd 1:2017(E), Regulations (UN Recommendations), wrapped fibre reinforced composite gas Gas cylinders—Cylinder valves— 21st revised edition, Volumes I and II, cylinders with non-load-sharing Manufacturing tests and examinations ST/SG/AC.10.1/21/Rev.21, (2019), into metallic or non-metallic liners, First –Amendment 1, Second Edition, 2017– §§ 171.8; 171.12; 172.202; 172.401; edition, September 2002, into § 178.71. 06–01, into § 178.71. (60) ISO 11119–3:2013(E), Gas (72) ISO 16111:2008(E), Transportable 172.407; 172.502; 172.519; 173.22; cylinders— Refillable composite gas gas storage devices—Hydrogen absorbed 173.24; 173.24b; 173.40; 173.56; cylinders and tubes—Design, in reversible metal hydride, First 173.192; 173.302b; 173.304b; 178.75; construction and testing—Part 3: Fully Edition, 2008–11–15, into §§ 173.301b; 178.274. (2) Manual of Tests and Criteria, 7th wrapped fibre reinforced composite gas 173.311; 178.71. revised edition, ST/SG/AC.10/11/Rev.7 cylinders and tubes up to 450 l with (73) ISO 16148:2016(E), Gas (2019), into §§ 171.24, 172.102; 173.21; non-load-sharing metallic or non- cylinders—Refillable seamless steel gas 173.56; 173.57; 173.58; 173.60; 173.115; metallic liners, Second edition, 2013– cylinders and tubes—Acoustic emission 173.124; 173.125; 173.127; 173.128; 04–15, into §§ 178.71; 178.75. examination (AT) and follow-up (61) ISO 11119–4:2016(E), Gas ultrasonic examination (UT) for periodic 173.137; 173.185; 173.220; 173.221; cylinders—Refillable composite gas inspection and testing, Second Edition, 173.224; 173.225; 173.232; part 173, cylinders—Design, construction and 2016–04–15, into § 180.207. appendix H; 175.10; 176.905; 178.274. testing—Part 4: Fully wrapped fibre (74) ISO 17871:2015(E), Gas (3) Globally Harmonized System of reinforced composite gas cylinders up to cylinders—Quick-release cylinder Classification and Labelling of 150 l with load-sharing welded metallic valves—Specification and type testing, Chemicals (GHS), 8th revised edition, liners, First Edition, 2016–02–01, into First Edition, 2015–08–15, into ST/SG/AC.10/30/Rev.8 (2019), into § 178.71; 178.75. § 173.301. § 172.401. (62) ISO 11120 (E), Gas cylinders— (75) ISO 17879: 2017(E), Gas (4) ECE/TRANS/300 (Vol. I and II), Refillable seamless steel tubes for cylinders—Self-closing cylinder Agreement concerning the International compressed gas transport, of water valves—Specification and type testing, Carriage of Dangerous Goods by Road capacity between 150 l and 3000 l— First Edition, 2017–07–01, into (ADR), copyright 2020, into § 171.23. Design, construction and testing, First §§ 173.301b and 178.71. * * * * * edition, 1999–03, into §§ 178.71; 178.75. (76) ISO 18172–1:2007(E), Gas ■ 3. In § 171.8, the definitions for (63) ISO 11120:2015(E), Gas cylinders—Refillable welded stainless ‘‘SADT’’ and ‘‘SAPT’’ are revised to read cylinders—Refillable seamless steel steel cylinders—Part 1: Test pressure 6 as follows: tubes of water capacity between 150 l MPa and below, First Edition, 2007–03– § 171.8 Definitions and abbreviations. and 3000 l—Design, construction and 01, into § 178.71. testing, Second Edition, 2015–02–01, (77) ISO 20475:2018(E), Gas * * * * * into §§ 178.71; 178.75. cylinders—Cylinder bundles—Periodic SADT means self-accelerated (64) ISO 11513:2011(E), Gas inspection and testing, First Edition, decomposition temperature and is the cylinders—Refillable welded steel 2018–02–01, into § 180.207. lowest temperature at which self- cylinders containing materials for sub- (78) ISO 20703:2006(E), Gas accelerating decomposition may occur atmospheric gas packaging (excluding cylinders—Refillable welded in a substance in the packaging, IBC, or acetylene)—Design, construction, aluminum-alloy cylinders—Design, portable tank offered for transport. See testing, use and periodic inspection, construction and testing, First Edition, also § 173.21(f) of this subchapter. First edition, 2011–09–12, into 2006–05–01, into § 178.71. * * * * * §§ 173.302c; 178.71; 180.207. (79) ISO 21172–1:2015(E), Gas SAPT means self-accelerated (65) ISO 11621(E), Gas cylinders— cylinders—Welded steel pressure drums polymerization temperature and is the Procedures for change of gas service, up to 3 000 litres capacity for the lowest temperature at which self- First edition, April 1997, into transport of gases—Design and accelerating polymerization may occur §§ 173.302, 173.336, 173.337. construction—Part 1: Capacities up to with a substance in the packaging, IBC,
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or portable tank as offered for transport. Regulations may be used for device use, test period, filling ratios, test See also § 173.21(f) of this subchapter. transportation to, from, or within the pressure, maximum working pressure, This definition will be effective until United States provided the cylinder, and material compatibility for the lading January 2, 2023. pressure drum, MEGC, cargo tank motor contained or gas being filled, are * * * * * vehicle, portable tank, or rail tank car authorized as follows: ■ 4. In § 171.12, paragraph (a)(1) is conforms to the applicable requirements * * * * * revised to read as follows: of this section. Except as otherwise provided in this subpart and subpart C PART 172—HAZARDOUS MATERIALS § 171.12 North American Shipments. of this part, the requirements in parts TABLE, SPECIAL PROVISIONS, (a) * * * 172, 173, and 178 of this subchapter do HAZARDOUS MATERIALS (1) A hazardous material transported not apply for a material transported in COMMUNICATIONS, EMERGENCY from Canada to the United States, from accordance with the Transport Canada RESPONSE INFORMATION, TRAINING the United States to Canada, or TDG Regulations. REQUIREMENTS, AND SECURITY transiting the United States to Canada or * * * * * PLANS ■ 5. In § 171.23, paragraph (a)(3) is a foreign destination may be offered for ■ transportation or transported by motor revised to read as follows: 6. The authority citation for part 172 continues to read as follows: carrier and rail in accordance with the § 171.23 Requirements for specific Transport Canada TDG Regulations materials and packagings transported Authority: 49 U.S.C. 5101–5128, 44701; 49 (IBR, see § 171.7), an equivalency under the ICAO Technical Instructions, CFR 1.81, 1.96 and 1.97. certificate (permit for equivalent level of IMDG Code, Transport Canada TDG ■ 7. In § 172.101, The Hazardous safety), or a temporary certificate Regulations, or the IAEA Regulations. Materials Table is amended by removing (permit in support of public interest) (a) * * * the entries under ‘‘[REMOVE],’’ by issued by Transport Canada as an (3) Pi-marked pressure receptacles. adding the entries under ‘‘[ADD,]’’ and alternative to the TDG Regulations, as Pressure receptacles that are marked by revising entries under ‘‘[REVISE]’’ in authorized in § 171.22, provided the with a pi mark in accordance with the the appropriate alphabetical sequence. requirements in §§ 171.22 and 171.23, European Directive 2010/35/EU (IBR, The additions and revisions read as as applicable, and this section are met. see § 171.7) on transportable pressure follows: In addition, a cylinder, pressure drum, equipment (TPED) and that comply with MEGC, cargo tank motor vehicle, the requirements of Packing Instruction § 172.101 Purpose and use of the portable tank or rail tank car authorized P200 or P208 and 6.2 of the ADR (IBR, hazardous materials table. by the Transport Canada TDG see § 171.7) concerning pressure relief * * * * *
VerDate Sep<11>2014 19:16 Aug 09, 2021 Jkt 253001 PO 00000 Frm 00040 Fmt 4701 Sfmt 4702 E:\FR\FM\10AUP4.SGM 10AUP4 jbell on DSKJLSW7X2PROD with PROPOSALS4 Federal Register / Vol. 86, No. 151 / Tuesday, August 10, 2021 / Proposed Rules 43883 (10B) Vessel stowage (10A) Location Other (9B) A105 ..... A ...... A105 ..... A ...... Cargo air-craft only See See §§ 173.27 and 175.75) Quantity limitations (9A) A105 ..... A105 ..... aircraft/rail Passenger ( see See See
...... No limit ...... No limit ...... A ...... Forbidden ...... Forbidden .... Forbidden .... 05 ...... 75 kg ...... 25 05 ...... 25 ...... No limit ...... No limit ...... A ...... (8C) ...... (8) (9) (10) (8) (9) (8B) (§ 173.***) Packaging Exceptions Non-bulk Bulk (§ 172.102) Special Provisions (6) (7) (8A) (7) (6) (5) PG Label codes PG Label (4) No. Identification UN3291 ...... 6.2 ...... 41, 337, A13 ...... 134 ...... 197 ...... 197 ...... No limit ...... No limit ...... B ...... 40 9 UN3363 ...... A105...... 136, None ...... 222 ...... None ...... 9 UN3171 ...... 9 ...... 360...... 134, 220 ...... 220 ...... None ...... 9 UN3363 ...... A105...... 136, None ...... 222 ...... None ...... 9 UN3171 ...... 9 ...... 134 ...... 220 ...... 220 ...... None .... ******* ******* ******* ******* ******* ******* ******* ******* ******* ******* ******* ******* ******* 6.2 UN3549 ...... 6.2 ...... 430...... 131, ...... 6.1 UN2522 II ...... 6.1 ...... 387, IB2, T7, TP2 ...... 153 ...... 202 ...... 243 ...... 5 L ...... 60 L ...... B ...... 40 6.2 6.2 UN3291 II ...... 6.2 ...... 41, 337, A13 ...... 134 ...... 197 ...... 197 ...... No limit ...... No limit ...... B ...... 40 1.1B UN0511 1.4B UN0512 ...... 1.1B ...... 1.4S ...... 148 UN0513 ...... 1.4B63(g)...... 63(f), 103 62 ...... 63(g)...... None 63(f), ...... 1.4S 62 ...... 148, 347 None ...... 63(f), 63(g) ... 62 ...... None ...... 25 kg ...... 100 kg ...... 01 ...... 25 Hazard division class or or Bio- Bio- Dan- Dan- Medical Medical Battery- proper shipping names fuel control units (FCU), carbu- retors, fuel lines, pumps) see Dangerous Goods in Apparatus or Dangerous Goods in Articles or Dangerous Goods in Machinery. humans , solid or Medical waste, category A, affecting animals only, solid . Clinical waste, unspecified, n.o.s. or (BIO) Medical waste, n.o.s. or for blasting . for blasting . for blasting . stabilized. medical waste, n.o.s., or Waste n.o.s.. gerous goods in machinery or gerous goods in apparatus. powered equipment. fuel control units (FCU), carbu- retors, fuel lines, pumps) see Dangerous Goods in Apparatus or Dangerous Goods in Machinery. Clinical waste, unspecified, n.o.s. or (BIO) Medical waste, n.o.s. or Dangerous Goods in Apparatus. medical waste, n.o.s., or Waste n.o.s.. powered equipment. Hazardous materials descriptions and Fuel system components (including Medical waste, category A, affecting Regulated medical waste, n.o.s. Detonators, electronic programmable Detonators, electronic programmable Detonators, electronic programmable 2-Dimethylaminoethyl methacrylate, Dangerous goods in articles or 2-Dimethylaminoethyl methacrylate ....Fuel system components (including 6.1 UN2522 Regulated medical waste, n.o.s. or II ...... 6.1 ...... IB2, T7, TP2 ...... 153 ...... 202[ADD] ...... 243 ...... 5 L ...... Battery-powered vehicle or 60 L ...... B ...... 40 [REVISE] Dangerous Goods in Machinery or [REMOVE] Battery-powered vehicle or Battery- (1) (2) (3) (1) (2) Symbols
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..... 75 kg ...... 150 kg ...... A ...... 25, 87, 126, ...... Forbidden .... Forbidden ...... Forbidden .... Forbidden ...... Forbidden ...... Forbidden .... Forbidden ...... Forbidden ...... 75 kg ...... 150 kg ...... A ...... 25, 87, 126, ...... Forbidden .... Forbidden .... B ...... 1 L ...... 5 L ...... B ...... 52 ...... Forbidden .... Forbidden .... A ...... Forbidden .... Forbidden .... B ...... Forbidden .... Forbidden .... B ...... Forbidden .... Forbidden .... A ...... Forbidden .... Forbidden .... B ...... Forbidden .... Forbidden .... D ...... Forbidden .... Forbidden .... A ...... 25, 87, 126, ...... Forbidden .... 150 kg ...... A ...... 25, 87, 126, ...... 75 kg ...... 150 kg ...... A ...... 25, 87, 126, (8C) (8) (9) (10) (8) (9) (8B) (§ 173.***) Packaging ...... 202 ...... 242 ...... Forbidden .... Forbidden .... B ...... 40 Exceptions Non-bulk Bulk None ...... 212 ...... 242 ...... None ...... 15 kg ...... 213 ...... 50 kg ...... 242 ...... B ...... 25 kg ...... 52 10 kg ...... B ...... 52 155 ...... 203 ...... 241 ...... 155 ...... No limit ...... 213 ...... No limit 240 ...... A No limit ...... No limit ...... A ...... None ...... 214 ...... 214 ...... Forbidden .... Forbidden ...... (§ 172.102) Special Provisions TP33, W31. TP33, W31. IB3,. A112,. T4, TP1, TP29 ...... B54, B120, IB8, IP3, .. N20, N91, T1, TP33 ... (6) (7) (8A) (7) (6) (5) PG Label codes PG Label III ...... 4.2, 8 ...... 64, A7, IB8, IP3, T1, (4) No. Identification 9 UN3548 ...... 9 ...... 391 ...... None ...... 232 ...... 232 ...... 3 UN3540 ...... 3 ...... 391 ...... None ...... 232 ...... 232 ...... 8 UN3547 ...... 8 ...... 391 ...... None ...... 232 ...... 232 ...... 3 UN3274 II ...... 8...... 3, IB2 ...... 150 ...... 202 ...... 243 ...... 9 UN3077 III ...... 9 ...... 8, 146, 335, 384, 441, 3 UN2381 II ...... 3, 6.1 ...... IB2, T7, TP2, TP13 .... 150 ..... 9 UN3082 III ...... 9 ...... 8, 146, 173, 335, 441, ******* ******* ******* ******* ******* ******* ******* ******* ******* ******* 6.1 UN3546 ...... 6.1 ...... 391 ...... None ...... 232 ...... 232 ...... 5.1 UN3544 ...... 5.1 ...... 391...... 131, None ...... 214 ...... 214 ...... 5.2 UN3545 ...... 5.2 ...... 391...... 131, None ...... 214 ...... 214 ...... 2.2 UN3538 ...... 2.2 ...... 391 ...... None ...... 232 ...... 232 ...... 4.1 UN3541 ...... 4.1 ...... 391 ...... None ...... 232 ...... 232 ...... 4.2 UN3542 ...... 4.2 ...... 391...... 131, None ...... 214 ...... 214 ...... 4.3 UN3543 ...... 4.3 ...... 391...... 131, 2.1 UN3537 None ...... 214 ...... 214 ...... 2.1 ...... 391 ...... None ...... 232 ...... 232 ...... 4.2 UN3206 II ...... 4.2, 8 ...... 64, A7, IB5, IP2, T3, 2.2 UN1950 ...... 6.1...... 2.2, ...... 306 ...... None ...... None ... 2.2 UN1950 ...... 2.2 ...... 306 ...... None ...... None 2.1 UN1950 ...... 2.1 ...... N82 ...... 306 ...... 304 ...... None ... 2.1 UN1950 ...... 2.1 ...... N82 ...... 306 ...... None ...... None ..... 2.2 UN1950 ...... 8...... 2.2, A34 ...... 306 ...... None ...... None ...... Hazard division class or ...... non-flammable, (each not flammable, (each not ex- poison, Packing Group III corrosive, Packing Group II proper shipping names n.o.s.. stance, n.o.s.. n.o.s.. gerous goods, n.o.s.. non-toxic gas, n.o.s.. n.o.s.. n.o.s.. to spontaneous combustion, n.o.s.. in contact with water emits flam- mable gases, n.o.s.. stance, n.o.s.. n.o.s.. corrosive, n.o.s.. (each not exceeding 1 L capacity) . exceeding 1 L capacity) . starting fluid) (each not exceeding 1 L capacity) . ceeding 1 L capacity) . stance, solid, n.o.s.. or III, (each not exceeding 1 L ca- pacity) . stance, liquid, n.o.s.. Hazardous materials descriptions and Desensitized explosives, solid, n.o.s. 4.1 UN3380 I ...... 4.1 ...... 164, 197, ...... None ...... 211 ...... None ...... Forbidden .... Forbidden .... D ...... 28, 36 Dimethyl disulfide Aerosols, Aerosols, Aerosols, flammable, n.o.s. (engine Aerosols, Aerosols, (1) (2) (3) (1) (2) Symbols ...... G ...... G Articles containing toxic gas, n.o.s...... Articles containing toxic substance, 2.3 UN3539 ...... 2.3 ...... 131, 391 ...... G ...... Articles containing oxidizing sub- G ...... Articles containing organic peroxide, G ...... Articles containing miscellaneous dan- G ...... Articles containing non-flammable, G ...... Articles containing flammable solid, G ...... Articles containing flammable liquid, G ...... Articles containing a substance liable G ...... Articles containing a substance which G ...... Articles containing corrosive sub- G ...... Articles containing flammable gas, G ...... Alkali metal alcoholates, self-heating, G ...... Alcoholates solution, n.o.s., in alcohol G ...... Environmentally hazardous sub- G ...... Environmentally hazardous sub-
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.... 15 kg ...... 50 kg ...... E ...... 28, 36 .... 1 kg ...... 15 kg ...... D ...... 12, 25, 28, ...... Forbidden .... Forbidden .... 04 ...... 25, 27E ...... Forbidden .... Forbidden .... 04 ...... 25 ...... Forbidden .... Forbidden ...... 04 Forbidden ...... 25, 27E Forbidden .... 04 ...... 25 ...... 50 mL or ...... 50 mL or ne ...... 1 kg ...... 15 kg ...... B ...... 40, 157 ne ...... 1 kg ...... 15 kg ...... B ...... 40, 157 ne ...... 1 kg ...... 15 kg ...... B ...... 40, 157 185 ...... 185 ...... 185 ...... 185 ...... 5 kg ...... 185 ...... 35 kg ...... 185 ...... A ...... 5 kg ...... 156 35 kg ...... A ...... 156 185 ...... 185 ...... 185 ...... 5 kg ...... 35 kg ...... A ...... 156 185 ...... 185 ...... 185 ...... 5 kg ...... 35 kg ...... A ...... 156 155 ...... 218 ...... 218 ...... 100 kg ...... 200 kg ...... B ...... 25, 88, 122, ...... 151 ...... 213 ...... 240 ...... Forbidden .... Forbidden .... A ...... A54, A101. A54. A54. A54. TP33...... 1.3C ...... 196 ...... None ...... 62 ...... None ..... 9 UN3091 ...... 9 ...... 181, 360, 388, 422, 9 UN3480 ...... 9 ...... 388, 422, A54, A100 .. 185 ...... 185 ...... 185 ...... Forbidden .... 35 kg ...... A ...... 156 9 UN3090 9 UN3091 ...... 9 ...... 388, 422, A54 ...... 9 ...... 185 ...... 181, 360, 388, 422, 185 ...... 185 ...... Forbidden .... 35 kg ...... A ...... 156 9 UN3481 ...... 9 ...... 181, 360, 388, 422, 9 UN3481 ...... 9 ...... 181, 360, 388, 422, 9 UN2216 III ...... 155, IB8, IP3, T1, ******* ******* ******* ******* ******* ******* ******* ******* ******* ******* ******* ******* ******* 4.1 UN2557 II ...... 4.1 ...... 44, 197, W31 ...... 151 ...... 212 ...... None ...... 1 kg ...... 15 kg ...... D ...... 28, 36 2.2 UN2037 ...... 2.2, 5.1 ...... , A14 ...... 306 ...... 304 ...... None ...... 1 kg ...... 15 kg ...... B ...... 40, 157 6.2 UN2814 ...... 6.2 ...... A82 ...... 134 ...... 196 ...... None ... 2.2 UN2037 ...... 2.2 ...... 306 ...... 304 ...... No 6.2 UN2900 ...... 6.2 ...... A82 ...... 134 ...... 196 ...... None ... 2.1 UN2037 ...... 2.1 ...... 306 ...... 304 ...... No 2.1 UN2037 ...... 2.1 ...... 306 ...... 304 ...... No 4.1 UN2555 II ...... 4.1 ...... W31...... 197, 151 ...... 212 ...... None ...... 4.1 UN2556 II ...... 4.1 ...... W31...... 197, 151 ...... 212 ...... None ...... 1.1D UN0340 ...... 1.1D ...... 196 ...... None ...... 62 ...... None ..... 1.3C UN0343 1.3C UN0342 ...... 1.3C ...... 196 ...... None ...... 62 ...... None ..... 1.1D UN0341 ...... 1.1D ...... 196 ...... None ...... 62 ...... None ..... Fish scrap, without plasticizer, with not more than unmodified or plasti- including lithium ion including lithium ion dry or wetted with less including lithium alloy including lithium alloy without pigment. cartridges (non-flammable) only . or less than 18 percent plasticizing substance, by mass . equipment than 25 percent water (or alcohol), by mass . batteries . 12.6 percent nitrogen, by dry mass mixture with or with ium alloy batteries . equipment batteries . equipment polymer batteries . ion polymer batteries . equipment polymer batteries . gas cartridges (oxidizing), without release device, not refillable and not exceeding 1 L capacity . mans. gas without release device, not refillable and not exceeding 1 L capacity . mals gas cartridges (flammable) without release device, not refillable and not exceeding 1 L capacity . release device, non-refillable . cized with less than 18 percent plasticizing substance, by mass . than 25 percent water, by mass . stabilized. than 25 percent alcohol, by mass . less than 25 percent alcohol by mass, and with not more than 12.6 percent nitrogen, by dry mass . Nitrocellulose, plasticized with not Lithium metal batteries packed with Nitrocellulose, Nitrocellulose, Lithium metal batteries including lith- Lithium metal batteries contained in Lithium ion batteries packed with Lithium ion batteries including lithium Lithium ion batteries contained in Receptacles, small, containing gas or Receptacles, small, containing gas or Receptacles, small, containing gas or Gas cartridges, (flammable) without a Nitrocellulose, Nitrocellulose with water not less Nitrocellulose, wetted with not less Nitrocellulose with alcohol not G ...... Infectious substances, affecting hu- G ...... Infectious substances, affecting ani- A, I, W ...... Fibers, vegetable, dry ...... 4.1 UN3360 III ...... 4.1 ...... 137 ...... A, WA, ...... Fish meal, stabilized or
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(8C) (8) (9) (10) (8) (9) (8B) (§ 173.***) Packaging Exceptions Non-bulk Bulk None ...... 213 ...... 241 ...... 25 kg ...... 100 kg ...... None ...... E ...... 202 ...... 13, 85, 148 None 243 ...... 203 ...... 1 L ...... 242 ...... 5 L ...... 5 L ...... E ...... 60 L ...... 13, 40, 148 E ...... 13, 40, 148 None ...... 212 ...... 242 ...... 15 kg ...... 50 kg ...... E ...... 13, 85, 148 None ...... 212 ...... 242 ...... 15 kg ...... 50 kg ...... B ...... 52 151 ...... 212 ...... 242 ...... 15 kg ...... 50 kg ...... E ...... 13, 85, 148 7, 7, (§ 172.102) Special Provisions W31. W31. W31. W31, W40. TP33, W31. W40. (6) (7) (8A) (7) (6) (5) PG Label codes PG Label (4) No. Identification 3 UN1289 3 UN1289 II ...... III 3, 8 ...... 3, 8 IB2, T7, TP1, TP8 ...... B1, IB3, T4, TP1 150 ...... 150 202 ...... 203 243 ...... 242L 1 ...... L 5 5 L ...... 60 L B ...... A 52 ...... 52 ******* ******* ******* ******* ******* ******* 4.3 UN3135 III ...... 4.3, 4.2 ...... IB8, IP4, T1, TP33, 4.3 UN3135 II ...... 4.3, 4.2 ...... IB5, IP2, T3, TP33, 4.3 UN3135 I ...... 4.3, 4.2 ...... N40, W31 ...... None ...... 211 ...... 242 ...... Forbidden .... 15 kg ...... D ...... 13, 148 Hazard division class or proper shipping names n.o.s.. n.o.s.. n.o.s.. Hazardous materials descriptions and Sodium methylate solutions in alcohol Sodium methylate solutions in alcohol Sodium methylate ...... 4.2 UN1431 II ...... 4.2 ...... A7, A19, IB5, IP2, T3, (1) (2) (3) (1) (2) Symbols G ...... G Water-reactive liquid, n.o.s...... Water-reactive liquid, n.o.s...... G ...... Water-reactive liquid, n.o.s...... 4.3 UN3148 4.3 UN3148 4.3 I ...... UN3148 II 4.3 ...... 4.3 T13, TP2, TP7, W31 ...... III IB1, T7, TP2, TP ...... None ...... 4.3 ...... 201 ...... IB2, T7, TP2, TP 244 ...... Forbidden .... 1 L ...... E ...... 13, 40, 148 G ...... Water-reactive solid, self-heating, G ...... Water-reactive solid, self-heating, G ...... G Water-reactive liquid, corrosive, n.o.s...... G Water-reactive liquid, corrosive, n.o.s...... Water-reactive liquid, corrosive, n.o.s. 4.3 UN3129 4.3 UN3129 4.3 UN3129 I ...... II 4.3, 8 ...... III 4.3, 8 ...... T14, TP2, TP7, TP13 ...... 4.3, 8 IB1, T11, TP2, TP7 ...... None ...... IB2, T7, TP2, TP7 None ...... 201 ...... None 202 ...... 243 ...... 203 243 ...... Forbidden ...... 242 1 L ...... 1 L ...... 5 L 5 L ...... D ...... 60 L E ...... 13,148 ...... E 13, 85, 148 ...... 13, 85, 148 G ...... G Water-reactive solid, flammable, n.o.s...... Water-reactive solid, flammable, n.o.s. G ...... Water-reactive solid, flammable, n.o.s. 4.3 UN3132 4.3 UN3132 4.3 I ...... UN3132 II 4.3, 4.1 ...... 4.3, 4.1 IB4, N40, W31 ...... III ...... IB4, T3, TP33, W31, None ...... 4.3, 4.1 ...... 211 ...... IB6, T1, TP33, W31 ... 242 ...... 151 ...... Forbidden .... 213 ...... 15 kg ...... 241 ...... D ...... 25 kg ...... 13, 148 100 kg ...... E ...... 13, 85, 148 G ...... Water-reactive solid, self-heating,
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* * * * * be detached from its frame to fit into the aircraft. Furthermore, lithium batteries ■ 8. In § 172.102: packaging. installed in a cargo transport unit, ■ a. In paragraph (c)(1): b. Examples of equipment are designed only to provide power external ■ i. Revise special provisions 47, 134, lawnmowers, cleaning machines, or to the transport unit must be described 135, 136, 147, 360, 370, 379(d)(1); and model boats and model aircraft. using the proper shipping name ■ ii. Add special provisions 196, 197, Equipment powered by lithium metal ‘‘Lithium batteries installed in cargo 430, and 441 in numerical order. batteries or lithium ion batteries must be transport unit’’ found in the § 172.101 ■ b. In paragraph (c)(8), remove TP described using the entries ‘‘Lithium Hazardous Materials Table. codes TP39 and TP41. metal batteries contained in equipment’’ 136 This entry applies only to The additions and revisions read as or ‘‘Lithium metal batteries packed with articles, machinery and apparatus follows: equipment’’ or ‘‘Lithium ion batteries containing hazardous materials as an § 172.102 Special Provisions. contained in equipment’’ or ‘‘Lithium integral element of the article, ion batteries packed with equipment,’’ * * * * * machinery, or apparatus. It may not be as appropriate. used to describe articles, machinery, or (c) * * * c. Self-propelled vehicles or (1) * * * apparatus for which a proper shipping 47 Mixtures of solids that are not equipment that also contain an internal name exists in the § 172.101 Table. subject to this subchapter and combustion engine must be described Except when approved by the Associate using the entries ‘‘Engine, internal flammable liquids may be transported Administrator, these items may only combustion, flammable gas powered’’ or under this entry without first applying contain hazardous materials for which ‘‘Engine, internal combustion, the classification criteria of Division 4.1, exceptions are referenced in Column (8) flammable liquid powered’’ or ‘‘Vehicle, provided there is no free liquid visible of the § 172.101 Table and are provided flammable gas powered’’ or ‘‘Vehicle, at the time the material is loaded or at in part 173, subparts D and G, of this flammable liquid powered,’’ as the time the packaging or transport unit subchapter. Hazardous materials appropriate. These entries include is closed. Except when the liquids are shipped under this entry are excepted hybrid electric vehicles powered by fully absorbed in solid material from the labeling requirements of this both an internal combustion engine and contained in sealed bags, for single subchapter unless offered for batteries. Additionally, self-propelled packagings, each packaging must transportation or transported by aircraft vehicles or equipment that contain a and are not subject to the placarding correspond to a design type that has fuel cell engine must be described using passed a leakproofness test at the requirements of subpart F of this part. the entries ‘‘Engine, fuel cell, flammable Orientation markings as described in Packing Group II level. Sealed packets gas powered’’ or ‘‘Engine, fuel cell, and articles containing less than 10 mL § 172.312(a)(2) are required when liquid flammable liquid powered’’ or ‘‘Vehicle, hazardous materials may escape due to of a Class 3 liquid in Packing Group II fuel cell, flammable gas powered’’ or incorrect orientation. The article, or III absorbed onto a solid material are ‘‘Vehicle, fuel cell, flammable liquid machinery, or apparatus, if unpackaged, not subject to this subchapter provided powered,’’ as appropriate. These entries or the packaging in which it is there is no free liquid in the packet or include hybrid electric vehicles contained shall be marked ‘‘Dangerous article. powered by a fuel cell engine, an goods in articles’’ or ‘‘Dangerous goods * * * * * internal combustion engine, and in machinery’’ or ‘‘Dangerous goods in 134 This entry applies only to batteries. vehicles powered by wet batteries, 135 Internal combustion engines apparatus’’ as appropriate, with the sodium batteries, lithium metal batteries installed in a vehicle must be described identification number UN3363. For or lithium ion batteries, and equipment using ‘‘Vehicle, flammable gas transportation by aircraft, articles, powered by wet batteries or sodium powered’’ or ‘‘Vehicle, flammable liquid machinery, or apparatus, may not batteries that are transported with these powered,’’ as appropriate. If a vehicle is contain any material forbidden for batteries installed. Lithium batteries powered by a flammable liquid and a transportation by passenger or cargo installed in a cargo transport unit, flammable gas internal combustion aircraft. The Associate Administrator designed only to provide power external engine, it must be described using may except from the requirements of to the transport unit must use the proper ‘‘Vehicle, flammable gas powered.’’ This this subchapter articles, machinery, and shipping name ‘‘Lithium batteries includes hybrid electric vehicles apparatus provided: installed in cargo transport unit’’ found powered by both an internal combustion a. It is shown that it does not pose a in the § 172.101 Hazardous Materials engine and wet, sodium or lithium significant risk in transportation; Table. batteries installed. If a fuel cell engine b. The quantities of hazardous a. For the purpose of this special is installed in a vehicle, the vehicle materials do not exceed those specified provision, vehicles are self-propelled must be described using ‘‘Vehicle, fuel in § 173.4a of this subchapter; and apparatus designed to carry one or more cell, flammable gas powered’’ or c. The equipment, and machinery or persons or goods. Examples of such ‘‘Vehicle, fuel cell, flammable liquid apparatus articles conforms with vehicles are electrically-powered cars, powered,’’ as appropriate. This includes § 173.222 of this subchapter. motorcycles, scooters, three- and four- hybrid electric vehicles powered by a * * * * * wheeled vehicles or motorcycles, trucks, fuel cell, an internal combustion engine, 147 This entry applies to non- locomotives, bicycles (pedal cycles with and wet, sodium or lithium batteries sensitized emulsions, suspensions, and an electric motor) and other vehicles of installed. For the purpose of this special gels consisting primarily of a mixture of this type (e.g., self-balancing vehicles or provision, vehicles are self-propelled ammonium nitrate and fuel, intended to vehicles not equipped with at least one apparatus designed to carry one or more produce a Type E blasting explosive seating position), lawn tractors, self- persons or goods. Examples of such only after further processing prior to propelled farming and construction vehicles are cars, motorcycles, trucks, use. The mixture for emulsions typically equipment, boats, aircraft, wheelchairs locomotives, scooters, three- and four- has the following composition: 60–85% and other mobility aids. This includes wheeled vehicles or motorcycles, lawn ammonium nitrate; 5–30% water; 2–8% vehicles transported in a packaging. In tractors, self-propelled farming and fuel; 0.5–4% emulsifier or thickening this case, some parts of the vehicle may construction equipment, boats, and agent; 0–10% soluble flame
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suppressants; and trace additives. Other specified in ISO 11114–1:2012(E) and Environmentally hazardous substance, inorganic nitrate salts may replace part ISO 11114–1:2012/Amd 1:2017(E) (IBR, solid, n.o.s.’’ and ‘‘UN3082, of the ammonium nitrate. The mixture see § 171.7 of this subchapter); Environmentally hazardous substance, for suspensions and gels typically has * * * * * liquid, n.o.s.,’’ see § 172.102(c)(1), the following composition: 60–85% 430 This entry shall only be used for special provision 441 for additional ammonium nitrate; 0–5% sodium or solid medical waste of Category A provisions. potassium perchlorate; 0–17% transported for disposal. * * * * * hexamine nitrate or monomethylamine * * * * * (q) Holding time. The date at which nitrate; 5–30% water; 2– 15% fuel; 0.5– 441 For marine pollutants the actual holding time ends, as 4% thickening agent; 0–10% soluble transported under ‘‘UN3077, calculated in accordance with flame suppressants; and trace additives. Environmentally hazardous substance, § 178.338–9, must be provided on the Other inorganic nitrate salts may replace solid, n.o.s.’’ or ‘‘UN3082, shipping paper in association with the part of the ammonium nitrate. These Environmentally hazardous substance, basic description for refrigerated substances must satisfy the criteria for solid, n.o.s.’’ and for purposes of liquefied gases transported in a portable classification as an ammonium nitrate shipping paper and package marking tank. emulsion of Test Series 8 of the UN requirements, the technical name used ■ 10. In § 172.301, revise paragraph Manual of Tests and Criteria, Part I, in association with the basic description (a)(1) to read as follows: Section 18 (IBR, see § 171.7 of this may be a proper shipping name listed in subchapter), and may not be classified § 172.301 General marking requirements the § 172.101 Hazardous Material Table; for non-bulk packagings. and transported unless approved by the provided that the name chosen is not Associate Administrator. (a) * * * also an entry that includes ‘‘n.o.s.’’ as a (1) Except as otherwise provided by * * * * * part of the name or one that has a ‘‘G’’ this subchapter, each person who offers 196 The nitrocellulose must meet in column (1) of the table. a hazardous material for transportation the criteria of the Bergmann-Junk test or * * * * * in a non-bulk packaging must mark the methyl violet paper test in the UN ■ 9. In § 172.203, revise the first package with the proper shipping name Manual of Tests and Criteria, Appendix sentence of paragraph (i)(2), revise and identification number (preceded by 10 (IBR, see § 171.7 of this subchapter). paragraph (l)(1), and add paragraphs ‘‘UN’’, ‘‘NA’’ or ‘‘ID,’’ as appropriate), as Test of type 3(c) is not required. (i)(4) and (q) to read as follows: 197 The nitrocellulose must meet shown in the § 172.101 Hazardous the criteria of the Bergmann-Junk test or § 172.203 Additional description Materials Table. The identification methyl violet paper test in the UN requirements. number marking preceded by ‘‘UN’’, ‘‘NA’’, or ‘‘ID’’ as appropriate must be Manual of Tests and Criteria, Appendix * * * * * 10 (IBR, see § 171.7 of this subchapter). (i) * * * marked in characters at least 12 mm (2) A minimum flashpoint, if 60 °C (0.47 inches) high. Packages with a * * * * * maximum capacity of 30 liters (8 360 Vehicles powered only by (140 °F) or below (in °C closed cup gallons) or less, 30 kg (66 pounds) lithium batteries must be described (c.c.)), in association with the basic maximum net mass, or cylinders with a using ‘‘UN3171, Battery-powered description, for Class 3 flammable water capacity of 60 liters (16 gallons) vehicle.’’ Lithium batteries installed in liquid materials (as a primary or or less must be marked with characters a cargo transport unit, designed only to subsidiary hazard). * * * at least 6 mm (0.24 inches) high. provide power external to the transport * * * * * Packages with a maximum capacity of 5 unit must be described using ‘‘UN3536, (4) For lithium cells or batteries liters (1.32 gallons) or less or 5 kg Lithium batteries installed in a cargo transported in accordance with maximum net mass (11 pounds) or less transport unit.’’ § 173.185(f), ‘‘DAMAGED/DEFECTIVE’’; must be marked in a size appropriate for and for lithium cells or batteries * * * * * the size of the package. 370 This entry also applies to transported for purposes of disposal or ammonium nitrate with not more than recycling, ‘‘LITHIUM BATTERIES FOR * * * * * ■ 11. In § 172.315, add paragraph (b)(3) 0.2% combustible substances, including DISPOSAL’’ or ‘‘LITHIUM BATTERIES to read as follows: any organic substance calculated as FOR RECYCLING’’, as appropriate. carbon. To the exclusion of any added * * * * * § 172.315 Limited Quantities. substance, that gives a positive result (l) * * * * * * * * when tested in accordance with Test (1) For a proper shipping name used (b) * * * Series 2 of the UN Manual of Tests and to describe a hazardous material that is (3) For transportation by aircraft, the Criteria, Part I (IBR; see § 171.7 of this a marine pollutant, either assigned the entire mark must appear on one side of subchapter). See also UN1942 in the letter ‘‘G’’ in column (1) of the § 172.101 the package. § 172.101 Hazardous Materials Table. hazardous materials table or that * * * * * This entry may not be used for contains the text ‘‘n.o.s.’’, the name of ■ 12. In § 172.322, revise paragraph ammonium nitrate for which a proper the component that makes the material (a)(1) to read as follows: shipping name already exists in the a marine pollutant must appear in § 172.101 Hazardous Materials Table, parentheses in association with the § 172.322 Marine Pollutants. including ammonium nitrate mixed basic description. Where two or more (a) * * * with fuel oil or any other commercial components that make the material a (1) For a proper shipping name used grade of ammonium nitrate (e.g., marine pollutant are present, the names to describe a hazardous material that is ammonium nitrate fertilizer). of at least two of the components most a marine pollutant and assigned the * * * * * predominantly contributing to the letter ‘‘G’’ in column (1) of the § 172.101 379 * * * marine pollutant designation must hazardous materials table or that d. * * * appear in parentheses in association contains the text ‘‘n.o.s.,’’ the name of (1) Receptacles shall be made of a with the basic description. For material the component which makes the material compatible with ammonia as described using ‘‘UN3077, material a marine pollutant must be
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marked on the package in parentheses § 172.447 LITHIUM BATTERY label. placed in packages containing COVID– in association with the marked proper * * * * * 19 pharmaceuticals are not subject to shipping name unless the proper (c) Reserved. the marking and documentation shipping name identifies by name the requirements of § 173.185(c)(3) and component, which makes the material a PART 173—SHIPPERS—GENERAL (c)(4)(iv). This same package, when marine pollutant. Where two or more REQUIREMENTS FOR SHIPMENTS shipped without the COVID–19 components that make a material a AND PACKAGINGS pharmaceuticals for the purpose of use marine pollutant are present, the names ■ 15. The authority citation for part 173 or reuse, is also not subject to the of at least two of the components most continues to read as follows: marking and documentation predominantly contributing to the requirements of § 173.185(c)(3) and marine pollutant designation must Authority: 49 U.S.C. 5101–5128, 44701; 49 (c)(4)(iv), as applicable, provided prior CFR 1.81, 1.96 and 1.97. appear in parentheses in association ■ arrangements have been made with the with the marked proper shipping name. 16. In § 173.4a, redesignate paragraph operator. (g)(3) as (4), and add new paragraph For materials described using ‘‘UN3077, (c) [Reserved.] (g)(3) to read as follows: Environmentally hazardous substance, ■ 18. In § 173.27, revise paragraphs solid, n.o.s.’’ and ‘‘UN3082, § 173.4a Excepted quantities. (c)(2), (f) introductory text, (f)(1), and Environmentally hazardous substance, * * * * * (f)(3) Tables 1 and 2 to read as follows: liquid, n.o.s.,’’ see § 172.102(c)(1), (g) * * * special provision 441 for additional § 173.27 General requirements for (3) For transportation by aircraft, the transportation by aircraft. provisions; and entire mark must appear on one side of * * * * * the package. * * * * * (c) * * * ■ 13. In § 172.406, revise paragraph (a) * * * * * to read as follows: ■ 17. Add new § 173.14 to read as (2) Except for packagings used for follows: material transported as ‘‘UN3082, § 172.406 Placement of labels. Environmentally hazardous substance, (a) General. (1) Except as provided in § 173.14 Hazardous materials in liquid, n.o.s.,’’ packagings for which paragraphs (b) and (e) of this section, equipment in use or intended for use during retention of liquid is a basic function each label required by this subpart transport. must be capable of withstanding must— (a) Except for transportation by without leakage the greater of— (i) Be printed on or affixed to a aircraft, hazardous materials (e.g., * * * * * surface (other than the bottom) of the lithium batteries, fuel cell cartridges) (f) Combination packagings. Unless package or containment device contained in equipment, such as data otherwise specified in this part, or in containing the hazardous material; loggers and cargo tracking devices, Subpart C of part 171 of this subchapter, (ii) Be located on the same surface of attached to or placed in packages, when combination packagings are the package and near the proper overpacks, or containers are not subject intended for transportation aboard an shipping name marking, if the package to this subchapter other than the aircraft, inner packagings must conform dimensions are adequate; and following: to the quantity limitations set forth in (1) The equipment must be in use or (iii) For transportation by aircraft, the Table 1 of this paragraph for transport intended for use during transportation; aboard passenger-carrying aircraft and entire label(s) must appear on one side (2) The hazardous materials (e.g., Table 2 of this paragraph for transport of the package. For cylindrical packages, lithium batteries, fuel cell cartridges, aboard cargo-only aircraft. For materials the label must be of such dimensions etc.) must meet the applicable that are authorized to exceed 220 L (58 that it will not overlap itself. In the case construction and test requirements gallons) or 200 kg (441 pounds) in of cylindrical packages containing specified in this subchapter; accordance with columns (9A) and (9B) radioactive materials, which require two (3) The equipment must be capable of of the § 172.101 Hazardous Materials identical labels, these labels must be withstanding the shocks and loadings Table, there is no limitation on the centered on opposite points of the normally encountered during transport maximum authorized net capacity of circumference and must not overlap and must be safe for use in the each inner packaging. each other. If the dimensions of the environments to which it may be package are such that two identical exposed; and (1) Excepted quantities. For labels cannot be affixed without (4) When offered for transport by authorized materials and inner and overlapping each other, one label is vessel, the requirements in outer package quantity limits for acceptable provided it does not overlap § 176.76(a)(9) of this subchapter apply. combination packages of excepted itself. (b) For transportation by aircraft, quantities intended for transportation by * * * * * lithium batteries contained in aircraft, see § 173.4a of this part. ■ 14. In § 172.447, remove and reserve equipment such as data loggers and * * * * * paragraph (c). cargo tracking devices, attached to or (3) * * *
TABLE 1—MAXIMUM NET CAPACITY OF INNER PACKAGING FOR TRANSPORTATION ON PASSENGER-CARRYING AIRCRAFT
Maximum authorized net capacity of each inner packaging Maximum net quantity per package from Column 9A of the § 172.101 table Metal or plas- Glass, earthenware or fiber tic inner inner packagings packagings
Liquids: Not greater than 0.5 L ...... 0.5 L ...... 0.5 L. Greater than 0.5 L, not greater than 1 L ...... 0.5 L ...... 1 L.
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TABLE 1—MAXIMUM NET CAPACITY OF INNER PACKAGING FOR TRANSPORTATION ON PASSENGER-CARRYING AIRCRAFT— Continued
Maximum authorized net capacity of each inner packaging Maximum net quantity per package from Column 9A of the § 172.101 table Metal or plas- Glass, earthenware or fiber tic inner inner packagings packagings
Greater than 1 L, not greater than 5 L ...... 1 L ...... 5 L. Greater than 5 L, not greater than 60 L ...... 2.5 L ...... 10 L. Greater than 60 L, not greater than 220 L ...... 5 L ...... 25 L. Class 9: UN1941, UN1990, UN2315, UN3082, UN3151, UN3334 ...... 10 ...... Plastic: 30. Metal: 40. Solids: Not greater than 5 kg ...... 0.5 kg ...... 1 kg. Greater than 5 kg. not greater than 25 kg ...... 1 kg ...... 2.5 kg. Greater than 25 kg, not greater than 200 kg ...... 5 kg ...... 10 kg. Class 9. UN1841, UN1931, UN2071, UN2216, UN2590, UN2969, UN3077, UN3152, UN3335, Glass or earthenware: 10 kg ... 50 kg. UN3432. Fiber: 50 kg ......
TABLE 2—MAXIMUM NET CAPACITY OF INNER PACKAGING FOR TRANSPORTATION ON CARGO AIRCRAFT
Maximum authorized net capacity of each inner packaging Maximum net quantity per package from Column 9a of the § 172.101 table Metal or plas- Glass, earthenware or fiber tic inner inner packagings packagings
Liquids: Not greater than 2.5L ...... 1 L ...... 1 L. Greater than 2.5L, not greater than 30L ...... 2.5 L ...... 2.5 L. Greater than 30L, not greater than 60L ...... 5 L ...... 10 L. Greater than 60L, not greater than 220L ...... 5 L ...... 25 L. Class 9: UN1941, UN1990, UN2315, UN3082, UN3151, UN3334 ...... 10 L ...... Plastic: 30 L. Metal: 40 L. Solids: Not greater than 15 kg ...... 1 kg ...... 1 kg. Greater than 15 kg. not greater than 50 kg ...... 2.5 kg ...... 5 kg. Greater than 50 kg, not greater than 200 kg ...... 5 kg ...... 10 kg. Class 9: UN1841, UN1931, UN2071, UN2216, UN2590, UN2969, UN3077, UN3152, UN3335, Glass or earthenware: 10 kg ... 50 kg. UN3432. Fiber: 50 kg ......
* * * * * Detonators, electronic programmable § 173.134 Class 6, Division 6.2— Definitions and exceptions. ■ 19. In § 173.59, revise the description for blasting. Detonators using electronic for ‘‘Detonators’’, and add a new components, such as an integrated * * * * * description for ‘‘Detonators, electronic circuit and/or micro processing (a) * * * programmable for blasting’’ in technology to provide communications, (1) Division 6.2 (Infectious substance) alphabetical order to read as follows: energy control and storage capability, means a material known or reasonably timing delay information, and validated expected to contain a pathogen. A § 173.59 Description of terms for commands to send a firing signal to the pathogen is a microorganism (including explosives. initiating charge. bacteria, viruses, parasites, and fungi) or * * * * * other agent, such as a proteinaceous * * * * * infectious particle (prion) that can cause Detonators. Articles consisting of a ■ 20. In § 173.115, revise paragraph (k) disease in humans or animals. An small metal or plastic tube containing to read as follows: infectious substance must be assigned explosives such as lead azide, PETN, or the identification number UN2814, combinations of explosives. They are § 173.115 Class 2, Divisions 2.1, 2.2, and UN2900, UN3291, UN3373, or UN3549 2.3—Definitions. designed to start a detonation train. as appropriate, and must be assigned to They may be constructed to detonate * * * * * one of the following categories: instantaneously, or may contain a delay (k) For Division 2.2 gases, the (i) Category A: An infectious element. They may contain no more oxidizing ability shall be determined by substance in a form capable of causing than 10 g of total explosives weight, tests or by calculation in accordance permanent disability or life-threatening excluding ignition and delay charges, with ISO 10156:2017(E) (IBR, see or fatal disease in otherwise healthy per unit. The term includes: Detonators § 171.7 of this subchapter). humans or animals when exposure to it for ammunition; detonators for blasting occurs. An exposure occurs when an (electric, electronic, and non-electric); * * * * * infectious substance is released outside and detonating relays without flexible ■ 21. In § 173.134, revise paragraphs of its protective packaging, resulting in detonating cord. (a)(1) and (5) to read as follows: physical contact with humans or
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animals. A Category A infectious the Testing of Chemicals, Test No. 430, be leak-checked during manufacture substance must be assigned to ‘‘In Vitro Skin Corrosion: and before shipment and must be identification number UN2814, Transcutaneous Electrical Resistance securely packed in non-combustible UN2900, or UN3549, as appropriate. Test (TER)’’ (IBR, see § 171.7 of this cushioning material, such as Assignment to UN2814, UN2900, or subchapter) or Test No. 431, ‘‘In Vitro vermiculite, in a strong outer tightly UN3549 must be based on the known Skin Corrosion: Reconstructed Human closed metal packaging which will medical history or symptoms of the Epidermis (RHE) Test Method’’ (IBR, see adequately protect all fittings. source patient or animal, endemic local § 171.7 of this subchapter) may be Maximum quantity of fuel per primary conditions, or professional judgment considered not to be corrosive to human containment and package is 42 L (11 concerning the individual skin for the purposes of this subchapter gallons). circumstances of the source human or without further testing. However, a ■ 24. In § 173.181, revise paragraph (b) animal. material determined to be corrosive in to read as follows: (ii) Category B: An infectious accordance with Test No. 430 or Test substance that is not in a form generally No. 431 must be further tested using § 173.181 Pyrophoric materials (liquids). capable of causing permanent disability Test No. 435 or Test No. 404. If the in * * * * * or life-threatening or fatal disease in vitro test results indicate that the (b) Steel boxes (4A), aluminum boxes otherwise healthy humans or animals substance or mixture is corrosive, but (4B), metal boxes, other than steel or when exposure to it occurs. This the test method does not clearly aluminum (4N), wooden boxes (4C1, includes Category B infectious distinguish between assignment of 4C2, 4D, or 4F) or fiberboard boxes (4G); substances transported for diagnostic or packing groups II and III, the material steel drums (1A1 or 1A2), aluminum investigational purposes. A Category B may be considered to be in packing drums (1B1 or 1B2), metal drums, other infectious substance must be described group II without further testing. The than steel or aluminum (1N1 or 1N2), as ‘‘Biological substance, Category B’’ packing group assignment using data plywood drums (1D), or fiber drums and assigned identification number obtained from tests conducted in (1G); or steel jerricans (3A1 or 3A2) or UN3373. This does not include accordance with OECD Guideline Test aluminum jerricans (3B1 or 3B2) regulated medical waste, which must be No. 404 or Test No. 435 must be as enclosing not more than four strong, assigned identification number UN3291. follows: tight metal cans with inner receptacles * * * * * * * * * * of glass or metal, not over 1 L (0.3 (5) Regulated medical waste or ■ 23. In § 173.172, revise paragraphs (a) gallon) capacity each, having positive clinical waste or (bio) medical waste and (b) to read as follows: screwcap closures adequately gasketed means a waste or reusable material or alternative closures physically held derived from the medical treatment of § 173.172 Aircraft hydraulic power unit fuel in place by a means capable of tank. an animal or human, which includes preventing back-off or loosening of the diagnosis and immunization, or from * * * * * closure due to conditions normally biomedical research, which includes the (a) The unit must consist of an incident to transportation (e.g., production and testing of biological aluminum pressure vessel made from vibration). Inner packagings must be products. Regulated medical waste or tubing and having welded heads. cushioned on all sides with dry, clinical waste or (bio) medical waste Primary containment of the fuel within absorbent, incombustible material in a containing a Category A infectious this vessel must consist of a welded quantity sufficient to absorb the entire substance must be classed as an aluminum bladder having a maximum contents. internal volume of 46 L (12 gallons). infectious substance, and assigned to * * * * * UN2814, UN2900, or UN3549, as The outer vessel must have a minimum ■ 25. In § 173.185, revise paragraphs appropriate. design gauge pressure of 1,275 kPa (185 psig) and a minimum burst gauge (c)(3)(i) introductory text and (c)(3)(i)(A) * * * * * to read as follows: ■ 22. In § 173.137, revise the pressure of 2,755 kPa (400 psig). Each introductory text to read as follows: vessel must be leak-checked during § 173.185 Lithium cell and batteries. manufacture and before shipment and * * * * * § 173.137 Class 8—Assignment of packing must be found leakproof. The complete group. inner unit must be securely packed in (c) * * * The packing group of a Class 8 non-combustible cushioning material, (3) * * * material is indicated in Column 5 of the such as vermiculite, in a strong outer (i) The mark must indicate the UN § 172.101 Table. When the § 172.101 tightly closed metal packaging which number: ‘‘UN3090’’ for lithium metal Table provides more than one packing will adequately protect all fittings. cells or batteries; or ‘‘UN3480’’ for group for a Class 8 material, the packing Maximum quantity of fuel per primary lithium ion cells or batteries. Where the group must be determined using data containment and package is 42 L (11 lithium cells or batteries are contained obtained from tests conducted in gallons); or in, or packed with, equipment, the UN accordance with the OECD Guidelines (b) The unit must consist of an number ‘‘UN3091’’ or ‘‘UN3481,’’ as for the Testing of Chemicals, Test No. aluminum pressure vessel. Primary appropriate, must be indicated. Where a 435, ‘‘In Vitro Membrane Barrier Test containment of the fuel within this package contains lithium cells or Method for Skin Corrosion’’ (IBR, see vessel must consist of a welded batteries assigned to different UN § 171.7 of this subchapter) or Test No. hermetically sealed fuel compartment numbers, all applicable UN numbers 404, ‘‘Acute Dermal Irritation/ with an elastomeric bladder having a must be indicated on one or more Corrosion’’ (IBR, see § 171.7 of this maximum internal volume of 46 L (12 marks. The package must be of such size subchapter). A material that is gallons). The pressure vessel must have that there is adequate space to affix the determined not to be corrosive in a minimum design gauge pressure of mark on one side without the mark accordance with OECD Guideline for 5,170 kPa (750 psig). Each vessel must being folded.
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(A) The mark must be in the form of receptacle must not contain more than inches) high. The size of the mark must a rectangle or a square with hatched 7.5 kg (17 pounds). be such that no side of the diamond is edging. The mark must be not less than * * * * * less than 50 mm (1.97 inches) in length 100 mm (3.9 inches) wide by 100 mm (e) In plywood drums (1D) with inner as measured from the outside of the (3.9 inches) high and the minimum metal receptacles that have threaded lines forming the border. For width of the hatching must be 5 mm (0.2 closures or alternate closures physically transportation by aircraft, the entire inches), except marks of 100 mm (3.9 held in place by a means capable of mark must appear on one side of the inches) wide by 70 mm (2.8 inches) high preventing back-off or loosening of the package. The proper shipping name may be used on a package containing closure due to conditions normally ‘‘Biological substances, Category B’’ lithium batteries when the package is incident to transportation (e.g., impact, must be marked on the outer packaging too small for the larger mark; vibration, etc.). Each inner metal adjacent to the diamond-shaped mark in * * * * * receptacle must not contain more than letters that are at least 6 mm (0.24 15 kg (33 pounds). inches) high. * * * ■ 26. In § 173.187, revise paragraphs (b), (f) In fiberboard drums (1G) with * * * * * (c), (e) and (f) to read as follows: inner metal receptacles that have ■ 28. Revise § 173.218 to read as threaded closures or alternate closures § 173.187 Pyrophoric solids, metals or follows: alloys, n.o.s. physically held in place by a means capable of preventing back-off or § 173.218 Fish meal or fish scrap. * * * * * loosening of the closure due to (a) Transportation by vessel. (1) (b) In wooden boxes (4C1, 4C2, 4D, or conditions normally incident to Except as provided in Column (7) of the 4F) with inner metal receptacles that transportation (e.g., impact, vibration, HMT in § 172.101 of this subchapter, have threaded closures or alternate etc.) Each inner metal receptacle must fish meal or fish scrap, containing at closures physically held in place by a not contain more than 15 kg (33 least 6%, but not more than 12% water, means capable of preventing back-off or pounds). is authorized for transportation in loosening of the closure due to * * * * * packagings as follows: conditions normally incident to ■ 27. In § 173.199, revise the first four (i) Burlap (jute) bag; transportation (e.g., impact, vibration, sentences in paragraph (a)(5) (ii) Multi-wall paper bag; etc.). Each inner metal receptacle must introductory text to read as follows: (iii) Polyethylene-lined burlap or not contain more than 15 kg (33 paper bag; § 173.199 Category B infectious pounds). (iv) Cargo tank; substances. (v) Portable tank; (c) In fiberboard boxes (4G) with inner (a) * * * (vi) Rail car; or metal receptacles that have threaded (5) The following square-on-point (vii) Freight container. closures or alternate closures physically mark must be displayed on the outer (2) The fish meal or fish scrap must held in place by a means capable of packaging on a background of contain at least 50 ppm (mg/kg) of preventing back-off or loosening of the contrasting color. The width of the line ethoxyquin, 100 ppm (mg/kg) of closure due to conditions normally forming the border must be at least 2 butylated hydroxytoluene (BHT), or 250 incident to transportation (e.g., impact, mm (0.08 inches) and the letters and ppm (mg/kg) of tocopherol-based vibration, etc.). Each inner metal numbers must be at least 6 mm (0.24 antioxidant at the time of shipment.
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Stabilization of fish meal or fish scrap § 173.221 Polymeric beads, expandable §§ 173.24(a)(1) and 173.27(e), and the must occur at the time of production and Plastic molding compound. following requirements: and the application must be within (a) For non-bulk shipments of (a) If the article, machinery, or twelve months prior to shipment. Polymeric beads (or granules), apparatus contains more than one (b) Transportation by air. (1) Except expandable evolving flammable vapor hazardous material, the materials must as provided in Column (7) of the HMT and Plastic molding compound in not be capable of reacting dangerously in § 172.101 of this subchapter, fish dough, sheet or extruded rope form, together. meal or fish scrap, containing at least evolving flammable vapor the following (b) The nature of the containment 6%, but not more than 12% water, is packagings are authorized: must be as follows— authorized for transportation in (1) Single packagings: Metal box (4A, (1) Damage to the receptacles packagings as follows: 4B, or 4N); Wooden box (4C1 or 4C2); containing the hazardous materials during transport is unlikely. However, (i) The following combination Plywood box (4D); Fiberboard box (4G); in the event of damage to the receptacles packagings are authorized: Reconstituted wood box (4F); Plastic containing the hazardous materials, no Outer packagings: Steel drum: 1A1 or box (4H1 or 4H2); Plywood drums: (1D) or Fiber drums (1G) with sealed inner leakage of the hazardous materials from 1A2; Aluminum drum: 1B1 or 1B2; the article, machinery or apparatus is Metal drum other than steel or plastic liners; in vapor tight metal or plastic drums (1A1, 1A2, 1B1, 1B2, 1N1, possible. A leakproof liner may be used aluminum: 1N1 or 1N2; Fiber drum: 1G; to satisfy this requirement. Plastic drum: 1H1 or 1H2; Steel jerrican: 1N2, 1H1 or 1H2); or in vapor tight metal or plastic jerricans (3A1, 3A2, (2) Receptacles containing hazardous 3A1 or 3A2; Plastic jerrican: 3H1 or materials must be secured and 3H2; Aluminum jerrican: 3B1 or 3B2; 3B1, 3B2, 3H1, or 3H2). (2) Combination packagings: (i) Outer cushioned so as to prevent their Steel box: 4A; Aluminum box: 4B; breakage or leakage and so as to control Natural wood box: 4C1 or 4C2; Plywood packagings: Steel drum: 1A1 or 1A2; Aluminum drum: 1B1 or 1B2; Plywood their shifting within the article, box: 4D; Reconstituted wood box: 4F; machinery, or apparatus during normal Fiberboard box: 4G; Solid plastic box: drum: 1D; Fiber drum: 1G; Plastic drum: 1H1 or 1H2; Metal drum other than steel conditions of transportation. Cushioning 4H2; or Metal box other than steel or material must not react dangerously aluminum: 4N. or aluminum: 1N1 or 1N2; Steel jerrican: 3A1 or 3A2; Plastic jerrican: with the content of the receptacles. Any Inner packagings: Glass, Fiber, Metal, 3H1 or 3H2; Aluminum jerrican: 3B1 or leakage of the contents must not or Plastic. 3B2; Steel box: 4A; Aluminum box: 4B; substantially impair the protective (ii) The following single packagings Natural wood box: 4C1 or 4C2; Plywood properties of the cushioning material. (3) Receptacles for gases, their are authorized: box: 4D; Reconstituted wood box: 4F; contents and filling densities must Steel drum: 1A1 or 1A2; Aluminum Fiberboard box: 4G; Plastic box: 4H1 or conform to the applicable requirements drum: 1B1 or 1B2; Plywood drum with 4H2; or Metal box other than steel or of this subchapter, unless otherwise liner: 1D; Plastic drum: 1H1 or 1H2; aluminum: 4N. approved by the Associate Fiber drum with liner: 1G; Metal drum (ii) Inner packagings: Glass other than steel or aluminum: 1N1 or Administrator. receptacles, Plastic receptacles, Metal (c)(1) Except for transportation by 1N2; Steel jerrican: 3A1 or 3A2; Plastic receptacles, Paper receptacles, Fiber jerrican: 3H1 or 3H2; Aluminum aircraft, the total net quantity of receptacles. hazardous materials contained in one jerrican: 3B1 or 3B2; Steel box: 4A; (3) Non-specification packagings Aluminum box: 4B; Metal box other item of an article, machinery, or when transported in dedicated vehicles apparatus must not exceed the than steel or aluminum: 4N; Natural or freight containers. The packagings wood box with liner: 4C2; Plywood box following: need not conform to the requirements (i) In the case of solids or liquids, the with liner: 4D; Reconstituted wood box for package testing in part 178 of this with liner: 4F; Fiberboard box with limited quantity amount specified in the subchapter, but must be capable of corresponding section referenced in liner: 4G; Solid plastic box: 4H2; Bag, containing any evolving gases from the woven plastic: 5H3; Bag, plastic film: Column (8A) of the § 172.101 Table; contents during normal conditions of (ii) 0.5 kg (1.1 pounds) in the case of 5H4; Bag, textile: 5L3; Bag, paper, transportation. multiwall, water resistant: 5M2; Plastic Division 2.2 gases. * * * * * (iii) When an article, machinery, or receptacle in steel, aluminum, plywood, ■ apparatus contains multiple hazardous fiber or plastic drum: 6HA1, 6HB1, 30. Revise § 173.222 to read as materials, the quantity of each 6HD1, 6HG1 or 6HH1; Plastic receptacle follows: hazardous material must not exceed the in steel, aluminum, wood, plywood or § 173.222 Dangerous goods in articles, quantity specified in the corresponding fiberboard box: 6HA2, 6HB2, 6HC, machinery, or apparatus. section referenced in Column (8A) of 6HD2, 6HG2 or 6HH2; or Cylinders, as Hazardous materials in articles, the § 172.101 Table, or for gases, prescribed for any compressed gas, machinery, or apparatus are excepted paragraph (c)(1)(ii) of this section. except for Specification 8 and 3HT. from the specification packaging (2) For transportation by aircraft, the (2) The fish meal or fish scrap must requirements of this subchapter when total net quantity of hazardous materials contain at least 50 ppm (mg/kg) of packaged according to this section. contained in one item of an article, ethoxyquin, 100 ppm (mg/kg) of Hazardous materials in articles, machinery, or apparatus must not butylated hydroxytoluene (BHT), or 250 machinery, or apparatus must be exceed the following: ppm (mg/kg) of tocopherol-based packaged in strong outer packagings, (i) 1 kg (2.2 pounds) in the case of antioxidant at the time of shipment. unless the receptacles containing the solids; Stabilization of fish meal or fish scrap hazardous materials are afforded (ii) 0.5 L (0.1 gallons) in the case of must occur at the time of production adequate protection by the construction liquids; and the application must be within of the article, machinery, or apparatus. (iii) 0.5 kg (1.1 pounds) in the case of twelve months prior to shipment. Each package must conform to the Division 2.2 gases. Division 2.2 gases ■ 29. In § 173.221, revise paragraph (a) packaging requirements of subpart B of with subsidiary risks and refrigerated to read as follows: this part, except for the requirements in liquefied gases are not authorized;
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(iv) A total quantity of not more than of this section the total quantity ■ b. Adding in paragraph (e), in the the aggregate of that permitted in required by § 172.202(c) of this Organic Peroxide IBC Table, entries for paragraphs (c)(2)(i) through (iii) of this subchapter to be entered on the ‘‘tert-Amyl peroxypivalate, not more section, for each category of material in shipping paper must be either the than 42% as a stable dispersion in the package, when a package contains aggregate quantity, or the estimated water’’ and ‘‘tert-Butyl peroxypivalate, hazardous materials in two or more of quantity, of all hazardous materials, not more than 42% in a diluent type A’’ the categories in paragraphs (c)(2)(i) expressed as net mass. in alphabetical order. through (iii) of this section; and ■ 31. In § 173.225: The revisions read as follows: (d) Except for transportation by ■ a. Revising in paragraph (c), in the § 173.225 Packaging requirements and aircraft, when a package contains Organic Peroxide Table, the entry ‘‘Di- other provisions for organic peroxides. hazardous materials in two or more of (4-tert-butylcyclohexyl) * * * * * the categories listed in paragraph (c)(1) peroxydicarbonate [as a paste]’’; and (c) * * * TABLE TO PARAGRAPH (c): ORGANIC PEROXIDE TABLE
Diluent (mass %) Temperature (°C) Technical name ID No. Concentration Water Packing Notes (mass %) A B I (mass %) method Control Emergency
(1) (2) (3) (4a) (4b) (4c) (5) (6) (7a) (7b) (8)
******* Di-(4-tert- UN3118 ≤ 42 ...... OP8 35 40 ...... butylcyclohexyl)peroxydicarbonate [as a paste].
*******
* * * * * (e) ** *
TABLE TO PARAGRAPH (e): ORGANIC PEROXIDE IBC TABLE
Maximum UN No. Organic peroxide Type of quantity Control tem- Emergency IBC (liters) perature temperature
******* 3119 ...... ORGANIC PEROXIDE, TYPE F, LIQUID, TEMPERATURE CON- ...... TROLLED.
******* tert-Amyl peroxypivalate, not more than 42% as a stable dispersion in 31HA1 1000 0 °C +10 °C water. tert-Butyl peroxypivalate, not more than 42% in a diluent type A ...... 31HA1 1000 10 °C 15°C 31A 1250 10 °C 15°C
*******
* * * * * conform to the requirements in ISO receptacle by one of the following ■ 32. In § 173.301b, revise paragraphs 10297:2014(E), and ISO 10297:2014/ methods: (a)(2) and (c) to read as follows: Amd 1:2017 (see § 171.7 of this (i) By constructing the pressure subchapter). Quick release cylinder § 173.301b Additional general receptacle so that the valves are requirements for shipment of UN pressure valves for specification and type testing recessed inside the neck of the UN receptacles. must conform to the requirements in pressure receptacle and protected by a (a) * * * ISO 17871:2015(E) (IBR, see § 171.7 of threaded plug or cap; (2) The gases or gas mixtures must be this subchapter). Until December 31, (ii) By equipping the UN pressure compatible with the UN pressure 2020, the manufacture of a valve receptacle with a valve cap conforming receptacle and valve materials as conforming to the requirements in ISO to the requirements in ISO prescribed for metallic materials in ISO 10297:2006(E) (IBR, see § 171.7 of this 11117:2008(E) and Technical 11114–1:2012(E) and ISO 11114– subchapter) was authorized. Until Corrigendum 1 (IBR, see § 171.7 of this 1:2012/Amd 1:2017(E) (IBR, see § 171.7 December 31, 2008, the manufacture of subchapter). Until December 31, 2014, of this subchapter) and for non-metallic a valve conforming to the requirements the manufacture of a valve cap materials in ISO 11114–2:2013(E) (IBR, in ISO 10297:1999(E) (IBR, see § 171.7 conforming to the requirements in ISO see § 171.7 of this subchapter). of this subchapter) was authorized. 11117:1998(E) (IBR, see § 171.7 of this * * * * * (2) A UN pressure receptacle must subchapter) was authorized. The cap (c) Pressure receptacle valve have its valves protected from damage must have vent-holes of sufficient cross- requirements. (1) When the use of a that could cause inadvertent release of sectional area to evacuate the gas if valve is prescribed, the valve must the contents of the UN pressure leakage occurs at the valve;
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(iii) By protecting the valves by are afforded equivalent protection by to prevent a dangerous build-up of shrouds or guards conforming to the the article in which they are contained; pressure. requirements in ISO 11117:2008(E) and * * * * * (3) Receptacles, small, containing gas Technical Corrigendum 1 (IBR; see (3) * * * or gas cartridges for recycling or § 171.7 of this subchapter). Until (iv) Accumulators must be packaged disposal must not be transported in December 31, 2014, the manufacture of in strong outer packaging. Robust closed freight containers. a shroud or guard conforming to the accumulators may be transported (4) Receptacles, small, containing gas requirements in ISO 11117:1998(E) (IBR, unpackaged, in crates, or in appropriate or gas cartridges for recycling or see § 171.7 of this subchapter) was overpacks when the hazardous materials disposal that were filled with Division authorized. For metal hydride storage are afforded equivalent protection by 2.2 gases and have been pierced are not systems, by protecting the valves in the article in which they are contained. subject to the requirements of this accordance with the requirements in * * * * * subchapter. ■ 35. In § 173.335, revise paragraph (d) ISO 16111:2008(E) (IBR; see § 171.7 of (n) Receptacles, small, containing gas to read as follows: this subchapter). or gas cartridges for recycling or (iv) By using valves designed and disposal. Receptacles, small, containing § 173.335 Chemical under pressure n.o.s. constructed with sufficient inherent gas or gas cartridges not exceeding 1.0 strength to withstand damage in * * * * * L (0.3 gallons) capacity may be offered (d) Periodic inspection. accordance with Annex B of ISO for transportation for the purposes of 10297:2014(E); (1) Except as specified in (d)(2) of this recycling or disposal. Receptacles, section, the maximum requalification (v) By enclosing the UN pressure small, containing gas or gas cartridges receptacles in frames (e.g., bundles of test period for cylinders transporting are not required to be protected against chemical under pressure n.o.s. is 5 cylinders); shifting and inadvertent discharge if (vi) By packing the UN pressure years. measures to prevent dangerous build-up receptacles in a strong outer package, (2) For cylinders with maximum of pressure and dangerous atmospheres such as a box or crate, capable of capacity of 450 L or less and filled with are addressed and are excepted from the meeting the drop test specified in materials used as fire extinguishing specification packaging requirements of § 178.603 of this subchapter at the agents, the maximum requalification this subchapter when packaged and Packing Group I performance level; or test period is 10 years. offered in accordance with this (vii) By using valves designed and * * * * * paragraph (n). constructed in accordance with Annex (1) Receptacles, small containing gas A of ISO 17879:2017(E) (IBR, see § 171.7 PART 175—CARRIAGE BY AIRCRAFT or gas cartridges for recycling or of this subchapter) for UN pressure disposal, other than those that are ■ 36. The authority citation for part 175 receptacles with self-closing valves with leaking or severely deformed, must be continues to read as follows: inherent protection (except those in packaged as follows: acetylene service). Authority: 49 U.S.C. 5101–5128, 44701; 49 (i) The receptacles, small, containing CFR 1.81 and 1.97. * * * * * gas or gas cartridges must be packaged ■ 33. In § 173.304b, revise paragraph ■ 37. In § 175.8, add paragraph (b)(5) to in a strong outer packaging. The strong read as follows: (b)(2) to read as follows: outer packaging and its contents must § 173.304b Additional requirements for not exceed a gross weight of 55 kg (121 § 175.8 Exceptions for operator equipment shipment of liquefied compressed gases in pounds) for fiberboard packagings or and items of replacement. UN pressure receptacles. 125 kg (275 pounds) for other * * * * * * * * * * packagings; and (b) * * * (b) * * * (ii) Packagings must be adequately (5) Alcohol-based hand sanitizers and (2) For low pressure liquefied gases, ventilated to prevent the creation of alcohol-based cleaning products that are the maximum mass in kilograms of dangerous atmospheres and build-up of accessible to crewmembers for use on contents per liter of water capacity must pressure. the aircraft during the flight or series of be less than or equal to 95 percent of the (2) Rigid large packagings are flights for the purposes of passenger and liquid phase at 50 °C. In addition, the authorized conforming to the packing crew hygiene. Conditions for the UN pressure receptacle may not be group II performance level made of: carriage and use must be described in an liquid full at 60 °C. The test pressure of (i) Steel (50A); Aluminum (50B); operations manual and/or other the pressure receptacle must be equal to Metal other than steel or aluminum appropriate manuals. or greater than the vapor pressure of the (50N); Rigid plastics (50H); Natural ■ 38. In § 175.9, revise paragraph liquid at 65 °C. wood (50C); Plywood (50D); (b)(5)(ii) to read as follows: Reconstituted wood (50F); Rigid * * * * * § 175.9 Special aircraft operations. ■ 34. In § 173.306, revise paragraphs fiberboard (50G). (ii) Large packagings must be (b) * * * (f)(2)(i) and (3)(iv), and add paragraph (5) * * * (n) to read as follows: designed and constructed to prevent dangerous shifting and inadvertent (ii) Each type of battery used is either § 173.306 Limited quantities of discharge during normal conditions of nonspillable, lithium metal, or lithium compressed gases. transport; ion. Lithium metal or lithium ion * * * * * (iii) Large packagings must be batteries must meet the provisions of (f) * * * adequately ventilated to prevent the § 173.185(a) of this subchapter. Spare (2) * * * creation of dangerous atmospheres and batteries must be individually protected (i) Each accumulator must be shipped the build-up of pressure; and to prevent short circuits when not in as an inside packaging. Robust (iv) Leaking or severely deformed use; accumulators may be transported containers must be transported in * * * * * unpackaged, in crates, or in appropriate salvage cylinders or salvage packagings ■ 39. In § 175.10, revise paragraphs overpacks when the hazardous materials provided adequate measures are taken (a)(1) and (11) to read as follows:
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§ 175.10 Exceptions for passengers, safety device(s) and spare cartridges only aircraft must be loaded in an crewmembers, and air operators. may be carried in carry-on or checked accessible manner. * * * * * baggage, with the approval of the * * * * * (a) * * * aircraft operator, and must be packed in (f) * * * (1)(i) Non-radioactive medicinal and such a manner that they cannot be toilet articles for personal use (including accidently activated. Note 1: The following materials are not aerosols) carried in carry-on and subject to this loading restriction— * * * * * a. Class 3, PG III (unless the substance is checked baggage. Release devices on ■ 40. In § 175.75, revise paragraph (b) aerosols must be protected by a cap or also labeled CORROSIVE). and Note 1 to the Quantity and Loading b. Division 6.1 (unless the substance is also other suitable means to prevent Table in paragraph (f) to read as follows: labeled for any hazard class or division inadvertent release; except FLAMMABLE LIQUID). (ii) Other aerosols in Division 2.2 § 175.75 Quantity limitations and cargo c. Division 6.2. (nonflammable gas) with no subsidiary location. d. Class 7 (unless the hazardous material risk carried in carry-on or checked * * * * * meets the definition of another hazard class). baggage. Release devices on aerosols (b) Hazardous materials stowage. (1) e. Class 9, Limited Quantity, or Excepted must be protected by a cap or other Except as otherwise provided in this Quantity material. suitable means to prevent inadvertent subchapter, no person may carry a f. Articles of Identification Numbers release; hazardous material in the cabin of a UN0012, UN0014, or UN0055 also meeting (iii) The aggregate quantity of these the requirements of § 173.63(b). passenger-carrying aircraft or on the g. Articles of Identification Numbers hazardous materials carried by each flight deck of any aircraft, and the UN3528 or UN3529. person may not exceed 2 kg (70 ounces) hazardous material must be located in a by mass or 2 L (68 fluid ounces) by place that is inaccessible to persons * * * * * volume and the capacity of each other than crew members. container may not exceed 0.5 kg (18 (2) Hazardous materials may be PART 176—CARRIAGE BY VESSEL ounces) by mass or 500 ml (17 fluid carried in a main deck cargo ■ 41. The authority citation for part 176 ounces) by volume; and compartment of a passenger aircraft continues to read as follows: (iv) The release of gas must not cause provided that the compartment is extreme annoyance or discomfort to inaccessible to passengers and that it Authority: 49 U.S.C. 5101–5128; 49 CFR crew members so as to prevent the meets all certification requirements for: 1.81 and 1.97. correct performance of assigned duties. A Class B aircraft cargo compartment in ■ 42. In § 176.84, in the paragraph (b) * * * * * 14 CFR 25.857(b); or a Class C aircraft table, revise code 4, add codes 155, 156, (11) No more than two self-inflating cargo compartment in 14 CFR 25.857(c). and 157 in numerical order, and in the personal safety devices, intended to be (3) A package bearing a ‘‘KEEP AWAY paragraph (c)(2) table, revise provisions worn by a person such as a life jacket FROM HEAT’’ handling marking must 19E and 22E to read as follows: or vest, fitted with no more than two be protected from direct sunshine and small gas cartridges per device stored in a cool and ventilated place, § 176.84 Other requirements for stowage, (containing no hazardous material other away from sources of heat. cargo handling, and segregation for cargo than a Division 2.2 gas) for inflation (4) Except as provided in paragraph (f) vessels and passenger vessels. purposes plus no more than two spare of this section, a package containing a * * * * * cartridges per device. The personal hazardous material acceptable for cargo- (b) * * *
Code Provisions
******* 4 ...... Shall not be stowed together with combustible material in the same cargo transport unit.
******* 155 ...... Avoid handling the package or keep handling to a minimum. Inform the appropriate public health authority or veterinary authority where persons or animals may have been exposed. 156 ...... For lithium batteries transported in accordance with § 173.185(f) or for purposes of disposal or recycling, stowage category C applies. 157 ...... For aerosols and gas receptacles transported for purposes of recycling or disposal, stowage category C applies, and stowage must be clear of living quarters.
*******
* * * * * (2) * * * (c) * * *
Notes Provisions
******* 19E ...... ‘‘Separated from’’ explosives containing chlorates or perchlorates.
******* 22E ...... ‘‘Separated from’’ ammonium compounds and explosives containing ammonium compounds or salts.
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Notes Provisions
*******
PART 178—SPECIFICATIONS FOR in ISO 10297:2006(E) (IBR, see § 171.7 (viii) ISO 11119–3:2013(E) Gas PACKAGINGS of this subchapter) was authorized. cylinders— Refillable composite gas Until December 31, 2008, the cylinders and tubes—Design, ■ 43. The authority citation for part 178 manufacture of a valve conforming to construction and testing—Part 3: Fully continues to read as follows: the requirements in ISO 10297:1999 (E) wrapped fibre reinforced composite gas Authority: 49 U.S.C. 5101–5128; 49 CFR (IBR, see § 171.7 of this subchapter) was cylinders and tubes up to 450 L with 1.81 and 1.97. authorized. Additionally, valves must non-load-sharing metallic or non- ■ 44. In § 178.3, revise paragraph (a)(4) be initially inspected and tested in metallic liners (IBR, see § 171.7 of this to read as follows: accordance with ISO 14246:2014(E) and subchapter). ISO 14246:2014/Amd 1:2017(E), Gas (ix) ISO 11119–4:2016 Gas § 178.3 Marking of packagings. cylinders—Cylinder valves— cylinders—Refillable composite gas (a) * * * Manufacturing tests and examinations cylinders—Design, construction and (4) Unless otherwise specified, letters (IBR, see § 171.7 of this subchapter). For testing—Part 4: Fully wrapped fibre and numerals must be at least 12.0 mm self-closing valves with inherent reinforced composite gas cylinders up to (0.47 inches) in height except for protection, the requirements of ISO 150 L with load-sharing welded metallic packagings of less than or equal to 30 L 17879:2017(E) (IBR, see § 171.7 of this liners (IBR, see § 171.7 of this (7.9 gallons) capacity for liquids or 30 subchapter) shall be met until further subchapter). kg (66 pounds) maximum net mass for notice. * * * * * ■ solids the height must be at least 6.0 * * * * * 47. In § 178.275, revise paragraph mm (0.2 inches). For packagings having (l) * * * (i)(2)(i)(A) to read as follows: a capacity of 5 L (1.3 gallons) or less or (1) * * * § 178.275 Specification for UN Portable of 5 kg (11 pounds) maximum net mass, (iv) ISO 11119–4:2016(E) (IBR, see Tanks intended for the transportation of letters and numerals must be of an § 171.7 of this subchapter). Until liquid and solid hazardous materials. appropriate size. December 31, 2020, cylinders * * * * * * * * * * conforming to the requirements in ISO (i) * * * ■ 45. In § 178.71 by: 11119–4(E) (IBR, see § 171.7 of this (2) * * * ■ a. Revising paragraph (d)(2); subchapter) was authorized. (i) * * * ■ b. Adding paragraph (l)(1)(iv), and * * * * * (A) To determine the total required ■ c. Revising paragraph (o)(1) (o) * * * capacity of the relief devices, which The revisions and additions read as (1) ISO 11114–1:2012(E) and 11114– must be regarded as being the sum of follows: 1:2012/Amd 1:2017(E) (IBR, see § 171.7 the individual capacities of all the of this subchapter). contributing devices, the following § 178.71 Specifications for UN pressure * * * * * formula must be used: receptacles. ■ 46. In § 178.75, revise paragraph (d)(3) * * * * * introductory text and add paragraphs Q =12.4 F.A.'82 /if (d) * * * (d)(3)(vi) through (ix) to read as follows: LC (2) Service equipment must be '\JM configured, or designed, to prevent § 178.75 Specifications for MEGCs. Where: damage that could result in the release * * * * * Q = minimum required rate of discharge in m3 cubic meters of air per second ( /s) at of the pressure receptacle contents (d) * * * ° ° during normal conditions of handling (3) Each pressure receptacle of a conditions: 1 bar and 0 C (273 K); MEGC must be of the same design type, F = for uninsulated shells: 1; for insulated and transport. Manifold piping leading shells: U(649¥t)/13.6 but in no case, is to shut-off valves must be sufficiently seamless steel or composite, and less than 0.25 flexible to protect the valves and the constructed and tested according to one Where: of the following ISO standards, as piping from shearing or releasing the U = heat transfer coefficient of the insulation, pressure receptacle contents. The filling appropriate: in kW m¥2K¥1, at 38 °C (100 °F); and t and discharge valves and any protective * * * * * = actual temperature of the hazardous caps must be secured against (vi) ISO 11119–1:2012(E), Gas material during filling (in °C) or when unintended opening. The valves must cylinders—Refillable composite gas this temperature is unknown, let t = 15 conform to ISO 10297:2014(E) and ISO cylinders and tubes—Design, °C (59 °F). The value of F given in this 10297:2014/Amd 1:2017(E), or for non- construction and testing—Part 1: Hoop paragraph (i)(2)(i)(A) for insulated shells refillable pressure receptacles valves may only be used if the insulation is in wrapped fibre reinforced composite gas conformance with paragraph (i)(2)(iv) of manufactured until December 31, 2020, cylinders and tubes up to 450 L (IBR, this section; ISO 13340:2001(E) (IBR, see § 171.7 of see § 171.7 of this subchapter). A = total external surface area of shell in this subchapter), and be protected as (vii) ISO 11119–2:2012(E) and ISO square meters; specified in § 173.301b(f) of this 11119–2:2012/Amd.1:2014(E), Gas Z = the gas compressibility factor in the subchapter. Until December 31, 2022, cylinders—Refillable composite gas accumulating condition (when this factor is unknown, let Z equal 1.0); the manufacture of a valve conforming cylinders and tubes—Design, ° to the requirements of ISO construction and testing—Part 2: Fully T = absolute temperature in Kelvin ( C + 273) above the pressure relief devices in the 10297:2014(E) (IBR, see § 171.7 of this wrapped fibre reinforced composite gas accumulating condition; subchapter) is authorized. Until cylinders and tubes up to 450 L with L = the latent heat of vaporization of the December 31, 2020, the manufacture of load-sharing metal liners (both IBR, see liquid, in kJ/kg, in the accumulating a valve conforming to the requirements § 171.7 of this subchapter). condition;
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M = molecular weight of the hazardous protective properties under normal receptacle and include an indication material. conditions of transport. that the marking applies to the inner * * * * * (7) Maximum capacity of drum: 450 L receptacle. ■ 48. In § 178.505, redesignate (119 gallons). * * * * * (8) Maximum net mass: 400 kg (882 paragraphs (b)(6) and (7) as (b)(7) and (7) * * * pounds). (8), respectively, and add new (iv) For IBCs designed for stacking, paragraph (b)(6) to read as follows: ■ 50. In § 178.609, revise paragraph (g) to read as follows: the maximum permitted stacking load § 178.505 Standards for aluminum drums. must be displayed with the symbol. The § 178.609 Test requirements for mass in kilograms (kg) marked above the * * * * * packagings for infectious substances. (b) * * * symbol must not exceed the load * * * * * imposed during the design test, as (6) If materials used for body, heads, (g) Where packaging is intended to indicated by the marking in paragraph closures, and fittings are not compatible contain dry ice, an additional drop test (a)(1)(vii) of this section, divided by 1.8. with the contents to be transported, to that specified in paragraph (d), and The letters and numbers indicating the suitable internal protective coatings or when appropriate, (e) or (f) of this mass must be at least 12 mm (0.48 treatments must be applied. These section must be performed on one inches). coatings or treatments must retain their sample in one of the orientations ■ 52. In § 178.705, revise paragraph protective properties under normal described in (d)(1) or (d)(2) of this conditions of transport. (c)(1)(iv) introductory text to read as section, as appropriate, which is most follows: (7) Maximum capacity of drum: 450 L likely to result in failure of the (119 gallons). packaging. The sample must be stored § 178.705 Standards for metal IBCs. (8) Maximum net mass: 400 kg (882 so that all the dry ice dissipates prior to * * * * * pounds). being subjected to the drop test. (c) * * * ■ 49. In § 178.506, redesignate * * * * * (1) * * * paragraphs (b)(6) and (7) as (b)(7) and ■ 51. In § 178.703, revise paragraphs (iv) Minimum wall thickness. For (8), respectively, and add new (b)(6) introductory text and (b)(7)(iv) to metal IBCs with a capacity of more than paragraph (b)(6) to read as follows: read as follows: 1500 liters, the minimum wall thickness § 178.506 Standards for metal drums other § 178.703 Marking of IBCs. must be determined as follows: than steel or aluminum. * * * * * (A) For a reference steel having a * * * * * (b) * * * product of Rm × Ao = 10,000, where Ao (b) * * * (6) For each composite IBC, the inner is the minimum elongation (as a (6) If materials used for body, heads, receptacle must be marked with at least percentage) of the reference steel to be closures, and fittings are not compatible the following information. The marking used on fracture under tensile stress with the contents to be transported, must be visible while inside of the outer (Rm × Ao = 10,000 × 145; if tensile suitable internal protective coatings or receptacle. If the marking is not visible strength is in U.S. Standard units of treatments must be applied. These from the outer receptacle, the marking pounds per square inch), the wall coatings or treatments must retain their must be duplicated on the outer thickness must not be less than:
WALL THICKNESS (T) IN MM
Types 11A, 11B, 11N Types 21A, 21B, 21N, 31A, 31B, 31N Unprotected Protected Unprotected Protected
T = C/2000 + 1.5 ...... T = C/2000 + 1.0 ...... T = C/1000 + 1.0 ...... T = C/2000 + 1.5
* * * * * (3) Dissolved acetylene UN cylinders: (7) UN cylinder bundles: UN cylinder Each dissolved acetylene cylinder must bundles containing compressed, PART 180—CONTINUING be requalified in accordance with ISO liquefied, and dissolved gas must be QUALIFICATION AND MAINTENANCE 10462:2013(E) (IBR, see § 171.7 of this inspected and tested in accordance with OF PACKAGINGS subchapter). A cylinder requalified in ISO 20475:2018(E) (IBR, see § 171.7 of ■ 53. The authority citation for part 180 accordance with ISO 10462(E) up until this subchapter). continues to read as follows: December 31, 2018, may continue to be used until the next required Issued in Washington, DC on July 15, 2021, Authority: 49 U.S.C. 5101–5128; 49 CFR requalification. The porous mass and under authority delegated in 49 CFR 1.97. 1.81 and 1.97. the shell must be requalified no sooner William S. Schoonover, ■ 54. In § 180.207, revise paragraph than 3 years, 6 months, from the date of Associate Administrator for Hazardous (d)(3) and add (7) to read as follows: manufacture. Thereafter, subsequent Materials Safety, Pipeline and Hazardous requalifications of the porous mass and Materials Safety Administration. § 180.207 Requirements for requalification shell must be performed at least once [FR Doc. 2021–15425 Filed 8–9–21; 8:45 am] of UN pressure receptacles. every ten years. BILLING CODE 4910–60–P * * * * * * * * * * (d) * * *
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Vol. 86 Tuesday, No. 151 August 10, 2021
Part V
The President
Notice of August 6, 2021—Continuation of the National Emergency With Respect to Export Control Regulations
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Federal Register Presidential Documents Vol. 86, No. 151
Tuesday, August 10, 2021
Title 3— Notice of August 6, 2021
The President Continuation of the National Emergency With Respect to Ex- port Control Regulations
On August 17, 2001, the President issued Executive Order 13222 pursuant to the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.). In that order, the President declared a national emergency with respect to the unusual and extraordinary threat to the national security, foreign policy, and economy of the United States related to the expiration of the Export Administration Act of 1979, as amended. Because the implementation of certain sanctions authorities, including sections 11A, 11B, and 11C of such Export Administration Act of 1979, consistent with section 1766(b) of Public Law 115–232, the Export Control Reform Act (50 U.S.C. 4601 note), is to be carried out under the International Emergency Economic Powers Act, the national emergency declared on August 17, 2001, must continue in effect beyond August 17, 2021. Therefore, in accordance with section 202(d) of the National Emergencies Act (50 U.S.C. 1622(d)), I am continuing for 1 year the national emergency declared in Executive Order 13222, as amended by Executive Order 13637 of March 8, 2013. This notice shall be published in the Federal Register and transmitted to the Congress.
THE WHITE HOUSE, August 6, 2021. [FR Doc. 2021–17195 Filed 8–9–21; 11:15 am] Billing code 3295–F1–P
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Reader Aids Federal Register Vol. 86, No. 151 Tuesday, August 10, 2021
CUSTOMER SERVICE AND INFORMATION CFR PARTS AFFECTED DURING AUGUST
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. 1204...... 43412 Presidential Documents 3 CFR Proposed Rules: Executive orders and proclamations 741–6000 Executive Orders: 39 ...... 41410, 41786, 41788, The United States Government Manual 741–6000 14037...... 43583 41791, 41794, 42754, 43437, Other Services Administrative Orders: 43440, 43443, 43446, 43449, Memorandums: 43451, 43454 Electronic and on-line services (voice) 741–6020 Memorandum of 71 ...... 41412, 43144, 43456 Privacy Act Compilation 741–6050 August 6, 2021...... 43587 Notices: 18 CFR ELECTRONIC RESEARCH Notice of August 6, 4...... 42710 2021 ...... 43901 5...... 42710 World Wide Web 153...... 43077 6 CFR 157...... 43077 Full text of the daily Federal Register, CFR and other publications 27...... 41889 284...... 43590 is located at: www.govinfo.gov. Federal Register information and research tools, including Public 7 CFR 19 CFR Inspection List and electronic text are located at: 205...... 41699 Proposed Rules: www.federalregister.gov. 407...... 42681 102...... 42758 761...... 43381 177...... 42758 E-mail 762...... 43381 FEDREGTOC (Daily Federal Register Table of Contents Electronic 764...... 43381 20 CFR Mailing List) is an open e-mail service that provides subscribers 765...... 43381 404...... 41382 with a digital form of the Federal Register Table of Contents. The 766...... 43381 digital form of the Federal Register Table of Contents includes 769...... 43381 21 CFR HTML and PDF links to the full text of each document. 1470...... 41702 201...... 41383 To join or leave, go to https://public.govdelivery.com/accounts/ Proposed Rules: 801...... 41383 959...... 42748 USGPOOFR/subscriber/new, enter your email address, then 22 CFR follow the instructions to join, leave, or manage your 980...... 42748 subscription. Proposed Rules: 10 CFR 51...... 43458 PENS (Public Law Electronic Notification Service) is an e-mail Ch. I ...... 43397 service that notifies subscribers of recently enacted laws. 72...... 42681 26 CFR To subscribe, go to http://listserv.gsa.gov/archives/publaws-l.html Proposed Rules: 1...... 42715, 42716 and select Join or leave the list (or change settings); then follow 72...... 42751 the instructions. 73...... 43599 29 CFR FEDREGTOC and PENS are mailing lists only. We cannot 429...... 43120 Proposed Rules: respond to specific inquiries. 430...... 41759, 43429 10...... 41907 431...... 43430 23...... 41907 Reference questions. Send questions and comments about the Federal Register system to: [email protected] 11 CFR 30 CFR The Federal Register staff cannot interpret specific documents or Proposed Rules: Proposed Rules: regulations. 104...... 42753 950...... 41907 109...... 42753 33 CFR FEDERAL REGISTER PAGES AND DATE, AUGUST 12 CFR 100...... 43087 41381–41698...... 2 7...... 42686 165 ...... 41402, 41404, 41713, 41699–41888...... 3 Proposed Rules: 41715, 42716, 43089, 43091, 41889–42680...... 4 210...... 43143 43413 42681–43074...... 5 330...... 41766 Proposed Rules: 43075–43380...... 6 100...... 41798, 41909 43381–43582...... 9 14 CFR 165...... 42758 43583–43902...... 10 39 ...... 42687, 42689, 42689, 328...... 41911 42691, 42694, 42696, 42698, 34 CFR 42701, 43075, 43404, 43406, 43409 Ch. III ...... 42718 71 ...... 41702, 41704, 41705, Proposed Rules: 41707, 41708, 41709, 41712, Ch. VI...... 43609 41894, 43411, 43589 97...... 42704, 42708 38 CFR 250...... 41381 3...... 42724 254...... 41381 38...... 43091 382...... 41382 39...... 43091
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